Alpha Pro Tech (APT) Q2 2026 net income climbs 47% as protective apparel demand accelerates

NOGALES, Ariz., Aug. 6. Alpha Pro Tech, Ltd. (NYSE American: APT) reported second-quarter 2026 net income of $1.8 million, or $0.18 per diluted share, a 47% increase from $1.2 million, or $0.12 per diluted share, in the year-ago period, according to an 8-K filed Wednesday. Net sales reached $18.7 million, up 12.0% from $16.7 million in the second quarter of 2025.

Protective apparel drives the revenue gain

The Disposable Protective Apparel segment posted sales of $7.0 million for the three months ended June 30, 2026, up 24.9% from $5.6 million in the same period of 2025. Disposable protective garments accounted for 93% of segment revenue. That subsegment grew 29.0%, or $1.5 million, year over year. President and Chief Executive Officer Lloyd Hoffman said the increase reflected stronger demand from the company's largest international channel partner and from national and regional distributors, with a meaningful share of the gain tied to higher selling prices driven by U.S. tariffs. Face mask and face shield products, the remaining 7% of segment revenue, declined $64,000 from the year-ago quarter.

Building supply steady as housing softens

Building Supply segment revenue rose 5.5% to $11.7 million from $11.1 million. The improvement came from a 1.2% rise in housewrap sales, a 3.4% gain in synthetic roof underlayment, a 6.0% increase in other woven material, and lower rebates. Single-family housing starts fell 4.2% year over year in the quarter, Hoffman noted, an improvement from the 6.5% decline in the first quarter of 2026. The Asphalt Roofing Manufacturers Association reported a 10.0% drop in industry shipments versus the second quarter of 2025. Management described the remainder of 2026 as a soft but generally stable environment, with a modest recovery in housing starts expected in 2027 if economic and financing conditions improve.

Tariff refund shapes gross profit picture

Gross profit was $7.0 million, a 13.8% increase from $6.1 million a year earlier, with a margin of 37.4% compared to 36.8%. A $294,000 refund of International Emergency Economic Powers Act tariffs previously paid was recognized as a reduction in cost of goods sold during the quarter. Excluding that item, gross profit was $6.7 million at a 35.8% margin, and net income was $1.6 million, or $0.16 per diluted share. The company said it continues to pursue additional IEEPA tariff recovery, though the amount and timing remain uncertain pending litigation and administrative proceedings.

Alpha Pro Tech held $18.9 million in cash and $51.0 million in working capital as of June 30, 2026, carrying no debt.

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