Alpha Pro Tech (APT) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 increased 2.4% year-over-year to $16.67M, driven by record Building Supply segment sales, partially offset by a decline in Disposable Protective Apparel sales.

• Net income for Q2 2025 was $1.24M, down 24.3% from Q2 2024, with EPS at $0.12 compared to $0.15 last year.

• Gross profit margin declined to 36.8% from 42.0% year-over-year, mainly due to lower margins in Disposable Protective Apparel and higher costs from tariffs and freight.

• Cash and cash equivalents stood at $14.5M as of June 30, 2025, with a strong current ratio of 17:1 and working capital of $47.5M.

Financial highlights

• Six-month net sales rose 2.4% to $30.49M, with Building Supply up 7.0% and Disposable Protective Apparel down 4.8%.

• Gross profit for the quarter was $6.13M, down 10.4% year-over-year; six-month gross profit was $11.52M, down 6.0%.

• Operating income for Q2 2025 was $1.34M, a 22.0% decrease from Q2 2024.

• Net income for the six months ended June 30, 2025, was $1.86M, down 16.4% from the prior year.

• Basic and diluted EPS for the six months were $0.18, compared to $0.20 in the prior year.

Outlook and guidance

• Management expects continued growth in the Building Supply segment for the remainder of 2025, but notes ongoing uncertainty in housing starts and economic volatility.

• Price increases are planned starting July 2025 to offset new US tariffs, though tariffs are expected to negatively impact gross profit.

• Demand volatility and destocking trends in Disposable Protective Apparel are expected to persist, with some improvement in face shield sales.