NATIONAL PRESTO INDUSTRIES INC (NPK) Q4 2024 Earnings Summary

Executive Summary

Q4 2024 capped a strong year: FY net sales rose 13.9% to $388.23M and net earnings rose 20.0% to $41.46M as Defense shipments accelerated off a record backlog; Housewares also improved on product mix and LIFO favorability .
Quarterly math from disclosed FY and YTD data implies Q4 revenue of $134.69M and net earnings of $20.73M; implied EPS ~ $2.91 and net margin ~15.4% (derived from FY minus 9M figures) .
Backlog surged to ~$1.086B at 12/31/24 (from ~$564.0M in 2023), extending visibility 18–42 months; management cites inventory build supporting contract obligations as reason to forego the traditional “extra” dividend in 2025 .
Dividend policy: Board declared only the $1.00 regular dividend for 2025 (record 3/4/25, pay 3/17/25); no “extra” dividend given working capital needs for Defense .
Consensus estimates from S&P Global for Q4 2024 were unavailable at time of analysis; comparisons to Street will need follow-up once accessible.*

What Went Well and What Went Wrong

What Went Well

Defense drove the year: “Defense sales increased $42.3 million or 17.5%, due to increased shipments from its sizable backlog” with operating earnings up $4.6M or 11.9% .
Housewares momentum and mix: Housewares net revenues up $5.2M or 5.3%; “a better product mix and a favorable LIFO inventory adjustment resulted in an operating earnings increase of $5.3 million or 71.4%” .
Certification milestone: Safety segment secured smoke detector certification in January 2025, removing an adoption bottleneck for the portfolio .

What Went Wrong

Portfolio income down: Comparative portfolio earnings fell “due to reduced average daily investments,” as cash was redeployed to Defense inventory buildup .
Safety segment losses persisted in 2024 while working through certifications and product development/testing; management highlighted negative margins and increased testing costs .
Housewares freight/repair headwinds earlier in the year: Q2 referenced “increases in the cost of ocean shipping” and a “sizable maintenance repair”; Q1 also called out maintenance repair and less favorable mix impacting operating profit .

Financial Results

Quarterly progression (Q2 → Q3 → Q4 2024)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$85.060	$91.823	$134.692 (FY $388.228 − 9M $253.536)
Net Earnings ($USD Millions)	$6.077	$8.083	$20.732 (FY $41.460 − 9M $20.728)
EPS ($USD)	$0.85	$1.13	~$2.91 (FY $5.82 − 9M $2.91; shares ~7.13M)
Net Income Margin (%)	7.1% (6.077/85.060)	8.8% (8.083/91.823)	15.4% (20.732/134.692)

Notes: Q4 values are derived from reported FY and 9M figures. EPS approximated from FY EPS minus 9M EPS; quarter-specific weighted shares not disclosed.

Year-over-year quarterly comparison (Q4 2024 vs Q4 2023)

Metric	Q4 2023	Q4 2024	YoY Change
Revenue ($USD Millions)	$98.416 (FY23 $340.912 − 9M23 $242.496)	$134.692 (FY24 − 9M24)	+36.9%
Net Earnings ($USD Millions)	$13.159 (FY23 $34.559 − 9M23 $21.400)	$20.732 (FY24 − 9M24)	+57.6%
EPS ($USD)	~$1.85 (FY23 $4.86 − 9M23 $3.01)	~$2.91 (FY24 − 9M24)	+57%
Net Income Margin (%)	13.4% (13.159/98.416)	15.4% (20.732/134.692)	+200 bps

Segment breakdown (FY 2024 vs FY 2023)

Segment	Net Sales 2023 ($M)	Net Sales 2024 ($M)	Change	Gross Profit 2023 ($M)	Gross Profit 2024 ($M)	Change
Housewares/Small Appliance	$97.619	$102.799	+5.3%	$19.867	$25.478	+28.2%
Defense	$241.703	$284.025	+17.5%	$52.003	$58.173	+11.9%
Safety	Minimal revenue; negative margins both years	Minimal revenue; negative margins (higher testing spend)	—	—	—	—

KPIs

KPI	2023	2024
Defense backlog (12/31) ($USD Millions)	$564.005	$1,085.612
Effective tax rate (FY)	19%	18%
Weighted avg shares (FY)	7.106M	7.128M
Cash & equivalents (12/31)	$87.657M	$17.663M

Guidance Changes

Metric	Period	Previous Guidance/Action	Current Guidance/Action	Change
Dividend policy	2025	Historically regular + “extra” dividend (e.g., 2024: $1.00 regular + $3.50 extra paid 3/15/24)	2025 declared $1.00 regular only; no “extra” dividend due to Defense inventory cash requirements	Lowered (no extra)
Dividend key dates	2025	—	Record: 3/4/25; Pay: 3/17/25	Set
Backlog visibility	2024–2027	Backlog $564.0M at 12/31/23	Backlog $1,085.6M at 12/31/24; expected to ship over 18–42 months	Raised visibility

No explicit revenue/EPS/OpEx/tax rate guidance was provided by management in Q4 disclosures .

Earnings Call Themes & Trends

No earnings call transcript was available for Q4 2024 (company typically issues press releases but does not host quarterly calls). Themes tracked using the prior two quarterly press releases and the FY/Q4 8-K.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 FY release)	Trend
Defense shipments/backlog	Q2: shipments from backlog drove +10.8% Defense sales; improved mix/efficiencies . Q3: Defense shipments up +8.9% with mix headwinds .	Defense sales +17.5% YoY; backlog >$1B; operating earnings +11.9% .	Strengthening; multi-year visibility expands
Housewares freight/mix	Q1: mix and maintenance repair pressured earnings . Q2: ocean freight costs and maintenance repair weighed; profit −81.6% YoY . Q3: revenue +15.2%; freight still a cost but absence of 2023 repair helped .	Sales +5.3% YoY; improved mix + favorable LIFO drove +71.4% op earnings .	Improving mix/margins; freight manageable
Safety certifications	Q1: Rusoh divestment reduced shipments; anticipated loss . Q2/Q3: nominal sales; losses as anticipated .	Smoke detector certification achieved Jan-2025; segment reported FY loss .	Milestone achieved; profitability TBD
Portfolio/other income	Q3: portfolio earnings down given inventory investment .	Other income −26% YoY due to reduced portfolio size .	Lower yield/size; cash redeployment to working capital

Management Commentary

“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)... The revenue increase was largely driven by the Defense segment.” — Maryjo Cohen, President .
“Defense sales increased $42.3 million or 17.5%... The shipment increase resulted in augmented operating earnings, which increased $4.6 million or 11.9%.” .
“Net revenues at the Housewares/Small Appliance segment also were up - $5.2 million or 5.3%... The increased sales, a better product mix and a favorable LIFO inventory adjustment resulted in an operating earnings increase of $5.3 million or 71.4%.” .
“Given the size of the Defense segment’s backlog that now exceeds one-billion dollars... there will be no extra dividend paid in 2025.” .

Q&A Highlights

No Q4 earnings call/Q&A was available to review. The company disseminated results via 8-K press releases without a transcript .

Estimates Context

S&P Global consensus estimates for Q4 2024 EPS and revenue were not available at time of request due to data access limits. As such, we cannot quantify a Street beat/miss for Q4. Once accessible, we will anchor comparisons on S&P Global and update this section.*

Key Takeaways for Investors

Defense momentum and visibility: Backlog more than doubled to ~$1.086B, supporting elevated shipments and operating earnings into the 18–42 month window .
Housewares margin recovery: Favorable mix and LIFO tailwinds lifted operating profit despite freight pressures earlier in the year; watch sustainability of mix benefits into 2025 .
Cash deployment priority: Portfolio income declined as liquidity funded Defense inventories; near-term capital allocation favors working capital over “extra” dividends .
Certification unlock in Safety: UL/ETL milestone (smoke detectors) achieved Jan-2025; commercialization path remains, but FY losses persisted; monitor ramp and margin trajectory .
Tax rate favorable: FY effective rate 18% vs 19% in 2023, adding incremental EPS leverage if sustained .
Risk watch: Fixed-price defense contracts, procurement funding, and subcontractor performance remain key operational risks; NPK disclosed a March 1, 2025 cybersecurity incident under assessment .
Trading implication: Strong Q4 implied earnings and backlog expansion are positive near-term catalysts; the absence of an “extra” dividend may temper yield buyers, but backlog-driven revenue/margin visibility supports the medium-term thesis .

*Estimates disclaimer: S&P Global consensus data was unavailable at time of analysis; comparisons to Wall Street estimates will be updated when accessible.