ALPHA PRO TECH LTD Q1 FY26 Results

We reported revenue and earnings growth in the first quarter, driven by strong performance in our Disposable Protective Apparel segment and continued share gains in housewrap, despite a softer residential construction environment. Disposable Protective Apparel sales increased by 23.4% over the prior year period, led by strong demand from our largest international channel partner. Growth across core product categories reflects sustained momentum and continued execution in this segment. In Building Supply, housewrap sales increased by 13.1% over the prior year period, exceeding reported industry declines and reinforcing ongoing market share gains. Management expects continued growth in the housewrap category over the coming year, particularly if broader economic and housing market uncertainty eases. This strength was offset by lower synthetic roof underlayment sales in a weaker housing environment, in which the Asphalt Roofing Manufacturers Association (“ARMA”) reported an almost 10% decline in industry shipments compared the first quarter of 2025. The building industry outlook for 2026 remains mixed, with expectations for gradual improvement in the latter part of the year. Management remains focused on developing and producing industry-leading products and anticipates growth in the Building Supply segment; however, uncertainty related to economic conditions and geopolitical volatility could adversely impact results.

As of March 31, 2026, we had $1.4 million available for additional stock purchases under our stock repurchase program. In total, the company has repurchased a total of 21,927,940 shares of common stock at a cost of approximately $58,123,000 through our repurchase program which commenced in 1999. We retire all stock upon repurchase. And future repurchases are expected to be funded from cash on hand and cash flows from operating activities.