Acme United Reports Third Quarter 2026 Net Sales Increase of 18%

Sales grew across all geographic segments, while tariff refunds and facility closure costs affected quarterly earnings.

Rhea-AI Summary

Acme United (ACU) reported third-quarter 2026 net sales of $58.0 million, an 18% increase from the same period last year. Sales excluding My Medic increased 10%. Net income rose 80% to $3.4 million, while diluted earnings per share increased to $0.80 from $0.46.

Nine-month sales increased 16% to $173.0 million, with net income of $9.5 million versus $8.3 million. Third-quarter gross margin rose to 45.3% from 39.1%, including a $4.0 million tariff-refund benefit and $1.8 million in DMT closure costs. A related $1.0 million compensation expense and approximately $0.4 million in stock-option tax benefits also affected earnings.

Acme plans to close its Massachusetts DMT plant later in 2026 and expects annual savings exceeding $1.0 million in 2027. Bank debt less cash reached $29.7 million, versus $23.1 million a year earlier. Twelve-month free cash flow was approximately $13.8 million, including $6.0 million in tariff refunds.

19 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter net sales increased 18% to $58.0 million; sales excluding My Medic grew 10% year over year.
• Moderate pointThird-quarter net income rose 80% to $3.4 million; diluted EPS increased 74% to $0.80.
• Moderate pointThird-quarter gross margin increased to 45.3% from 39.1% a year earlier.
• Moderate pointThird-quarter operating income rose to $4.463 million from $3.007 million a year earlier.
• Moderate pointTariff refunds received totaled $6.0 million, with $4.0 million reducing third-quarter cost of goods sold. 2.5% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.DMT plant closure is expected to generate more than $1.0 million in annual savings in 2027.
• Moderate pointTwelve-month free cash flow totaled approximately $13.8 million, including $6.0 million in tariff refunds.

12 minor points

• Minor pointNine-month net sales increased 16% to $173.0 million; sales excluding My Medic grew 8% year over year.
• Minor pointNine-month net income increased 14% to $9.5 million; diluted EPS rose 13% to $2.29.
• Minor pointNine-month gross margin increased to 42.6% from 39.8% a year earlier.
• Minor pointNine-month operating income rose to $13.037 million from $11.824 million a year earlier.
• Minor pointStock-option exercises generated approximately $0.4 million in tax benefits in both reported 2026 periods.
• Minor pointU.S. sales increased 20% in the third quarter and 17% over nine months versus 2025.
• Minor pointEuropean third-quarter sales increased 5% in U.S. dollars and 7% in local currency year over year.
• Minor pointEuropean nine-month sales increased 20% in U.S. dollars and 15% in local currency year over year.
• Minor pointCanadian third-quarter sales increased 9% in U.S. dollars and 12% in local currency year over year.
• Minor pointCanadian nine-month sales increased 8% in both U.S. dollars and local currency year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.My Medic integration is progressing on plan, with 2027 retail and distribution commitments beginning, management said.
• Minor pointCash increased to $7.944 million at September 30, 2026, from $5.146 million a year earlier.

Negative

• Moderate pointBank debt less cash increased to $29.7 million at September 30, 2026, from $23.1 million a year earlier.
• Moderate pointDMT facility closure costs added $1.8 million to third-quarter cost of goods sold.
• Moderate pointThird-quarter selling, general and administrative expenses rose to $21.837 million from $16.188 million, including $1.0 million refund-related compensation.
• Minor pointNine-month selling, general and administrative expenses rose to $60.736 million from $47.438 million a year earlier.
• Minor pointThird-quarter net interest expense increased to $594,000 from $422,000 a year earlier.

4 minor points

• Minor pointNine-month net interest expense increased to $1.613 million from $1.222 million a year earlier.
• Minor pointTariff refunds included $2.0 million recorded as an accrued liability at September 30, 2026.
• Minor pointMy Medic contributed sales growth but had minimal earnings impact in the third quarter and first nine months.
• Minor pointTransportation and many raw materials are increasing in cost, management said.

News Explained

Acme says it received $6.0 million in tariff refunds; $4.0 million reduced third-quarter cost of goods sold, while the remaining $2.0 million was recorded as an accrued liability at September 30, 2026.

Key Figures

Third-quarter net sales: $58.0 million (+18%) Comparable three-month sales: +10% Nine-month net sales: $173.0 million (+16%) +5 more

Third-quarter net sales

$58.0 million (+18%)

Quarter ended September 30, 2026, compared with the same period in 2025

Comparable three-month sales

+10%

Excludes sales from the My Medic acquisition

Nine-month net sales

$173.0 million (+16%)

Nine months ended September 30, 2026, compared with the same period in 2025

Third-quarter net income

$3.4 million (+80%)

Compared with $1.9 million in the same period in 2025

Diluted earnings per share

$0.80 (+74%)

Third quarter 2026, compared with $0.46 in third quarter 2025

Third-quarter gross margin

45.3%

Compared with 39.1% in the prior-year quarter; included tariff-refund benefit partly offset by DMT closure costs

