Alpha Pro Tech, Ltd. Announces Fourth Quarter and Full Year 2025 Financial Results

Key Highlights

• Full Year 2025 Net Sales: \$59.1 million, an increase of 2.3% compared to \$57.8 million in 2024.
• Full Year 2025 Net Income: \$3.5 million, or \$0.33 per diluted share, compared to \$3.9 million, or \$0.35 per diluted share, in 2024.
• Fourth Quarter 2025 Net Sales: \$13.9 million, nearly flat compared to \$13.8 million in Q4 2024.
• Fourth Quarter 2025 Net Income: \$0.7 million, or \$0.07 per diluted share, down from \$0.8 million, or \$0.08 per diluted share, in Q4 2024.
• Total Assets as of December 31, 2025: \$74.1 million, compared to \$73.7 million as of December 31, 2024.
• Shareholders’ Equity as of December 31, 2025: \$62.5 million, up from \$62.2 million as of December 31, 2024.
• Cash and Cash Equivalents: \$17.0 million as of December 31, 2025, compared to \$18.6 million a year prior.
• Retained Earnings: \$48.5 million as of December 31, 2025, up from \$47.3 million in 2024.
• Shares Outstanding: 10,131,565 shares as of December 31, 2025, versus 10,816,878 as of December 31, 2024.

In-Depth Financial Overview

Fourth Quarter 2025 Results

• Net sales were \$13.9 million for Q4 2025, essentially unchanged from the prior year period.
• Net income was \$0.7 million for the quarter, a decrease of \$0.1 million or 17.6% compared to Q4 2024.
• Net income margin stood at 5.1% for Q4 2025, down from 6.1% in the same quarter last year.
• Basic and diluted earnings per share for Q4 2025 were \$0.07, compared to \$0.08 in Q4 2024.
• Gross profit for the quarter was \$5.1 million.
• Operating expenses totaled \$4.2 million, including \$4.0 million in selling, general, and administrative expenses, and \$0.1 million in depreciation and amortization.
• Income from operations was \$0.95 million.
• Total other income, net, was \$41,000.
• Provision for income taxes was \$0.3 million.

Full Year 2025 Results

• Net sales for 2025 rose 2.3% to \$59.1 million from \$57.8 million in 2024. This growth may signal resilience and modest expansion in the company’s markets.
• Net income for the year was \$3.5 million, or \$0.33 per diluted share, a decrease from \$3.9 million (\$0.35 per diluted share) in 2024.
• Gross profit for the year was \$20.7 million.
• Total operating expenses for the year were \$18.7 million, with \$17.8 million in selling, general, and administrative expenses, and \$0.9 million in depreciation and amortization.
• Income from operations was \$2.0 million.
• Total other income, net, was \$1.6 million, including \$0.6 million equity in income of unconsolidated affiliate and \$0.9 million in interest income, net.
• Provision for income taxes was \$1.1 million.

Balance Sheet Highlights

• Cash and cash equivalents: \$17.0 million at year-end 2025, compared to \$18.6 million a year prior, indicating a slight decrease in the company’s liquidity position.
• Prepaid expenses: \$3.8 million at year-end 2025.
• Goodwill: \$55,000 at year-end 2025.
• Right-of-use assets: \$7.8 million at year-end 2025.
• Equity investment in unconsolidated affiliate: \$5.5 million at year-end 2025.
• Total assets: \$74.1 million.
• Total shareholders’ equity: \$62.5 million, slightly higher than the prior year.
• Retained earnings: \$48.5 million, up from \$47.3 million a year earlier, reflecting cumulative profitability.

Shareholder and Price-Sensitive Information

• Slight increase in annual sales (2.3%) is a positive signal for investors, suggesting the company is maintaining or growing market share.
• Decreased net income both for the quarter and the year may be a point of concern. The company’s profitability declined, which could impact future dividends or share value.
• Share count reduction: Shares outstanding dropped from 10.8 million to 10.1 million, which could result from share repurchases. This reduction may positively affect earnings per share going forward.
• The company maintained a strong equity base and liquidity, which is reassuring for shareholders regarding financial stability and ability to weather economic downturns.
• No indication of material cybersecurity incidents, tender offers, or other corporate actions that would immediately affect share price.
• Forward-looking statements caution: The company noted in its press release that future performance is subject to risks including economic conditions, supply chain disruptions, regulatory changes, and other uncertainties.

Potential Share Price Impacts

• Positive: Sales growth, stable cash position, and ongoing share repurchases are supportive of shareholder value and could be interpreted positively by the market.
• Negative: The year-over-year decline in net income and profit margins may raise concerns about profitability trends.
• Neutral to Slightly Positive: The lack of significant one-off items, impairments, or extraordinary losses is a sign of stability.

Forward-Looking Statements and Risks

Certain statements in the company’s release are forward-looking and involve risks and uncertainties that could cause actual results to differ materially. Factors include global economic conditions, supply chain issues, regulatory actions, and the impact of climate change and technological disruptions. Investors should not place undue reliance on these statements as predictions of actual results.

Contact Information

• Alpha Pro Tech, Ltd.: Donna Millar, 905-479-0654
• Investor Relations: Cameron Donahue, HIR Holdings, 651-707-3532

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell securities. Investors should conduct their own research or consult a financial advisor before making investment decisions. Actual results may differ from forward-looking statements due to risks and uncertainties beyond the company’s control.

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