Alpha Pro Tech (APT) investor relations material

Executive summary

• Net sales rose 5.5% year-over-year to $14.6M for Q1 2026, driven by strong growth in Disposable Protective Apparel and continued share gains in housewrap, despite a softer construction market.

• Net income increased 14.5% to $702K, with EPS up to $0.07 from $0.06 in Q1 2025.

• Gross profit margin declined to 37.8% from 39.0% due to tariff impacts and higher input costs.

• Cash and cash equivalents stood at $16.9M, with a current ratio of 20:1 and working capital of $49.3M, reflecting strong liquidity and no debt.

Financial highlights

• Gross profit increased by $124K to $5.5M, but margin compressed due to tariffs and higher-cost inventory.

• Operating income rose to $580K from $455K year-over-year, with operating margin at 4.0% versus 3.3% a year ago.

• Net income margin improved to 4.8% from 4.4% year-over-year.

• Basic and diluted EPS were $0.07, up from $0.06.

• Cash flow from operations was $12K, reflecting higher receivables and inventory reductions.

Outlook and guidance

• Management anticipates continued growth in housewrap sales and Disposable Protective Apparel, but notes ongoing uncertainty in the housing market, global trade environment, and geopolitical risks.

• Gross margin is expected to improve as higher-cost tariffed inventory is depleted.