Tariff refund recognized

$4.0 million

Recognized in third quarter 2026 as a reduction of cost of goods sold

Expected annual savings

More than $1.0 million

Expected in 2027 from the planned DMT plant closure

Historical Context

1 past event · Latest: Jul 23

1 event

1. Jul 23

   Q2 earnings

   24h Move

   +14.3%

   Reported second-quarter sales and quarterly net income growth, with My Medic-adjusted comparable sales also higher.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ieepa, accrued liability, basis points, free cash flow

4 terms

ieepa regulatory

"The Company applied for and received $6.0 million in IEEPA tariff refunds"

A U.S. law that gives the president broad authority to control trade, freeze assets, and block financial transactions during a declared national emergency. Investors care because those powers can abruptly restrict a company's ability to sell products, access cash, or do business with certain countries or parties, creating sudden risks to revenues, supply chains and share prices — like an emergency brake that can stop or reroute parts of a business overnight.

accrued liability financial

"The remaining $2.0 million was recorded as an accrued liability"

An accrued liability is a cost a company has incurred and recorded in its accounts before the cash has been paid. It represents a present obligation for goods, services, wages, interest, taxes or other expenses that are recognized on the income statement and shown on the balance sheet (usually as a current liability) even though payment will occur later; recording accruals follows the accounting principle of matching expenses to the period when they were incurred, not when cash changes hands.

basis points financial

"included a benefit of approximately 690 basis points from the tariff refund"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

free cash flow financial

"the Company generated approximately $13.8 million in free cash flow"

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.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SHELTON, Conn., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended September 30, 2026, were $58.0 million compared to $49.1 million for the same period in 2025, an increase of 18%. Excluding sales resulting from the acquisition of the assets of My Medic on January 15, 2026, comparable three-month sales increased 10%. Net sales for the nine months ended September 30, 2026, were $173.0 million, compared to $149.0 million in the same period in 2025, an increase of 16%. Excluding My Medic sales, comparable nine-month sales increased 8%.

Net income was $3.4 million, or $0.80 per diluted share, for the quarter ended September 30, 2026, compared to $1.9 million, or $0.46 per diluted share, for the same period in 2025, an increase of 80% in net income and 74% in diluted earnings per share. Net income for the nine months ended September 30, 2026, was $9.5 million, or $2.29 per diluted share, compared to $8.3 million, or $2.03 per diluted share, for the same period in 2025, an increase of 14% in net income and 13% in diluted earnings per share.

Chairman and CEO, Walter C. Johnsen said, “We had record sales in the quarter, with growth in all our business units and internationally. Back-to-school sales were strong. The My Medic integration is progressing on plan, and we are beginning to receive retail and distribution commitments for its product lines next year.”

The Company applied for and received $6.0 million in IEEPA tariff refunds and in the third quarter of 2026, the Company recognized $4.0 million of the refund as a reduction of cost of goods sold. The remaining $2.0 million was recorded as an accrued liability on the balance sheet as of September 30, 2026. In the third quarter, the Company also recorded $1.0 million of variable compensation expense related to the refund, included in selling, general and administrative expenses. Additionally, in the third quarter of 2026, cost of goods sold included $1.8 million of costs accrued in connection with the close of our DMT sharpening facility and the related move of production of the DMT products to more cost-effective facilities in Asia. Net income for the three- and nine-month periods ended September 30, 2026 also included approximately $0.4 million of tax benefits resulting from stock option exercises.

The My Medic business acquired in January 2026, sells tactical, trauma and emergency response products directly to consumers, contributed to sales growth but due to the seasonal nature of the My Medic business there was minimal impact on earnings in the third quarter and the first nine months of 2026. As a direct-to-consumer business, My Medic has historically generated the majority of its profitability in the fourth quarter and we expect this pattern to continue.

Mr. Johnsen continued, “Transportation and many raw materials are increasing in cost. We continue to address these issues by using new robotics in our plants, sourcing very competitively, and consolidating operations. Later this year, we plan to close our DMT plant in Massachusetts and shift production and fulfillment to other locations and offshore. The annual savings from the closure are expected to be more than $1.0 million in 2027.

Mr. Johnsen concluded, “Our balance sheet is strong, and we continue to look for acquisitions that fit our strategic criteria.”

For the third quarter of 2026, net sales in the U.S. segment increased 20% compared to the same period in 2025. For the nine months ended September 30, 2026, net sales in the U.S. segment increased 17% compared to the same period in 2025. The sales increases for the three- and nine-month periods were due to strong sales across all product lines and contribution from the acquisition of the My Medic business.

European net sales for the third quarter of 2026 increased 5% in U.S. dollars and 7% in local currency compared to the third quarter of 2025. Net sales for the nine months ended September 30, 2026, increased 20% in U.S. dollars and 15% in local currency compared to the same period of 2025. The sales increases for the three- and nine-month periods were due primarily to higher ecommerce sales and contribution from the line of cutting and sharpening products acquired in Germany on October 1, 2025.

Net sales in Canada for the third quarter of 2026 increased 9% in U.S. dollars and 12% in local currency compared to the same period in 2025. Net sales for the nine-month periods ended September 30, 2026, increased 8% in both U.S. dollars and local currency compared to the same period of 2025. The sales increases for the three- and nine-month periods were due to higher sales of first-aid products.

