Acme United Reports 12% Increase in Earnings per Share for the Fourth Quarter of 2025
MWN-AI** Summary
Acme United Corporation (NYSE American: ACU) reported a 12% increase in earnings per share (EPS) for fourth quarter 2025, rising to $0.46, up from $0.41 in the same period last year. The company witnessed net income grow by 10% to $1.9 million, attributed to a 3% increase in net sales, reaching $47.5 million, compared to $45.9 million in fourth quarter 2024. Full-year figures showed a modest overall sales increase of 1%, totaling $196.5 million, while net income rose 2% year-over-year to $10.2 million.
Walter C. Johnsen, Chairman and CEO, noted the company's resilience despite operational challenges due to tariffs imposed in April 2025, which led to uncertainties affecting customer promotions. He expressed optimism for future growth, referencing the recent acquisition of My Medic, a company specializing in tactical and emergency response products, which had generated approximately $19 million in revenue prior to the acquisition.
Sales performance varied across regions, with European sales soaring 31% in USD and 22% in local currency for Q4, partly due to the acquisition of a cutting tools line. Meanwhile, Canadian sales also increased by 14%. However, U.S. segment sales were unchanged for the quarter and down 1% for the year, mainly influenced by lower orders in school and office products amidst tariff-induced uncertainties.
Acme United's gross margin stood at 38.2% for Q4, slightly down from 38.7% in 2024, but yearly gross margin improved to 39.4%. The company ended the year with a stronger balance sheet, reducing bank debt and generating approximately $13.6 million in free cash flow. With a focus on integrating My Medic and enhancing its distribution capabilities, Acme United is poised for anticipated growth in the upcoming year.
MWN-AI** Analysis
Acme United Corporation's recent announcement of a 12% increase in earnings per share (EPS) for the fourth quarter of 2025 underscores its resilience amid challenging market conditions. The company reported net sales of $47.5 million for the quarter, marking a 3% rise from the previous year, even as net income climbed to $1.9 million. This performance speaks to Acme's effective management strategies, particularly in navigating tariff-induced uncertainties and operational cost pressures.
Notably, Acme's fourth-quarter performance demonstrated strength in its first-aid and medical product segments, with strong growth reported in European and Canadian markets. The acquisition of My Medic in January 2026, a move aimed at enhancing consumer direct sales in tactical emergency products, presents an additional growth avenue. By expanding its product offerings and distribution channels in the U.S. and Canada, Acme could significantly boost revenue in an already promising segment.
Investors should consider Acme's robust balance sheet, highlighted by a reduction in debt, free cash flow generation, and consistent dividend payouts, as indicators of financial health and stability. The firm's strategic investments in distribution capacity and productivity also suggest potential for future growth. While overall sales to U.S. retail customers faced headwinds due to delayed promotions, the company's strong foundational work sets the stage for a rebound as market conditions improve.
In a volatile economic landscape, investing in Acme United appears to be a strategic decision, particularly with ongoing integration efforts of acquired assets like My Medic. However, investors should remain vigilant to external risks, including fluctuating tariffs and global economic uncertainty. Monitoring quarterly performance and market trends will be crucial for assessing the trajectory of returns on this investment.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
SHELTON, Conn., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended December 31, 2025 were $47.5 million compared to $45.9 million in the fourth quarter of 2024, an increase of 3%. Net sales for the year ended December 31, 2025 were $196.5 million compared to $194.5 million in 2024, an increase of 1%.
Net income was $1.9 million, or $0.46 per diluted share, for the quarter ended December 31, 2025 compared to $1.7 million, or $0.41 per diluted share, for the same period in 2024, an increase of 10% in net income and 12% in diluted earnings per share.
Net income for the year ended December 31, 2025, was $10.2 million, or $2.49 per diluted share, compared to $10.0 million, or $2.45 per diluted share, for 2024, an increase of 2% in both net income and diluted earnings per share.
Chairman and CEO Walter C. Johnsen said, “Our team successfully navigated customer uncertainty and increased costs due to tariffs during 2025. The tariffs were suddenly imposed in April and changed abruptly many times throughout the year. Sales to our retail customers were particularly impacted as they postponed and cancelled promotions. We are now seeing improvement in retail activity.”
Mr. Johnsen continued, “In January 2026, we acquired My Medic, which sells tactical, trauma and emergency response products directly to consumers. Revenues in 2025 were approximately $19 million and the purchase price was $18.7 million. We are actively working to integrate My Medic and build its revenues by expanding its product offering and distribution in the U.S. and Canada.”
Mr. Johnsen added, “We have a strong balance sheet and we continue to reap the benefits of our investments in increased distribution capacity, productivity improvements and cost reduction initiatives. As a result, we believe that we continue to be well-positioned for growth, including through acquisitions,” and look forward to a strong year.
For the three months ended December 31, 2025, net sales in the U.S. segment were constant compared to the same period in 2024. For the year ended December 31, 2025, net sales in the U.S. segment declined 1% compared to 2024. Sales of first aid and medical products were strong. However, sales of school and office products were lower mainly due to the cancellation of customer orders as a result of tariff uncertainty.
European net sales for the three months ended December 31, 2025 increased 31% in U.S. dollars and 22% in local currency compared to the fourth quarter of 2024. On October 1, 2025, the Company’s German subsidiary acquired a line of cutting and sharpening tools that contributed approximately $0.5 million in fourth quarter sales. Net sales for the year ended December 31, 2025 increased 8% in U.S. dollars and 4% in local currency compared to 2024.
Net sales in Canada for the three months ended December 31, 2025 increased 14% in both U.S. dollars and local currency compared to the same period in 2024. Net sales for the year ended December 31, 2025 increased 14% in U.S. dollars and 16% in local currency compared to 2024. The increases in sales for both periods were due to strong sales of first-aid products.
