Acme United Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Acme United (NYSE American: ACU) reported Q1 2026 net sales of $52.3 million, up 14% versus Q1 2025, with comparable sales up 6% excluding the January 15, 2026 My Medic acquisition. Net income fell to $1.0 million ($0.24 diluted EPS), down 40% versus prior year, driven by higher cost of sales, tariff-related expenses and increased operating costs including Med-Nap quality assurance investments. Gross margin was 39.7%. The company noted $14.6 million cash paid for My Medic assets and reported bank debt less cash of $38.6 million as of March 31, 2026. A conference call and webcast were scheduled for April 23, 2026 at 12:00 p.m. ET.
AI-generated analysis. Not financial advice.
Positive
- Net sales increased 14% to $52.3 million in Q1 2026
- Comparable sales excluding My Medic acquisition rose 6%
- Gross margin improved to 39.7% in Q1 2026
- Generated approximately $14.2 million in free cash flow (before $6.0M facility purchase)
- Acquired My Medic (annual sales $19 million) to expand direct-to-consumer offerings
Negative
- Net income declined 40% to $1.0 million in Q1 2026
- Diluted EPS fell 41% to $0.24 in Q1 2026
- Higher tariff-related costs and one-time Med-Nap quality assurance expenses reduced profitability
- Bank debt less cash increased to $38.6 million as of March 31, 2026
News Market Reaction – ACU
On the day this news was published, ACU declined 4.50%, reflecting a moderate negative market reaction. This price movement removed approximately $8M from the company's valuation, bringing the market cap to $160.06M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves, from declines in WALD (-12.48%) and DSY (-9.18%) to a gain in HNST (+3.24%). Momentum scanner only flags SKIN up 23.33%, suggesting stock-specific rather than broad sector drivers for ACU.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 17 | Quarterly earnings | Positive | +3.2% | Q1 2025 earnings with modest sales growth and 5% EPS increase. |
The last tagged earnings release saw modest EPS growth and a positive share-price reaction, indicating investors previously rewarded incremental earnings expansion.
Over the past six months, Acme United has combined steady operations with bolt-on M&A and capital returns. Q1 2025 earnings showed modest growth: net sales of $46.0 million and EPS up 5%, with gross margin at 39.0% and bank debt less cash reduced to $27.2 million. Subsequent updates highlighted the My Medic acquisition and continued dividend payments. Today’s Q1 2026 results show stronger top-line growth but lower earnings, contrasting with the prior year’s EPS expansion.
Historical Comparison
In past earnings releases, ACU’s average next-day move was about 3.24%. This Q1 2026 report, with strong sales but weaker EPS, contrasts with the prior Q1’s EPS growth backdrop.
Earnings have shifted from Q1 2025’s modest EPS growth and debt reduction to Q1 2026’s stronger sales but lower net income, reflecting margin pressure and acquisition- and tariff-related costs.
Market Pulse Summary
This announcement highlights a mixed Q1 profile: net sales climbed to $52.3 million, up 14%, yet net income declined to $1.0 million and diluted EPS to $0.24 amid higher tariffs, healthcare costs, and quality investments. Gross margin improved to 39.7%, but bank debt less cash increased to $38.6 million, reflecting acquisitions and facility expansion. Compared with Q1 2025, when EPS grew, this quarter underscores execution risk around integrating My Medic and managing cost inflation.
AI-generated analysis. Not financial advice.
SHELTON, Conn., April 23, 2026 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended March 31, 2026 were
Net income was
The recently acquired My Medic business, which sells tactical, trauma and emergency response products directly to consumers, contributed to sales growth, with minimal impact on earnings in the first quarter. As a direct-to-consumer seasonal business, My Medic is expected to generate the majority of its profitability in the fourth quarter.
