National Presto Industries

NPK

Market cap $785M

National Presto Industries' Defense segment is driving strong revenue and backlog growth, positioning the company for continued future expansion. Recent financial results show improved profitability and cash flow, with the Defense segment generating all operating income in the latest period. Despite not being deeply undervalued, NPK trades at attractive multiples relative to peers, especially considering its robust growth prospects.

National Presto's Q2 earnings gain on 41.6% sales growth driven by Defense, but net income dropped 15% due to tariffs and supplier-related losses.

National Presto Industries is a cash-rich, debt-free, under-the-radar defense OEM poised to benefit from U.S. reindustrialization and global supply chain fragmentation. NPK's massive backlog, strong balance sheet, and critical DoD contracts create a unique asymmetric opportunity, with potential for substantial outperformance versus the S&P 500. Key risks include premium valuation, execution uncertainty on backlog conversion, and exposure to geopolitical de-escalation, but these are outweighed by upside potential.

National Presto reports strong year-over-year growth in Q1 earnings, driven by military demand, higher shipments and segment-wide sales growth, despite headwinds from steep tariffs.

Roche Holding, Comcast, Eaton Corp and National Presto Industries are included in this Analyst Blog.

National Presto Industries: Acceleration Has Arrived

NPK's 2024 EPS witnesses 20% year-over-year growth, driven by strong Defense sales, improved retail demand and a better product mix. A $1 billion backlog limits extra dividends for 2025.

National Presto Industries offers reliable long-term investment with steady dividends, strong financials, and rising defense demand despite challenges in household appliances and safety products. NPK's defense segment shows robust growth, with a $935 million military contract backlog and increased sales, driving profitability and solidifying its market position. Despite underperforming the S&P 500 in price growth, NPK's dividends have significantly outpaced the index, providing substantial returns for patient investors.

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National Presto (NPK) reports a 7.7% year-over-year sales increase in Q2 2024, driven by strong performance in the Defense segment, despite challenges in Housewares.