Shares of National Presto Industries, Inc. NPK have declined 1.7% since the company reported its earnings for the year ended Dec. 31, 2024. This compares to the S&P 500 index’s -1.8% change over the same time frame. Over the past month, the stock has moved 0.1% versus the S&P 500’s -0.3% change.

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National Presto reported net earnings of $5.82 per share for 2024, up from $4.86 per share in the prior year. 

The company posted a 13.9% increase in net sales for 2024, reaching $388.2 million, compared to $340.9 million in 2023. The revenue increase was largely driven by the Defense segment, which contributed an additional $42.3 million, a 17.5% jump, as the company accelerated shipments from its substantial backlog. The shipment growth resulted in an 11.9% increase in operating earnings, which rose by $4.6 million.

The Housewares/Small Appliance segment also posted revenue gains, adding $5.2 million, a 5.3% increase, reflecting an improved retail environment, better product distribution and the resolution of prior-year shipment disruptions caused by packaging disclosure statements related to the use of PFAS in coatings. A better product mix and a favorable LIFO inventory adjustment resulted in a 71.4% increase in operating earnings, which rose by $5.3 million.

The Safety segment continued to report losses as it worked to secure certification for its smoke alarms and fire extinguishers. The company achieved certification for its smoke alarms in January 2025, which could support future sales growth in this division.

NPK’s net earnings climbed 20% to $41.5 million, up from $34.6 million in the prior year.

NPK’s Management Commentary and Financial Strategy

President Maryjo Cohen stated that the Defense segment’s revenue growth was primarily driven by fulfilling orders from its sizable backlog. She also noted that the Housewares segment benefited from improving retail conditions and better product availability following last year’s supply-chain issues. However, portfolio earnings were lower due to a reduction in average daily investments, as the company deployed most of its liquid assets to support inventory buildup in the Defense segment.

NPK: Dividend Policy and Cash Management

The board of directors announced a regular dividend of $1.00 per share for 2025, marking the company’s 81st consecutive year of dividend payments. However, due to the significant working capital required to support the Defense segment’s backlog, which now exceeds $1 billion, the company will not pay an extra dividend in 2025.

Other Developments at NPK

The board confirmed that the 2025 annual meeting of shareholders would be held on May 20, 2025, with a record date of March 24, 2025.

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National Presto Industries, Inc. (NPK) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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