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Investors looking to gain exposure to the defence industry should consider small-cap stock National Presto (NYSE: $NPK ).

Based in Eau Claire, Wisconsin, National Presto has been a going concern for more than 120 years. To say the company is diversified is an understatement.

National Presto, which has a market capitalization of only $1 billion U.S., makes small household appliances such as slow cookers and air fryers.

The company also boasts a safety business that makes smoke detectors and carbon monoxide alarms. And National Presto makes ammunition for the U.S. military.

It's an odd combination, for sure. But it works. With the U.S. embroiled in more conflicts around the world, NPK stock is currently trading at an all-time high.

Over the last year, National Presto's share price has gained 58% to trade at $140.25 U.S. per share. Since that late 1980s, shares of NPK are up more than 85-fold.

In 2025, National Presto's defense sales rose 42%. At the end of last year, their defense business backlog of orders stood at $1.4 billion U.S., up 27% from a year earlier.

Even with all the growth, NPK stock trades at a reasonable valuation of 25 times this year's earnings estimates.

There's also a quarterly dividend of $0.25 U.S. per share, giving the stock a yield of 0.71%.

With the U.S. military complex in high gear, small-cap stock NPK is likely to continue delivering big returns to investors.