Acme United (ACU) Q1 2026 earnings summary

Executive summary

• Net sales rose 14% year-over-year to $52.3 million in Q1 2026, with MyMedic acquisition contributing 8% of growth and core business up 6%.

• Net income declined 40% to $985,000 from $1.6 million last year; EPS fell to $0.24 from $0.41.

• Gross margin improved to 39.7% from 39% year-over-year, driven by MyMedic's high-margin products, but core margins declined due to tariffs.

• Integration of MyMedic and Schmiedeglut underway, with focus on expanding retail distribution and leveraging direct-to-consumer expertise.

• Investments in automation, facility consolidation, and quality assurance protocols were highlighted.

Financial highlights

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

• Europe sales up 19% in local currency (32% in USD), reaching EUR 4 million, aided by new product lines and the Schmiedeglut acquisition.

• Canadian business grew 16% year-over-year (11% in local currency), with strong performance in first aid and cutting segments.

• SG&A expenses increased to $19 million (36% of sales) from $15.5 million (34%), mainly due to MyMedic 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 over the next three quarters as lower-cost inventory cycles in.

• MyMedic 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.

• MyMedic and Schmiedeglut expected to drive further direct-to-consumer growth and cross-selling opportunities.

• Management remains confident in addressing supply chain challenges and expects ongoing investments to strengthen the business.