Alpha Pro Tech (APT) investor relations material

Executive summary

• Net sales for Q2 2026 increased 12.0% year-over-year to $18.7M, with growth in both Building Supply and Disposable Protective Apparel segments.

• Net income for Q2 2026 was $1.83M, up 46.8% from Q2 2025, with EPS of $0.18 (basic and diluted); excluding the IEEPA tariff refund, net income was $1.6M, or $0.16 per share, up 29% year-over-year.

• Gross profit margin was 37.4% for Q2 2026, aided by a $300K IEEPA tariff refund; excluding this, margin was 35.8%.

• The company received $3.2M in additional tariff refunds after quarter-end, not yet recognized due to ongoing litigation.

Financial highlights

• Q2 2026 net sales: $18.7M (+12.0% YoY); six-month sales: $33.3M (+9.1% YoY).

• Q2 2026 net income: $1.83M (+46.8% YoY); six-month net income: $2.53M (+36.1% YoY).

• Q2 2026 gross profit: $7.0M (+13.8% YoY); gross margin at 37.4% (including tariff refund); excluding refund, gross profit was $6.7M and margin 35.8%.

• Cash and equivalents at June 30, 2026: $18.9M; working capital: $51.0M; current ratio: 17:1.

• Basic EPS for Q2 2026: $0.18; six-month EPS: $0.25.

Outlook and guidance

• Building Supply segment expected to see modest growth in 2027 if economic and financing conditions improve.

• Management anticipates continued growth in Disposable Protective Apparel, supported by strong demand.

• Gross margin expected to improve in coming quarters due to price increases and lower tariffs.

• Ongoing trade policy and tariff litigation create uncertainty for future results.

• Management remains focused on product innovation and growth, but notes ongoing uncertainty from macroeconomic and geopolitical factors.