0001193125-26-102079
SEC filingAcme United Corporation reported net sales of $196.5 million for FY 2025, a 1% increase from $194.5 million in 2024. Gross profit was $77.4 million (39.4% margin), operating income was $14.7 million, and net income was $10.2 million. The company generated $18.2 million in operating cash flow, but net cash decreased by $2.8 million due to $12.3 million used in investing activities (including acquisitions and capital expenditures) and $8.9 million used in financing activities (primarily debt repayments and distributions). Key drivers included strong first aid/medical product sales offset by weaker school/office product sales due to tariff uncertainty, with European sales up 8% and Canadian sales up 14%. The company maintains a $65 million revolving credit facility with $53.1 million available.
Acme United Corporation reported FY 2025 net sales of $196.5 million, representing a 1% increase from $194.5 million in 2024. Gross profit improved to $77.4 million (39.4% margin) from $76.4 million (39.3% margin) in the prior year. Operating income increased 4% to $14.7 million from $14.1 million. Net income was $10.2 million with basic EPS of $3.00. The company generated $18.2 million in operating cash flow, but net cash decreased by $2.8 million due to significant investing and financing activities.
Revenue growth was mixed across geographic segments. U.S. segment sales declined 1% due to weaker school and office product sales, primarily from customer order cancellations in Q3 and Q4 related to tariff uncertainty, though first aid and medical products performed strongly. European segment sales increased 8% in U.S. dollars (4% in local currency), including $0.5 million from the October 2025 acquisition of a cutting tools line in Germany. Canadian segment sales grew 14% in U.S. dollars (16% in local currency) driven by strong first aid product demand. The company's sales remain seasonal with stronger performance in Q2 and Q3.
Gross margin improved slightly to 39.4% from 39.3% in 2024. SG&A expenses were $62.7 million (31.9% of sales), up 0.8% from $62.2 million (32.0% of sales) in 2024. Operating margin was 7.5%. Interest expense decreased to $1.6 million from $1.9 million due to lower average borrowings and interest rates. The effective tax rate was 22% compared to 18% in 2024, with a $300,000 tax credit from stock option exercises versus $600,000 in 2024.
Operating cash flow was $18.2 million, driven by net income of $10.2 million plus $8.0 million in adjustments including depreciation ($3.8M) and amortization ($2.5M). Investing activities used $12.3 million for property/equipment purchases ($10.7M) and acquisitions including Elite First Aid ($6.1M), Schmiedeglut ($1.7M), and Safety Made ($0.75M). Financing activities used $8.9 million primarily for debt repayments ($5.8M) and distributions to stockholders ($2.3M). Free cash flow (operating cash flow minus capital expenditures) was $7.5 million. Total assets were $171.0 million with current assets of $96.2 million. Total liabilities were $53.4 million including long-term debt of $11.9 million and mortgage payable of $9.4 million. Stockholders' equity was $117.6 million. The company had $5.5 million in cash and $53.1 million available under its $65 million revolving credit facility.
The company believes cash on hand, operating cash flow, and available credit facilities are sufficient to finance operations for at least the next twelve months. Management cited risks including global economic uncertainty, tariff impacts, inflation, supply chain disruptions, labor costs, currency fluctuations, and competitive pressures. The company continues to pursue growth through acquisitions and capital investments, as evidenced by the 2025 purchase of a $6.0 million manufacturing facility in Tennessee. No specific financial guidance was provided, but the company noted it is evaluating the impact of recently issued accounting standards effective after December 2026.