National Presto Industries Reports 42% Revenue Growth in Q2 2025, Net Earnings Decline

National Presto Industries, Inc. reported significant financial results for the second quarter and first half of 2025, with net sales reaching $120.4 million for the quarter, a 42% increase from $85.1 million in the same period last year. For the first six months, net sales totaled $224.1 million, up 39% from $161.7 million in 2024. However, net earnings for the second quarter decreased to $5.2 million, down 15% from $6.1 million in the prior year, while net earnings for the first half increased slightly to $12.8 million from $12.6 million. The company attributed the decline in quarterly earnings to increased costs and an impairment charge related to a vendor deposit.

The company's gross profit for the second quarter was $18.5 million, a 26% increase from $14.7 million in the previous year, while gross profit for the first half rose to $36.7 million from $28.6 million. The increase in gross profit was primarily driven by a substantial rise in sales from the Defense segment, which saw a 51% increase in net sales, reflecting higher shipments from its backlog. Conversely, the Housewares/Small Appliances segment experienced a decline in gross profit due to tariffs and increased material costs, despite a 9% increase in sales.

Operationally, National Presto's total assets increased to $471.9 million as of June 29, 2025, compared to $453.4 million at the end of 2024. The company reported a decrease in cash and cash equivalents to $1.8 million from $17.7 million, largely due to increased investments in inventory and capital expenditures, which totaled $25.4 million in the first half of 2025, compared to $1.0 million in the same period last year. The company also reported a line of credit of $12.6 million, reflecting its strategy to manage liquidity amid rising operational costs.

In terms of strategic developments, National Presto continues to focus on its Defense segment, which has been bolstered by a recent $101.1 million option award from the U.S. Army for its 40mm systems contract. The company also divested certain assets of its subsidiary, OneEvent Technologies, for $279,000, retaining key intellectual property while streamlining operations. The company anticipates further acquisitions and capital investments to support growth across its segments.

Looking ahead, National Presto expects to continue leveraging its strong backlog in the Defense segment while addressing challenges in the Housewares/Small Appliances segment due to external cost pressures. The company remains committed to evaluating acquisition opportunities that align with its business strategy and maintaining sufficient liquidity to support its operational and growth initiatives.