NATIONAL PRESTO INDUSTRIES INC (NPK) Q3 2025 Earnings Summary

Executive Summary

Revenue rose 25.7% year over year to $115.463M, driven by increased Defense segment shipments from backlog; EPS was $0.74 versus $1.13 a year ago, reflecting tariff-related pressure on Housewares/Small Appliance and mix/material factors .
Sequentially, revenue declined ~~4% vs Q2 ($120.449M → $115.463M), while EPS ticked up (~~$0.72 → $0.74), indicating margin resilience despite lower sales volumes .
Management highlighted sizable operating loss in Housewares/Small Appliance tied to 145% “Trump tariffs” treated as period costs under LIFO, and retailers’ initial reluctance to accept tariff-induced price increases .
No formal guidance or dividend announcements were provided/found for Q3 2025; Wall Street consensus coverage via S&P Global appears unavailable for EPS and revenue, limiting estimate-based beat/miss assessment .

Defense segment shipments from backlog drove the quarter: “Defense revenues were up $25.8 million or 38.6%.” Management noted improved operating earnings of $1.7M on mix, efficiencies, and material costs .
Multi-quarter Defense momentum: Q2 saw Defense sales up $33.7M or 50.9% YoY and operating earnings +$5.5M, continuing strong backlog-driven execution .
Broadly higher sales to start the year: “All three segments enjoyed increased sales during first quarter 2025,” with Defense up $25.9M or 47.1% YoY (Housewares and Safety nominally higher) .

Tariff headwinds hit Housewares/Small Appliance hard: “Like the second quarter, the Housewares/Small Appliance segment reported a sizable operating loss largely due to the Trump tariffs,” and retailers initially resisted price increases .
Tariffs at 145% and LIFO treatment amplified impact: “With the President’s so-called ‘Liberation Day’ proclamation, the Trump tariffs are now at 145%… treated as period costs at the time they are incurred,” driving Q1 loss and pausing new product announcements/purchases .
Q2 additional headwinds: a supplier bankruptcy caused “loss of a deposit,” and sizable inventory investment for Defense awards left “portfolio earnings nominal,” highlighting capital allocation strain and non-operating income softness .

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$91.823	$120.449	$115.463
Net Income ($USD Millions)	$8.083	$5.152	$5.317
Diluted EPS ($USD)	$1.13	$0.72	$0.74
Net Income Margin %	8.80%*	4.28%*	4.60%*

Segment breakdown (Q3 2025 YoY change):

KPIs:

KPI	Q3 2024	Q3 2025
Weighted Shares Outstanding (Millions)	7.131	7.150

*Values retrieved from S&P Global.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4	Not provided	Not provided	Maintained absence
Margins	FY/Q4	Not provided	Not provided	Maintained absence
OpEx	FY/Q4	Not provided	Not provided	Maintained absence
OI&E	FY/Q4	Not provided	Not provided	Maintained absence
Tax Rate	FY/Q4	Not provided	Not provided	Maintained absence
Segment guidance (Defense/Housewares/Safety)	FY/Q4	Not provided	Not provided	Maintained absence
Dividends	Q3	Not discussed	Not discussed	n/a

Note: No formal guidance metrics were disclosed in the Q3 2025 press release .

No Q3 2025 earnings call transcript was found; themes below are derived from company press releases.

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2025)	Trend
Tariffs/Macro	Q1: 145% tariffs; treated as period costs; Housewares operating loss; new product announcements/purchases on hold . Q2: Significant tariff impact; Housewares sizable operating loss .	Continued sizable Housewares operating loss; retailer reluctance to accept price increases .	Persistent headwind
Defense backlog/shipments	Q1: Defense sales +$25.9M (+47.1%); operating earnings +$4.9M . Q2: Defense sales +$33.7M (+50.9%); operating earnings +$5.5M .	Defense revenues +$25.8M (+38.6%); operating earnings +$1.7M .	Strong/Improving backlog execution
Inventory/Portfolio earnings	Q1: Sizable investment in inventory for Defense awards; portfolio earnings nominal . Q2: Inventory investment continues; portfolio earnings nominal .	Not reiterated in Q3 release .	Neutral to improving disclosure
Supplier issues	Q2: Supplier bankruptcy led to deposit loss .	Not reiterated in Q3 release .	Specific issue resolved/not repeated
Safety segment	Q1: Loss as anticipated . Q2: Loss as anticipated .	Nominal sales and a loss .	Stable/Under development

“Net sales during third quarter 2025 were up $23.6 million or 25.7%… due largely to increased Defense segment shipments from backlog… offset in part by decreased Housewares/Small Appliance revenues… attributed to retailers’ initial reluctance to accept tariff-induced price increases.” — Maryjo Cohen, President .
“The Defense segment realized improved operating earnings of $1.7 million… impacted by… mix, efficiencies, and material costs.” — Maryjo Cohen .
“Like the second quarter, the Housewares/Small Appliance segment reported a sizable operating loss largely due to the Trump tariffs… treated as period costs… reflecting the segment’s LIFO inventory cost valuation method.” — Maryjo Cohen .
Q2 color: “The Trump tariffs had a significant effect… In addition, the segment’s earnings were impacted by the bankruptcy of a supplier and the resulting loss of a deposit… Due to… inventory… portfolio earnings were nominal.” — Maryjo Cohen .
Q1 color: “With the President’s so-called ‘Liberation Day’ proclamation, the Trump tariffs are now at 145%… treated as period costs… [and] new products and their purchase have been placed on hold.” — Maryjo Cohen .

No earnings call transcript was available for Q3 2025; therefore, Q&A themes and guidance clarifications are not available from a call transcript .

Metric	Q3 2025 Consensus	Q3 2025 Actual	Surprise
Revenue ($USD Millions)	n/a*	$115.463	n/a
EPS ($USD)	n/a*	$0.74	n/a

*Values retrieved from S&P Global. Consensus coverage unavailable for NPK in Q2–Q3 2025.

The quarter’s top-line strength was Defense-driven (revenues +$25.8M, +38.6% YoY) with operating earnings improvement (+$1.7M), confirming backlog conversion and operational tailwinds in that segment .
Housewares/Small Appliance remains a pain point: 145% tariffs, LIFO period-cost treatment, and retailer pushback on price increases are sustaining operating losses; near-term margin relief depends on tariff/price acceptance dynamics .
Sequential dynamics: revenue eased (~-4% QoQ), but EPS modestly improved, implying some mix/efficiency benefits despite volume softness .
Non-operating/portfolio income was nominal earlier in the year due to inventory investment; with Defense awards being fulfilled, watch for normalization in portfolio returns in subsequent periods .
Lack of formal guidance and absent consensus coverage reduces near-term estimate anchors; traders should focus on Defense shipment cadence and retailer acceptance of pricing as primary stock catalysts .
Supplier bankruptcy and deposit loss discussed in Q2 did not recur in Q3 disclosures, removing one transient headwind from the narrative .
The Safety segment remains nascent with nominal sales and losses; scaling and product traction will be needed before it becomes a material contributor .