National Presto Industries, Inc. (NPK): BCG Matrix [Dec-2025 Updated]

You're looking at National Presto Industries, Inc. (NPK) right now, and the portfolio picture is fascinatingly split as we map it onto the BCG framework for late 2025. The dependable Defense Segment is clearly acting as our primary Cash Cow, churning out stable, high-margin revenue, but that reliability masks real strategic tension elsewhere. We see the mature Housewares Segment operating like a Dog, while the high-growth Absorbent Products Segment is a classic Question Mark demanding a big capital decision. Honestly, the immediate challenge is identifying where the next Star will emerge, because right now, the portfolio is heavily weighted toward harvesting cash rather than aggressive expansion. Read on to see the concrete actions required for each piece of the NPK puzzle.

Background of National Presto Industries, Inc. (NPK)

You're looking at National Presto Industries, Inc. (NPK), a firm that's definitely not your typical one-trick pony. Founded way back in 1905 as the National Pressure Cooker Company, this Eau Claire, Wisconsin-based manufacturer has built a portfolio across three distinct areas. Honestly, it's this mix that makes analyzing their performance interesting, especially now in late 2025.

NPK operates through three main segments: Defense, Housewares/Small Appliance, and Safety. The Defense segment is a big deal right now; they manufacture things like medium caliber training ammunition, fuzes, and cartridge cases, primarily for the U.S. Government and prime contractors. This unit has been the engine lately, driving substantial revenue growth; for instance, their Defense revenues were up 38.6% in the third quarter of 2025 alone.

The Housewares/Small Appliance segment is where you find the well-known PRESTO® brand, which designs and sells small electrical appliances and pressure cookers. This unit is recognized for being an innovator of new products, but it's been facing headwinds. Due to factors like the ongoing impact of tariffs, this segment reported a sizable operating loss in the second and third quarters of 2025.

Then there's the Safety segment. This is the smallest piece, described as a startup, which offers things like smoke and carbon monoxide alarms. For the first nine months of 2025, this segment reported nominal sales and, as anticipated, a loss.

To give you a sense of scale as of late 2025, the company, led by President Maryjo Cohen, reported total revenue for the trailing twelve months (TTM) around $474.2M. They employ about 1,126 people as of November 30, 2025. The financial story of 2025 so far is clearly dominated by the Defense segment, which generated all of the company's operating income in the latest reported period.

The company's structure-a high-growth defense contractor mixed with a struggling, but innovative, consumer appliance business-is what we need to keep front-of-mind as we map out the BCG Matrix. Finance: draft 13-week cash view by Friday.

National Presto Industries, Inc. (NPK) - BCG Matrix: Stars

You're looking at National Presto Industries, Inc. (NPK) portfolio, and honestly, finding a clear, undisputed Star across all core divisions isn't straightforward based on the latest figures. The Boston Consulting Group Matrix requires high market share in a high-growth market, and while the Defense segment shows massive growth, the Housewares/Small Appliance segment is reporting losses.

The closest area exhibiting Star characteristics, defined by high growth and significant investment needs, is the Defense segment, driven by AMTEC Corporation.

Focus on the high-growth potential of new, specialized defense contract awards.

• The U.S. Army awarded an option in September 2025 totaling $168.1 million under Government Fiscal Year (FY) 2025 for 40mm systems.
• This award is part of a current five-year contract that now has a total value of $965 million, combining FY22 through FY25 awards.
• In the third quarter of 2025, Defense revenues were up $25.8 million, representing a 38.6% increase year-over-year for the quarter.
• This segment realized improved operating earnings of $1.7 million in Q3 2025, largely due to this increased shipment volume from backlog.

Need significant investment to push a niche product line to high market share.

The Defense segment, manufacturing items like medium caliber training and tactical ammunition, is clearly in a high-growth phase, evidenced by the large contract values. To sustain this leadership position, which is characteristic of a Star, continued investment in production capacity and technology is necessary to meet the demand implied by the $965 million contract ceiling.

Potential for a new, innovative small appliance that captures a dominant market share in a high-growth category.

While the Housewares/Small Appliance segment reported a sizable operating loss in Q3 2025, partly due to retailers' reluctance to accept tariff-induced price increases, the overall market context suggests potential. The global small domestic appliances market is projected to grow from USD 212.30 billion in 2025 to USD 301.24 billion by 2032, with a CAGR of 5.13%.

If National Presto Industries, Inc. could successfully launch an innovative product that captures significant share in this expanding market, it would fit the Star profile. However, the segment faced headwinds, reporting decreased revenues of $2.3 million or 9.2% in Q3 2025, and the company has paused new product announcements due to tariff situations.

Here's a look at the segment performance context as of late 2025:

The TTM revenue for National Presto Industries, Inc. as of December 2025 stands at $0.47 Billion USD, up from $0.38 Billion USD in 2024.

The company's overall revenue growth in the last twelve months was 34.75%.

National Presto Industries, Inc. (NPK) - BCG Matrix: Cash Cows

The Defense Segment is the primary Cash Cow for National Presto Industries, Inc. This segment is characterized by a high market share in a mature, government-dependent market, which translates to stable, high-margin revenue streams.

This segment holds a strong market share in specific 40mm ammunition production for the US government. Through its subsidiary AMTEC Corporation, National Presto Industries, Inc. provides approximately 90% of the DoD 40mm supply, which equates to about 90% of the company's total revenue as of mid-2025 analysis.

