Executive Summary

Q4 2024 revenue declined 9.5% YoY to $13.8M and fell sequentially from Q3’s $14.3M; diluted EPS was $0.08 vs $0.09 YoY and $0.08 in Q3, reflecting softer Building Supply and Disposable Protective Apparel volumes in the quarter .
Gross margin remained resilient at 37.6% vs 37.4% YoY despite revenue pressure; however, management cautioned 2025 margins could face headwinds from volatile ocean freight rates .
Segment mix: Building Supply declined 8.1% YoY (housewrap -16.9% offset by synthetic underlayment +5%), while Disposable Protective Apparel fell 11.9% YoY; full-year DPA rose 5.0% on stronger garment demand and new distribution agreements .
Capital returns: The Board expanded the buyback authorization twice in Q4 (Oct +$1.0M; Dec +$2.0M); the company repurchased 831k shares for $4.5M in 2024, ending the year with $2.7M remaining under the program, zero debt, and $18.6M cash, providing downside support .
Estimates: S&P Global/Capital IQ consensus for Q4 2024 was not retrievable via the tool at the time of analysis due to an API rate limit; comparison to Street estimates is therefore unavailable (see Estimates Context).

What Went Well and What Went Wrong

What Went Well

Gross margin durability: 37.6% in Q4 vs 37.4% a year ago despite top-line pressure, supported by better margins across both segments .
Synthetic underlayment Q4 rebound: Orders surged post-hurricanes Helene and Milton, driving +5% YoY in the quarter; management expects 2025 growth in this category .
Channel expansion in DPA: New distribution agreements with regional, national, and the largest international partner (elevated to preferred supplier) position DPA for continued growth in 2025. “We believe this achievement will provide some growth opportunities, and management expects continued growth for disposable protective garments in 2025.” .

What Went Wrong

Top-line contraction: Q4 revenue -9.5% YoY to $13.8M and sequentially below Q3’s $14.3M; Q4 net income fell to $0.85M vs $1.06M YoY .
Housewrap weakness and distributor dynamics: Q4 housewrap sales -16.9% YoY; management cited a large distributor losing certain end users late in the year (APT did not lose share with that distributor) .
Macro/freight risks to 2025 margins: Management warned volatile ocean freight rates (geopolitics, labor, market dynamics) may pressure gross margin in 2025 .

Financial Results

Sequential performance (2024)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$16.289	$14.251	$13.817
Gross Profit ($USD Millions)	$6.841	$5.484	$5.190
Gross Margin (%)	42.0%	38.5%	37.6%
Operating Income ($USD Millions)	$1.712	$0.737	$0.674
Net Income ($USD Millions)	$1.644	$0.862	$0.847
Diluted EPS ($)	$0.15	$0.08	$0.08

Year-over-year (Q4)

Metric	Q4 2023	Q4 2024
Revenue ($USD Millions)	$15.265	$13.817
Gross Profit ($USD Millions)	$5.706	$5.190
Gross Margin (%)	37.4%	37.6%
Operating Income ($USD Millions)	$0.971	$0.674
Net Income ($USD Millions)	$1.061	$0.847
Diluted EPS ($)	$0.09	$0.08

Segment Sales

Segment	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Building Supply ($USD Millions)	$9.8	$9.9	$8.8	$9.0
Disposable Protective Apparel ($USD Millions)	$5.5	$6.3	$5.5	$4.8

KPIs / Balance Sheet (select)

Metric	Q2 2024	Q3 2024	Q4 2024
Cash & Cash Equivalents ($USD Millions)	$16.2	$18.4	$18.6
Working Capital ($USD Millions)	$50.7	$48.7	$47.5
Current Ratio (x)	28:1	19:1	16:1
Inventories ($USD Millions)	$20.8	$21.1	$22.7
Shares Repurchased (period)	515k; $2.7M	180k; $1.0M	831k FY; $4.5M FY
Buyback Authorization Remaining	$1.5M (6/30/24)	$1.5M (9/30/24)	$2.7M (12/31/24)

Guidance Changes

No formal quantitative guidance was issued; management provided qualitative outlook.

Metric	Period	Previous Guidance	Current Guidance	Change
Building Supply outlook	2025	None	Expects growth as housing starts projected to increase; notes continued uncertainty	n/a
DPA (disposable garments)	2025	None	Expects continued growth driven by expanded distribution/partner status	n/a
Gross Margin drivers	2025	None	Warns ocean freight volatility could pressure margins	n/a
Capital returns	Ongoing	Prior authorizations	Board expanded buyback by $1.0M (Oct) and $2.0M (Dec) in Q4; $2.7M remaining at YE’24	Increased authorization

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available in the filings/database; themes below reflect management commentary across the last three press releases.

