Alpha Pro Tech, Ltd. Announces Third Quarter 2025 Financial Results

Core Insights - Alpha Pro Tech, Ltd. reported a 3.7% increase in overall sales for the third quarter of 2025, reaching $14.8 million compared to $14.3 million in the same quarter of 2024 [6][7] - The company experienced growth in its Building Supply segment, while the Disposable Protective Apparel segment faced challenges due to declining sales of face masks and face shields [9][11] Financial Performance - Consolidated sales for Q3 2025 were $14.8 million, an increase of $534,000 or 3.7% from Q3 2024 [6][7] - The Building Supply segment saw an increase of $476,000 or 5.4%, totaling $9.3 million, driven by a 12.7% increase in housewrap sales [8] - The Disposable Protective Apparel segment sales remained flat at $5.5 million, with a 10.4% increase in disposable protective garments offset by a significant decline in face mask and face shield sales [9][11] - Net income for Q3 2025 was $976,000, up 13.2% from $862,000 in Q3 2024, with earnings per diluted share increasing from $0.08 to $0.09 [11][20] Market Conditions - The housing market showed weakness with single-family housing starts down 2.6% compared to Q3 2024, impacting overall market conditions [2] - Management noted ongoing uncertainty in housing starts and economic volatility, alongside a stronger hurricane season affecting the building sector [3] - Tariffs have introduced pricing and supply volatility, leading to reduced inventory positions among primary customers [3] Strategic Outlook - The company aims to leverage national builder partnerships for growth despite the downturn in the building sector [4] - Anticipated new product introductions in 2026 are expected to expand the self-adhered roofing and flashing categories [4] - Management remains optimistic about potential tariff reductions, which could stabilize pricing in the market [4] Balance Sheet Highlights - As of September 30, 2025, the company had cash of $17.7 million and working capital of $48.1 million, with no debt [12] - The current ratio was 14:1, indicating strong liquidity [12] - The company has repurchased a total of 21.8 million shares at a cost of approximately $57.4 million through its stock repurchase program [13]