Acme United Reports Strong Second Quarter 2026 Results: 16% Net Sales Growth and Strategic Expansion
Key Highlights from Q2 2026 Earnings
- Record Net Sales: Net sales for Q2 2026 reached \$62.7 million, up 16% from \$54.0 million in Q2 2025. Excluding the My Medic acquisition, comparable sales still rose a robust 8%.
- Net Income Growth: Net income for Q2 2026 was \$5.1 million, or \$1.22 per diluted share, a 6% increase from \$4.8 million (\$1.16 per diluted share) in Q2 2025.
- First Half Performance: For the six months ended June 30, 2026, net sales were \$115.0 million (up 15% year-over-year). However, net income declined 6% to \$6.0 million (\$1.46 per diluted share) due to softer Q1 results.
- Gross Margin Improvement: Gross margin for Q2 2026 was 42.6%, up from 41.0% last year, primarily due to the inclusion of higher-margin My Medic sales.
- Geographic Sales Growth:
- U.S.: Net sales increased 17% in Q2. Excluding My Medic, first aid sales grew 10% and Westcott cutting tools grew 8% on stronger retail demand and promotions.
- Europe: Net sales surged 24% in U.S. dollars and 19% in local currency, driven by ecommerce and Germany product line acquisition.
- Canada: Net sales increased 1% in U.S. dollars (3% in local currency) for Q2, and 7% (6% in local currency) for the first half, mainly on higher first aid product sales.
- Strategic Acquisitions:
- Acquired My Medic in January 2026 for \$18.6 million (\$14.5 million paid, \$4.1 million holdbacks). My Medic is expected to deliver most of its profit in Q4 due to seasonality.
- Acquired a cutting and sharpening product line in Germany in October 2025 for \$1.6 million, boosting European sales.
- Balance Sheet and Cash Flow:
- Bank debt less cash as of June 30, 2026 was \$27.3 million (up from \$22.8 million a year ago).
- Generated \$15.5 million in free cash flow in the past 12 months.
- Paid \$2.4 million in common stock dividends during the past year.
- Financing Update: Entered a new \$65 million syndicated credit facility with HSBC and City National Bank, expiring July 15, 2029, replacing the previous facility.
Management Commentary and Outlook
Chairman and CEO Walter C. Johnsen emphasized record revenues and operating income in Q2, with growth across all geographies and product lines. The U.S. first aid business (excluding My Medic) delivered a 10% sales jump. Westcott cutting tools also saw an 8% recovery. Gross margins remain pressured by previously purchased high-tariff inventory, though the impact is declining and is expected to lessen in coming quarters.
My Medic’s integration is “progressing well” with a focus on cost reductions and expanding its reach to new industrial and retail customers. As a seasonal, direct-to-consumer business, most profit is anticipated in Q4. Actions to leverage Acme’s sourcing scale and reduce overhead are expected to drive profitability improvements over time.
Detailed Financials
Q2 2026 vs. Q2 2025
- Net sales: \$62.7M (2026) vs. \$54.0M (2025)
- Gross profit: \$26.7M vs. \$22.1M
- Operating income: \$6.8M vs. \$6.4M
- Net income: \$5.1M vs. \$4.8M
- Diluted EPS: \$1.22 vs. \$1.16
- Gross margin: 42.6% vs. 41.0%
First Half 2026 vs. 2025
- Net sales: \$115.0M vs. \$100.0M
- Gross profit: \$47.5M vs. \$40.1M
- Operating income: \$8.6M vs. \$8.8M
- Net income: \$6.0M vs. \$6.4M
- Diluted EPS: \$1.46 vs. \$1.57
- Gross margin: 41.3% vs. 40.1%
Balance Sheet (as of June 30, 2026)
- Total assets: \$200.6M (up from \$170.9M)
- Cash and equivalents: \$5.0M
- Accounts receivable: \$38.7M
- Inventories: \$64.1M
- Intangible assets: \$33.2M (up from \$19.1M, reflecting recent acquisitions)
- Bank debt less cash: \$27.3M
- Total stockholders’ equity: \$121.3M (up from \$113.7M)
Potentially Price-Sensitive and Shareholder-Important Information
- Strong Revenue Growth: Double-digit top-line growth and record sales, particularly excluding acquisitions, signal underlying business strength.
- Margin Expansion: Gross margins improved year-over-year, despite continued tariff headwinds, indicating improving profitability potential as tariff impacts recede.
- Strategic Acquisitions: My Medic and the German product line are driving sales and could provide future earnings leverage, especially as integration efficiencies are realized.
- New Credit Facility: The new \$65 million syndicated credit facility adds financial flexibility for further growth and acquisitions.
- Profitability Outlook: Management expects continued pressure from tariffs but at declining rates, and sees prospects for improving quarterly profitability as acquisition benefits and cost reductions build.
- Seasonality Warning: My Medic’s contribution to profit will be weighted to Q4, so future quarters may show uneven earnings progression.
Risks and Forward-Looking Statements
- Uncertainties remain around global economic volatility, tariffs, inflation, interest rates, supply chain disruptions, labor costs, and geopolitical conflicts (Ukraine, Middle East).
- Currency fluctuations, consumer demand shifts, competitive pressures, and the need to integrate acquisitions are ongoing risks to watch.
Conference Call Information
Acme United will hold a conference call to discuss these results on Thursday, July 23, 2026, at 12:00 p.m. ET. U.S. callers can dial 877-407-0784, international callers 201-689-8560, using confirmation code 13761594. The webcast is available via the Investor Relations section of www.acmeunited.com.
About Acme United
Acme United Corporation is a leading global supplier of innovative safety solutions and cutting technology, serving school, home, office, hardware, sporting goods, and industrial markets. Key brands include First Aid Only®, Physicians Care®, Westcott®, Clauss®, DMT®, Med-Nap®, Elite First Aid®, and My Medic®.
Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Investors should review filings with the Securities and Exchange Commission and consult their financial advisors before making investment decisions.
