Alpha Pro Tech, Ltd. Announces Third Quarter 2026 Financial Results
Apparel sales growth and lower tariffs supported earnings, while roof underlayment and other woven material sales declined.
Sentiment and the balance of points
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Rhea-AI Summary
Alpha Pro Tech (APT) reported third-quarter 2026 net income of $1.9 million, nearly doubling earnings from the prior-year period. Net income rose 97.2% from $976,000, while diluted earnings per share increased to $0.19 from $0.09. Sales increased 12.3% to $16.6 million.
Disposable Protective Apparel sales rose 30.2% to $7.2 million, supported by distribution-channel growth and higher selling prices. Building Supply sales increased 1.7% to $9.4 million; housewrap growth offset declines in roof underlayment and other woven material. Gross margin increased to 41.8% from 39.7%, primarily reflecting lower tariffs, although a new 10% tariff continues to impose costs.
At September 30, 2026, cash totaled $25.5 million, versus $17.0 million at year-end 2025, with $52.1 million in working capital and no debt. The company plans to expand its housewrap and synthetic roof underlayment offerings in 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter net income rose 97.2% to $1.9 million from $976,000 a year earlier.
- Moderate pointThird-quarter sales increased 12.3% to $16.6 million from $14.8 million a year earlier.
- Moderate pointDisposable Protective Apparel sales rose 30.2% to $7.2 million in the third quarter, versus $5.5 million.
- Moderate pointGross profit rose 18.2% to $6.9 million in the third quarter, from $5.9 million.
- Moderate pointGross margin improved to 41.8% from 39.7% in the third quarter of 2025, primarily reflecting lower tariffs.
11 minor points
- Minor pointDiluted EPS increased to $0.19 from $0.09 in the third quarter of 2025.
- Minor pointProtective garment sales increased 30.6%, or $1.5 million, in the third quarter versus a year earlier.
- Minor pointFace mask and face shield sales increased 25.9%, or $141,000, in the third quarter year over year.
- Minor pointBuilding Supply sales increased 1.7% to $9.4 million in the third quarter, versus $9.3 million.
- Minor pointHousewrap sales increased 13.1% in the third quarter compared with the same period of 2025.
- Minor pointNet income margin increased to 11.6% from 6.6% in the third quarter of 2025.
- Minor pointNine-month sales reached $49,863,000, compared with $45,279,000 for the nine months ended September 30, 2025.
- Minor pointCash increased to $25.5 million at September 30, 2026, from $17.0 million at December 31, 2025.
- Minor pointWorking capital totaled $52.1 million at September 30, 2026, with no debt.
- Minor point97,982 shares repurchased for $483,000 during the nine months ended September 30, 2026; repurchased shares are retired.
- Minor point. Forward-looking: it has not happened yet and may not happen.Product offering expansion planned for 2027 covers housewrap and synthetic roof underlayment.
Negative
- Minor pointSynthetic roof underlayment sales declined 6.3% in the third quarter compared with the same period of 2025.
- Minor pointOther woven material sales declined 22.0% in the third quarter year over year, primarily due to order timing.
- Minor pointA new 10% tariff under Section 122 continues to impose tariff costs.
- Minor pointThe current ratio fell to 9:1 at September 30, 2026, from 13:1 at December 31, 2025.
News Explained
Through September, Alpha Pro Tech had repurchased and retired 97,982 shares for
Key Figures
- Net sales
- $16.6 million; +12.3%
- Third quarter 2026 versus third quarter 2025
- Net income
- $1.9 million; +97.2%
- Third quarter 2026 versus third quarter 2025
- Diluted earnings per share
- $0.19 versus $0.09
- Third quarter 2026 versus third quarter 2025
- Disposable Protective Apparel sales
- $7.2 million; +30.2%
- Third quarter 2026 versus same period in 2025
- Gross profit
- $6.9 million; +18.2%
- Third quarter 2026 versus third quarter 2025
- Gross profit margin
- 41.8% versus 39.7%
- Third quarter 2026 versus third quarter 2025
- Cash
- $25.5 million
- As of September 30, 2026; compared with $17.0 million at December 31, 2025
- Current ratio
- 9:1
- As of September 30, 2026; compared with 13:1 at December 31, 2025
Previous Earnings Reports
-
Net sales rose 12.0% and net income increased 46.8% year over year.
