Alpha Pro Tech, Ltd. Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Alpha Pro Tech (NYSE: APT) reported first quarter 2026 results: net sales $14.6M (up 5.5% vs. $13.8M) and net income $702K ($0.07 diluted; up 14.5% vs. $613K). Disposable Protective Apparel sales rose 23.4% to $6.7M; Building Supply sales fell 6.1% to $7.9M. Gross profit was $5.5M with a 37.8% margin, pressured by U.S. tariffs and higher-cost inventory. Cash was $16.9M, working capital $49.3M, no debt. The company has repurchased 21,927,940 shares for ~$58.1M and had $1.4M available under its repurchase program as of March 31, 2026.
Positive
- Disposable Apparel sales +23.4% to $6.7M
- Net income +14.5% to $702K ($0.07 diluted)
- Repurchases 21,927,940 shares at ~$58.1M total cost
- Cash $16.9M and no debt
- Working capital $49.3M (current ratio 20:1)
Negative
- Synthetic roof underlayment sales -27.4%
- U.S. tariffs continued to pressure gross margin via higher-cost inventory
Key Figures
Market Reality Check
Peers on Argus
APT is up 1.73% with strong volume while sector peers AIRJ and UUU also appear in momentum scanners moving up, and ROCK is down. Two peers moving in the same direction supports a broader sector bid rather than a purely idiosyncratic move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 11 | Annual earnings 2025 | Negative | -5.3% | 2025 net sales up slightly but net income and margin declined on tariffs. |
| Nov 05 | Q3 2025 earnings | Positive | +1.2% | Q3 2025 revenue and net income grew with higher gross margin and no debt. |
| Aug 07 | Q2 2025 earnings | Negative | -3.2% | Q2 2025 sales rose modestly but net income and margins declined year over year. |
| May 08 | Q1 2025 earnings | Positive | +3.6% | Q1 2025 sales and net income grew with both segments expanding and buybacks. |
| Mar 12 | Annual earnings 2024 | Negative | -0.2% | 2024 net sales and income declined, led by weaker Building Supply demand. |
Earnings releases have typically led to modest single‑digit moves, with reactions generally aligning with the tone of results.
Over the past year, APT’s earnings reports have shown modest growth with ongoing tariff and housing headwinds. Full-year 2024 net sales declined but Disposable Protective Apparel grew, while 2025 results showed a small rebound to $59.1 million in net sales and net income of $3.5 million. Quarterly updates through 2025 highlighted shifting strength between Building Supply and Disposable Protective Apparel and consistent cash levels above $13 million with no debt. Today’s Q1 2026 report continues the theme of moderate revenue growth and balanced segment performance under tariff pressure.
Historical Comparison
In the past five earnings releases, APT’s average move was -0.77%, with single‑digit reactions that generally matched the tone of results.
Earnings history shows 2024 softness followed by slight 2025 sales growth and stable cash, with quarterly updates reflecting alternating strength between Building Supply and Disposable Protective Apparel alongside persistent tariff‑driven margin pressure.
Market Pulse Summary
This announcement highlights modest top‑line and bottom‑line progress, with Q1 2026 net sales of $14.6 million and net income of $702,000. Strength in Disposable Protective Apparel offset Building Supply weakness in a softer housing backdrop, while tariffs under the IEEPA weighed on gross margin, now at 37.8%. The company maintains cash of $16.9 million with no debt and $1.4 million remaining under its buyback program. Investors may watch segment mix, tariff developments, and housing indicators in upcoming quarters.
Key Terms
international emergency economic powers act regulatory
ieepa regulatory
stock repurchase program financial
AI-generated analysis. Not financial advice.
First Quarter Net Sales Increased by
- Net sales for the first quarter of 2026 were
$14.6 million , up5.5% compared to$13.8 million for the first quarter of 2025- Disposable Protective Apparel segment sales increased by
$1.3 million or23.4% , to$6.7 million , compared to$5.5 million for the three months ended March 31, 2025 - Building Supply segment sales decreased by
$513,000 or6.1% , to$7.9 million , compared to$8.4 million for the prior year period
- Disposable Protective Apparel segment sales increased by
- Net income for the first quarter of 2026 was
$702,000 or$0.07 per diluted share, compared to$613,000 , or$0.06 per diluted share, for the first quarter of 2025 - Cash of
$16.9 million and working capital of$49.3 million with no debt, as of March 31, 2026
NOGALES, Ariz., May 07, 2026 (GLOBE NEWSWIRE) -- Alpha Pro Tech, Ltd. (NYSE American: APT), a leading manufacturer of products designed to protect people, products and environments, including disposable protective apparel and building products, today announced financial results for the three month period ended March 31, 2026.
