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What changed in NATIONAL PRESTO INDUSTRIES INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of NATIONAL PRESTO INDUSTRIES INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+85 added−99 removedSource: 10-K (2026-03-13) vs 10-K (2025-03-14)

Top changes in NATIONAL PRESTO INDUSTRIES INC's 2025 10-K

85 paragraphs added · 99 removed · 66 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeThe second is Rely Innovations, Inc., which offers carbon monoxide alarms with large digital displays and an array of voice messages that clearly inform of incipient danger. It also markets an economy line of carbon monoxide and smoke alarms. 1.
Biggest changeThe Safety segment provides innovative safety technology empowering organizations and individuals to protect what is most important. The segment's startup company, Rely Innovations, Inc., offers smoke, carbon monoxide (CO), and combo smoke/CO alarms with an array of voice messages in English and Spanish that clearly inform of incipient danger. The CO alarms have large digital displays as well.
The Company does not do so because these and all other reports it files with the SEC are readily available to the public on the SEC web site at www.sec.gov and can be located with ease using the link provided on the Company’s web site. The Company provides paper copies of its annual report free of charge upon request.
The Company does not do so because these and all other reports it files with the SEC are readily available to the public on the SEC web site at www.sec.gov and can be located with ease using the link provided on the Company’s website. Upon request, the Company provides paper copies of its annual report free of charge.
AMTEC’s 106,000 square foot manufacturing facility located in Janesville, Wisconsin, is focused on producing niche market ordnance products (such as training ammunition, fuzes, firing devices, and initiators). AMTEC is also the prime contractor for the 40mm ammunition system to the DOD (more fully described below).
AMTEC’s 131,000 square foot manufacturing facility located in Janesville, Wisconsin, is focused on producing niche market ordnance products (such as training ammunition, fuzes, firing devices, and initiators). AMTEC is also the prime contractor for the 40mm ammunition system to the DOD (more fully described below).
Based on factors known as of December 31, 2024, it is believed that the Company's environmental liability reserve will be adequate to satisfy on-going remediation operations and monitoring activities; however, should environmental agencies require additional studies or remediation projects, it is possible the existing accrual could be inadequate.
Based on factors known as of December 31, 2025, it is believed that the Company's environmental liability reserve will be adequate to satisfy on-going remediation operations and monitoring activities; however, should environmental agencies require additional studies or remediation projects, it is possible the existing accrual could be inadequate.
New product introductions are further subject to delivery delays from supply sources, which can impact availability to meet commitments. 6 Table of Contents Research and development costs related to new product development for the years 2024, 2023, and 2022 were expensed in operations of these years.
New product introductions are further subject to delivery delays from supply sources, which can impact availability to meet commitments. 6 Table of Contents Research and development costs related to new product development for the years 2025, 2024, and 2023 were expensed in operations of these years.
The segment's service and warranty programs are competitive with those offered by other manufacturers in the industry. The segment primarily warehouses and distributes its products from distribution centers located in Canton and Jackson, Mississippi. Selective use is made of leased tractors and trailers.
The segment's service and warranty programs are competitive with those offered by other manufacturers in the industry. The segment primarily warehouses and distributes its products from distribution centers located in Canton and Nettleton, Mississippi. Selective use is made of leased tractors and trailers.
Research and development costs related to new product development for the years 2024, 2023, and 2022 were expensed in operations of these years and were not a material element in the aggregate costs incurred by the Company.
Research and development costs related to new product development for the years 2025, 2024, and 2023 were expensed in operations of these years and were not a material element in the aggregate costs incurred by the Company.
The segment primarily warehouses and distributes its products from distribution centers located in Canton and Jackson, Mississippi, as well as Mount Horeb and Eau Claire, Wisconsin. B. OTHER COMMENTS 1. Sources and Availability of Materials See Note J to the Consolidated Financial Statements. 2. Patents, Trademarks, and Licenses Patents, trademarks and know-how are important to the Company’s segments.
The segment primarily warehouses and distributes its products from distribution centers located in Canton and Nettleton, Mississippi, as well as Eau Claire, Wisconsin. B. OTHER COMMENTS 1. Sources and Availability of Materials See Note J to the Consolidated Financial Statements. 2. Patents, Trademarks, and Licenses Patents, trademarks and know-how are important to the Company’s segments.
During 2024, almost all of the work performed by this segment directly or indirectly for the DOD was performed on a fixed-price basis.
During 2025, almost all of the work performed by this segment directly or indirectly for the DOD was performed on a fixed-price basis.
Rusoh, Inc. was formed in 2012, to design and market an owner-maintained, multipurpose, reloadable, dry chemical fire extinguisher and was the first portable owner-maintained fire extinguisher. As noted above, the business was divested in 2023. The operations of the two current businesses that comprise the Safety segment are startup in nature and have resulted in limited revenues.
Rusoh, Inc. was formed in 2012, to design and market an owner-maintained, multipurpose, reloadable, dry chemical fire extinguisher and was the first portable owner-maintained fire extinguisher. As noted above, the business was divested in 2023. The operations of the current business that comprises the Safety segment are startup in nature and have resulted in limited revenues.
("Woodlawn"), a subsidiary of National Defense Corporation and its newly formed subsidiary, Woodlawn Manufacturing LLC, were acquired on October 26, 2022. Woodlawn is engaged in the manufacture of metal parts and assemblies primarily for the DOD and DOD prime contractors. The Woodlawn manufacturing facility is 56,500 square feet and is located in Marshall, Texas.
("Woodlawn"), a subsidiary of National Defense Corporation and its newly formed subsidiary, Woodlawn Manufacturing LLC, were acquired on October 26, 2022. Woodlawn is engaged in the manufacture of metal parts and assemblies primarily for the DOD and DOD prime contractors. The Woodlawn manufacturing facility is 77,000 square feet and is located in Marshall, Texas.
