National Presto Industries Inc 2025年度报告

NPK 2025 Annual ReportNational Presto Industries, Inc. Cover Story The newest U.S. 40mm high velocity training round is the subject of this year’s cover story. Designedby your Company in collaboration with the U.S. Army, the round is known as the M918E2 “TargetPractice – Day/Night/Thermal” (TP-DNT) cartridge. The new design provides soldiers with a safer andmore reliable cartridge that enables them to “Train as they Fight.” Using the traditional automatic firingweapon (MK 19 grenade launcher) shown on the cover, the new round produces a flash that can beseen in multiple conditions—during the day with the naked eye as illustrated below at A , at night usinga special night optical device as depicted at B, and in a field obscured by smoke or fog through thermalvision sights as shown at C. Each individual round (pictured at D) is linked together for automatic firingas illustrated on the lower right-hand side of the cover. Prior to award of the contract, your Company, in competition with other defensecontractors, designed a round that would provide the above features. It also, inadvance of the award, purchased the rights to manufacture the pyrophoric materialthat creates the round’s light and heat signatures; constructed a new manufacturingbuilding; and began the design and fabrication of the highly automated productionlines and equipment to produce the pyrophoric material and projectile. Completionand installation of the automated production lines and equipment occurred after awardof the contract, culminating in official qualification (First Article Test acceptance) and production start in late 2025. The completed production lines use robots to feed components to each line, assemblecomponents into subassemblies, and then assemble the projectile. Throughout the process, themachines perform quality control checks on the components and the round itself to verify that eachfinished round meets specifications.*Cover photo of soldier courtesy of the National Guard. Financial Highlights Table of Contents Letter to StockholdersOperations ReviewSubsidiaries ReviewHousewares ProductsFinancial StatementsReports of Independent Auditors—Financial StatementsManagement’s Discussionand AnalysisReport of Independent Auditor—Internal ControlPerformance GraphStockholder InformationDirectors and OfficersRecord of DividendsSummary of Statistics3561020343641424344 NATIONAL PRESTO INDUSTRIES, INC.Eau Claire, Wisconsin To our Stockholders, There were three major items noted in last year’s report that were expected to have a material impacton review year operations. The first was the Defense segment’s ability to execute its sizable backlog,which included setup and staffing of a line to produce the newly designed 40mm training roundfeatured on the cover. The second and third pertained to the Housewares/Small Appliance segment:managing the potential impact of the tariffs that then President-elect Trump was threatening andmoving product manufacturing out of China. The Defense segment met its challenge as reflected inthe segment’s impressive sales and profitability summarized below. In contrast, the Housewares/SmallAppliance segment was, to coin a word, “tarrified.” The tariffs in terms of size, uncertainty and scope,and the disruption they caused far exceeded anything contemplated. Efforts to exit China were largelystalled due to the imposition of tariffs on allies. Net 2025 consolidated sales were $503.5 million, a 29.7% increase from 2024’s levels. Net earningswere down $8.4 million or 20.2% to $33.1 million ($4.63 per share) from 2024’s $41.5 million ($5.82 pershare). The revenue increase was almost entirely provided by the Defense segment. Defense salesincreased by $121.9 million or 42.9%, due to higher shipments from its sizable backlog. The shipmentincrease resulted in augmented operating earnings, which increased $15.5 million or 36.2%. Thesegment’s earnings were also affected by a variety of other factors which included differences in mix,efficiencies, and material costs. The Defense sales and earnings gains were partially offset by reducedsales and the operating loss at the Housewares/Small Appliance segment. Both the sales reductionand loss were in significant part attributable to the Trump administration tariffs. Net revenues at theHousewares/Small Appliance segment were down $7.2 million or 7.0%, largely stemming from retailers’reluctance to accept tariff-induced price increases. Ultimately, your Company’s price increases wereaccepted and retail prices increased. Higher retails in turn depressed consumer purchases. Thereduced sales and the material impact of tariffs on costs were the chief causes of a sizable operatingloss. The ongoing relocation of the segment’s distribution center from Canton, Mississippi, toNettleton, Mississippi, also had an impact. Of necessity, certain costs were duplicated as two staffsmust be maintained until the training and move are completed. Equipment and remaining inventorymust be transp