Alpha Pro Tech (APT) investor relations material

Executive summary

• Net sales for Q2 2026 rose 12% year-over-year to $18.7 million, driven by growth in both Building Supply and Disposable Protective Apparel segments.

• Net income increased 47% to $1.8 million, or $0.18 per diluted share, compared to $1.2 million, or $0.12 per share, in Q2 2025.

• Excluding the IEEPA tariff refund, net income was $1.6 million, or $0.16 per diluted share, up 29% year-over-year.

Financial highlights

• Gross profit increased 13.8% to $7.0 million, with gross margin at 37.4% (including tariff refund); excluding refund, gross profit was $6.7 million and margin 35.8%.

• Cash position at June 30, 2026 was $18.9 million, up from $17.0 million at year-end 2025.

• Working capital reached $51.0 million, with a current ratio of 17:1.

Outlook and guidance

• Building industry outlook for the remainder of 2026 is soft but stable, with modest growth in single-family housing starts expected in 2027 if economic conditions improve.

• Management remains focused on product innovation and anticipates growth in the Building Supply segment, but notes ongoing uncertainty from macroeconomic and geopolitical factors.