For the year ended December 31, 2024, approximately 10% of consolidated net sales were provided by cast products (griddles, waffle makers, die cast deep fryers, skillets and multi-cookers), and approximately 15% by noncast/thermal appliances (stamped cookers and canners, pizza ovens, corn poppers, coffee makers, microwave bacon cookers, dehydrators, slow cookers, electric stainless steel appliances, non-cast fryers, air fryers and heaters).
For the year ended December 31, 2025, approximately 9% of consolidated net sales were provided by cast products (griddles, waffle makers, die cast deep fryers, skillets and multi-cookers), and approximately 9% by noncast/thermal appliances (stamped cookers and canners, pizza ovens, corn poppers, coffee makers, microwave bacon cookers, dehydrators, slow cookers, electric stainless steel appliances, non-cast fryers, air fryers and heaters).
It does not provide its current reports on Form 8-K or amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act on its web site.
It does not provide its current reports on Form 8-K or amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act on its website.
The M918E2 TP-DNT Cartridge allows the warfighters to train as they fight by delivering a projectile whose impact signature can be seen day or night, by unaided eye, and through current thermal and night vision sights. The value of awards to date is approximately $116,200,000, with deliveries scheduled to commence in 2025.
The M918E2 TP-DNT Cartridge allows the warfighters to train as they fight by delivering a projectile whose impact signature can be seen day or night, by unaided eye, and through current thermal and night vision sights. The value of awards to date is approximately $256,000,000, with deliveries commencing in 2025 and scheduled to complete in 2027.
Human Capital As of December 31, 2024, the Company and its subsidiaries had 1,126 employees compared to 1,007 employees at the end of December 2023. Approximately 181 employees of Amron are members of the United Steel Workers union. The most recent contract between Amron and the union is effective through February 28, 2030.
Human Capital As of December 31, 2025, the Company and its subsidiaries had 1,200 employees compared to 1,126 employees at the end of December 2024. Approximately 179 employees of Amron are members of the United Steel Workers union. The most recent contract between Amron and the union is effective through February 28, 2030.
On September 23, 2022, the Army awarded AMTEC, as the sole prime contractor, a fourth five-year 40mm system contract covering FY22-26 requirements. The value of awards to date is approximately $564,400,000 for FY22 through FY24, with deliveries commencing in 2024 and scheduled to complete in 2028.
On September 23, 2022, the Army awarded AMTEC, as the sole prime contractor, a fourth five-year 40mm system contract covering FY22-26 requirements. The value of awards to date is approximately $965,000,000 for FY22 through FY25, with deliveries commencing in 2024 and scheduled to complete in 2030.
The contract backlog of the Defense segment was approximately $1,085,612,000, $564,005,000, and $505,069,000 at December 31, 2024, 2023, and 2022, respectively. Backlog is defined as the value of orders from the customer less the amount of sales recognized against the orders.
The contract backlog of the Defense segment was approximately $1,747,809,000, $1,085,612,000, and $564,005,000 at December 31, 2025, 2024, and 2023, respectively. Backlog is defined as the value of orders from the customer less the amount of sales recognized against the orders.
The Company purchased certain assets and assumed certain liabilities of Knox Safety, Inc. on July 29, 2022, forming Rely. Rely leases 4,300 square feet in Chapel Hill, North Carolina and 5,600 square feet in Lisle, Illinois. Established in 2019, Knox Safety designed and sold carbon monoxide detectors for residential use. See Note P to the Company's Consolidated Financial Statements.
The Company purchased certain assets and assumed certain liabilities of Knox Safety, Inc. on July 29, 2022, forming Rely. Rely leases 4,300 square feet in Chapel Hill, North Carolina and 5,600 square feet in Lisle, Illinois. Established in 2019, Knox Safety designed and sold carbon monoxide detectors for residential use.
For the year ended December 31, 2023, approximately 9% of consolidated net sales were provided by cast products, and approximately 18% by noncast/thermal appliances. For the year ended December 31, 2022, approximately 11% of consolidated net sales were provided by cast products, and approximately 24% by noncast/thermal appliances.
For the year ended December 31, 2024, approximately 10% of consolidated net sales were provided by cast products, and approximately 15% by noncast/thermal appliances. For the year ended December 31, 2023, approximately 9% of consolidated net sales were provided by cast products, and approximately 18% by noncast/thermal appliances.
Two award years (FY25 and FY26) remain, with the maximum ceiling value of the contract at $826,800,000. Actual annual and cumulative dollar volume with the Army over the course of the contract will be dependent upon military requirements and funding, as well as government procurement regulations and other factors controlled by the Army and the DOD.
One award year (FY26) remains, with the maximum ceiling value of the contract at $1,413,000,000. Actual annual and cumulative dollar volume with the Army over the course of the contract will be dependent upon military requirements and funding, as well as government procurement regulations and other factors controlled by the Army and the DOD.
Safety Segment The Safety segment was formed in the third quarter of 2019 with the purchase of substantially all of the assets of OneEvent Technologies, Inc. ("OneEvent") on July 23, 2019. The segment is currently comprised of OneEvent and Rely Innovations, Inc. ("Rely").
Safety Segment The Safety segment was formed in the third quarter of 2019 with the purchase of substantially all of the assets of OneEvent Technologies, Inc. ("OneEvent") on July 23, 2019, and was combined with Rusoh, Inc., which had previously been included in the Housewares/Small Appliance segment. The Safety segment is currently comprised of Rely Innovations, Inc. ("Rely").
For the year ended December 31, 2024, Amazon.com, Inc. accounted for 10% of the Company’s consolidated net sales. For the year ended December 31, 2023, Amazon.com, Inc. accounted for 11% of the Company’s consolidated net sales. For the year ended December 31, 2022, this segment had no one customer that accounted for 10% or more of the consolidated net sales.
For the year ended December 31, 2025, this segment had no customers that accounted for 10% of the Company’s consolidated net sales. For the years ended December 31, 2024 and 2023, Amazon.com, Inc. accounted for 10% and 11%, respectively, of the Company’s consolidated net sales.
