National Presto Gains 29.6% on $139.3M Army Order and $92.3M Boeing Deal
National Presto shares have risen 29.6% in six months, outpacing the industry's 8% growth, driven by a $1.4B defense backlog including a $139.3M U.S. Army cartridge order and a $92.3M Boeing subcontract. The company holds a 3.5:1 current ratio and trades at 1.94x trailing EV/sales versus a 2.68x industry average.
1. Share Gains and Valuation
National Presto shares climbed 29.6% over six months, outperforming the industry's 8% gain and peers Swire Pacific and Honeywell, which rose 17.1% and 10.8%, respectively. The stock trades at 1.94x trailing EV/sales, well below the 2.68x industry average.
2. Defense Contract Wins and Backlog
The Defense segment secured a $139.3 million U.S. Army order for 40mm cartridges, a $92.3 million Boeing subcontract for warhead production and a five-year IDIQ contract up to $49 million. These awards underpin a backlog that grew to $1.4 billion as of September 2025, providing visibility into future revenue streams.
3. Liquidity and Financial Position
The company reported a 3.5:1 current ratio and maintains access to a $50 million unsecured credit facility. In the first nine months of 2025, capex exceeded $22 million, supporting facility upgrades and production scalability in key U.S. locations.
4. Segment Challenges
The Housewares segment saw declining sales volumes and a $2.7 million vendor deposit loss, while the early-stage Safety division continues to post negative margins. Rising operating and interest expenses have also weighed on profitability despite defense-driven growth.