National Presto Industries, Inc.

What they do

National Presto operates three segments. Housewares/Small Appliance designs, markets and distributes pressure cookers and canners, kitchen electrics and comfort appliances, mostly sourced from third-party suppliers in Asia and sold under the PRESTO brand. Defense manufactures 40mm ammunition, precision mechanical and electro-mechanical assemblies, medium caliber cartridge cases and metal parts, performs Load, Assemble and Pack (LAP) operations primarily for the U.S. Government and prime contractors, and makes detonators, booster pellets, release cartridges, lead azide and other energetic devices. Safety markets smoke, CO and combo smoke/CO alarms through startup Rely Innovations, plus an economy alarm line and a PFAS-Free Foam commercial fire extinguisher.

Revenue drivers

• Defense segment — Manufactures 40mm ammunition, medium caliber cartridge cases, metal parts and energetic devices, and performs LAP operations primarily for the U.S. Government and prime contractors; management said second quarter 2026 segment sales rose $27.1 million, or 27.2%, reflecting increased shipments from backlog.
• Housewares/Small Appliance segment — Sells pressure cookers, canners, kitchen electrics and comfort appliances under the PRESTO brand, primarily in the U.S. and Canada; cast products were about 9% and noncast/thermal appliances about 9% of consolidated 2025 net sales, and segment sales fell $1.2 million (6.2%) in second quarter 2026.
• Safety segment — Rely Innovations offers smoke, CO and combo alarms with bilingual voice messages and digital displays, plus an economy alarm line and a PFAS-Free Foam commercial fire extinguisher; sales remain nominal but rose $226,000, or 91.7%, in second quarter 2026 and the segment reported a loss as anticipated.
• Customer concentration — The company had no customer at 10% of consolidated 2025 net sales, but Amazon.com accounted for 10% of consolidated net sales in 2024 and 11% in 2023, and the 10-K states its loss would have a material adverse effect.

Recent performance

Second quarter 2026 net sales were $146.6 million versus $120.4 million a year earlier, and net earnings were $15.9 million, or $2.21 per diluted share, versus $5.2 million, or $0.72. Gross profit rose to $28.5 million from $18.5 million. Defense segment sales rose $27.1 million (27.2%) on increased backlog shipments and Defense operating earnings rose $4.9 million (33.5%), while Housewares/Small Appliance sales fell $1.2 million (6.2%) on tariff-related order timing and softer demand. Housewares reported operating earnings of $2.2 million versus a prior-year loss, most of it from a refund of tariffs the Supreme Court declared unauthorized in its February decision. Six-month 2026 sales were $265.2 million with net earnings of $22.5 million, or $3.14 per diluted share.

Strategy

The company operates three segments and reports no long-term supply contracts with housewares customers, sourcing most housewares and appliance products from a handful of third-party suppliers in Asia, primarily China, and procuring most products on a purchase-order basis. Housewares sells directly to retailers and through independent distributors in the U.S. and Canada, supported by a six-employee sales force plus some manufacturers' representatives and in-store and digital promotions. Defense continues to perform ordnance manufacturing and LAP work for the U.S. Government and prime contractors, with second quarter volume driven by backlog shipments. Safety is being built through startup Rely Innovations, whose product line includes smoke, CO and combo alarms and a PFAS-Free Foam fire extinguisher.

Risks

• Tariffs and trade barriers — The 10-K states that an increase of tariffs on products imported from China would have a material adverse effect on the business, and management attributed the second quarter housewares sales decline partly to the Trump tariffs' effect on retail order timing and pricing.
• Asian supplier dependence — Most housewares/small appliance products are manufactured by a handful of third-party suppliers in Asia, primarily China, and the company says it may not be able to quickly or effectively replace a vendor if needed.
• Customer concentration — Amazon.com accounted for 10% and 11% of consolidated net sales in 2024 and 2023, and the 10-K states that the loss of Amazon would have a material adverse effect on the Company.
• Input and freight costs — The 10-K states that increases in raw material, energy, transportation and intermodal shipping costs that cannot be absorbed or passed through as price increases can materially hurt operating results.

Outlook

Management's July 31, 2026 release attributed second quarter Defense strength to increased shipments from backlog, and said Housewares sales weakness reflected tariff-driven retail order timing and pricing pressure on consumer demand. Safety segment sales remain nominal and the segment reported a loss as anticipated, with no profitability timeline stated. The release contains forward-looking statements subject to risks and uncertainties detailed in the company's SEC filings.