Gross margin was 45.3% in the third quarter of 2026 versus 39.1% in the comparable period last year. Gross margin for the third quarter included a benefit of approximately 690 basis points from the tariff refund partially offset by approximately 310 basis points related to the DMT facility closure costs. Gross margin was 42.6% for the nine-month period ended September 30, 2026, compared to 39.8% for the same period in 2025. Gross margin for the nine months ended September 30, 2026 included a benefit of approximately 230 basis points from the tariff refund partially offset by approximately 105 basis points related to the DMT closure costs. Excluding the impact of the tariff refund and DMT closure costs, gross margin remained above prior-year levels primarily driven by the inclusion of the new My Medic direct to consumer business.

The Company’s bank debt less cash as of September 30, 2026 was $29.7 million compared to $23.1 million as of September 30, 2025. During the twelve-month period ended September 30, 2026, the Company paid approximately $14.5 million for the acquisition of the assets of My Medic ($18.6 million purchase price less $4.1 million of holdbacks), distributed approximately $2.4 million in dividends on its common stock and purchased the cutting and sharpening line of products in Germany for approximately $1.6 million. During the same period, the Company generated approximately $13.8 million in free cash flow, including $6.0 million in tariff refunds.

Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Tuesday, October 27, 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 13763109. 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 release 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 therein this document, words like “may,” “might,” “will,” “expect,” “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 release, 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.

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
THIRD QUARTER REPORT 2026
(Unaudited)
		Three Months Ended			Three Months Ended
Amounts in 000's except per share data		September 30, 2026			September 30, 2025
Net sales	$	58,013		$	49,063
Cost of goods sold		31,713			29,868
Gross profit		26,300			19,195
Selling, general and administrative expenses		21,837			16,188
Operating income		4,463			3,007
Net interest expense		594			422
Other expense, net		6			146
Income before income tax expense		3,863			2,439
Income tax expense		428			536
Net income	$	3,435		$	1,903
Shares outstanding - basic		3,909			3,802
Shares outstanding - diluted		4,296			4,168
Earnings per share - basic	$	0.88		$	0.50
Earnings per share - diluted		0.80			0.46
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THIRD QUARTER REPORT 2026
(Unaudited)
		Nine Months Ended			Nine Months Ended
Amounts in 000's except per share data		September 30, 2026			September 30, 2025
Net sales	$	173,030		$	149,018
Cost of goods sold		99,257			89,756
Gross profit		73,773			59,262
Selling, general and administrative expenses		60,736			47,438
Operating income		13,037			11,824
Net interest expense		1,613			1,222
Other expense (income), net		17			(44	)
Income before income tax expense		11,407			10,646
Income tax expense		1,938			2,338
Net income	$	9,469		$	8,308
Shares outstanding - basic		3,851			3,781
Shares outstanding - diluted		4,134			4,091
Earnings per share - basic	$	2.46		$	2.20
Earnings per share - diluted		2.29			2.03
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
THIRD QUARTER REPORT 2026
(Unaudited)
Amounts in $000's
		September 30, 2026			September 30, 2025
Assets
Current assets:
Cash and cash equivalents	$	7,944		$	5,146
Accounts receivable, net		36,193			30,034
Inventories		69,034			60,163
Prepaid expenses and other current assets		3,718			3,363
Total current assets		116,889			98,706
Property, plant and equipment, net		39,432			38,691
Operating lease right of use asset		9,179			7,261
Intangible assets, less accumulated amortization		32,451			18,476
Goodwill		9,908			9,908
Total assets	$	207,859		$	173,042
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	10,304		$	6,488
Operating lease liability - short term		1,189			1,427
Mortgage payable - short term		467			450
Other current liabilities		18,057			13,722
Total current liabilities		30,017			22,087
Long-term debt		28,090			18,255
Mortgage payable - long term		9,125			9,556
Operating lease liability - long term		8,081			5,900
Deferred income taxes		3,685			1,465
Other non-current liabilities		3,995			15
Total liabilities		82,993			57,278
Total stockholders' equity		124,866			115,764
Total liabilities and stockholders' equity	$	207,859		$	173,042

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Acme United's third-quarter 2026 sales and earnings?

Acme United reported $58.0 million in net sales and $3.4 million in net income for the quarter ended September 30, 2026. Sales increased 18% and net income increased 80% from the same period in 2025. Diluted earnings per share rose to $0.80 from $0.46.

Why does Acme United expect My Medic earnings to be concentrated in the fourth quarter?

My Medic has historically generated the majority of its profitability in the fourth quarter because of its seasonal direct-to-consumer business. Acme expects that pattern to continue. The business contributed to sales growth but had minimal impact on earnings in the third quarter and first nine months of 2026.

How much did Acme United pay for the My Medic acquisition?

Acme United paid approximately $14.5 million for My Medic's assets during the twelve months ended September 30, 2026, reflecting an $18.6 million purchase price less $4.1 million of holdbacks. The acquisition occurred on January 15, 2026.