Acme United Reports 12% Increase in Earnings per Share for the Fourth Quarter of 2025

Rhea-AI Summary

Acme United (NYSE American: ACU) reported Q4 2025 net sales of $47.5 million, up 3% YoY, and full-year net sales of $196.5 million, up 1% YoY. Q4 net income was $1.9 million ($0.46 diluted EPS), a 12% EPS increase versus prior year.

The company noted tariff-related cost pressure in 2025, completed the January 2026 acquisition of My Medic for $18.7 million (approximate 2025 revenue $19 million), and generated about $13.6 million free cash flow before a $6 million facility purchase.

Positive

• Diluted EPS +12% in Q4 2025
• Free cash flow approx. $13.6 million in 2025
• Acquisition of My Medic: $18.7 million purchase to expand product portfolio

Negative

• Tariff-driven costs and customer order cancellations impacted retail and school product sales
• U.S. segment annual net sales down 1% in 2025

Key Figures

Q4 2025 net sales: $47.5 million Q4 2024 net sales: $45.9 million FY 2025 net sales: $196.5 million +5 more

8 metrics

Q4 2025 net sales $47.5 million Quarter ended December 31, 2025

Q4 2024 net sales $45.9 million Quarter ended December 31, 2024

FY 2025 net sales $196.5 million Year ended December 31, 2025

Q4 2025 diluted EPS $0.46 per diluted share Quarter ended December 31, 2025

FY 2025 diluted EPS $2.49 per diluted share Year ended December 31, 2025

FY 2025 net income $10.2 million Year ended December 31, 2025

My Medic 2025 revenue $19 million My Medic revenues in 2025

My Medic purchase price $18.7 million Acquisition in January 2026

Market Reality Check

Price: $44.33 Vol: Volume 2,516 is at 0.28x ...

low vol

$44.33 Last Close

Volume Volume 2,516 is at 0.28x the 20-day average of 8,954, indicating light pre-news trading. low

Technical Price $44.33 is trading above the 200-day MA at $40.64 and 2.79% below the 52-week high of $45.60.

Peers on Argus

ACU was up 1.09% pre-release while peers were mixed: WALD -2.27%, DSY +0.60%, EW...

ACU was up 1.09% pre-release while peers were mixed: WALD -2.27%, DSY +0.60%, EWCZ +0.17%, GROV +4.41%, HNST +1.32%, suggesting a stock-specific setup rather than a unified sector move.

Historical Context

5 past events · Latest: Feb 19 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 19	Earnings date notice	Neutral	-0.4%	Announced timing and access details for Q4 2025 results call.
Jan 15	Acquisition announcement	Positive	-0.5%	Announced $18.7M My Medic acquisition with ~$19M 2025 revenue.
Dec 16	Dividend declaration	Positive	+2.5%	Board approved $0.16 per share cash dividend for shareholders.
Oct 21	Q3 2025 results	Neutral	-1.8%	Reported 2% Q3 sales growth with lower EPS on higher tax rate.
Oct 14	Earnings date notice	Neutral	+0.4%	Set release and call date for Q3 2025 financial results.

Pattern Detected

Recent positive corporate actions (acquisition, dividend) have not consistently produced positive next-day price moves.

Recent Company History

Over the past few months, ACU has reported steady operational progress. Q3 2025 results on Oct 21 showed modest sales growth and solid margins, followed by a cash dividend announcement on Dec 16. The company then acquired My Medic in a deal announced on Jan 15, 2026, and scheduled its Q4 2025 earnings release for Feb 26. Today’s Q4 and full-year 2025 report continues that theme of incremental growth, cash generation, and balance sheet improvement.

Market Pulse Summary

This announcement highlights modest top-line growth and improved profitability, with Q4 net sales of...

Analysis

This announcement highlights modest top-line growth and improved profitability, with Q4 net sales of $47.5 million and diluted EPS of $0.46, plus FY 2025 diluted EPS of $2.49. Management underscores tariff-related headwinds, regional strength in Europe and Canada, and a cleaner balance sheet with bank debt reduced to $18.1 million. The My Medic acquisition, prior Tennessee facility investment, and strong free cash flow position future expansion as a key metric to watch alongside segment-level sales trends.

Key Terms

diluted earnings per share, gross margin, free cash flow, bank debt

4 terms

diluted earnings per share financial

"an increase of 10% in net income and 12% in diluted earnings per share."

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

gross margin financial

"Gross margin was 38.2% in the three months ended December 31, 2025..."

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

free cash flow financial

"and generated approximately $13.6 million in free cash flow, before the purchase..."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

bank debt financial

"The Company’s bank debt less cash as of December 31, 2025 was $18.1 million..."

Bank debt is money a company borrows from banks that must be repaid with interest under a set schedule, similar to a household taking a mortgage or car loan. For investors it matters because the size, cost and timing of that borrowing affect a company’s cash available for growth, dividends or survival; heavy or expensive bank debt can squeeze profits and raise the risk that lenders enforce repayment terms.

