0001193125-26-172010
SEC filingAcme United Corporation reported Q1 2026 net sales of $52.3 million, up 14% year-over-year, but net income fell 40% to $1.0 million due to higher costs and expenses.
Acme United's Q1 2026 results showed robust top-line growth with net sales increasing 14% to $52.3 million, primarily fueled by the January 15, 2026 acquisition of My Medic assets, which added incremental sales in its direct-to-consumer tactical and emergency products segment. Organic comparable sales grew 6%, reflecting strength across regions: U.S. up 12% from first aid and My Medic, Europe up 32% in USD (19% local currency) due to ecommerce and the October 2025 German cutting products acquisition, and Canada up 16% in USD (11% local) from first aid. Gross margin expanded slightly to 39.7% from 39.0%, but profitability eroded sharply with net income dropping 40% to $0.985 million ($0.24 diluted EPS) from $1.653 million ($0.41), driven by higher cost of sales from 2025 tariff-impacted inventory and elevated operating expenses including one-time quality assurance at Med-Nap, rising healthcare costs, and investments. Chairman and CEO Walter C. Johnsen highlighted seasonality magnifying Q1 pressures, ongoing cost-saving initiatives like the new Tennessee Spill Magic facility, Canadian site consolidation, and automation, plus My Medic synergies targeting $19 million annual sales through expanded distribution and procurement leverage. Balance sheet reflects acquisition activity with bank debt less cash at $38.6 million (up from $27.2 million), after $14.6 million net for My Medic, $1.6 million German line, $2.4 million dividends, and $6.0 million Tennessee facility purchase, offset by $14.2 million free cash flow over 12 months. Proactive inventory builds of $10 million address Iran conflict risks, underscoring supply chain resilience amid tariffs and geopolitical tensions.