Gross margin was 38.2% in the three months ended December 31, 2025 versus 38.7% in the same period last year. Gross margin was 39.4% for the year ended December 31, 2025 compared to 39.3% for the same period in 2024.
The Company’s bank debt less cash as of December 31, 2025 was $18.1 million compared to $21.5 million as of December 31, 2024. During the year ended December 31, 2025, the Company distributed approximately $2.3 million in dividends on its common stock, purchased the cutting and sharpening line of products in Germany for approximately $1.6 million and generated approximately $13.6 million in free cash flow, before the purchase for cash of a new $6 million manufacturing and distribution facility in Tennessee in July 2025 to expand the Company’s Spill Magic business.
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Thursday, February 26, 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 is13758729. 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 report 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 in this document, words like “may,” “might,” “will,” “except,” “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 report, 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;*1(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 | |||||||
| FOURTH QUARTER REPORT 2025 | |||||||
| (Unaudited) | |||||||
| Three Months Ended | Three Months Ended | ||||||
| Amounts in 000's except per share data | December 31, 2025 | December 31, 2024 | |||||
| Net sales | $ | 47,524 | $ | 45,943 | |||
| Cost of goods sold | 29,376 | 28,178 | |||||
| Gross profit | 18,148 | 17,765 | |||||
| Selling, general and administrative expenses | 15,247 | 15,483 | |||||
| Operating income | 2,901 | 2,282 | |||||
| Interest expense, net | 338 | 427 | |||||
| Other expense (income), net | 90 | (8 | ) | ||||
| Income before income tax expense | 2,473 | 1,863 | |||||
| Income tax expense | 596 | 153 | |||||
| Net income | $ | 1,877 | $ | 1,710 | |||
| Shares outstanding - basic | 3,807 | 3,748 | |||||
| Shares outstanding - diluted | 4,076 | 4,155 | |||||
| Earnings per share - basic | $ | 0.49 | $ | 0.46 | |||
| Earnings per share - diluted | 0.46 | 0.41 |
| ACME UNITED CORPORATION | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||
| FOURTH QUARTER REPORT 2025 | |||||||
| (Unaudited) | |||||||
| Year Ended | Year Ended | ||||||
| Amounts in 000's except per share data | December 31, 2025 | December 31, 2024 | |||||
| Net sales | $ | 196,542 | $ | 194,490 | |||
| Cost of goods sold | 119,132 | 118,139 | |||||
| Gross profit | 77,410 | 76,351 | |||||
| Selling, general and administrative expenses | 62,685 | 62,211 | |||||
| Operating income | 14,725 | 14,140 | |||||
| Interest expense, net | 1,560 | 1,942 | |||||
| Other expense (income), net | 47 | (95 | ) | ||||
| Income before income tax expense | 13,118 | 12,293 | |||||
| Income tax expense | 2,933 | 2,270 | |||||
| Net income | $ | 10,185 | $ | 10,023 | |||
| Shares outstanding - basic | 3,787 | 3,701 | |||||
| Shares outstanding - diluted | 4,087 | 4,099 | |||||
| Earnings per share - basic | $ | 2.69 | $ | 2.71 | |||
| Earnings per share - diluted | 2.49 | 2.45 |
| ACME UNITED CORPORATION | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| FOURTH QUARTER REPORT 2025 | |||||||
| (Unaudited) | |||||||
| Amounts in $000's | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 3,596 | $ | 6,399 | |||
| Accounts receivable, net | 29,098 | 28,236 | |||||
| Inventories | 59,852 | 56,254 | |||||
| Prepaid expenses and other current assets | 3,649 | 4,571 | |||||
| Total current assets | 96,195 | 95,460 | |||||
| Property, plant and equipment, net | 38,541 | 31,653 | |||||
| Operating lease right of use asset | 6,881 | 4,826 | |||||
| Intangible assets, less accumulated amortization | 19,473 | 20,323 | |||||
| Goodwill | 9,908 | 9,908 | |||||
| Total assets | $ | 170,998 | $ | 162,170 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 8,066 | $ | 9,005 | |||
| Operating lease liability - short term | 1,446 | 1,564 | |||||
| Mortgage payable - short term | 454 | 437 | |||||
| Other current liabilities | 12,906 | 11,866 | |||||
| Total current liabilities | 22,872 | 22,872 | |||||
| Long-term debt | 11,853 | 17,606 | |||||
| Mortgage payable - long term | 9,432 | 9,868 | |||||
| Operating lease liability - long term | 5,532 | 3,367 | |||||
| Deferred income taxes | 3,685 | 1,465 | |||||
| Other non-current liabilities | 13 | 12 | |||||
| Total liabilities | 53,387 | 55,190 | |||||
| Total stockholders' equity | 117,611 | 106,980 | |||||
| Total liabilities and stockholders' equity | $ | 170,998 | $ | 162,170 |
FAQ**
How does Acme United Corporation (ACU) plan to mitigate the impacts of tariff uncertainty on its sales and customer relationships moving forward?
What are the expected synergies and growth opportunities from Acme United Corporation's (ACU) acquisition of My Medic, given its revenue base and product offerings?
Can Acme United Corporation (ACU) provide insights on the strategies implemented to achieve the recent sales growth in the European market while addressing domestic challenges?
With Acme United Corporation (ACU) generating significant free cash flow, what are the company's priorities for future investments or acquisitions to sustain growth and enhance shareholder value?
**MWN-AI FAQ is based on asking OpenAI questions about Acme United Corporation. (NYSE: ACU).
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