Alpha Pro Tech Reports Q3 2025 Revenue Growth but Decline in Nine-Month Profitability

Alpha Pro Tech, Ltd. reported its financial results for the third quarter and the first nine months of 2025, revealing a modest increase in revenue and a slight decline in profitability compared to the previous year. For the three months ended September 30, 2025, the company achieved net sales of $14.8 million, a 3.7% increase from $14.3 million in the same period of 2024. The nine-month figures also showed growth, with sales rising to $45.3 million from $44.0 million, marking a 2.9% increase. However, net income for the third quarter was $976,000, up 13.2% from $862,000 in 2024, while net income for the nine months decreased to $2.8 million from $3.1 million, reflecting an 8.1% decline.

The company's Building Supply segment was a key driver of growth, with sales increasing by 5.4% to $9.3 million in the third quarter, primarily due to a 12.7% rise in housewrap sales. In contrast, the Disposable Protective Apparel segment saw a modest increase of 1.1% to $5.5 million, although sales of face masks and face shields experienced significant declines. The overall gross profit for the third quarter rose to $5.9 million, resulting in a gross margin of 39.7%, up from 38.5% in the prior year. However, for the nine-month period, gross profit fell to $17.4 million, with a margin of 38.4%, down from 40.3% in 2024.

Operationally, Alpha Pro Tech reported an increase in accounts receivable, which rose by 45.7% to $7.1 million, attributed to higher sales and extended payment terms. Inventory also increased by 3.3% to $23.5 million, driven by a rise in the Building Supply segment. The company’s cash and cash equivalents decreased by 5.2% to $17.7 million, while working capital improved to $48.1 million, reflecting a current ratio of 14:1. The company repurchased 532,313 shares of common stock for $2.6 million during the nine months, with $2.1 million remaining under its repurchase program.

Looking ahead, Alpha Pro Tech anticipates continued growth in the Building Supply segment, despite ongoing challenges such as uncertainty in housing starts and increased tariffs affecting costs. The company plans to introduce new products and expand its offerings in the self-adhered roofing and flashing categories. Management remains cautious about the impact of tariffs on profitability and is actively seeking to mitigate these effects through pricing adjustments and inventory management. The company’s strategic focus on maintaining strong partnerships in the building sector is expected to support its growth objectives in the coming quarters.