Lloyd Hoffman, President and Chief Executive Officer, commented, “We reported revenue and earnings growth in the first quarter, driven by strong performance in our Disposable Protective Apparel segment and continued share gains in housewrap, despite a softer residential construction environment.”
Mr. Hoffman continued, “Disposable Protective Apparel sales increased by
In Building Supply, housewrap sales increased by
Mr. Hoffman continued “The building industry outlook for 2026 remains mixed, with expectations for gradual improvement in the latter part of the year. Management remains focused on developing and producing industry-leading products and anticipates growth in the Building Supply segment; however, uncertainty related to economic conditions and geopolitical volatility could adversely impact results.”
2026 First Quarter Financial Results:
Consolidated sales for the three months ended March 31, 2026, increased to
Disposable Protective Apparel segment sales for the three months ended March 31, 2026, increased by
Building Supply segment sales for the three months ended March 31, 2026, decreased by
Challenges in the housing market continued during the first quarter of 2026, as single-family housing starts declined compared to the corresponding period in 2025. According to the U.S. Census Bureau, single-family housing starts decreased by
We are pursuing opportunities to expand our product portfolio within the roofing market by identifying and developing additional complementary product offerings that align with customer needs, enhance our competitive position, and support long-term growth.
Gross Profit
Gross profit increased by
The decrease in gross profit margin was primarily driven by U.S. tariffs, implemented under the International Emergency Economic Powers Act (“IEEPA”), in early 2025. During 2025, the Company experienced three tariff increases on most products as a result of U.S. trade policy actions and reciprocal tariffs. We implemented price increases in mid-2025 as well as later in the year to partially offset the impact of these tariff increases; however higher tariffed inventory on hand continued to negatively impact gross margin in the first quarter of 2026. We expect gross margin improvement after higher-cost tariffed inventory flows through the system.
Net Income
Net income for the three months ended March 31, 2026, was
Balance Sheet
As of March 31, 2026, the Company had cash of
Other
The Company is seeking refunds of certain previously paid tariffs following recent legal developments; however, no amounts have been recognized due to uncertainty around timing and collectability.
Colleen McDonald, Chief Financial Officer, commented, “As of March 31, 2026, we had
About Alpha Pro Tech, Ltd.
Alpha Pro Tech, Ltd. is the parent company of Alpha Pro Tech, Inc. and Alpha ProTech Engineered Products, Inc. Alpha Pro Tech, Inc. develops, manufactures and markets innovative disposable and limited-use protective apparel products for the industrial, clean room, medical and dental markets. Alpha ProTech Engineered Products, Inc. manufactures and markets a line of construction weatherization products, including building wrap and roof underlayment. The Company has manufacturing facilities in Nogales, Arizona, Valdosta, Georgia; and a joint venture in India. For more information and copies of all news releases and financials, visit Alpha Pro Tech’s website at http://www.alphaprotech.com.