It is anticipated that the backlog will be produced and shipped during an 18- to 42-month period, after December 31, 2024. C. AVAILABLE INFORMATION The Company has a web site at www.gopresto.com. The contents of the Company's web site are not part of, nor are they incorporated by reference into, this annual report.
It is anticipated that the backlog will be produced and shipped during an 18- to 42-month period, after December 31, 2025. C. AVAILABLE INFORMATION The Company has a web site at www.gopresto.com.
The Company makes available on its web site its annual reports on Form 10-K or 10-K/A and, beginning with its second quarter filing in 2011, quarterly reports on Form 10-Q or 10-Q/A.
The contents of the Company's web site are not part of, nor are they incorporated by reference into, this annual report. ne The Company makes available on its web site its annual reports on Form 10-K or 10-K/A and, beginning with its second quarter filing in 2011, quarterly reports on Form 10-Q or 10-Q/A.
Established in 2014, OneEvent’s cloud-based learning and analytics engine utilizes a series of sensing devices integrated with a cellular gateway to predict and alert in a timely fashion so that the customer has an opportunity to prevent a loss. Sensors measure a variety of environmental data including temperature, smoke, carbon monoxide, humidity, water, motion, and more.
Established in 2014, OneEvent’s cloud-based learning and analytics engine utilizes a series of sensing devices integrated with a cellular gateway to predict and alert in a timely fashion so that the customer has an opportunity to prevent a loss. As noted above, the certain assets of the business were divested in 2025.
Pressure cookers and canners are available in various sizes and are fabricated of aluminum and, in the case of cookers, of stainless steel, as well.
Pressure cookers and canners are available in a range of sizes, in stovetop and digital forms, and are made from aluminum and/or stainless steel.
In November of 2023, the Company divested itself of a subsidiary, Rusoh, Inc., that was previously included in this segment. See Note L of the Consolidated Financial Statements. OneEvent leases 4,300 square feet in Mount Horeb, Wisconsin.
To focus the direction of the segment's business, the Company divested the stock of Rusoh, Inc. on November 14, 2023 and certain assets of OneEvent related to its refrigeration monitoring business on July 31, 2025. The OneEvent intellectual property, however, has been retained. See Note L of the Consolidated Financial Statements. OneEvent leases 4,300 square feet in Mount Horeb, Wisconsin.
Removed
The Safety segment, which provides innovative safety technology empowering organizations and individuals to protect what is most important, currently consists of two startup companies. The first is OneEvent Technologies, Inc., which offers systems that provide early warning of conditions that could ultimately lead to significant losses.
Added
The segment also markets an economy line of carbon monoxide and smoke alarms and a PFAS-Free Foam commercial fire extinguisher. 1.
Removed
The initial application combines patented machine learning, digital sensors and cloud-based technology to continuously monitor freezers and refrigerators, instantly detecting and alerting users to potential safety issues around pharmaceuticals and food. The OneEvent® system also has the ability to continually measure other factors such as smoke, carbon monoxide, motion, humidity, and moisture.
Removed
The initial application combines patented machine learning, digital sensors and cloud-based technology to continuously monitor freezers and refrigerators, instantly detecting and alerting users to potential mechanical issues which can in turn affect the maintenance of critical temperatures for the safe storage of pharmaceuticals and food.
Removed
The system detects anomalies in defrost and refrigeration cycles, enabling it to provide notice days or even weeks in advance of a potential malfunction. With these alerts, customers can act proactively to correct the situation and prevent the loss or deterioration of valuable pharmaceuticals or foods well in advance of an equipment failure.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeA global health crisis like the COVID-19 pandemic has contributed to business slowdowns or shutdowns, labor shortages, supply chain challenges, changes in government spending and requirements, regulatory challenges, reductions in demand for products and services, inflationary pressures and market volatility, If a health epidemic, pandemic or similar outbreak were to occur or worsen, the Company will likely experience broad and varied impacts, including potentially to its workforce and supply chain, inflationary pressures and increased costs (which may or may not be fully recoverable or insured), contracting, production and/or distribution delays, market volatility and other financial impacts.
Biggest changeIf a health epidemic, pandemic or similar outbreak were to occur or worsen, the Company will likely experience broad and varied impacts, including potentially to its workforce and supply chain, inflationary pressures and increased costs (which may or may not be fully recoverable or insured), contracting, production and/or distribution delays, market volatility and other financial impacts.
The introduction of new products may require substantial expenditures for advertising and marketing to gain marketplace recognition or to license intellectual property. There is no guarantee that the Company will be aware of all relevant intellectual property in the industry and may be subject to claims of infringement, which could preclude it from producing and selling a product.
The introduction of new products may require substantial expenditures for advertising and marketing to gain marketplace recognition or to license intellectual property. There is no guarantee that the Company will be aware of all relevant intellectual property in the industry and may be subject to claims of infringement, which could preclude it from producing and selling a product.
The Company’s insurance coverage may not be adequate to cover all the costs related to cyber security attacks or disruptions. On March 1, 2025, the Company experienced a system outage caused by a cybersecurity incident. Upon discovery, the Company activated its incident response team, comprised of internal personnel and external cybersecurity experts retained to assist in addressing the incident.
The Company’s insurance coverage may not be adequate to cover all the costs related to cyber security attacks or disruptions. On March 1, 2025, the Company experienced a system outage caused by a cybersecurity incident, which is described in Item 1C CYBERSECURITY. There can be no assurance the Company will not experience material effects from security breaches in the future.
Removed
While the full scope of the impact is not yet known, the incident could have the potential to have a material impact on the Company’s financial condition and results of operations. The Company is continuing its forensic investigation and analysis to assess the potential impact.
Added
A global health crisis like the COVID-19 pandemic has contributed to business slowdowns or shutdowns, labor shortages, supply chain challenges, changes in government spending and requirements, regulatory challenges, reductions in demand for products and services, inflationary pressures and market volatility.
Removed
There can be no assurance the Company will not experience material effects from security breaches in the future.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThere are two warehousing facilities located in Jackson and Canton, Mississippi used in the Housewares/Small Appliance and Safety segments. The Jackson facility contains 252,000 square feet. The Canton facility contains 255,000 square feet which is used primarily for warehousing and distribution and some activities for product service functions.
