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…
Earnings analysis · 10-Q
APT earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.18
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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$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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.