-
Net sales and net income increased year over year; apparel sales rose 23.4%.
-
Annual sales increased 2.3%, while gross margin declined to 38.1%.
-
Q3 2025 sales were $14.8 million and net income was $976,000.
-
Net income fell to $1.2 million and gross margin declined to 36.8%.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
ieepa regulatory
gross profit margin financial
current ratio financial
time-based restricted stock units financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Third Quarter Net Sales Increased by
Third Quarter Net Income Increased by
- Net sales for the third quarter of 2026 were
$16.6 million , up12.3% , compared to$14.8 million for the third quarter of 2025- Building Supply segment sales increased by
$157,000 , or1.7% , to$9.4 million , compared to$9.3 million for the three months ended September 30, 2025 - Disposable Protective Apparel segment sales increased by
$1.7 million , or30.2% , to$7.2 million , compared to$5.5 million for the same period of 2025
- Building Supply segment sales increased by
- Net income for the third quarter of 2026 was
$1.9 million , or$0.19 per diluted share, compared to$976,000 , or$0.09 per diluted share, for the third quarter of 2025 - Cash of
$25.5 million and working capital of$52.1 million , with no debt, as of September 30, 2026
NOGALES, Ariz., Nov. 10, 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 September 30, 2026.
Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, “The housing market continued to show weakness in the third quarter of 2026, as single-family housing starts declined by
Sales of other woven material were down
The building industry outlook for the remainder of 2026 reflects a soft but generally stable market, rather than a meaningful rebound. A modest increase in single-family housing starts is expected in 2027, assuming economic and financing conditions improve. The Company plans on expanding our housewrap and synthetic roof underlayment market product offerings in 2027, to enhance our competitive position and support long-term growth. Management remains focused on growth in the Building Supply segment and has recently expanded its sales team; however, uncertainty related to the factors described above remain.”
Mr. Hoffman continued, “Sales of disposable protective garments, which comprised
Sales of our face mask and face shield products in the third quarter of 2026, which comprise the remaining
2026 Third Quarter Financial Results:
Consolidated sales for the three months ended September 30, 2026, increased to
Building Supply segment sales for the three months ended September 30, 2026, increased by
Disposable Protective Apparel segment sales for the three months ended September 30, 2026, were
Gross Profit
Gross profit increased by
Gross profit margin for the third quarter of 2026 improved compared to the prior year period, primarily reflecting the rescission in late February 2026 of the
The net change in gross profit for the three months ended September 30, 2026 due to the IEEPA tariff refund recognized was
Net Income
Net income for the three months ended September 30, 2026, was
The net change in net income for the third quarter of 2026 due to the IEEPA tariff refund was
Balance Sheet
As of September 30, 2026, the Company had cash of
Colleen McDonald, Chief Financial Officer, commented, “As of September 30, 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, 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 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; the effects of tariff policies, ongoing trade disputes and related litigation, including related to tariff refunds, and potential countermeasures; 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.