Biggest changeThe Company's Nettleton facility, which was purchased on January 23, 2025, is approximately 507,000 square feet and will be used principally in the warehousing, distribution, and product service functions of the Housewares/Small Appliance and Safety segments. The Company plans for this facility to replace its two existing warehousing facilities located in Canton and Jackson, Mississippi.
The Antigo, Wisconsin facility is comprised of approximately 212,000 square feet, the East Camden, Arkansas operation leases approximately 384,000 square feet, the Clear Lake, South Dakota facility is comprised of approximately 124,000 square feet which includes the Company's 2021 construction of 10,000 square feet of office space, and the Marshall, Texas facility is comprised of approximately 56,500 square feet.
The Antigo, Wisconsin facility is comprised of approximately 212,000 square feet, the East Camden, Arkansas operation leases approximately 384,000 square feet, the Clear Lake, South Dakota facility is comprised of approximately 124,000 square feet which includes the Company's 2021 construction of 10,000 square feet of office space, and the Marshall, Texas facility is comprised of approximately 77,000 square feet.
An additional 72,000 square feet has been leased in adjacent Canton buildings for warehousing. The facilities in use for each of the Company’s business segments are believed to be adequate for their ongoing business needs.
The facilities in use for each of the Company’s business segments are believed to be adequate for their ongoing business needs.
During 2018, the Company completed construction of a 30,000 square foot office building adjacent to its Eau Claire facility, which it also leases to Drylock Technologies, Ltd. On January 23, 2025 the Company purchased a 507,000 square foot building located in Nettleton, Mississippi to be used principally in the warehousing and distribution function of the Housewares/Small Appliance segment.
During 2018, the Company completed construction of a 30,000 square foot office building adjacent to its Eau Claire facility, which it also leases to Drylock Technologies, Ltd.
The total cash paid at closing was $19,750,000. The Company has Defense segment manufacturing facilities located in Janesville and Antigo, Wisconsin; East Camden, Arkansas; Clear Lake, South Dakota; and Marshall, Texas. The Janesville, Wisconsin facility is comprised of approximately 106,000 square feet.
An additional 72,000 square feet has been leased in adjacent Canton buildings for warehousing. The Jackson facility contains 252,000 square feet, which the Company plans to divest as well. The Company has Defense segment manufacturing facilities located in Janesville and Antigo, Wisconsin; East Camden, Arkansas; Clear Lake, South Dakota; and Marshall, Texas.
Removed
As of December 31, 2024, facility expansion plans were in progress for 2025 at several of the Defense segment’s operating locations in anticipation of additional awards.
Added
The Canton facility contains 255,000 square feet which is used primarily for warehousing and distribution and some activities for product service functions. The facility was sold on February 10, 2026 and subsequently leased back under a short term lease agreement, as the Company transitions all warehousing functions to the Nettleton facility.
Added
The Janesville, Wisconsin facility is comprised of approximately 131,000 square feet.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe dividend is payable on March 17, 2025 to the stockholders of record as of March 4, 2025. The common stock of National Presto Industries, Inc. is traded on the New York Stock Exchange under the symbol “NPK”. As of March 4, 2025, there were 209 holders of record of the Company’s common stock.
Biggest changeThe common stock of National Presto Industries, Inc. is traded on the New York Stock Exchange under the symbol “NPK”. As of March 9, 2026, there were 209 holders of record of the Company’s common stock. This number does not reflect stockholders who hold their shares in the name of broker dealers or other nominees.
The line graph and related information set forth under the heading “Performance Graph” in the Company’s 2024 Annual Report is incorporated by reference. 15 Table of Contents
The line graph and related information set forth under the heading “Performance Graph” in the Company’s 2025 Annual Report is incorporated by reference. 15 Table of Contents
This number does not reflect stockholders who hold their shares in the name of broker dealers or other nominees. During the fourth quarter of 2024, the Company did not purchase any of its equity securities. The information under the heading “Equity Compensation Plan Information,” in the Company’s Proxy Statement for its 2025 Annual Meeting of Stockholders, is incorporated by reference.
During the fourth quarter of 2025, the Company did not purchase any of its equity securities. The information under the heading “Equity Compensation Plan Information,” in the Company’s Proxy Statement for its 2026 Annual Meeting of Stockholders, is incorporated by reference.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Record of Purchases of Equity Securities None within the fourth quarter of the year ended December 31, 2024. On February 21, 2025, the Company’s Board of Directors announced a regular dividend of $1.00 per share.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES On February 27, 2026, the Company’s Board of Directors announced a regular dividend of $1.00 per share. The dividend is payable on March 20, 2026 to the stockholders of record as of March 9, 2026.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

25 edited+15 added−22 removed26 unchanged
Biggest changeLIQUIDITY AND CAPITAL RESOURCES 2024 COMPARED TO 2023 Cash used in operating activities was $53,426,000 during 2024 as compared to $45,389,000 provided by operating activities during 2023. The principal factors behind the increase in cash used can be found in the changes in the components of working capital within the Consolidated Statements of Cash Flows.
Biggest changeThe principal factors behind the increase in cash used can be found in the changes in the components of working capital within the Consolidated Statements of Cash Flows. Of particular note during 2024 was net earnings of $41,460,000, which included total non-cash depreciation and amortization of $5,046,000 and deferred income tax benefit of $4,528,000.
Additional information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings. 2024 COMPARED TO 2023 Readers are directed to Note L, “Business Segments,” to the Company’s Consolidated Financial Statements for data on the financial results of the Company’s three business segments for the years ended December 31, 2024 and 2023.
Additional information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings. 2025 COMPARED TO 2024 Readers are directed to Note L, “Business Segments,” to the Company’s Consolidated Financial Statements for data on the financial results of the Company’s three business segments for the years ended December 31, 2025 and 2024.