Topic	Previous Mentions (Q2 2024 and Q3 2024)	Current Period (Q4 2024)	Trend
Housing starts / macro	Q2: housing starts -7.4% YoY; expecting a challenging 2H . Q3: starts -4.0%; large customers reduced shipments; multi-family starts down sharply .	FY housing starts -4.4%; housewrap softness tied to a distributor losing end users; still optimistic excluding two private-label distributors .	Macro still a headwind; tone cautiously optimistic for 2025.
Synthetic roof underlayment	Q2: economy underlayment relatively resilient; launched self-adhered products . Q3: surge in orders post hurricanes Helene/Milton expected to aid Q4 .	Q4: +5% YoY; surge realized; 2025 growth expected; notes offshore competition and pricing pressure .	Improving off storm rebuild; watch competition/pricing.
DPA (garments/masks/shields)	Q2: garments +9.2%; masks +81%; shields +64% . Q3: garments +6.9%; masks +124%; shields +205% (still oversupplied) .	Q4: DPA -11.9% YoY in quarter, but full-year DPA +5%; new/expanded distribution and preferred status internationally; expects 2025 growth .	Mixed quarterly cadence; structural channel wins supportive.
Freight / margins	Q2: warned ocean freight could pressure margins . Q3: repeated risk .	Q4: continued freight volatility risk into 2025 .	Persistent margin risk factor.
Capital returns	Q2: $2.7M buyback executed YTD; $1.5M remaining . Q3: $1.0M repurchased; $1.5M remaining .	Q4: authorization expanded twice (+$1.0M Oct, +$2.0M Dec); YE remaining $2.7M; 831k shares repurchased in 2024 .	Accelerated return-of-capital tempo.

Management Commentary

“The housing market continues to show weakness… Although sales of the core building products… were down 7.9% in 2024… we are optimistic… Excluding the decline of sales by two private label distributors, the 2024 sales performance of our core building products would have resulted in a lower percentage decline than the reduction in housing starts.”
“After hurricanes Helene and Milton, we saw a surge in synthetic roof underlayment orders in the fourth quarter of 2024 to assist in the southeast rebuild… We expect growth in 2025 in the synthetic roof underlayment category.”
“We have signed new distribution agreements with regional and national channel partners… [and] achieved elevated status and were named as a preferred supplier going forward… management expects continued growth for disposable protective garments in 2025.”
CFO: “As of December 31, 2024, we had $2.7 million available for additional stock purchases… During the year… we repurchased 831,000 shares… at a cost of $4.5 million.”

Q&A Highlights

No Q4 2024 earnings call transcript was available; no Q&A content to summarize from the quarter’s call archive .

Estimates Context

S&P Global/Capital IQ consensus estimates for Q4 2024 were not retrievable via the tool at the time of analysis due to an API request limit, so we cannot present a comparison to Street expectations. We will update this section once S&P Global data access is restored.

Key Takeaways for Investors

Q4 top-line softness but margin resilience: Revenue -9.5% YoY with gross margin slightly up YoY; freight volatility is the key 2025 risk to monitor .
Building Supply poised for recovery if housing starts stabilize; hurricane rebuild supported Q4 underlayment, and management sees 2025 growth in that category despite competition/pricing pressure .
DPA channel momentum: New/expanded distribution and preferred-supplier status should underpin garment growth in 2025 despite quarterly noise in masks/shields .
Balance sheet strength and buybacks: $18.6M cash, no debt, and ongoing repurchases ($4.5M in 2024; $2.7M authorization remaining at YE) provide downside support and EPS accretion potential .
Watch inventory and working capital normalization as volumes recover; inventory rose to $22.7M at year-end, largely tied to Building Supply .
Near-term trading setup: Stock could react to incremental datapoints on U.S. housing starts, storm-related rebuild pace, and freight rate trajectory—each a direct driver of revenue/margin narratives referenced by management .
Medium-term thesis: APT’s two-segment model with channel expansion in DPA and product breadth in Building Supply positions the company to benefit from a cyclical housing upturn and targeted product growth, supported by a net-cash balance sheet and active buyback program .

Sources: Q4 2024 8-K and press release, including financial statements and management commentary ; Q3 2024 press release/8-K ; Q2 2024 press release/8-K ; Q4 2024 repurchase authorizations .

ALPHA PRO TECH LTD (APT)·Q4 2024 Earnings Summary