National Presto Industries (NPK) risk factors, FY2025 10-K

Other

1. 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
2. 02Increases in the costs for raw materials, energy, transportation and other necessary supplies could adversely affect the results of the Company’s operations
3. 03Reliance on third-party suppliers in Asia makes this segment vulnerable to supply interruptions and foreign business risks
4. 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
5. 05The sales for this segment are highly seasonal and dependent upon the United States retail markets and consumer spending
6. 06The Company may not be successful in developing and introducing new and improved consumer products
7. 07Product recalls or lawsuits relating to defective products could have an adverse effect on the Company, as could the imposition of industry sustainability standards
8. 08The housewares/small appliance industry continues to consolidate, which could ultimately impede the Company’s ability to secure product placement at key customers
9. 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
10. 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
11. 11The Company may not be able to react to increases in its costs due to the nature of its U.S. Government contracts
12. 12The Company’s U.S. Government contracts are subject to termination
13. 13Failure of the Company’s subcontractors to perform their contractual obligations could materially and adversely impact contract performance
14. 14Reliance on third-party suppliers in Asia and Mexico makes this segment vulnerable to supply interruptions and foreign business risks
15. 15Regulatory constraints and authorities having jurisdiction has impeded and may continue to impede sales of certain of the segment’s products
16. 16Various products in the Safety segment are reliant upon up-to-date software, hardware, and the wireless communications infrastructure
17. 17The segment may not be successful in developing and introducing new and improved products39% rewritten
18. 18On March 1, 2025, the Company experienced a system outage caused by a cybersecurity incident, which is described in Item 1C CYBERSECURITYNew