Chairman and CEO, Walter C. Johnsen said, “While we experienced higher costs of sales and operating expenses in the first quarter, the impact was magnified due to the seasonality of our business, which traditionally has lower sales in the first quarter. We are actively working to improve profitability. We just moved into our new Spill Magic facility in Tennessee- in the process lowering expenses and providing room to expand; consolidated one of our sites in Canada; and are continuing to install automation throughout our facilities. My Medic, which has annual sales of
Mr. Johnsen continued, “We have been proactively purchasing additional inventory in preparation for product shortages and cost increases resulting from the conflict in Iran. To date, we have added approximately
Mr. Johnsen concluded, “Acme United has extensive experience with supply chain challenges, and I am confident that our team will address them successfully. I also believe the investments we have been making in expanding Acme United’s business lines, technology, and capacity will continue to strengthen our Company.”
For the first quarter of 2026, net sales in the U.S. segment increased
European net sales for the first quarter of 2026 increased
Net sales in Canada for the first quarter of 2026 increased
Gross margin was
The Company’s bank debt less cash as of March 31, 2026 was
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Thursday, April 23, 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 is 13759878. 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.
| Contact |
| Acme United Corporation |
| Paul G. Driscoll, 203-254-6060 |
| pdriscoll@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; (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.
| ACME UNITED CORPORATION | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||
| FIRST QUARTER REPORT 2026 | ||||||
| (Unaudited) | ||||||
| Quarter Ended | Quarter Ended | |||||
| Amounts in | March 31, 2026 | March 31, 2025 | ||||
| Net sales | $ | 52,301 | $ | 45,958 | ||
| Cost of goods sold | 31,516 | 28,041 | ||||
| Gross profit | 20,785 | 17,917 | ||||
| Selling, general and administrative expenses | 19,039 | 15,491 | ||||
| Operating income | 1,746 | 2,426 | ||||
| Net interest expense | 485 | 397 | ||||
| Other expense (income), net | 17 | (90 | ) | |||
| Income before income tax expense | 1,244 | 2,119 | ||||
| Income tax expense | 259 | 466 | ||||
| Net income | $ | 985 | $ | 1,653 | ||
| Shares outstanding - basic | 3,808 | 3,754 | ||||
| Shares outstanding - diluted | 4,156 | 4,065 | ||||
| Earnings per share - basic | $ | 0.26 | $ | 0.44 | ||
| Earnings per share - diluted | 0.24 | 0.41 | ||||
| ACME UNITED CORPORATION | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| FIRST QUARTER REPORT 2026 | |||||
| (Unaudited) | |||||
| Amounts in | |||||
| March 31, 2026 | March 31, 2025 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 4,196 | $ | 3,446 | |
| Accounts receivable, net | 33,511 | 30,814 | |||
| Inventories | 63,386 | 57,274 | |||
| Prepaid expenses and other current assets | 4,518 | 5,311 | |||
| Total current assets | 105,611 | 96,845 | |||
| Property, plant and equipment, net | 39,295 | 32,153 | |||
| Operating lease right of use asset | 6,408 | 4,443 | |||
| Intangible assets, less accumulated amortization | 34,021 | 19,690 | |||
| Goodwill | 9,908 | 9,908 | |||
| Total assets | $ | 195,243 | $ | 163,039 | |
| Liabilities and stockholders' equity | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 7,654 | $ | 7,433 | |
| Operating lease liability - short term | 1,373 | 1,533 | |||
| Mortgage payable - short term | 458 | 441 | |||
| Other current liabilities | 13,619 | 10,662 | |||
| Total current liabilities | 23,104 | 20,069 | |||
| Long-term debt | 33,030 | 20,428 | |||
| Mortgage payable - long term | 9,362 | 9,769 | |||
| Operating lease liability - long term | 5,176 | 3,012 | |||
| Other non-current liabilities | 7,843 | 1,480 | |||
| Total liabilities | 78,516 | 54,758 | |||
| Total stockholders' equity | 116,727 | 108,281 | |||
| Total liabilities and stockholders' equity | $ | 195,243 | $ | 163,039 | |
