Tariffs Weigh on National Presto's Q3 Earnings Despite Sales Growth

Shares of National Presto Industries, Inc. NPK have declined 5.4% since the company reported its earnings for the quarter ended Sept. 28, 2025. This compares to the S&P 500 index’s 2.3% growth over the same time frame. Over the past month, the stock has declined 6.2% compared with the S&P 500’s 2.9% growth, underscoring a period of underperformance relative to the broader market.

For the third quarter of 2025, National Presto reported earnings per share (EPS) of 74 cents, which dropped from $1.13 a year ago.  

Net sales of $115.5 million denoted a 25.7% increase from $91.8 million in the year-ago period. This gain was primarily driven by stronger shipments in the company’s Defense segment.

However, despite the sales growth, net earnings fell 34.2% year over year to $5.3 million from $8.1 million.

National Presto Industries, Inc. Price, Consensus and EPS Surprise

National Presto Industries, Inc. price-consensus-eps-surprise-chart | National Presto Industries, Inc. Quote

Segment Performance: Defense Lifts, Housewares Struggles

The Defense segment was the standout performer in the quarter, with revenues climbing by $25.8 million, or 38.6% year over year. This surge was attributed to higher shipments from backlog, leading to improved operating earnings of $1.7 million. The company noted that performance was also influenced by variations in product mix, operational efficiencies, and material costs.

Conversely, the Housewares/Small Appliance segment saw its revenues fall by $2.3 million, a 9.2% drop. The decline was mainly due to retailer pushback against tariff-driven price increases. Like the previous quarter, the segment incurred a substantial operating loss, which the company attributes to the impact of tariffs imposed under the Trump administration. These tariffs are expensed as incurred, consistent with the segment's use of the LIFO inventory accounting method.

Management Commentary: Tariff Impact Still Weighing

Maryjo Cohen, president of National Presto, acknowledged the diverging performance across business segments. She emphasized that the Defense segment benefited from backlog-driven shipments, while the Housewares segment continued to be hampered by tariff-related headwinds. The company noted that the tariffs were treated as period costs, contributing to the ongoing losses in the Housewares/Small Appliance unit.

The Startup Safety segment, which includes smoke and carbon monoxide alarms along with fluorine-free foam fire extinguishers, reported only nominal sales and posted a loss during the quarter. Management offered limited commentary on this segment, suggesting it remains in early-stage development with ongoing investment needs.

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