Acme United's Third-Quarter Sales Growth Accelerates

The Tip Desk · October 27, 2026 · 4 min read

Net sales reached $58.0 million, up 18%, while net income rose 80% to $3.4 million, or $0.80 a share.

Acme United Corporation (ACU), a worldwide supplier of safety and cutting products, reported net sales of $58.0 million for the quarter ended September 30, 2026, up 18% from $49.1 million a year earlier. That pace quickened from the 16% sales increase in the second quarter. Excluding sales from the January 15, 2026, acquisition of My Medic assets, comparable three-month sales rose 10%, versus an 8% comparable increase in the prior quarter.

Net income was $3.4 million, or $0.80 a share, compared with $1.9 million, or $0.46 a share, a year earlier, an 80% increase in net income and 74% in diluted earnings per share. The second quarter had shown a 6% net-income increase. Chairman and CEO Walter C. Johnsen said the company had record sales in the quarter, with growth in all business units and internationally, and that back-to-school sales were strong.

The U.S. segment led the acceleration. Net sales there increased 20% from the year-ago quarter, faster than the 17% U.S. increase in the second quarter. The company said the three-month and nine-month U.S. increases were due to strong sales across all product lines and contribution from My Medic. European net sales increased 5% in U.S. dollars and 7% in local currency, a slower year-over-year pace than the 24% U.S.-dollar and 19% local-currency increases in the second quarter. The company attributed the European increase primarily to higher ecommerce sales and the cutting and sharpening line acquired in Germany on October 1, 2025. Canada net sales increased 9% in U.S. dollars and 12% in local currency, which the company tied to higher sales of first-aid products.

Gross margin was 45.3% in the third quarter versus 39.1% a year earlier. The company said the quarter included a benefit of about 690 basis points from an IEEPA tariff refund, partially offset by about 310 basis points of costs tied to closing the DMT sharpening facility. Acme applied for and received $6.0 million in IEEPA tariff refunds and recognized $4.0 million of the refund as a reduction of cost of goods sold in the third quarter. The remaining $2.0 million was recorded as an accrued liability at September 30, 2026. The company also recorded $1.0 million of variable compensation expense related to the refund in selling, general and administrative expenses.

Cost of goods sold included $1.8 million of costs accrued in connection with closing the DMT sharpening facility and moving DMT production to more cost-effective facilities in Asia. Johnsen said the company plans later this year to close its DMT plant in Massachusetts and shift production and fulfillment to other locations and offshore, with annual savings from the closure expected to exceed $1.0 million in 2027. He also said transportation and many raw materials are increasing in cost, and that the company is using new robotics, competitive sourcing and consolidation to address those issues.

My Medic, which sells tactical, trauma and emergency response products directly to consumers, contributed to sales growth. The company said the seasonal nature of the business produced minimal impact on earnings in the third quarter and the first nine months of 2026, and that it expects the pattern of generating the majority of My Medic profitability in the fourth quarter to continue. Johnsen said the My Medic integration is progressing on plan and that the company is beginning to receive retail and distribution commitments for its product lines next year.

Bank debt less cash was $29.7 million as of September 30, 2026, compared with $23.1 million a year earlier. During the twelve months ended September 30, 2026, Acme 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. It generated approximately $13.8 million in free cash flow, including the $6.0 million in tariff refunds. Johnsen said the balance sheet is strong and that the company continues to look for acquisitions that fit its strategic criteria.