NATIONAL PRESTO INDUSTRIES INC reported its financial results for the third quarter and the nine months ended September 29, 2024, showing notable changes in revenue, profitability, and operational metrics compared to the previous fiscal period.

For Q3 2024, net sales increased by $8.7 million (10%) to $91.8 million, driven by a $3.3 million (15%) rise in Housewares/Small Appliances sales to $24.8 million and a $5.5 million (9%) increase in Defense sales to $66.8 million. Gross profit for the quarter rose by $1.8 million (12%) to $17.2 million, while operating profit improved by $2.2 million (31%) to $9.2 million. Net earnings for Q3 2024 were $8.1 million, up $1.1 million (15%) from the prior year, resulting in earnings per share of $1.13, compared to $0.99 in Q3 2023.

For the nine months ended September 29, 2024, net sales totaled $253.5 million, reflecting a $11.0 million (5%) increase compared to $242.5 million in the same period of 2023. However, gross profit decreased by $1.0 million (2%) to $45.8 million, and net earnings fell by $672,000 (3%) to $20.7 million, resulting in earnings per share of $2.91, down from $3.01 in the prior year.

The company reported a significant decline in cash and cash equivalents, which decreased from $87.7 million at the end of 2023 to $16.3 million as of September 29, 2024. This decline was attributed to net cash used in operating activities of $45.8 million, contrasting with $28.8 million provided in the same period of 2023. The company also experienced a net decrease in cash of $71.3 million for the nine months, compared to a minimal decrease of $300,000 in the previous year.

Total current assets decreased to $348.9 million from $360.1 million, while total current liabilities slightly decreased to $70.5 million from $72.0 million. The company’s total stockholders' equity also declined to $346.6 million from $356.3 million.

In terms of strategic developments, the contract backlog for the Defense segment surged to $1.1 billion as of September 29, 2024, up from $564.0 million at the end of 2023, indicating strong future revenue potential. The company anticipates fulfilling these obligations within an 18 to 36-month timeframe.

Overall, while the company saw growth in sales and operating profit in Q3 2024, it faced challenges in cash flow and net earnings over the nine-month period, alongside a significant increase in its Defense segment backlog.