ANNUAL REPORT 2025

CORPORATE
PROFILE

Alpha Pro Tech, Ltd. (the Company) is in the business of protecting people, products and environments. The Company accomplishes this by being a leading designer, developer, manufacturer and marketer of high-value disposable protective apparel, building supply, infection control and other products for the medical, dental, cleanroom, pharmaceutical, industrial safety, construction supply and consumer markets.

The Company’s growth strategy is to provide innovative solutions to its customers and create meaningful value for its shareholders. Alpha Pro Tech has a reputation of combining extensive research and development with the highest levels of responsiveness, quality, safety and reliability.

Alpha Pro Tech’s manufacturing facilities and offices are located in Arizona and Georgia in the United States, as well as in Canada and India.

TABLE OF CONTENTS
1	Financial Highlights
2	To Our Shareholders
4	Apparel, Masks & Shields
6	Building Products
	Corporate Information
	Financials

FINANCIAL HIGHLIGHTS

1 ANNUAL REPORT 2025

Lloyd Hoffman
President and
Chief Executive Officer

TO OUR
SHAREHOLDERS

Dear Shareholders,

Fiscal year 2025 was a year defined by resilience, operational discipline, and continued execution amid a complex macroeconomic environment. While external pressures, including tariffs, housing market softness, and shifting demand patterns, affected certain areas of our performance, we strengthened our core operations and further positioned the Company for long-term growth.

Financial Performance

In 2025, net sales increased 2.3% to $59.1 million, driven primarily by growth in our Disposable Protective Apparel segment. Our Building Supply segment remained stable despite significant housing market headwinds. Income from operations rose 11.3% to $3.8 million, reflecting strong cost control and improved efficiency. Net income declined 10.1% to $3.5 million, largely due to much lower non‑operational other income and the impact of tariffs on margins.

We ended 2025 with a strong balance sheet, including $17.0 million in cash and working capital of $48.5 million. During the year, we returned $3.3 million to shareholders through our share repurchases. Our current financial position provides flexibility to support operations, invest in growth opportunities, and continue returning capital to shareholders.

Building Supply Segment

Our Building Supply segment demonstrated resilience in a challenging environment, with sales increasing modestly by 0.2% to $36.0 million. The housing market remained under pressure in 2025, with single‑family housing starts declining approximately 7%.

2 ANNUAL REPORT 2025

Despite this, our core building products outperformed the broader market, declining only 3.7%. Housewrap continued to perform well, with sales increasing 2.3%, outpacing the broader market by nearly 10%. This reflects strong brand positioning, product quality, and continued market share gains. Other woven materials grew significantly, increasing 28.9%, primarily due to expanded business with a key customer. These gains were partially offset by a 10.6% decline in synthetic roof underlayment sales, which was impacted by weaker roofing demand, pricing pressure, and difficult comparisons to hurricane‑driven demand in late 2024.

Disposable Protective Apparel Segment

Our Disposable Protective Apparel segment was the primary growth driver in 2025, with sales increasing 5.7% to $23.1 million. This growth was led by our disposable protective garments line of products, which increased 12.2%, with particularly strong momentum in the second half of the year. As expected, sales of pandemic‑related face masks and face shields declined significantly as demand normalized. We remain confident in the long‑term growth trajectory of this segment and are focused on expanding market opportunities while maintaining our leadership position.

Looking Ahead

As we enter 2026, we remain cautiously optimistic. We expect continued growth in our Disposable Protective Apparel segment, particularly in sales of disposable protective garments. Performance in the Building Supply segment should improve if housing market conditions stabilize. Industry forecasts suggest potential recovery driven by lower interest rates and improved affordability, though uncertainty remains.

We also expect gross profit margin improvement as higher-cost inventory is reduced and tariff impacts normalize, although trade policy and global supply chain dynamics remain important variables.

Closing Thoughts

Fiscal year 2025 demonstrated the strength and adaptability of our business. We successfully navigated external challenges while improving operational performance and maintaining a strong financial foundation.

We remain committed to delivering high‑quality products, expanding market opportunities, and creating long-term value for our shareholders.

On behalf of the Board of Directors and the Alpha Pro Tech team, I thank you for your continued support.

Sincerely,

Lloyd Hoffman
President and
Chief Executive Officer

3 ANNUAL REPORT 2025

Apparel,
Masks
& Shields
In a turbulent 2025, the Disposable Protective Apparel segment gained significant sales momentum early in Q3 that continued throughout 2025, achieving many of our sales goals. This increase was primarily driven by our disposable protective garment sales. Notwithstanding the challenges presented by tariffs, we remained resilient and steadfast, and many of the products in this category, including shoe covers and coveralls, exceeded our planned forecast. We will work to build on this progress and uncover new growth opportunities with all our customers!

