Earnings

Acme United Net Income Rises After First-Quarter Drop

The Tip Desk · October 27, 2026 · 3 min read

Second-quarter net income was $5.1 million, or $1.22 a share, after a 40% year-over-year drop in the prior quarter.

Acme United Corporation (ACU) reported net income of $5.1 million, or $1.22 a share, for the quarter ended June 30, 2026, a 6% increase from a year earlier after a 40% year-over-year decline to $1.0 million, or $0.24 a share, in the first quarter.

The safety-products and cutting-tools supplier said net sales were $62.7 million, up 16% from $54.0 million a year earlier. Excluding sales from the January 15, 2026 acquisition of My Medic, comparable three-month sales rose 8%, faster than the 6% comparable increase in the first quarter.

Chairman and CEO Walter C. Johnsen said the company posted record revenues and income from operations, with growth across geographies and product lines. U.S. first-aid sales excluding My Medic rose 10% in the quarter. Westcott cutting tools grew 8%, which the company attributed to a return of promotional activity and stronger retail demand.

Gross margin expanded to 42.6% from 39.7% in the first quarter. The company said the year-over-year increase from 41.0% was primarily due to the inclusion of the My Medic direct-to-consumer business. Johnsen said U.S. gross margins were still affected by products purchased at elevated tariff levels, though the impact was less than in the first quarter. He said the company expects prior high tariffs to continue pressuring margins in coming quarters, but at a decreasing rate.

U.S. segment net sales growth accelerated to 17% from 12% in the first quarter. The company said the three-month increase was due to strong sales across all product lines and contribution from My Medic.

European net sales rose 24% in U.S. dollars and 19% in local currency, slower than 32% in U.S. dollars in the first quarter. The company said the increases were due primarily to higher ecommerce sales and contribution from the cutting and sharpening line acquired in Germany on October 1, 2025. Canada net sales rose 1% in U.S. dollars and 3% in local currency, slower than 16% in U.S. dollars in the first quarter, due to higher sales of first aid products.

My Medic, which sells tactical, trauma and emergency response products directly to consumers, contributed to sales growth but had minimal impact on earnings in the second quarter because of the business’s seasonal pattern. The company said it expects the direct-to-consumer unit to generate the majority of its profitability in the fourth quarter. Johnsen said the company is presenting My Medic products to new industrial and retail customers, using its sourcing team to improve product costs, and reducing overhead.

For the six months ended June 30, 2026, net sales were $115.0 million, up 15% from $100.0 million a year earlier. Net income for the six months was $6.0 million, or $1.46 a share, down 6% from $6.4 million, or $1.57 a share, a year earlier, which the company said was caused primarily by first-quarter results.

Bank debt less cash was $27.3 million as of June 30, 2026, compared with $22.8 million a year earlier. During the twelve months ended June 30, 2026, the company paid approximately $14.5 million for My Medic assets, distributed about $2.4 million in dividends, and purchased the German cutting line for about $1.6 million, while generating approximately $15.5 million in free cash flow. On July 15, 2026, it entered a new $65 million syndicated credit facility with HSBC Bank USA and City National Bank that expires July 15, 2029.

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