Acme United Corporation

Acme United reported second-quarter 2026 net sales of $62.7 million, up 16% from $54 million a year ago. Net income was $5.1 million, up from $4.8 million, and diluted EPS was $1.22 versus $1.16, a 5% increase. Gross margin improved to 42.6% from 41.0% in the prior-year quarter, while SG&A rose to $19.9 million, or 32% of sales, from $15.8 million, or 29% of sales. For the first six months, sales were $115 million, up 15%, but net income declined to $6 million from $6.4 million and EPS fell to $1.46 from $1.57, mostly due to tariff costs flowing through inventory. Management did not issue formal numeric guidance, but said it expects continued growth in first aid and medical, a return of promotional retail activity, improving MyMedic profitability, and further gross margin expansion as high-tariff inventory is sold and replaced with lower-cost product.

Walter C. Johnsen sounded constructive and upbeat, emphasizing that the quarter showed progress across the business and that the MyMedic acquisition expands Acme’s reach into advanced first aid. He highlighted multiple growth initiatives beyond the quarter, including Spill Magic capacity expansion, MedNap certification work aimed at hospitals, and new replenishment software for industrial kits. His tone suggested confidence that operating leverage at MyMedic and resuming retail promotions, especially in Westcott, could drive stronger results in coming quarters.

Paul G. Driscoll focused on the mechanics of the quarter and the balance sheet. He noted gross margin of 42.6% in Q2 versus 41.0% last year, and 41.3% for the first six months versus 40.1%, with the increase mainly due to higher-margin MyMedic sales; SG&A rose to $19.9 million from $15.8 million due to the new DTC advertising burden at MyMedic. He also said net debt increased to $27.3 million from $22.8 million a year ago, while the company paid $14 million for MyMedic, $2.4 million in dividends, and $1.6 million for the German cutting and sharpening line, yet still generated about $15 million in free cash flow over the trailing 12 months.

Analysts pressed on gross margin, tariffs, consumer spending, back-to-school demand, Canada, and MyMedic’s DTC model. Management said margin expansion was mostly from MyMedic mix, while U.S. margins were still down about 100 basis points from tariffs and should improve over the next two quarters as inventory rolls off; they also said freight and a weaker dollar are headwinds. On demand, management said they are not seeing consumer weakness yet, Westcott back-to-school is running at a record pace through June with a strong backlog, and Canada is mixed because first aid is strong but Westcott is softer. On MyMedic, management said it began as DTC, has about half a million social followers, sells mostly direct today, and will likely grow more through retail, distributors, and public safety channels.