Core Insights - National Presto Industries, Inc. (NPK) shares have declined 5.4% since the earnings report for the quarter ended September 28, 2025, underperforming the S&P 500 index, which grew by 2.3% during the same period [1] - The company reported earnings per share (EPS) of 74 cents for Q3 2025, down from $1.13 a year ago, while net sales increased by 25.7% to $115.5 million, driven by the Defense segment [2] - Despite sales growth, net earnings fell 34.2% year over year to $5.3 million from $8.1 million [2] Segment Performance - The Defense segment experienced a revenue increase of $25.8 million, or 38.6% year over year, attributed to higher shipments from backlog and improved operating earnings of $1.7 million [3] - The Housewares/Small Appliance segment saw a revenue decline of $2.3 million, a 9.2% drop, primarily due to retailer resistance against tariff-driven price increases, resulting in substantial operating losses [4] - The Startup Safety segment reported nominal sales and incurred a loss during the quarter, indicating it remains in early-stage development with ongoing investment needs [6] Management Commentary - The president of National Presto, Maryjo Cohen, highlighted the contrasting performance between segments, noting that the Defense segment benefited from backlog-driven shipments, while the Housewares segment faced challenges from tariff-related issues [5] - The company indicated that tariffs were treated as period costs, contributing to ongoing losses in the Housewares/Small Appliance unit [5]