Company: APT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025400
Chunk: 18

Company: ALPHA PRO TECH LTD
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 synthetic roof underlayment, 50% for housewrap and 10% for other woven material. This compared to approximately 40% for synthetic roof underlayment, 48% for housewrap and 12% for other woven material for the three months ended June 30, 2024. Our synthetic roof underlayment product line primarily includes REX SynFelt®, REX TECHNOply® and TECHNO SB and our synthetic roof underlayment accessories consist of our new self-adhered TECHNOplus Ice & Water and REX Hi Temp. Our housewrap product line primarily consists of REX Wrap®, REX Wrap Plus® and REX™ Wrap Fortis. Housewrap accessories consist of REXTREME Window and Door Flashing and REX™ Premium Seam Tape.

The housing market continued to show weakness in the second quarter of 2025, continuing the weak trend of 2024, with single-family housing starts down 9.0% compared to the same quarter in 2024. During the second quarter of 2025, we significantly outperformed the market as sales of the core building products (housewrap and synthetic roof underlayment) were up 13.2% as compared to the same period of 2024. Our core REX branded products and core private label product sales were both strong in the second quarter of 2025.

Sales of other woven material increased by $1,000, or 0.1%, to $1,246,000 compared to $1,245,000 for the three months ended June 30, 2025 compared to the same period of 2024. The Company is pursuing new opportunities for other woven material that could improve sales, and we hired a Director of Product and Business Development during the first quarter of 2025.

Management expects growth in the Building Supply segment in 2025 and is encouraged by the strength in the second quarter of 2025. However, there continues to be uncertainty in housing starts and volatility and uncertainty in the economy as well as a stronger than normal hurricane season in the latter part of 2024 which could affect this segment.

Disposable Protective Apparel segment sales for the three months ended June 30, 2025, decreased by $760,000, or 12.0%, to $5,588,000, compared to $6,348,000 for the three months ended June 30, 2024. This segment decrease was due to an 11.3% decrease in sales