Acme United (ACU) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 rose 14% year-over-year to $52.3 million, with 6% organic growth and the My Medic acquisition contributing $3.4 million in revenue.

• Net income declined to $985,000 from $1.6 million last year, or $0.24 per diluted share, down from $0.41.

• Gross margin improved to 39.7% from 39% year-over-year, driven by high-margin acquisitions, though core margins declined due to tariffs.

• Integration of My Medic and Schmiedeglut underway, with focus on expanding retail and direct-to-consumer channels.

• Operating income fell to $1.75 million from $2.43 million due to higher costs and SG&A.

Financial highlights

• U.S. segment sales up 12%, driven by first aid and medical products and My Medic acquisition.

• European sales rose 32% in USD (19% in local currency), aided by ecommerce, new product lines, and the Schmiedeglut acquisition.

• Canadian business grew 16% in USD (11% in local currency), led by first aid and cutting segments.

• SG&A expenses increased to $19 million (36–36.4% of sales) from $15.5 million (33.7–34%), mainly due to acquisitions and higher advertising.

• Net debt rose to $38.6 million from $27.2 million, reflecting acquisitions and facility investments.

Outlook and guidance

• Tariff-related cost pressures expected to ease as lower-cost inventory cycles in through 2026.

• My Medic is expected to generate most of its profitability in Q4 due to seasonality.

• CapEx for 2026 projected at $6–7 million, focused on automation and Canadian expansion.

• Management expects sufficient liquidity from operations and credit facilities for the next twelve months.

• Additional inventory purchased in anticipation of supply chain disruptions from Middle East conflict.