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||
| September 30, | December 31, | ||||||
| 2026 | 2025 (1) | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 25,546,000 | $ | 16,988,000 | |||
| Accounts receivable, net | 7,806,000 | 6,936,000 | |||||
| Accounts receivable, related party | 1,635,000 | 1,202,000 | |||||
| Inventories, net | 17,854,000 | 23,598,000 | |||||
| Prepaid expenses | 5,975,000 | 3,796,000 | |||||
| Total current assets | 58,816,000 | 52,520,000 | |||||
| Property and equipment, net | 7,832,000 | 8,234,000 | |||||
| Goodwill | 55,000 | 55,000 | |||||
| Right-of-use assets | 7,230,000 | 7,775,000 | |||||
| Equity investment in unconsolidated affiliate | 5,807,000 | 5,548,000 | |||||
| Total assets | $ | 79,740,000 | $ | 74,132,000 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 2,168,000 | $ | 2,005,000 | |||
| Accrued liabilities | 3,528,000 | 1,088,000 | |||||
| Lease liabilities | 1,054,000 | 965,000 | |||||
| Total current liabilities | 6,750,000 | 4,058,000 | |||||
| Lease liabilities, net of current portion | 6,302,000 | 6,917,000 | |||||
| Deferred income tax liabilities, net | 679,000 | 679,000 | |||||
| Total liabilities | 13,731,000 | 11,654,000 | |||||
| Commitments and contingencies | |||||||
| Shareholders' equity: | |||||||
| Common stock, $.01 par value: 50,000,000 shares authorized; | |||||||
| 10,177,759 and 10,131,565 shares outstanding as of | |||||||
| September 30, 2026 and December 31, 2025, respectively | 101,000 | 101,000 | |||||
| Additional paid-in capital | 15,592,000 | 15,828,000 | |||||
| Retained earnings | 52,622,000 | 48,496,000 | |||||
| Accumulated other comprehensive loss | (2,306,000 | ) | (1,947,000 | ) | |||
| Total shareholders' equity | 66,009,000 | 62,478,000 | |||||
| Total liabilities and shareholders' equity | $ | 79,740,000 | $ | 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 Income (Unaudited) | |||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net sales | $ | 16,604,000 | $ | 14,785,000 | $ | 49,863,000 | $ | 45,279,000 | |||||
| Cost of goods sold, excluding depreciation | |||||||||||||
| and amortization | 9,667,000 | 8,917,000 | 30,432,000 | 27,888,000 | |||||||||
| Gross profit | 6,937,000 | 5,868,000 | 19,431,000 | 17,391,000 | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general and administrative | 4,741,000 | 4,568,000 | 14,125,000 | 13,818,000 | |||||||||
| Depreciation and amortization | 226,000 | 203,000 | 744,000 | 686,000 | |||||||||
| Total operating expenses | 4,967,000 | 4,771,000 | 14,869,000 | - | 14,504,000 | ||||||||
| Income from operations | 1,970,000 | 1,097,000 | 4,562,000 | 2,887,000 | |||||||||
| Other income: | |||||||||||||
| Equity in income of unconsolidated affiliate | 254,000 | 27,000 | 618,000 | 305,000 | |||||||||
| Interest income, net | 306,000 | 169,000 | 619,000 | 484,000 | |||||||||
| Total other income | 560,000 | 196,000 | 1,237,000 | 789,000 | |||||||||
| Income before provision for income taxes | 2,530,000 | 1,293,000 | 5,799,000 | 3,676,000 | |||||||||
| Provision for income taxes | 605,000 | 317,000 | 1,346,000 | 843,000 | |||||||||
| Net income | $ | 1,925,000 | $ | 976,000 | $ | 4,453,000 | $ | 2,833,000 | |||||
| Basic earnings per common share | $ | 0.19 | $ | 0.09 | $ | 0.44 | $ | 0.27 | |||||
| Diluted earnings per common share | $ | 0.19 | $ | 0.09 | $ | 0.43 | $ | 0.27 | |||||
| Basic weighted average common shares outstanding | 10,105,777 | 10,354,289 | 10,119,275 | 10,525,957 | |||||||||
| Diluted weighted average common shares outstanding | 10,371,760 | 10,485,088 | 10,363,605 | 10,642,957 | |||||||||
| 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 |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Alpha Pro Tech's third-quarter 2026 earnings and sales?
Alpha Pro Tech reported $1.9 million in net income and $16.6 million in sales for the third quarter of 2026. Net income increased 97.2% from $976,000 a year earlier, and sales increased 12.3% from $14.8 million. Diluted earnings per share rose to $0.19 from $0.09.
How did tariff refunds affect Alpha Pro Tech's third-quarter 2026 results?
The IEEPA tariff refund increased third-quarter gross profit by $70,000 through lower cost of goods sold and increased net income by $124,000. The 50% IEEPA tariffs on goods from India were rescinded in late February 2026. A subsequently announced 10% tariff under Section 122 continues to impose costs.
How much remained in Alpha Pro Tech's stock repurchase authorization at September 30, 2026?
Alpha Pro Tech had $914,000 available for additional stock purchases under its repurchase program at September 30, 2026. The company expects future repurchases to be funded from cash on hand and operating cash flows. All repurchased stock is retired.