ALPHA PRO TECH LTD SEC 10-Q Report

Alpha Pro Tech Ltd, a leading manufacturer in the building supply and disposable protective apparel industries, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's financial performance and operational achievements, showcasing growth in key segments and outlining future strategies amidst market challenges.

Financial Highlights

Net Sales: $14.785 million for the three months ended September 30, 2025, increased by 3.7% from the same period in 2024, driven by increased sales in both the Building Supply and Disposable Protective Apparel segments.

Gross Profit: $5.868 million for the three months ended September 30, 2025, with a gross profit margin of 39.7%, up from 38.5% in the same period of 2024, reflecting improved efficiency and cost management.

Income from Operations: $1.097 million for the three months ended September 30, 2025, representing a 48.8% increase from the same period in 2024, due to higher gross profit and controlled operating expenses.

Net Income: $0.976 million for the three months ended September 30, 2025, up 13.2% from the same period in 2024, attributed to increased income from operations despite a higher provision for income taxes.

Basic Earnings Per Common Share: $0.09 for the three months ended September 30, 2025, compared to $0.08 for the same period in 2024, reflecting improved profitability.

Diluted Earnings Per Common Share: $0.09 for the three months ended September 30, 2025, consistent with the basic earnings per share, indicating stable share dilution effects.

Business Highlights

Revenue Segments: The Building Supply segment saw a 5.4% increase in sales for the three months ended September 30, 2025, driven by a 12.7% increase in housewrap sales and a 17.4% increase in other woven materials, despite an 11.0% decrease in synthetic roof underlayment sales.

Revenue Segments: The Disposable Protective Apparel segment experienced a 1.1% increase in sales for the three months ended September 30, 2025, with a 10.4% increase in disposable protective garments sales, offset by a 46.5% decrease in face masks and a 33.6% decrease in face shields.

Geographical Performance: The majority of sales were concentrated in the United States, accounting for $14,683,000 of the total sales for the three months ended September 30, 2025, with international sales contributing $102,000.

Sales Units: The Building Supply segment's sales mix for the three months ended September 30, 2025, was approximately 35% synthetic roof underlayment, 51% housewrap, and 14% other woven material.

Sales Units: The Disposable Protective Apparel segment's sales mix for the three months ended September 30, 2025, was approximately 90% disposable protective garments, 7% face masks, and 3% face shields.

Future Outlook: Management anticipates new product introductions in 2026, particularly in the self-adhered roofing and flashing categories, as part of the Building Supply segment's growth strategy.

Future Outlook: The company is working to uncover new growth opportunities in the Disposable Protective Apparel segment and aims to continue the current positive sales trend into the fourth quarter of 2025.

Operational Challenges: The company faces challenges from increased tariffs, which have created pricing and supply volatility, particularly affecting the Building Supply segment.

Operational Challenges: The Disposable Protective Apparel segment is dealing with market volatility due to tariffs, but the company remains committed to maintaining product quality and agile pricing strategies.

SEC Filing: ALPHA PRO TECH LTD [ APT ] - 10-Q - Nov. 06, 2025