Our results in the face mask and face shield sales for 2025 were below expectations. It was not for a lack of effort, as we offered multiple promotions and pricing incentives to turn the tide. We will aggressively market our face masks and face shields, incentivize our customers and work diligently toward a better 2026, regardless of the ongoing challenges in this segment. Face masks and face shields continue to be important parts of our Disposable Protective Apparel segment. In addition, our inventory position and manufacturing capacity is on solid ground, and a sizable percentage of our products in this category are not burdened by tariffs.

We will continue to deliver our high-quality products and remain agile and responsive to our customers. Our goal is straightforward: to remain resilient through any and all challenges in an effort to maintain our leadership position and differentiate Alpha Pro Tech in the disposable protective apparel marketplace.

4 ANNUAL REPORT 2025

Alpha Pro Tech garments
are available in a wide
selection of materials
and configurations to
protect the wearer as
needed.

5 ANNUAL REPORT 2025

Building
Products
In 2025, the single-family homebuilding market faced sustained and meaningful headwinds. Elevated interest rates continued to pressure affordability, global tariff implementations disrupted supply chains, and weaker storm seasons reduced re-roof demand across key regions. According to the U.S. Census Bureau, single-family housing starts declined in 2025, reflecting the broader slowdown in residential construction activity. Distribution partners responded decisively, reducing inventory levels to preserve liquidity and manage risk.

These were not isolated pressures. They were systemic challenges that tested discipline, planning, and long-term conviction across the industry.

Yet in the face of contraction, our Building Supply segment remained resilient.

In our house wrap product line, despite industry contraction, we outperformed the market. We exceeded broader market performance, driven by three enduring strengths: product quality, system-based solutions and warranties that provide value and confidence. These strengths translated into tangible results.

The Asphalt Roofing Manufacturers Association also reported a substantial weakening, compared to 2024. Despite macroeconomic volatility and industry-wide shipment declines, we maintained our market share within the roofing segment in 2025. This performance was not accidental. It was the result of deliberate strategic positioning and disciplined execution. Our ability to deliver reliable supply and responsive service reinforced our standing with distribution partners and contractors alike.

Our focus remains on supporting long-term building integrity and advancing the markets we serve. Whether through enhanced system solutions, expanded warranty programs, or targeted product innovation, we are committed to helping customers navigate complexity with confidence.

6 ANNUAL REPORT 2025

From single family to
multi-family developments,
our system has you covered
in every direction, from the
walls to the roof.

7 ANNUAL REPORT 2025

CORPORATE
INFORMATION

MARKET FOR SHARES

The Company’s common shares are quoted on the NYSE American Exchange under the trading symbol “APT.”

As of April 13, 2026 there were 10,216,932 shares outstanding and 75 registered shareholders of Alpha Pro Tech, Ltd.

DIVIDEND POLICY

The holders of the Company’s common stock are entitled to receive such dividends as may be declared by the Board of Directors of the Company from time to time to the extent that funds are legally available for payment thereof. The Company has never declared or paid any dividends on any of its outstanding shares of common stock. It is the current policy of the Board of Directors to retain any earnings to provide for the development and growth of the Company. Consequently, the Company has no current intention to pay cash dividends in the foreseeable future.

TRANSFER AGENT AND REGISTRAR

Shareholders should refer specific questions concerning their stock certificates, in writing, directly to the Transfer Agent and Registrar at:
Equiniti Trust Company LLC
48 Wall Street, Floor 23
New York, NY 10005

INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM

Tanner LLP
3300 N. Triumph Blvd., Suite 410
Lehi, UT 84043

LEGAL COUNSEL

Maynard Nexsen PC
1901 6th Avenue N, Suite 1700
Birmingham, AL 35203

ANNUAL MEETING

The Annual Meeting of Shareholders will be held:
Wednesday, June 10, 2026 at 9:30 am
Microtel Inn & Suites
180 Goulding Avenue
Aurora, Ontario L4G 3Z2
365-809-4680

FORM 10-K

A copy of the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission for the fiscal year ended December 31, 2025 is available upon request without charge to persons who are beneficial shareholders as of the record date for the 2026 Annual Meeting. Such written requests should be directed to:
Alpha Pro Tech, Ltd.
53 Wellington Street East
Aurora, Ontario L4G 1H6

OFFICERS AND DIRECTORS

Lloyd Hoffman

President and Chief Executive Officer and Director

Colleen McDonald

Chief Financial Officer

Danny Montgomery

Sr. V.P. Manufacturing and Director

Donna Millar

Investor Relations and Director

David Garcia

Director
Retired Independent Businessman

Dr. John Ritota

Director
Dentist – Ritota & Ritota P.A.

James W.A. Buchan

Director
Management – Bell Canada

Benjamin A. Shaw

Director
Sr. Director & Controller – Western Governors University

Corporate Head Office
53 Wellington Street East
Aurora, Ontario
L4G 1H6
Phone: 800 847-9725
Fax: 905 479-9732
Email: ir@alphaprotech.com

CORPORATE PROFILE