Alpha Pro Tech Reports 2.5% Increase in Net Sales to $13.8 Million in Q1 2025

Alpha Pro Tech, Ltd. reported its financial results for the first quarter of 2025, revealing a modest increase in net sales to $13.8 million, up 2.5% from $13.5 million in the same period last year. The company’s net income also saw a rise, reaching $613,000 compared to $576,000 in the prior year, marking a 6.4% increase. Basic and diluted earnings per share improved to $0.06, up from $0.05 in the first quarter of 2024. The gross profit margin, however, decreased to 39.0% from 40.2%, attributed to higher inventory costs from previous shipments affected by elevated ocean freight rates.

In terms of segment performance, the Building Supply segment generated $8.4 million in sales, a 1.6% increase from $8.2 million in the previous year. This growth was primarily driven by a 21.8% increase in sales of synthetic roof underlayment, although it was partially offset by a decline in housewrap sales. The Disposable Protective Apparel segment also experienced growth, with sales rising 4.0% to $5.5 million, largely due to a 12.0% increase in disposable protective garments. However, sales of face masks and face shields declined significantly, impacting overall segment performance.

Operationally, Alpha Pro Tech's total assets decreased to $72.2 million as of March 31, 2025, down from $73.7 million at the end of 2024. The company’s cash and cash equivalents also fell by 28.4% to $13.4 million, primarily due to cash used in operating activities. Accounts receivable increased significantly by 56.8% to $7.7 million, reflecting higher sales towards the end of the quarter. The company’s current ratio remained strong at 21:1, indicating solid liquidity.

Strategically, Alpha Pro Tech continues to focus on enhancing its product offerings and expanding its market presence. The company has recently hired a Director of Product and Business Development to explore new opportunities, particularly in the Building Supply segment. Despite facing challenges such as economic uncertainty and fluctuating housing starts, management remains optimistic about growth prospects, particularly in the Building Supply segment, and is actively pursuing new distribution agreements to bolster sales.

Looking ahead, Alpha Pro Tech acknowledges potential risks from changing trade policies and tariffs, particularly those affecting imports from India, where a significant portion of its products are sourced. The company is monitoring these developments closely, as they could impact costs and operational efficiency. Overall, Alpha Pro Tech aims to leverage its competitive position in the market while navigating the complexities of the current economic landscape.