APT earnings analysis
What we found in APT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Alpha Pro Tech delivered a strong second quarter, with revenue up 12.0% to $18.674 million, operating margin rising to 10.8% from 8.0%, and diluted EPS increasing to $0.18 from $0.12. Growth was led by Disposable Protective Apparel, while Building Supply modestly outperformed declining housing and roofing markets. However, underlying gross margin declined to 35.8% excluding the $294,000 tariff refund, and the $3.2 million post-quarter-end refund remains subject to litigation. Management expects Building Supply growth and margin improvement from third-quarter pricing, but provides no quantitative guidance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Accelerated
- Second-quarter sales increased 12.0% to $18.674 million from $16.672 million in the prior-year quarter. Disposable Protective Apparel drove $1.394 million of the $2.002 million consolidated increase, while Building Supply contributed $608,000.
- Apparel Segment Delivered Strong Growth
- Disposable Protective Apparel sales rose 24.9% to $6.982 million, including a 29.0% increase in disposable protective garments. Six-month apparel sales increased 24.2% to $13.708 million, reflecting strong demand across product lines.
- Operating Leverage Lifted EPS
- Operating income increased 50.7% to $2.012 million from $1.335 million, and operating margin expanded to 10.8% from 8.0%. Diluted EPS rose to $0.18 from $0.12; reported results included a $279,000 after-tax? tariff-refund impact on operating income, with the filing separately reporting a $219,000 net-income benefit.
- Reported Gross Margin Improved
- Gross profit increased 13.8% to $6.978 million, and reported gross margin improved to 37.4% from 36.8%. Excluding the $294,000 tariff refund, gross margin was 35.8%, indicating underlying margin pressure despite stronger sales.
- Liquidity Remained Strong
- Cash increased 11.3% to $18.901 million from $16.988 million at December 31, 2025, while working capital increased to $51.014 million from $48.462 million. Six-month operating cash flow was $2.225 million versus $259,000 of investing cash use, principally property and equipment purchases.
- Pricing Action Supports Margins
- Management plans to expand roofing-market product offerings and implemented a third-quarter 2026 price increase in response to higher energy, transportation, supply-chain and petroleum-based resin costs. Management expects gross margin to be positively affected in coming quarters.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- $3.2 Million Refund Litigation
- The Company received approximately $3.2 million of additional CBP tariff refunds after quarter-end, but recognized none because collectability was not probable as of June 30, 2026. The $3.2 million remains subject to ongoing litigation and appeals, creating potential recognition or repayment uncertainty.
- Tariffs Continue to Pressure Margins
- Excluding the tariff refund, second-quarter gross margin fell to 35.8% from 36.8%, with management citing IEEPA tariffs ranging from 10% to 50%, a 10% Section 122 tariff as of June 30, 2026, and higher geopolitical-related costs.
- Weak Housing Market Limits Building Supply
- U.S. single-family housing starts declined 4.2% year over year in the second quarter, while the filing characterizes the remainder of 2026 as soft but generally stable rather than a meaningful rebound. Management also states that housing and economic uncertainty could negatively affect Building Supply results.
- Receivables Outpaced Sales
- Accounts receivable increased 36.8% to $11.135 million from $8.138 million at December 31, 2025, and days sales outstanding increased to 47 days from 40 days. The higher receivables balance creates working-capital and collection risk as sales accelerate.
- Lower Inventory May Constrain Supply
- Inventory decreased 21.0% to $18.650 million from $23.598 million, including a 30.8% decline in Building Supply inventory to $8.876 million. Management said it purchased less inventory because of high tariff rates, which could increase supply-chain or fulfillment risk if demand improves or suppliers are disrupted.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.18
- Gross margin
- 37.4%
- Operating margin
- 10.8%
- Segment
- Building Supply: $11.692 million, up 5.5% year over year from $11.084 million.
- Segment
- Disposable Protective Apparel: $6.982 million, up 24.9% year over year from $5.588 million.
What they said about what is next.
No quantitative revenue or EPS guidance was provided. Management expects Building Supply segment growth, describes the remainder of 2026 as a soft but generally stable building market, anticipates a modest increase in single-family housing starts in 2027 if economic and financing conditions improve, and expects gross margin to benefit from a third-quarter 2026 price increase.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 7, 2026
- Alpha Pro Tech reported a Q1 2026 revenue of $14.6 million, marking a 5.5% increase from Q1 2025 driven primarily by strong growth in the Disposable Protective Apparel segment, which rose by 23.4%. Gross margin declined…
- 10-K · March 11, 2026
- Alpha Pro Tech reported consolidated net sales of $59,142,000 for the year ended December 31, 2025, up from $57,840,000 in 2024, driven by stable quarterly revenues in the $14M–$17M range and continued U.S.-centric…
- 10-Q · May 8, 2025
- Alpha Pro Tech reported modest top-line growth with net sales of $13,822,000 (up $340,000 or ~2.5% vs. Q1 2024) and diluted EPS of $0.06 (up $0.01 vs. $0.05). Operating income improved to $455,000 (from $326,000) and…
- 10-Q · May 9, 2024
- Alpha Pro Tech reported Q1 net sales of $13,482,000, a decrease of $318,000 versus Q1 2023, while net income was $576,000 (diluted EPS $0.05), essentially flat with prior year. Gross profit improved to $5,417,000 (gross…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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