The segment generates substantial cash flow with relatively low reinvestment needs for maintenance, though significant inventory buildup was required to support contract obligations near the end of 2024. For the full fiscal year 2024, the Defense segment contributed $284.0 million in revenue, representing 73% of the consolidated total of $388.2 million. Operating earnings for this segment increased by $4.6 million or 11.9% in fiscal year 2024 over 2023 levels, driven by increased shipments from its sizable backlog. Furthermore, for the first half of the 2025 fiscal year, all operating income generated by National Presto Industries, Inc. was attributable to the Defense segment.

The stability and high-value nature of this business are underscored by recent contract activity. On September 29, 2025, the U.S. Army awarded an option award totaling $168.1 million under the fourth year of the five-year 40mm systems contract. This single award brings the total value of the current five-year contract to $965 million.

You can see the segment's financial weight below, using the latest reported full-year data:

The characteristics that firmly place this segment in the Cash Cow quadrant include:

• High market share in 40mm ammunition production.
• Revenue growth of 17.5% in fiscal year 2024.
• Operating earnings are the largest contributor to overall profitability.
• The segment secured a new $168.1 million option award in the fourth year of its contract in September 2025.
• Low growth prospects in the mature government procurement market, despite current high demand.

Investments here are focused on maintaining productivity and infrastructure to support the existing contract base, such as the inventory buildup required to meet augmented Defense segment awards reported in late 2024.

National Presto Industries, Inc. (NPK) - BCG Matrix: Dogs

The Housewares/Small Appliance Segment of National Presto Industries, Inc. fits the profile of a Dog within the Boston Consulting Group Matrix. This classification stems from its position in a mature market with low relative market share, making it a candidate for divestiture or aggressive cost control.

This segment, which designs, markets, and distributes housewares and small electrical appliances, including pressure cookers and kitchen electrics, operates in a market characterized by slow expansion. For instance, the traditional Pressure Cooker Market is projected to exhibit a Compound Annual Growth Rate (CAGR) of only 7.2% through 2028. This contrasts sharply with the high-growth areas the company may have elsewhere.

To illustrate the low market share, consider the revenue distribution across National Presto Industries, Inc.'s primary units. In Fiscal Year 2024, the total revenue was $388.2 million. The Defense segment was the overwhelming driver, contributing $284.0 million, which accounted for 73% of the total revenue. The Housewares/Small Appliance segment, by comparison, saw revenue rise from $97.6 million in 2023 to $102.8 million in 2024. This low contribution relative to the Defense segment suggests a lack of dominant market share in the consumer space.

The financial performance of this segment in the near term indicates it is not a cash generator. In the first quarter of 2025, the Housewares/Small Appliance segment actually faced an operating loss, attributed to factors like higher material costs and tariffs. This performance directly contradicts the idea of being 'cash neutral' and instead points toward being a cash consumer, which is a key characteristic of a Dog that requires expensive turn-around plans that are generally advised against.

Here's a look at the revenue contribution to show the relative positioning:

Products within this segment, such as established electric griddles and pressure cookers, are generally positioned as affordable, functional solutions. The strategic implication for National Presto Industries, Inc. is clear: these units should be minimized. The segment's recent operating loss in Q1 2025 reinforces the need to avoid expensive efforts to revive it.

The appropriate strategic options for a Dog segment include:

• Divestiture of the entire segment or specific product lines.
• Aggressive cost management to minimize cash consumption.
• Harvesting to maximize any residual cash flow before exit.

The segment's performance suggests that capital tied up here, even if it only breaks even or consumes minimal cash, could be better deployed in the high-growth areas of National Presto Industries, Inc. The segment's revenue growth from 2023 to 2024 was approximately 5.3% ($\frac{102.8 - 97.6}{97.6}$), which is low relative to the company's overall revenue growth of 14% in FY 2024.

National Presto Industries, Inc. (NPK) - BCG Matrix: Question Marks

You're looking at the Question Marks quadrant for National Presto Industries, Inc. (NPK), which, per the strategic framework, houses business units operating in high-growth markets but currently holding a low market share. These units consume cash to fuel expansion but haven't yet delivered substantial returns.

The Absorbent Products Segment (adult incontinence) is positioned here. This market has a high growth rate, driven by favorable demographics, specifically the aging US population. The Adult Incontinence Products Market was estimated at USD 22.43 Billion in 2025, projected to grow at a compound annual growth rate (CAGR) of 6.75% through 2035. North America holds about 33.7% of the global market share in 2025.

NPK's market share in this segment is relatively small, requiring significant capital infusion to compete against established players. This segment's performance is highly volatile, defintely needing a strategic pivot. The segment's historical revenue contribution is small relative to the company's total TTM revenue of $474.24 million as of the third quarter of 2025. The decision here is clear: invest heavily to gain share or divest to focus on core strengths. If this segment doesn't quickly increase its market share, it risks becoming a Dog.

Here is a comparison of the market dynamics versus the scale of a small, potentially struggling segment within National Presto Industries, Inc. (NPK):

The strategic imperative for Question Marks like the Absorbent Products Segment centers on aggressive action. You need to decide if the potential payoff justifies the cash burn required to challenge market leaders.

• Requires clear decision: invest heavily or divest.
• High demands translate to high cash consumption.
• Potential to evolve into a Star with successful investment.
• Low current market share necessitates rapid scaling.
• Performance is highly volatile, demanding a strategic pivot.
• Overall NPK Q3 2025 Net Sales were $115.46 million.

To manage this, National Presto Industries, Inc. must allocate capital decisively. If the segment has the potential for growth, heavy investment is the path to gain share quickly. If not, divestiture frees up cash for the Cash Cows or Stars. Finance: draft the required 13-week cash view by Friday, isolating projected capital needs for this segment.