NATIONAL PRESTO INDUSTRIES INC (NPK) Q1 2025 Earnings Summary
Executive Summary
- Q1 2025 revenue rose 35.2% year over year to $103.639M, EPS increased to $1.07 from $0.92, driven by sizable Defense backlog shipments; sequentially, revenue fell 23.1% vs Q4 2024 and EPS declined from $2.91 reflecting seasonality and tariff headwinds .
- Management highlighted Defense operating earnings up $4.9M (+58.6%) YoY; Housewares/Small Appliance posted an operating loss on mix and higher material costs; Safety segment reported a loss as anticipated .
- Trump tariffs on goods “deemed shipped from the Orient after January 31” were raised to 145%, leading the company to place new product announcements/purchases on hold—an earnings and growth headwind .
- No formal earnings call or transcript available; S&P Global consensus estimates appear unavailable for Q1 (EPS and revenue), limiting beat/miss framing; shares fell ~8% post-print per media coverage, suggesting investor focus on tariff impacts and lack of incremental catalysts .
What Went Well and What Went Wrong
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What Went Well
- Defense segment sales up $25.9M (+47.1%) YoY, with operating earnings up $4.9M (+58.6%), reflecting accelerated shipments from backlog .
- Consolidated net sales rose 35.2% and EPS increased to $1.07; “All three segments enjoyed increased sales during first quarter 2025 from those reported in 2024” (Maryjo Cohen) .
- Q4 2024 demonstrated strong finish to the year and progress at Housewares: FY24 net sales +13.9% YoY and EPS $5.82; Housewares operating earnings up 71.4% YoY on better mix and favorable LIFO adjustment .
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What Went Wrong
- Housewares/Small Appliance segment reported an operating loss due to less favorable mix and higher material costs; Safety segment remained loss-making as anticipated .
- Tariffs surged to 145%, treated as period costs, pressuring margins and prompting suspension of new product announcements/purchases .
- Portfolio earnings were “nominal” as liquid assets were deployed to inventory supporting augmented Defense awards, echoing prior commentary on reduced investment income .
Financial Results
Note: * Values retrieved from S&P Global.
Segment highlights (Q1 2025):
- Defense: Sales +$25.9M (+47.1% YoY); operating earnings +$4.9M (+58.6%) .
- Housewares/Small Appliance: Operating loss driven by mix/material costs; tariffs pressured profitability .
- Safety: Loss as anticipated .
Selected KPIs:
Guidance Changes
Earnings Call Themes & Trends
No earnings call transcript available for Q1 2025; themes tracked from press releases.
Management Commentary
- “All three segments enjoyed increased sales during first quarter 2025 from those reported in 2024. Defense segment sales were up sizably—$25.9 million or 47.1%, reflecting increased shipments from its backlog…” — Maryjo Cohen, President .
- “In contrast, the Housewares/Small Appliance segment reported an operating loss chiefly due to a less favorable mix and higher material costs… With the President’s so-called ‘Liberation Day’ proclamation, the Trump tariffs are now at 145%… new products and their purchase have been placed on hold.” .
- FY24 context: “Net 2024 consolidated sales increased $47.3 million or 13.9% to $388.2 million… Net earnings were up $6.9 million or 20% to $41.5 million ($5.82 per share)… Defense sales increased $42.3 million or 17.5%… Housewares operating earnings increased 71.4%… Safety segment reported a loss… backlog now exceeds one-billion dollars.” .
- Q3 2024: “Net sales… up $8.7 million or 10.4%… Defense segment shipments from backlog up $5.48 million or 8.9%… Housewares revenue up $3.3 million or 15.2%… Housewares operating earnings up $1 million or 131.6%…” .
Q&A Highlights
- No formal earnings call or public transcript identified for Q1 2025; the company communicated via press release only .
Estimates Context
- S&P Global consensus coverage appears unavailable for Q1 2025; queries for “Primary EPS Consensus Mean” and “Revenue Consensus Mean” returned no consensus values for EPS or revenue (only actuals available) for Q1 2025. In the absence of consensus, beat/miss framing is not possible for this quarter. Values retrieved from S&P Global.
Key Takeaways for Investors
- Defense remains the core growth engine; backlog conversion accelerated, lifting sales and operating earnings—monitor award cadence and inventory build implications on cash and portfolio income .
- Tariff escalation to 145% is a material earnings and product-cycle headwind; the pause on new product announcements suggests near-term growth constraints in Housewares .
- Sequential normalization from a strong Q4 base drove lower Q1 revenue/EPS; watch margin resilience in upcoming quarters as tariffs flow through cost of goods .
- Safety segment continues to operate at a loss despite certification progress; contribution remains a drag near term .
- Dividend policy is conservative given Defense inventory funding needs; regular $1.00 maintained, no extra dividend in 2025, aligning capital with backlog execution .
- Lack of Street estimates and no earnings call limit catalysts and external validation; stock’s ~8% post-print drop underscores sensitivity to tariff/mix narratives .
- Near-term strategy: focus on tariff developments, Defense shipment schedules, Housewares mix/material cost mitigation, and any visibility on resuming product introductions to rebuild consumer momentum .