National Presto Industries's biggest risks in the FY2024 10-K
- Defense segment relies heavily on U.S. government contracts, subject to budget changes and fixed-price cost pressures.
- Housewares and safety segments depend on Asian and Mexican third-party manufacturing partners.
- Housewares sales concentrate heavily in the U.S. holiday retail season with key customers.
The risks most specific to National Presto Industries
Increases in the costs for raw materials, energy, transportation and other necessary supplies could adversely affect the results of the Company’s operations
Increases in raw materials, energy, and transportation costs can hurt housewares operating results.
Reliance on third-party suppliers in Asia makes this segment vulnerable to supply interruptions and foreign business risks
Housewares production relies heavily on a handful of third-party suppliers in China, creating supply disruption risks.
The Housewares/Small Appliance segment is dependent on key customers, and any significant decline in business from one or more of its key customers could adversely affect the segment’s operating results
The housewares segment lacks long-term agreements with key customers, risking sudden volume declines or assortment changes.
The sales for this segment are highly seasonal and dependent upon the United States retail markets and consumer spending
Housewares sales depend heavily on U.S. consumer spending during the holiday selling season and general economic health.
The Company relies primarily on sales to U.S. Government entities, and the failure to procure or the loss of a significant contract or contracts could have a material adverse effect on its results of operations
The defense segment depends heavily on U.S. Government contracts and prime contractors for the majority of its sales.
A decline in or a redirection of the U.S. defense budget could result in a material decrease in the Defense segment sales and earnings
Defense segment sales are tied to the U.S. defense budget and initiatives like the Ukraine Security Assistance Initiative.
The Company may not be able to react to increases in its costs due to the nature of its U.S. Government contracts
Fixed-price U.S. Government contracts limit the Company's ability to react to sudden cost increases.
The Company’s U.S. Government contracts are subject to termination
U.S. Government contracts can be terminated for convenience or due to Company performance failures.
Failure of the Company’s subcontractors to perform their contractual obligations could materially and adversely impact contract performance
The Company is responsible for third-party subcontractors mandated by the government, even when it cannot control them.
Regulatory constraints and authorities having jurisdiction has impeded and may continue to impede sales of certain of the segment’s products
Safety segment commercial sales rely on state and local fire safety officials approving the products.
All 17 risk factors
Headings as the filing states them, in filing order.
Other
- 01The Company’s three business segments described above are all subject to a number of risk factors, the occurrence of any one or more of which could have a significant adverse impact on the business, financial condition, or results of operations of the Company as a whole
- 02Increases in the costs for raw materials, energy, transportation and other necessary supplies could adversely affect the results of the Company’s operations
- 03Reliance on third-party suppliers in Asia makes this segment vulnerable to supply interruptions and foreign business risks
- 04The Housewares/Small Appliance segment is dependent on key customers, and any significant decline in business from one or more of its key customers could adversely affect the segment’s operating results
- 05The sales for this segment are highly seasonal and dependent upon the United States retail markets and consumer spending
- 06The Company may not be successful in developing and introducing new and improved consumer products
- 07Product recalls or lawsuits relating to defective products could have an adverse effect on the Company, as could the imposition of industry sustainability standards
- 08The housewares/small appliance industry continues to consolidate, which could ultimately impede the Company’s ability to secure product placement at key customers
- 09The Company relies primarily on sales to U.S. Government entities, and the failure to procure or the loss of a significant contract or contracts could have a material adverse effect on its results of operations
- 10A decline in or a redirection of the U.S. defense budget could result in a material decrease in the Defense segment sales and earnings
- 11The Company may not be able to react to increases in its costs due to the nature of its U.S. Government contracts
- 12The Company’s U.S. Government contracts are subject to termination
- 13Failure of the Company’s subcontractors to perform their contractual obligations could materially and adversely impact contract performance
- 14Reliance on third-party suppliers in Asia and Mexico makes this segment vulnerable to supply interruptions and foreign business risks
- 15Regulatory constraints and authorities having jurisdiction has impeded and may continue to impede sales of certain of the segment’s products
- 16Various products in the Safety segment are reliant upon up-to-date software, hardware, and the wireless communications infrastructure
- 17The segment may not be successful in developing and introducing new and improved products
Other National Presto Industries 10-Ks
- FY2025 10-K risk factors18 risks1 new1 reworded
The company added a specific disclosure regarding a March 1, 2025 cybersecurity incident causing a system outage.
Filed Mar 13, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.