Acme United (ACU) Q4 2024 earnings summary

Executive summary

• Achieved record net sales of $194.5 million and record EBITDA of $20 million for 2024, with net income rising 23% year-over-year to $10 million.

• Sold Cuda and Camillus hunting and fishing business in November 2023 for $19.8 million, using $15 million after-tax proceeds to reduce debt and support growth.

• Adjusted net revenues (excluding divested businesses) grew 6% in 2024; overall net sales grew 2% despite $9 million revenue loss from divestiture.

• Elite First Aid acquisition in May 2024 for $6.1 million was fully integrated, supporting growth in first responder kits.

• Productivity improvements and cost reductions offset lost contributions from divested businesses.

Financial highlights

• Fourth quarter net sales were $45.9 million, up 10% year-over-year; full-year net sales reached $194.5 million, up 2%.

• Gross margin for 2024 was 39.3%, up from 37.7% in 2023, driven by productivity improvements.

• SG&A expenses for 2024 were $62 million (32% of sales), up from $59 million (31% of sales) in 2023, mainly due to inflation and wage increases.

• Interest expense declined to $1.9 million from $3 million in 2023, reflecting lower average debt.

• Earnings per share for 2024 were $2.45, up 10% from $2.23 in 2023.

Outlook and guidance

• Management expects further growth in 2025, leveraging strong liquidity, customer base, and the Elite First Aid acquisition.

• SG&A expected to remain between 31% and 32% of sales going forward.

• Company anticipates challenges from tariffs in 2025 but feels well-prepared due to diversified sourcing and domestic production.

• Plans to expand distribution and sales of first responder kits and pursue additional acquisitions.