Acme United (ACU) investor relations material

Executive summary

• Net sales for Q2 2026 rose 16% year-over-year to $62.7 million, with six-month sales up 15% to $115 million.

• Net income for Q2 2026 increased 6% to $5.1 million, with diluted EPS up 5% to $1.22.

• 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.

• Record revenues and income from operations achieved, with growth across all geographies and product lines.

• 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%.

• Gross margin improved to 42.6% in Q2 2026 from 41% in Q2 2025, driven by My Medic's higher margins.

• Operating income for Q2 2026 was $6.8 million, up from $6.4 million in Q2 2025.

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

Outlook and guidance

• My Medic's profitability is expected to be concentrated in Q4 due to its seasonal business model.

• 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.

• Management expects strengthening quarterly profitability as cost reductions and growth initiatives take effect.

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