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 million.

• Net income for Q2 2026 increased 6% to $5.1 million; EPS up 5% to $1.22 per diluted share.

• My Medic acquisition contributed $4.3 million in Q2 sales, operating at break-even as expected, and is expected to drive future profit growth, though most profitability is 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%.

• Six-month net income declined 6% to $6.0 million, primarily due to weaker Q1 results.

Financial highlights

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

• 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.

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

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.

• Margin pressure from elevated tariffs is expected to persist but decrease in coming quarters.

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

• Management anticipates strengthening quarterly profitability through cost reductions and growth initiatives.