In addition, the Company drew on and repaid its line of credit during 2024, incurring interest expense of $2,000. As a result of the foregoing factors, cash and cash equivalents decreased in 2024 by $69,994,000 to $17,663,000. 19 Table of Contents Working capital increased by $4,134,000 to $292,225,000 at December 31, 2024 for the reasons stated above.
In addition, the Company drew on and repaid its line of credit during 2024, incurring interest expense of $2,000. As a result of the foregoing factors, cash and cash equivalents decreased in 2024 by $69,994,000 to $17,663,000. Working capital increased by $4,134,000 to $292,225,000 at December 31, 2024 for the reasons stated above.
The comparative decrease in gross margins of $667,000 were primarily due to increased product development and testing. 16 Table of Contents Selling and general expenses for the Housewares/Small Appliance segment increased $361,000, primarily reflecting increased personnel costs of $654,000 and accrual levels for self insurance of $339,000, partially offset by changes to accrual levels for bad debt of $571,000.
The comparative decrease in gross margins of $667,000 were primarily due to increased product development and testing. Selling and general expenses for the Housewares/Small Appliance segment increased $361,000, primarily reflecting increased personnel costs of $654,000 and accrual levels for self insurance of $339,000, partially offset by changes to accrual levels for bad debt of $571,000.
Forward-looking statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, elsewhere in this Form 10-K, in the Company’s 2024 Annual Report to Shareholders, in the Proxy Statement for the annual meeting to be held May 20, 2025, and in the Company’s press releases and oral statements made with the approval of an authorized executive officer are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, elsewhere in this Form 10-K, in the Company’s 2025 Annual Report to Shareholders, in the Proxy Statement for the annual meeting to be held May 19, 2026, and in the Company’s press releases and oral statements made with the approval of an authorized executive officer are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
The Company recognizes the excess cost of acquired entities over the net amount assigned to the fair value of assets acquired and liabilities assumed as goodwill. Goodwill is tested for impairment on an annual basis at the start of the fourth quarter and between annual tests whenever an impairment is indicated.
The Company recognizes the excess cost of acquired entities over the net amount assigned to the fair value of assets acquired and liabilities assumed as goodwill. Goodwill, at the reporting unit level, is tested for impairment on an annual basis at the start of the fourth quarter and between annual tests whenever an impairment is indicated.
Lease obligations are described in Note M - Leases to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. 2023 COMPARED TO 2022 Cash provided by operating activities was $45,389,000 during 2023 as compared to $8,768,000 during 2022.
Lease obligations are described in Note M - Leases to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. 2024 COMPARED TO 2023 Cash used in operating activities was $53,426,000 during 2024 as compared to $45,389,000 provided by operating activities during 2023.
The impairment test for goodwill requires the determination of fair value of the reporting unit. The Company uses multiples of earnings before interest, taxes, depreciation, and amortization ("EBITDA"), sales, and discounted cash flow models, which are described above, to determine the reporting unit's fair value, as appropriate. The Company also utilizes qualitative analyses to assess goodwill impairment.
The impairment test for goodwill requires the determination of fair value of the reporting units. The Company uses multiples of earnings before interest, taxes, depreciation, and amortization ("EBITDA"), sales, and discounted cash flow models, which are described above, to determine the reporting unit's fair value, as appropriate.
The Company has sufficient liquidity in the form of cash and cash equivalents and marketable securities and credit facilities to meet all of its anticipated capital requirements, to make dividend payments, and to fund future growth through acquisitions and other means.
The Company has sufficient liquidity in the form of cash and cash equivalents and marketable securities and credit facilities to meet all of its anticipated capital requirements, to make dividend payments, and to fund future growth through acquisitions and other means. The Company's principal commitments consist of purchase and lease obligations.
The principal factors behind the increase in cash provided can be found in the changes in the components of working capital within the Consolidated Statements of Cash Flows.
The principal factors behind the decrease in cash used can be found in the changes in the components of working capital within the Consolidated Statements of Cash Flows.
As of December 31, 2023 and 2022, $5,123,000 and $3,638,000, respectively, of variable rate demand notes are classified as marketable securities. These notes have structural features that allow the Company to tender them at par plus interest within any 7-day period for cash to the notes’ trustees or remarketers and thus provide the liquidity of cash equivalents.
As of December 31, 2024 and 2023, $0 and $5,123,000, respectively, of variable rate demand notes were classified as marketable securities. These notes had structural features that allowed the Company to tender them at par plus interest within any 7-day period for cash to the notes’ trustees or remarketers and thus provided the liquidity of cash equivalents.
Other income decreased $1,941,000, which was primarily attributable to a reduced portfolio of marketable securities. Earnings before provision for income taxes increased $8,239,000 from $42,431,000 to $50,670,000. The provision for income taxes increased from $7,872,000 to $9,210,000, which resulted in an effective income tax rate of 18% and 19% for the years ended December 31, 2024 and 2023, respectively.
Earnings before provision for income taxes increased $8,239,000 from $42,431,000 to $50,670,000. The provision for income taxes increased from $7,872,000 to $9,210,000, which resulted in an effective income tax rate of 18% and 19% for the years ended December 31, 2024 and 2023, respectively.
Net earnings increased $6,901,000 from $34,559,000 to $41,460,000. 17 Table of Contents 2023 COMPARED TO 2022 Readers are directed to Note L, “Business Segments,” to the Company’s Consolidated Financial Statements for data on the financial results of the Company’s three business segments for the years ended December 31, 2023 and 2022.
Net earnings decreased $8,376,000 from $41,460,000 to $33,084,000. 17 Table of Contents 2024 COMPARED TO 2023 Readers are directed to Note L, “Business Segments,” to the Company’s Consolidated Financial Statements for data on the financial results of the Company’s three business segments for the years ended December 31, 2024 and 2023.
The Company’s current ratio was 5.0 to 1.0 at December 31, 2023 and 6.1 to 1.0 at December 31, 2022. 20 Table of Contents DEFENSE SEGMENT BACKLOG The Company’s Defense segment contract backlog was approximately $1,085,612,000 at December 31, 2024, and $564,005,000 at December 31, 2023.