AI-generated analysis. Not financial advice.

SHELTON, Conn., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended December 31, 2025 were $47.5 million compared to $45.9 million in the fourth quarter of 2024, an increase of 3%. Net sales for the year ended December 31, 2025 were $196.5 million compared to $194.5 million in 2024, an increase of 1%.

Net income was $1.9 million, or $0.46 per diluted share, for the quarter ended December 31, 2025 compared to $1.7 million, or $0.41 per diluted share, for the same period in 2024, an increase of 10% in net income and 12% in diluted earnings per share.

Net income for the year ended December 31, 2025, was $10.2 million, or $2.49 per diluted share, compared to $10.0 million, or $2.45 per diluted share, for 2024, an increase of 2% in both net income and diluted earnings per share.

Chairman and CEO Walter C. Johnsen said, “Our team successfully navigated customer uncertainty and increased costs due to tariffs during 2025. The tariffs were suddenly imposed in April and changed abruptly many times throughout the year. Sales to our retail customers were particularly impacted as they postponed and cancelled promotions. We are now seeing improvement in retail activity.”

Mr. Johnsen continued, “In January 2026, we acquired My Medic, which sells tactical, trauma and emergency response products directly to consumers. Revenues in 2025 were approximately $19 million and the purchase price was $18.7 million. We are actively working to integrate My Medic and build its revenues by expanding its product offering and distribution in the U.S. and Canada.”

Mr. Johnsen added, “We have a strong balance sheet and we continue to reap the benefits of our investments in increased distribution capacity, productivity improvements and cost reduction initiatives. As a result, we believe that we continue to be well-positioned for growth, including through acquisitions,” and look forward to a strong year.

For the three months ended December 31, 2025, net sales in the U.S. segment were constant compared to the same period in 2024. For the year ended December 31, 2025, net sales in the U.S. segment declined 1% compared to 2024. Sales of first aid and medical products were strong. However, sales of school and office products were lower mainly due to the cancellation of customer orders as a result of tariff uncertainty.

European net sales for the three months ended December 31, 2025 increased 31% in U.S. dollars and 22% in local currency compared to the fourth quarter of 2024. On October 1, 2025, the Company’s German subsidiary acquired a line of cutting and sharpening tools that contributed approximately $0.5 million in fourth quarter sales. Net sales for the year ended December 31, 2025 increased 8% in U.S. dollars and 4% in local currency compared to 2024.

Net sales in Canada for the three months ended December 31, 2025 increased 14% in both U.S. dollars and local currency compared to the same period in 2024. Net sales for the year ended December 31, 2025 increased 14% in U.S. dollars and 16% in local currency compared to 2024. The increases in sales for both periods were due to strong sales of first-aid products.

Gross margin was 38.2% in the three months ended December 31, 2025 versus 38.7% in the same period last year. Gross margin was 39.4% for the year ended December 31, 2025 compared to 39.3% for the same period in 2024.

The Company’s bank debt less cash as of December 31, 2025 was $18.1 million compared to $21.5 million as of December 31, 2024. During the year ended December 31, 2025, the Company distributed approximately $2.3 million in dividends on its common stock, purchased the cutting and sharpening line of products in Germany for approximately $1.6 million and generated approximately $13.6 million in free cash flow, before the purchase for cash of a new $6 million manufacturing and distribution facility in Tennessee in July 2025 to expand the Company’s Spill Magic business.

Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Thursday, February 26, 2026, at 12:00 p.m. ET. To listen or participate in a question-and-answer session, dial 877-407-0784. International callers may dial 201-689-8560. The confirmation code is13758729. You may access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.acmeunited.com. A replay may be accessed under Investor Relations, Audio Archives.

About Acme United
ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, First Aid Central®, PhysiciansCare®, Pac-Kit®, Spill Magic®, Westcott®, Clauss®, DMT®, Med-Nap®, Elite First Aid® and My Medic®. For more information, visit www.acmeunited.com.

Forward Looking Statements

The Company may from time to time make written or oral “forward-looking statements” including statements contained in this report and in other communications by the Company, which are made in good faith pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on our beliefs as well as assumptions made by and information currently available to us. When used in this document, words like “may,” “might,” “will,” “except,” “anticipate,” “believe,” “potential,” and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from our current expectations.

Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that may impact the Company’s business, operations and financial results.

