Alpha Pro Tech reported higher third-quarter sales and nearly doubled net income, with growth led by disposable protective apparel. Building Supply sales rose only modestly overall, though the company said its core housewrap and synthetic roof underlayment products gained ground against a weak housing market.
The company ended September with $25.5 million in cash, $52.1 million in working capital and no debt. Management described the building-products market as soft but generally stable, and said it plans to broaden its housewrap and roofing-underlayment offerings in 2027.
Key details
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Revenue and earnings increased: Third-quarter net sales rose 12.3% to $16.6 million from $14.8 million a year earlier. Net income climbed to $1.9 million, or $0.19 per diluted share, from $976,000, or $0.09 per share.
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Disposable Protective Apparel drove most of the sales growth: Segment sales increased 30.2% to $7.2 million from $5.5 million. Disposable protective garments—which make up about 90% of the segment—rose 30.6%, helped by stronger sales through the company’s distribution network and higher selling prices. Shoe covers, lab coats and frocks, gowns, and bouffant caps all contributed. Face masks and shields, the remaining 10% of segment sales, increased 25.9%.
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Building Supply sales edged higher: Segment sales grew 1.7% to $9.4 million from $9.3 million. Sales of housewrap and synthetic roof underlayment, the company’s core building products, increased 5.2% combined. Housewrap sales rose 13.1%, while synthetic roof underlayment sales fell 6.3%. Alpha Pro Tech said that decline was less severe than the 13% drop in industry shipments reported by the Asphalt Roofing Manufacturers Association. Sales of other woven material fell 22%, which the company attributed primarily to order timing; year-to-date sales for that product line were roughly flat with the prior year.
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Management sees a subdued near-term housing backdrop: Single-family housing starts were down 1.6% in the quarter from a year earlier, an improvement from the prior quarter’s decline. The company characterized the rest of 2026 as a soft, generally stable market rather than a meaningful recovery. It said a modest increase in single-family starts is expected in 2027 if economic and financing conditions improve.
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The company plans to expand its building-products range: Alpha Pro Tech said it intends to add housewrap and synthetic roof underlayment offerings in 2027 to strengthen its competitive position. It has also recently expanded its Building Supply sales team.
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Liquidity remains substantial, with no debt: At September 30, the company had $25.5 million in cash and $52.1 million in working capital, and reported no debt.
The quarter’s growth was concentrated in protective apparel, while Building Supply faced a mixed environment: core products advanced despite weak housing-related demand, but other woven-material sales weighed on the segment. The reported cash, working capital and debt position indicate the company had no debt at quarter-end.