The Company’s current ratio was 4.9 to 1.0 at December 31, 2024 and 5.0 to 1.0 at December 31, 2023. 20 Table of Contents DEFENSE SEGMENT BACKLOG The Company’s Defense segment contract backlog was approximately $1,747,809,000 at December 31, 2025, and $1,085,612,000 at December 31, 2024.
Purchase obligations include outstanding purchase orders issued to the Company's Housewares and Safety segments' manufacturers in the Orient and to material suppliers and contractors in the Defense segment, and as of December 31, 2024 amounted to approximately $346,143,000.
Purchase obligations include outstanding purchase orders issued to material suppliers and contractors in the Company's Defense segment and those issued to manufacturers located primarily in the Orient for the Housewares/Small Appliance segment and in Mexico for the Safety segment. As of December 31, 2025, the purchase orders amounted to approximately $602,558,000.
Intangibles amortization decreased as a result of the absence of the prior year's amortization of intellectual property intangibles from the acquisition of Knox Safety, Inc. See Note P to the Company's Consolidated Financial Statements. The above items were responsible for the change in operating profit from continuing operations.
Intangibles amortization decreased as a result of the absence of the prior year's amortization of intellectual property intangibles from the acquisition of Knox Safety, Inc. The above items were responsible for the change in operating profit from continuing operations. Other income decreased $1,941,000, which was primarily attributable to a reduced portfolio of marketable securities.
Of particular note during 2024 was net earnings of $41,460,000, which included total non-cash depreciation and amortization of $5,046,000 and deferred income tax benefit of $4,528,000. This was augmented by decreases in deposits made to vendors (included in other assets and current assets) and a net increase in payable and accrual levels.
The combination of these factors was more than offset by increases in inventory and accounts receivable levels and a net decrease in payables and accrual levels. Of particular note during 2024 was net earnings of $41,460,000, which included total non-cash depreciation and amortization of $5,046,000 and deferred income tax benefit of $4,528,000.
The combination of these factors was more than offset by increases in inventory and accounts receivable levels.
This was augmented by decreases in deposits made to vendors (included in other assets and current assets) and a net increase in payable and accrual levels. The combination of these factors was more than offset by increases in inventory and accounts receivable levels.
NEW ACCOUNTING PRONOUNCEMENTS Please refer to Note A(17) to the Company’s Consolidated Financial Statements for information related to the effect of adopting new accounting pronouncements on the Company’s Consolidated Financial Statements.
The Company derives the required cash flow estimates from its historical experience and its internal business plans. The Company also utilizes qualitative analyses to assess goodwill impairment. NEW ACCOUNTING PRONOUNCEMENTS Please refer to Note A(17) to the Company’s Consolidated Financial Statements for information related to the effect of adopting new accounting pronouncements on the Company’s Consolidated Financial Statements.
Cash flows from financing activities for 2023 and 2022 primarily differed as a result of the $0.50 per share decrease in the extra dividend paid during these years. Cash flows for both years also reflected the proceeds from the sale of treasury stock to a Company sponsored retirement plan.
In 2024, the extra dividend was $3.50 per share. However, there was no extra dividend payment during 2025. Cash flows for both years also reflected the proceeds from the sale of treasury stock to a Company sponsored retirement plan. During 2025and 2024, the Company incurred interest expense of $832,000 and $2,000 related to its line of credit, respectively.
As a result of the foregoing factors, cash and cash equivalents increased in 2023 by $16,946,000 to $87,657,000. Working capital increased by $15,100,000 to $288,091,000 at December 31, 2023 for the reasons stated above.
As a result of the foregoing factors, cash and cash equivalents decreased in 2025 by $14,411,000 to $3,252,000. 19 Table of Contents Working capital increased by $15,887,000 to $308,112,000 at December 31, 2025 for the reasons stated above. The Company’s current ratio was 4.2 to 1.0 at December 31, 2025 and 4.9 to 1.0 at December 31, 2024.
The provision for income taxes increased from $5,245,000 to $7,872,000, which resulted in an effective income tax rate of 19% and 20% for the years ended December 31, 2023 and 2022, respectively. Net earnings increased $13,860,000 from $20,699,000 to $34,559,000.
Earnings before provision for income taxes decreased $8,551,000 from $50,670,000 to $42,119,000. The provision for income taxes decreased $175,000 from $9,210,000 to $9,035,000, which resulted in an effective income tax rate of 22% and 18% for the years ended December 31, 2025 and 2024, respectively.
Of particular note during 2023 were net earnings of $34,559,000, which included total non-cash depreciation and amortization of $6,007,000, decreases in accounts receivable levels and deposits made to vendors (included in other assets and current assets), and a net increase in payable and accrual levels.
This was augmented by decreases in deposits made to vendors (included in other assets and current assets) and a net increase in payable and accrual levels. The combination of these factors was more than offset by increases in inventory and accounts receivable levels.
These were partially offset by non-cash deferred income tax benefit of $1,190,000 and an increase in inventory levels. Of particular note during 2022 were net earnings of $20,699,000, which included a non-cash loss on impairment of goodwill and intangible assets of $5,295,000 and total non-cash depreciation and amortization expenses of $3,347,000.
Of particular note during 2025 was net earnings of $33,084,000, which included the non-cash impairment of a vendor deposit of $2,701,000, depreciation and amortization expenses of $5,136,000, deferred income tax of $7,741,000 and retirement plan expense of $1,008,000.
Approximately 30% of which was attributable to a decrease pricing with the balance due to changes in units shipped and mix. Net sales of the Defense segment increased by $39,220,000, from $202,483,000 to $241,703,000, or 19%, reflecting an increase in units shipped.
Details concerning these changes can be found, by segment, in the comments below. Net sales of the Housewares/Small Appliance segment decreased by $7,195,000 (7%), from $102,799,000 to $95,604,000, primarily attributable to a decrease in units shipped, approximately 47% was offset by an increase in pricing.
