Alpha Pro Tech (APT) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 increased 2.5% year-over-year to $13.8M, with both Building Supply and Disposable Protective Apparel segments contributing to growth.

• Net income rose 6.4% to $613,000, with EPS up to $0.06 from $0.05 in Q1 2024.

• Cash and cash equivalents decreased to $13.4M, with no debt and working capital of $47.0M.

• Gross margin declined to 39.0% from 40.2% due to higher freight costs, but operating income improved to $455,000.

Financial highlights

• Consolidated net sales: $13.8M (up $340,000 year-over-year).

• Gross profit: $5.39M (down $25,000 year-over-year); gross margin 39.0%.

• Operating income: $455,000 (up $129,000 year-over-year).

• Net income: $613,000 (up $37,000 year-over-year); net margin 4.4%.

• Basic and diluted EPS: $0.06 (up from $0.05 year-over-year).

Outlook and guidance

• Management expects growth in the Building Supply segment, supported by a strong pipeline, but notes ongoing uncertainty in housing starts and economic volatility.

• Disposable Protective Apparel segment expected to see steady organic growth as new and evolved distribution agreements take effect.

• Demand for face masks is anticipated to improve as channel partner inventory normalizes.

• Tariff changes and global trade policy remain key uncertainties for cost structure and margins.