Second Quarter Net Sales Increased by 12% to
- Net sales for the second quarter of 2026 were
$18.7 million , up 12.0%, compared to$16.7 million for the second quarter of 2025- Building Supply segment sales increased to
$11.7 million , up 5.5%, compared to$11.1 million for the three months endedJune 30, 2025 - Disposable Protective Apparel sales increased by
$1.4 million , or 24.9%, to$7.0 million , compared to$5.6 million for the same period of 2025
- Building Supply segment sales increased to
- Net income for the second quarter of 2026 was
$1.8 million , or$0.18 per diluted share, compared to$1.2 million , or$0.12 per diluted share for the second quarter of 2025- Excluding the impact of the International Emergency Economic Powers Act (“IEEPA”) tariff refund, net income for the second quarter of 2026 was
$1.6 million * or$0.16 per diluted share*, compared to$1.2 million , or$0.12 per diluted share for the second quarter of 2025
- Excluding the impact of the International Emergency Economic Powers Act (“IEEPA”) tariff refund, net income for the second quarter of 2026 was
- Cash of
$18.9 million and working capital of$51.0 million , with no debt, as ofJune 30, 2026
* Management reviews and analyzes several key performance measures which are non-GAAP financial measures when shown excluding the impact of the IEEPA tariff refund, including gross profit, net income, basic earnings per share, and diluted earnings per share. These measures are reviewed and analyzed in order to evaluate our business performance, identify trends affecting our business, allocate capital, and make strategic decisions, including those discussed below. These key performance measures are indicated by an asterisk (*) in this press release. A discussion of these measures, as well as certain of their limitations, and reconciliations to their most directly comparable
With that said, the housing market continued to show weakness in the second quarter of 2026, as single-family housing starts declined by 4.2% compared to the corresponding period of 2025. Single-family housing starts in the
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. Management remains focused on developing and producing industry-leading products and anticipates growth in the
During the six months ended
2026 Second Quarter Financial Results:
Consolidated sales for the three months ended
Building Supply segment sales for the three months ended
Disposable Protective Apparel segment sales for the three months ended
Gross Profit
Including the impact of the IEEPA tariff refund, gross profit increased by
In the second quarter, gross profit was positively impacted by
Excluding the IEEPA tariff refund, gross profit increased by
Net Income
Including the impact of the IEEPA tariff refund, net income for the three months ended
The net change in net income for the second quarter of 2026 due to the IEEPA tariff refund was
Excluding the impact of the IEEPA tariff refund, net income for the three months ended
Balance Sheet
As of
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.
NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures presented in this press release are supplemental measures of our performance that we believe will help investors understand our operating results and assess our future prospects. When read in conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. For each financial measure we have excluded the impact of the tariff refunds due to their unusual nature which is not reflective of our ongoing operating results. The non-GAAP financial measures should be considered along with the most directly comparable U.S. GAAP financial measures.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. The detailed reconciliations of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure are provided below, and no single financial measure should be relied on to evaluate our business.
| For the Three Months | For the Six Months | |||||||||
| Ended | Ended | |||||||||
| 2026 | 2026 | |||||||||
| Gross profit | $ | 6,978,000 | 12,494,000 | |||||||
| Less impact of tariff refund | (294,000 | ) | (294,000 | ) | ||||||
| Gross profit excluding tariff refund | 6,684,000 | 12,200,000 | ||||||||
| Income from operations | 2,012,000 | 2,592,000 | ||||||||
| Less impact of tariff refund | (279,000 | ) | (279,000 | ) | ||||||
| Income from operations excluding tariff refund | 1,733,000 | 2,313,000 | ||||||||
| Income before provision for income taxes | 2,384,000 | 3,269,000 | ||||||||
| Less impact of tariff refund | (294,000 | ) | (294,000 | ) | ||||||
| Income before provision for income taxes excluding tariff refund | 2,090,000 | 2,975,000 | ||||||||