Removed
On a consolidated basis, sales increased by $19,289,000 (6%), gross profit increased by $12,327,000 (22%), selling and general expense increased by $3,663,000 (14%), intangibles amortization increased by $1,053,000 (181%) and Impairments - goodwill and intangible assets decreased $5,295,000.
Added
On a consolidated basis, sales increased by $115,296,000 (30%), gross profit increased by $1,759,000 (2%), selling and general expense increased by $4,030,000 (13%), impairment of vendor deposit increased $2,701,000, and amortization was consistent. Other income decreased by $3,579,000 (66%), earnings before provision for income taxes decreased by $8,551,000 (17%), and net earnings decreased by $8,376,000 (20%).
Removed
Other income increased by $3,581,000 (94%), earnings before provision for income taxes increased by $16,487,000 (64%), and net earnings increased by $13,860,000 (67%). Details concerning these changes can be found, by segment, in the comments below. Net sales of the Housewares/Small Appliance segment decreased by $20,729,000, from $118,347,000 to $97,619,000, or 18%.
Added
Net sales of the Defense segment increased by $121,912,000 (43%), from $284,025,000 to $405,937,000, reflecting an increase in shipments from the segment's backlog. Safety segment sales increased $579,000 to $1,983,000, reflecting an increase in shipments.
Removed
In addition, as Woodlawn Manufacturing, Ltd. was acquired during the fourth quarter of 2022 (see Note P to the Company's Consolidated Financial Statements), 2023 was the first full year that its operations were reflected in the segment's sales.
Added
Gross profit of the Housewares/Small Appliance segment decreased $17,889,000 from $25,478,000 (25% of sales) in 2024 to $7,589,000 (8% of sales) in 2025, primarily reflecting the decrease in sales mentioned above and the Trump administration's tariffs that went into effect on goods deemed to have been shipped from the Orient after January 31, 2025.
Removed
Gross profit of the Housewares/Small Appliance segment increased $2,445,000 from $17,422,000 (15% of sales) in 2022 to $19,867,000 (20% of sales) in 2023, primarily reflecting the absence of the levels of inventory adjustments made in the prior year.
Added
Those tariffs are generally treated as period costs and expensed as they are incurred, reflecting the segment’s LIFO inventory cost valuation method. The relocation costs of the segment’s distribution center from Canton to Nettleton, Mississippi also served to reduce gross profit by approximately $1,261,000.
Removed
Those adjustments related to obsolete or excess inventory adjustments of $3,613,000, and decrease in standard unit costs of $3,108,000 that were not offset by decreases in the segment's LIFO inventory reserve. Decreased ocean cargo and inland freight costs and a more favorable U.S. Dollar-RMB exchange rate affected margins to a lesser degree.
Added
Defense gross profit increased $19,471,000 from $58,173,000 (21% of sales) in 2024 to $77,644,000 (19% of sales) in 2025, primarily reflecting the increase in sales mentioned above, as well as differences in mix efficiencies, and material costs.
Removed
These elements were partially offset by the changes in pricing and unit shipments mentioned above. Defense gross profit increased $9,365,000 from $42,638,000 (21% of sales) in 2022 to $52,003,000 (22% of sales) in 2023, primarily reflecting the increase in sales mentioned above, and comparatively more efficient operations.
Added
Due to the startup nature of the businesses in the Safety segment and resulting limited revenues, gross margins were negative in both years. 16 Table of Contents Selling and general expenses for the Housewares/Small Appliance segment increased $1,304,000, primarily reflecting increased personnel costs of $768,000, computers and technology costs of $266,000, and the favorable adjustment to the reserve for bad debts of $285,000 that occurred in the prior year.
Removed
Due to the startup nature of the businesses in the Safety segment, gross margins were negative in both years. Fiscal year 2023 included a full year of operations of Rely Innovations, Inc., which was acquired in July of 2022. See Note P.
Added
Defense segment selling and general expenses increased $3,941,000, primarily due to increased personnel costs of $3,012,000, legal and professional expenses of $347,000, repairs and maintenance costs of $334,000, and computers and software expenses of $256,000. Safety segment selling and general expenses decreased $1,215,000, primarily reflecting the sale of OneEvent's refrigeration monitoring business that occurred on July 31, 2025.
Removed
This increase in operating losses was offset by the absence of the prior year's write-downs of inventory and materials to reflect realizable values of $1,822,000, leading to the comparative increase in gross margin of $517,000.
Added
During the first quarter of 2025, the Company made deposits totaling $2,701,000 with a vendor in its Housewares/Small Appliances segment. On May 29, 2025, the vendor filed for protection in the U.S. Bankruptcy Court in the Northern District of Texas.
Removed
Selling and general expenses for the Housewares/Small Appliance segment increased $355,000, primarily reflecting increased compensation/payroll costs of $503,000, and changes to accrual levels, which included increased bad debt reserves of $285,000 and decreased legal and professional fees of $534,000.
Added
As recovery of the deposit is deemed unlikely, the Company recorded an impairment of the full deposit during the second quarter of 2025. The above items were responsible for the change in operating profit from continuing operations.
Removed
Defense segment selling and general expenses increased $1,606,000, primarily due to increased compensation/payroll costs of $724,000, insurance settlement/deductible costs of $538,000 and a full year of selling and general expenses of Woodlawn Manufacturing, Ltd., which was acquired, during the fourth quarter of 2022. The increase in Woodlawn's selling and general expenses was $405,000.
Added
The $3,579,000 decrease in other income was attributable to a decrease of $3,009,000 in interest income on marketable securities and an increase in interest expense of $830,000 related to the outstanding balance of the Company's revolving line of credit during 2025. Both stem from the increased investments in inventory required to support augmented Defense segment awards.
Removed
Safety segment selling and general expenses increased $1,702,000, primarily reflecting increased compensation/payroll costs of $1,420,000 and the absence of the prior year bargain purchase gain of $492,000 recognized upon the acquisition of Knox Safety, Inc., partially offset by the gain on the sale of Rusoh, Inc. of $351,000. See Notes L and P to the Company's Consolidated Financial Statements.
