Third Quarter Net Sales Increased by 12.3% to
Third Quarter Net Income Increased by 97.2% to
- Net sales for the third quarter of 2026 were
$16.6 million , up 12.3%, compared to$14.8 million for the third quarter of 2025- Building Supply segment sales increased by
$157,000 , or 1.7%, to$9.4 million , compared to$9.3 million for the three months endedSeptember 30, 2025 - Disposable Protective Apparel segment sales increased by
$1.7 million , or 30.2%, 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 ofSeptember 30, 2026
Sales of other woven material were down 22.0% in the third quarter of 2026 compared to the same period of 2025, primarily due to timing of orders, but year to date sales for the product line were basically flat compared to the prior year period.
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
Sales of our face mask and face shield products in the third quarter of 2026, which comprise the remaining 10% of the segment sales, were up by
2026 Third 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
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
The net change in gross profit for the three months ended
Net Income
Net income for the three months ended
The net change in net income for the third quarter of 2026 due to the IEEPA tariff refund was
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.
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) | |||||||
| 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 | |||||
| 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, | |||||||
| 10,177,759 and 10,131,565 shares outstanding as of | |||||||
| September 30, 2026 and | 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
| Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||
| 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: |
| 905-479-0654 | 651-707-3532 |
| e-mail: ir@alphaprotech.com | e-mail: cameron@hirholdings.com |