Certain statements made in this press release constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements instead of historical facts and may be identified generally by the use of forward-looking terminology and words such as “expects,” “anticipates,” “estimates,” “believes,” “predicts,” “intends,” “plans,” “potentially,” “may,” “continue,” “should,” “will” and words of similar meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to estimated and projected earnings, expectations regarding order volume, timing of fulfillment of orders, production capacity and our plans to ramp up production and expand capacity, product demand, availability of raw materials and supply chain access, margins, costs, expenditures, cash flows, sources of capital, growth rates and future financial and operating results are forward-looking statements. We caution investors that any such forward-looking statements are only estimates based on current information and involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. We cannot give assurances that any such statements will prove to be correct. Factors that could cause actual results to differ materially from those estimated by us include the risks, uncertainties and assumptions described from time to time in our public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Specifically, these factors include, but are not limited to, changes in our exposure to foreign currency exchange risks related to our unconsolidated affiliate operations in India; potential failure to remediate the material weakness in our internal controls; our partnership with a joint venture partner; the loss of any major customer or a reduction in order volume by our customers; the inability of our suppliers and contractors to meet our requirements; potential challenges related to international manufacturing; the effects of tariff policies and potential countermeasures; the inability to protect our intellectual property; competition in our industry; customer preferences; the timing and market acceptance of new product offerings; changes in global economic conditions; security breaches or disruptions to the information technology infrastructure; risks related to climate change and natural disasters or other events beyond our control; potential liabilities from environmental laws and regulations; uncertainties with respect to the development, deployment, and use of artificial intelligence; the impact of legal and regulatory proceedings or compliance challenges; and volatility in our common stock price and our investments. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release. Given these uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
| Company Contact: | Investor Relations Contact: |
| Alpha Pro Tech, Ltd. | HIR Holdings |
| Donna Millar | Cameron Donahue |
| 905-479-0654 | 651-707-3532 |
| e-mail: ir@alphaprotech.com | e-mail: cameron@hirholdings.com |
-- Tables follow –
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||
| March 31, | December 31, | ||||||
| 2026 | 2025 (1) | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 16,883,000 | $ | 16,988,000 | |||
| Accounts receivable, net | 7,872,000 | 6,936,000 | |||||
| Accounts receivable, related party | 1,463,000 | 1,202,000 | |||||
| Inventories, net | 22,045,000 | 23,598,000 | |||||
| Prepaid expenses | 3,631,000 | 3,796,000 | |||||
| Total current assets | 51,894,000 | 52,520,000 | |||||
| Property and equipment, net | 8,100,000 | 8,234,000 | |||||
| Goodwill | 55,000 | 55,000 | |||||
| Right-of-use assets | 7,530,000 | 7,775,000 | |||||
| Equity investment in unconsolidated affiliate | 5,405,000 | 5,548,000 | |||||
| Total assets | $ | 72,984,000 | $ | 74,132,000 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 934,000 | $ | 2,005,000 | |||
| Accrued liabilities | 714,000 | 1,088,000 | |||||
| Lease liabilities | 971,000 | 965,000 | |||||
| Total current liabilities | 2,619,000 | 4,058,000 | |||||
| Lease liabilities, net of current portion | 6,673,000 | 6,917,000 | |||||
| Deferred income tax liabilities, net | 679,000 | 679,000 | |||||
| Total liabilities | 9,971,000 | 11,654,000 | |||||
| Commitments and contingencies | |||||||
| Shareholders' equity: | |||||||
| Common stock, $.01 par value: 50,000,000 shares authorized; 10,131,565 shares outstanding as of March 31, 2026 and December 31, 2025 | 101,000 | 101,000 | |||||
| Additional paid-in capital | 15,960,000 | 15,828,000 | |||||
| Retained earnings | 49,198,000 | 48,496,000 | |||||
| Accumulated other comprehensive loss | (2,246,000 | ) | (1,947,000 | ) | |||
| Total shareholders' equity | 63,013,000 | 62,478,000 | |||||
| Total liabilities and shareholders' equity | $ | 72,984,000 | $ | 74,132,000 | |||
(1) The condensed consolidated balance sheet as of December 31, 2025, has been prepared using information from the audited consolidated balance sheet as of that date.
| Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||||
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net sales | $ | 14,585,000 | $ | 13,822,000 | ||||
| Cost of goods sold, excluding depreciation and amortization | 9,069,000 | 8,430,000 | ||||||
| Gross profit | 5,516,000 | 5,392,000 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 4,686,000 | 4,694,000 | ||||||
| Depreciation and amortization | 250,000 | 243,000 | ||||||
| Total operating expenses | 4,936,000 | 4,937,000 | ||||||
| Income from operations | 580,000 | 455,000 | ||||||
| Other income: | ||||||||
| Equity in income of unconsolidated affiliate | 155,000 | 141,000 | ||||||
| Interest income, net | 150,000 | 176,000 | ||||||
| Total other income | 305,000 | 317,000 | ||||||
| Income before provision for income taxes | 885,000 | 772,000 | ||||||
| Provision for income taxes | 183,000 | 159,000 | ||||||
| Net income | $ | 702,000 | $ | 613,000 | ||||
| Basic earnings per common share | $ | 0.07 | $ | 0.06 | ||||
| Diluted earnings per common share | $ | 0.07 | $ | 0.06 | ||||
| Basic weighted average common shares outstanding | 10,131,565 | 10,724,760 | ||||||
| Diluted weighted average common shares outstanding | 10,331,682 | 10,836,581 | ||||||
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