Added
The increase in the effective income tax rate was primarily attributable to the absence of favorable adjustments recognized in 2024 related to prior year estimates.
Removed
Intangibles amortization increased as a result of the acquisition of contracts/customer relationship and intellectual property intangibles in the acquisitions of Knox Safety, Inc. and Woodlawn Manufacturing, Ltd. See Note P to the Company's Consolidated Financial Statements.
Added
Net earnings increased $6,901,000 from $34,559,000 to $41,460,000. 18 Table of Contents LIQUIDITY AND CAPITAL RESOURCES 2025 COMPARED TO 2024 Cash used in operating activities was $9,137,000 during 2025 as compared to $53,426,000 during 2024.
Removed
Impairment - goodwill and intangible assets decreased as a result of the absence of the prior year's impairment of goodwill and technology intangibles in the Safety segment. See Note A(10) and Note A(11) to the Consolidated Financial Statements. The above items were responsible for the change in operating profit from continuing operations.
Added
Net cash used in investing activities was $21,876,000 during 2025 as compared to $14,965,000 provided by investing activities during 2024. The change primarily related to net sales and maturities of marketable securities of $4,477,000 in 2025, as opposed to $21,459,000 in 2024, and purchases of property, plant and equipment of $27,034,000 in 2025, as opposed to $7,531,000 in 2024.
Removed
Other income increased $3,581,000, which was primarily attributable to higher interest earned with higher yields, partially offset by a reduced portfolio of marketable securities. 18 Table of Contents Earnings before provision for income taxes increased $16,487,000 from $25,944,000 to $42,431,000.
Added
Net cash provided by financing activities was $16,602,000 during 2025 as compared to $31,533,000 of net cash used in financing activities during 2024. The change primarily relates to net proceeds from the Company's line of credit in 2025 of $23,624,000, as well as the annual dividend payments. During both years, the regular dividend was $1.00 per share.
Removed
As of December 31, 2024, there were no variable rate demand notes classified as marketable securities. As of December 31, 2023, $5,123,000 of variable rate demand notes are classified as marketable securities.
Added
The Company uses internal discounted cash flows estimates, quoted market prices when available and independent appraisals, as appropriate, to determine fair value. A number of assumptions and estimates are involved in the application of the discounted cash flow model including revenue projections, projected operating cash flow margins, and discount rates.
Removed
These notes have structural features that allow the Company to tender them at par plus interest within any 7-day period for cash to the notes’ trustees or remarketers and thus provide the liquidity of cash equivalents.
Removed
The Company’s current ratio was 4.9 to 1.0 at December 31, 2024 and 5.0 to 1.0 at December 31, 2023.
Removed
The bulk of its marketable securities have been invested in the variable rate demand notes described above, in municipal bonds that are pre-refunded with escrowed U.S. Treasuries, and certificates of deposit. The Company intends to continue its investment strategy of safety and short-term liquidity throughout its investment holdings. The Company's principal commitments consist of purchase and lease obligations.
Removed
These were partially offset by a non-cash deferred income tax benefit of $2,311,000 and increases in accounts receivable and inventory levels. Net cash used in investing activities was $447,000 during 2023 as compared to $16,436,000 during 2022.
Removed
Of note during 2023 were proceeds from sale of subsidiary of $2,000,000, net purchases of marketable securities of $1,466,000 and purchases of plant and equipment of $1,840,000. During 2022 the Company acquired two businesses for $24,683,000 net of cash acquired and purchased plant and equipment for $1,030,000.
Removed
These were partially offset by net sales and maturities of marketable securities of $9,171,000. Based on the accounting profession’s 2005 interpretation of cash equivalents under Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 230, the Company’s variable rate demand notes have been classified as marketable securities.
Removed
This interpretation, which is contrary to the interpretation that the Company’s representative received directly from the FASB (which indicated it would not object to the Company’s classification of variable rate demand notes as cash equivalents), has resulted in a presentation of the Company’s Consolidated Balance Sheets that the Company believes understates the true liquidity of the Company’s income portfolio.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+0 added−4 removed3 unchanged
Biggest changeAccordingly, changes in interest rates have not had a material effect on the Company, and the Company does not anticipate that future exposure to interest rate market risk will be material. The Company uses sensitivity analysis to determine its exposure to changes in interest rates.
Biggest changeThe balance of the Company’s investments is held primarily in certificates of deposits and other fixed rate securities with a weighted average life of 0.9 years. Accordingly, changes in interest rates have not had a material effect on the Company, and the Company does not anticipate that future exposure to interest rate market risk will be material.
The Company has no history of, and does not anticipate in the future, investing in derivative financial instruments. Most transactions with international customers are entered into in U.S. dollars, precluding the need for foreign currency cash flow hedges.
The Company uses sensitivity analysis to determine its exposure to changes in interest rates. The Company has no history of, and does not anticipate in the future, investing in derivative financial instruments. Most transactions with international customers are entered into in U.S. dollars, precluding the need for foreign currency cash flow hedges.
Removed
Based on the accounting profession’s interpretation of cash equivalents under FASB ASC 230, the Company’s seven-day variable rate demand notes have been classified as marketable securities rather than as cash equivalents.
Removed
The demand notes are highly liquid instruments with interest rates set every seven days that can be tendered to the trustee or remarketer upon seven days notice for payment of principal and accrued interest amounts. The seven-day tender feature of these variable rate demand notes is further supported by an irrevocable letter of credit from highly rated U.S. banks.
Removed
To the extent a bond is not remarketed at par plus accrued interest, the difference is drawn from the bank’s letter of credit. The Company has had no issues tendering these notes to the trustees or remarketers.
Removed
Other than a failure of a major U.S. bank, there are no known risks of which the Company is aware that relate to these notes in the current market. The balance of the Company’s investments is held primarily in fixed rate municipal bonds and certificates of deposits with an average life of 0.7 years.

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