| Provision for income taxes | 558,000 | 741,000 | ||||||||
| Less impact of tariff refund | (75,000 | ) | (75,000 | ) | ||||||
| Provision for income taxes excluding tariff refund | 483,000 | 666,000 | ||||||||
| Net income | 1,826,000 | 2,528,000 | ||||||||
| Less impact of tariff refund | (219,000 | ) | (219,000 | ) | ||||||
| Net income excluding tariff refund | 1,607,000 | 2,309,000 | ||||||||
| Basic earnings per share | $ | 0.18 | $ | 0.25 | ||||||
| Less impact of tariff refund | $ | (0.02 | ) | $ | (0.02 | ) | ||||
| Basic earns per share excluding tariff refund | $ | 0.16 | $ | 0.23 | ||||||
| Diluted earnings per share | $ | 0.18 | $ | 0.24 | ||||||
| Less impact of tariff refund | $ | (0.02 | ) | $ | (0.02 | ) | ||||
| Diluted earnings per share excluding tariff refund | $ | 0.16 | $ | 0.22 | ||||||
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 4 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
-- Tables follow –
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||
| 2026 | 2025 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 18,901,000 | $ | 16,988,000 | |||
| Accounts receivable, net | 9,500,000 | 6,936,000 | |||||
| Accounts receivable, related party | 1,635,000 | 1,202,000 | |||||
| Inventories, net | 18,650,000 | 23,598,000 | |||||
| Prepaid expenses | 5,508,000 | 3,796,000 | |||||
| Total current assets | 54,194,000 | 52,520,000 | |||||
| Property and equipment, net | 7,975,000 | 8,234,000 | |||||
| 55,000 | 55,000 | ||||||
| Right-of-use assets | 7,504,000 | 7,775,000 | |||||
| Equity investment in unconsolidated affiliate | 5,620,000 | 5,548,000 | |||||
| Total assets | $ | 75,348,000 | $ | 74,132,000 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,234,000 | $ | 2,005,000 | |||
| Accrued liabilities | 894,000 | 1,088,000 | |||||
| Lease liabilities | 1,052,000 | 965,000 | |||||
| Total current liabilities | 3,180,000 | 4,058,000 | |||||
| Lease liabilities, net of current portion | 6,569,000 | 6,917,000 | |||||
| Deferred income tax liabilities, net | 679,000 | 679,000 | |||||
| Total liabilities | 10,428,000 | 11,654,000 | |||||
| Commitments and contingencies | |||||||
| Shareholders' equity: | |||||||
| Common stock, | |||||||
| 10,120,851 and 10,131,565 shares outstanding as of | |||||||
| 101,000 | 101,000 | ||||||
| Additional paid-in capital | 16,099,000 | 15,828,000 | |||||
| Retained earnings | 50,959,000 | 48,496,000 | |||||
| Accumulated other comprehensive loss | (2,239,000 | ) | (1,947,000 | ) | |||
| Total shareholders' equity | 64,920,000 | 62,478,000 | |||||
| Total liabilities and shareholders' equity | $ | 75,348,000 | $ | 74,132,000 | |||
(1) The condensed consolidated balance sheet as of
| Condensed Consolidated Statements of Comprehensive Income (Unaudited) | |||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net sales | $ | 18,674,000 | $ | 16,672,000 | $ | 33,259,000 | $ | 30,494,000 | |||||
| Cost of goods sold, excluding depreciation | |||||||||||||
| and amortization | 11,696,000 | 10,541,000 | 20,765,000 | 18,971,000 | |||||||||
| Gross profit | 6,978,000 | 6,131,000 | 12,494,000 | 11,523,000 | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general and administrative | 4,698,000 | 4,556,000 | 9,384,000 | 9,250,000 | |||||||||
| Depreciation and amortization | 268,000 | 240,000 | 518,000 | 483,000 | |||||||||
| Total operating expenses | 4,966,000 | 4,796,000 | 9,902,000 | 9,733,000 | |||||||||
| Income from operations | 2,012,000 | 1,335,000 | 2,592,000 | 1,790,000 | |||||||||
| Other income: | |||||||||||||
| Equity in income of unconsolidated affiliate | 209,000 | 137,000 | 364,000 | 278,000 | |||||||||
| Interest income, net | 163,000 | 139,000 | 313,000 | 315,000 | |||||||||
| Total other income | 372,000 | 276,000 | 677,000 | 593,000 | |||||||||
| Income before provision for income taxes | 2,384,000 | 1,611,000 | 3,269,000 | 2,383,000 | |||||||||
| Provision for income taxes | 558,000 | 367,000 | 741,000 | 526,000 | |||||||||
| Net income | $ | 1,826,000 | $ | 1,244,000 | $ | 2,528,000 | $ | 1,857,000 | |||||
| Basic earnings per common share | $ | 0.18 | $ | 0.12 | $ | 0.25 | $ | 0.18 | |||||
| Diluted earnings per common share | $ | 0.18 | $ | 0.12 | $ | 0.24 | $ | 0.18 | |||||
| Basic weighted average common shares outstanding | 10,120,766 | 10,501,865 | 10,126,136 | 10,407,287 | |||||||||
| Diluted weighted average common shares outstanding | 10,347,645 | 10,611,052 | 10,339,386 | 10,517,652 | |||||||||
| Company Contact: | Investor Relations Contact: |
| 905-479-0654 | 651-707-3532 |
| e-mail: ir@alphaprotech.com | e-mail: cameron@hirholdings.com |
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