Acme United (ACU) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 rose 16% year-over-year to $62.7 million; six-month sales up 15% to $115.0 million, driven by strong product demand and the My Medic acquisition.

• Net income for Q2 2026 increased 6% to $5.1 million ($1.22 diluted EPS), compared to $4.8 million ($1.16) in Q2 2025.

• Gross profit margin improved to 42.6% in Q2 2026 from 41.0% in Q2 2025, reflecting higher-margin direct-to-consumer business.

• My Medic acquisition contributed $4.3 million in Q2 sales, operating at break-even as expected, with most profitability expected in Q4 due to seasonality.

• Core businesses saw strong performance, with U.S. first aid and medical products up 10%, and Westcott Cutting Tools up 8%.

Financial highlights

• Q2 2026 net sales: $62.7 million vs. $54 million in Q2 2025 (+16%). Excluding My Medic, sales up 8%.

• Six-month net sales: $115 million vs. $100 million in 2025 (+15%). Excluding My Medic, up 7%.

• SG&A expenses increased to $19.9 million (32% of sales) in Q2 2026, mainly due to My Medic's advertising and higher personnel costs.

• Operating income for Q2 2026 was $6.8 million, up from $6.4 million in Q2 2025; six-month operating income slightly decreased due to higher costs.

• Free cash flow generated over the past twelve months was approximately $15.5 million.

Outlook and guidance

• Anticipates continued growth in first aid and medical business, improved profitability at My Medic, and further gross margin expansion as high-tariff inventory is replaced.

• Operating leverage from My Medic expected to become apparent in Q4 and into next year.

• Ongoing investments in automation and regulatory upgrades at Spill Magic and Med-Nap to support long-term growth.

• Company expects sufficient liquidity from operations and new $65 million syndicated credit facility to support growth and acquisitions.