These risks and uncertainties include, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of volatility in global economic conditions, including the impact on the Company’s suppliers and customers; (iii) international trade policies of the United States or foreign governments and their impact on demand for our products and our competitive position, including the imposition of new tariffs, changes in existing tariff rates or the threat of any such action;*1(iv) the continuing adverse impact of inflation, including product costs, and interest rates; (v) potential adverse effects on the Company, its customers, and suppliers resulting from the conflicts in Ukraine and the Middle East; (vi) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, including trucker shortages, strikes, port closures or otherwise; (vii) labor related costs the Company has and may continue to incur, including costs of acquiring and training new employees and rising wages and benefits; (viii) currency fluctuations; (ix) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (x) changes in client needs and consumer spending habits; (xi) the impact of competition; (xii) the impact of technological changes including, specifically, the growth of online marketing and sales activity; and (xiii) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; and (xiv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission

CONTACT:	Paul G. Driscoll	Acme United Corporation	1 Waterview Drive	Shelton, CT 06484
		Phone: (203) 254-6060

ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOURTH QUARTER REPORT 2025
(Unaudited)
	Three Months Ended				Three Months Ended
Amounts in 000's except per share data	December 31, 2025				December 31, 2024
Net sales	$	47,524			$	45,943
Cost of goods sold		29,376				28,178
Gross profit		18,148				17,765
Selling, general and administrative expenses		15,247				15,483
Operating income		2,901				2,282
Interest expense, net		338				427
Other expense (income), net		90				(8	)
Income before income tax expense		2,473				1,863
Income tax expense		596				153
Net income	$	1,877			$	1,710
Shares outstanding - basic		3,807				3,748
Shares outstanding - diluted		4,076				4,155
Earnings per share - basic	$	0.49			$	0.46
Earnings per share - diluted		0.46				0.41

ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOURTH QUARTER REPORT 2025
(Unaudited)
	Year Ended				Year Ended
Amounts in 000's except per share data	December 31, 2025				December 31, 2024
Net sales	$	196,542			$	194,490
Cost of goods sold		119,132				118,139
Gross profit		77,410				76,351
Selling, general and administrative expenses		62,685				62,211
Operating income		14,725				14,140
Interest expense, net		1,560				1,942
Other expense (income), net		47				(95	)
Income before income tax expense		13,118				12,293
Income tax expense		2,933				2,270
Net income	$	10,185			$	10,023
Shares outstanding - basic		3,787				3,701
Shares outstanding - diluted		4,087				4,099
Earnings per share - basic	$	2.69			$	2.71
Earnings per share - diluted		2.49				2.45

ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
FOURTH QUARTER REPORT 2025
(Unaudited)
Amounts in $000's
		December 31, 2025				December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	3,596			$	6,399
Accounts receivable, net		29,098				28,236
Inventories		59,852				56,254
Prepaid expenses and other current assets		3,649				4,571
Total current assets		96,195				95,460
Property, plant and equipment, net		38,541				31,653
Operating lease right of use asset		6,881				4,826
Intangible assets, less accumulated amortization		19,473				20,323
Goodwill		9,908				9,908
Total assets	$	170,998			$	162,170
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	8,066			$	9,005
Operating lease liability - short term		1,446				1,564
Mortgage payable - short term		454				437
Other current liabilities		12,906				11,866
Total current liabilities		22,872				22,872
Long-term debt		11,853				17,606
Mortgage payable - long term		9,432				9,868
Operating lease liability - long term		5,532				3,367
Deferred income taxes		3,685				1,465
Other non-current liabilities		13				12
Total liabilities		53,387				55,190
Total stockholders' equity		117,611				106,980
Total liabilities and stockholders' equity	$	170,998			$	162,170

FAQ

What were Acme United (ACU) Q4 2025 earnings and EPS?

Acme United reported Q4 2025 net income of $1.9 million and diluted EPS of $0.46. According to the company, this represents a 10% increase in net income and a 12% increase in diluted EPS versus Q4 2024.

How did Acme United's full-year 2025 sales and net income compare to 2024?

Full-year 2025 net sales were $196.5 million, up 1% versus 2024, with net income of $10.2 million. According to the company, diluted EPS rose to $2.49 from $2.45 in 2024, a 2% increase.

What impact did tariffs have on Acme United (ACU) performance in 2025?

Tariffs increased costs and caused customer promotion cancellations, weighing on some product lines. According to the company, tariffs imposed abruptly in April 2025 disrupted retail orders and pressured school and office product sales.

What is the significance of Acme United's January 2026 My Medic acquisition for ACU shareholders?

The acquisition adds a tactical and emergency response business with about $19 million in 2025 revenue and a purchase price of $18.7 million. According to the company, management plans U.S. and Canada distribution expansion to grow revenues.

How strong was Acme United's cash and debt position at year-end 2025?

Bank debt less cash was approximately $18.1 million at December 31, 2025, improving from $21.5 million a year earlier. According to the company, this reflects cash generation and capital investments, including a $6 million facility purchase.

Which Acme United segments showed growth in Q4 and full-year 2025?

Europe and Canada delivered notable growth: Europe Q4 sales rose 31% in USD (22% local), and Canada sales rose 14% in Q4 and 14% for the year. According to the company, first-aid product strength drove these increases.