NPK earnings analysis
What we found in NPK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
National Presto delivered a strong Q2 recovery, with revenue up 22%, net earnings up 208%, and EPS of $2.21 versus $0.72 a year earlier. Defense was the primary growth engine, with sales up 27% on backlog shipments, while consolidated gross margin improved to approximately 19.5%; however, Housewares sales declined 6% and its profit benefited from a nonrecurring tariff refund. First-half operating cash flow rose to $44.144 million and estimated free cash flow was approximately $38.695 million, supporting improved liquidity, although no quantitative forward guidance was provided.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Sales and EPS increased sharply
- Q2 net sales increased $26.147 million, or 22%, to approximately $146.596 million year over year. Net earnings rose $10.710 million, or 208%, to $15.862 million, and diluted EPS was $2.21 versus $0.72.
- Defense backlog drove growth
- Defense sales grew $27.144 million, or 27%, to $126.957 million, primarily from increased shipments from backlog. Defense gross profit increased $5.741 million to $24.941 million.
- Gross margin recovered
- Consolidated gross profit increased $10.001 million, or 54%, year over year to approximately $28.521 million, implying a gross margin of about 19.5% versus 15.4% in Q2 2025.
- Tariff refund aided Housewares profit
- Housewares gross profit increased $4.228 million to $4.708 million despite a 6% sales decline, primarily due to a refund of $4.228 million of previously paid tariffs following the Supreme Court’s February 2026 decision.
- Cash generation improved materially
- First-half operating cash flow was $44.144 million versus $1.542 million in the prior-year period. Capital expenditures were $5.449 million, producing six-month free cash flow of approximately $38.695 million.
- Liquidity and working capital strengthened
- Working capital increased $16.500 million to $324.611 million at July 5, 2026, while the current ratio improved to 5.2-to-1 from 4.2-to-1 at December 31, 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Housewares demand and execution weakness
- Housewares/Small Appliance sales fell $1.263 million, or 6%, to $19.083 million, reflecting lower unit shipments. Management also cited approximately $2.359 million of first-half warehouse-startup costs and an inability to ship during part of Q1.
- Tariff benefit may not recur
- Q2 Housewares gross-profit growth was substantially supported by a tariff refund of approximately $4.228 million, while the segment’s sales declined 6%. Future results remain exposed to tariffs, product costs, exchange rates, and the ability to recover cost increases through pricing.
- Safety segment remains loss-making
- The Safety segment had limited revenues and negative gross margins in both Q2 2026 and Q2 2025. Management identifies startup execution and utilization of capital equipment as factors that could affect results.
- Financing cash outflow increased
- The company used $30.671 million in financing cash flow during the first six months, including $23.624 million of net repayments on its line of credit, compared with $5.614 million of financing cash provided in the prior-year period.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.21
- Gross margin
- 19.5%
- Operating margin
- 13.2%
- Segment
- Housewares/Small Appliance: Q2 sales $19.083 million, down $1.263 million, or 6%, year over year; gross profit increased to $4.708 million from $0.480 million.
- Segment
- Defense: Q2 sales $126.957 million, up $27.144 million, or 27%, year over year; gross profit increased to $24.941 million from $19.200 million.
- Segment
- Safety: Limited revenues and negative gross margins in both Q2 2026 and Q2 2025 due to the startup nature of the businesses.
What they said about what is next.
No quantitative revenue or EPS guidance was provided. Management stated that it expects to continue evaluating acquisitions, make further acquisitions when appropriate, and continue capital investments; it also stated that liquidity is sufficient to meet anticipated capital requirements, dividends, and future growth.
The filing reads better than the one before it.
What came before.
- 10-Q · May 15, 2026
- National Presto Industries reported Q1 2026 financial results showing a 15% increase in net sales year-over-year to $118.6 million, driven mainly by a 23% surge in Defense segment sales. However, diluted EPS fell to…
- 10-K · March 13, 2026
- National Presto’s 10-K emphasizes a strategy anchored in Defense (AMTEC and subsidiaries) with multi‑year 40mm contracts and a large contract backlog, while Housewares remains seasonal and supply‑chain exposed and the…
- 10-Q · November 7, 2025
- Q3 2025 revenue rose sharply to $115,463,000 (+$23,640,000, +25.7% vs Q3 2024) driven by Defense, but gross margin compressed to 13.9% and operating profit fell to $6,412,000. EPS declined to $0.74 from $1.13 a year…
- 10-Q · August 8, 2025
- Q2 2025 revenue rose materially to $120,449,000 from $85,060,000 in Q2 2024 (+41.6%), driven primarily by Defense. Margins and EPS compressed: gross margin fell to 15.4% and diluted EPS declined to $0.72 from $0.85,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing NPK makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever