APT · Alpha Pro Tech, Ltd.

Alpha Pro Tech delivered first quarter 2026 results with consolidated net sales of $14.6 million, a 5.5% increase from $13.8 million in the prior year, primarily propelled by robust growth in the Disposable Protective Apparel segment. This segment saw sales surge 23.4% to $6.7 million, fueled by 23.8% higher disposable protective garments, 28.8% growth in face masks, and 8.0% in face shields, largely from strong demand by the largest international channel partner and elevated selling prices due to U.S. tariffs. Offsetting this, Building Supply sales fell 6.1% to $7.9 million, with a 27.4% drop in synthetic roof underlayment amid a 5.5% decline in single-family housing starts per U.S. Census Bureau data, though housewrap sales rose 13.1%, indicating market share gains. Gross profit climbed 2.3% to $5.5 million, but the margin contracted to 37.8% from 39.0%, pressured by lingering effects of 2025 tariff increases under IEEPA, with higher-cost inventory still impacting results; management anticipates margin recovery as this inventory clears. Operating income rose to $580,000 from $455,000, supporting a 14.5% net income increase to $702,000 or $0.07 diluted EPS. Balance sheet remains pristine with $16.9 million cash, $49.3 million working capital, no debt, and a 20:1 current ratio. CEO Lloyd Hoffman highlighted sustained momentum in protective apparel and housewrap share gains despite residential construction softness, expecting Building Supply growth if housing improves, while noting risks from economic and geopolitical uncertainty. CFO Colleen McDonald noted $1.4 million remains for stock repurchases under the ongoing program, with over 21.9 million shares retired since 1999.