Acme United Corporation

What they do

Acme United develops, markets, manufactures and distributes first aid and medical products and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. It sells primarily to mass market and e-commerce retailers, industrial distributors, wholesale and contract stationers, office supply superstores, sporting goods stores and hardware chains. Operations are in the United States, Canada, Europe (Germany) and Asia (Hong Kong and China), with first aid kit assembly in Vancouver, WA, Rocky Mount, NC, Keene, NH and Laval, Canada. It sources most products from suppliers outside the U.S., primarily in Asia.

Revenue drivers

• First aid and medical products — Sold under First Aid Only, PhysiciansCare, Pac-Kit, Spill Magic, First Aid Central, Med-Nap, Safety Made, Elite and My Medic brands; grew to approximately 66% of total sales over the past nine years. My Medic, acquired January 15, 2026, adds roughly $19 million of annual revenue and sells tactical, trauma and emergency response products direct to consumers.
• Cutting and sharpening - school, home and office — Westcott brand scissors, shears and cutting tools sold into the back-to-school market, which drives the company's second- and third-quarter seasonal strength.
• Cutting and sharpening - hardware, industrial and sporting goods — Clauss and DMT brands, including DMT sharpening tools manufactured in Marlborough, MA. The company acquired a German cutting and sharpening tool line on October 1, 2025 with approximately $2 million of annual revenue.
• Spill Magic absorbents — Manufactured in La Vergne, TN and Santa Ana, CA; the company bought a 77,000 square foot manufacturing and distribution center in Mt. Pleasant, Tennessee in 2025 to support this business.

Recent performance

Second quarter 2026 net sales were $62.7 million versus $54.0 million a year earlier, an increase of 16%, or 8% excluding the My Medic acquisition. Six-month 2026 net sales were $115.0 million, up 15% from $100.0 million, or 7% excluding My Medic. Second quarter net income was $5.1 million, or $1.22 per diluted share, up 6% from $4.8 million and $1.16; six-month net income fell 6% to $6.0 million, or $1.46 per diluted share, due primarily to first quarter results. Gross margin was 42.6% in the second quarter of 2026 versus 41.0% a year earlier, with the increase primarily due to the My Medic direct-to-consumer business.

Strategy

The company is diversifying toward first aid and medical, which has grown to about 66% of sales, while continuing bolt-on acquisitions such as the German cutting line (October 2025) and My Medic (closed January 15, 2026). It is investing in automation, including robotics in three manufacturing and distribution facilities and equipment to automate Spill Magic powder production, expected to be completed in 2026. It expanded capacity with the Mt. Pleasant, Tennessee facility and introduced first aid bar code scanning technology for faster replenishment and OSHA compliance. Management says it is presenting My Medic products to new industrial and retail customers, leveraging its sourcing team and scale to reduce product costs, and has cut overhead at My Medic.

Risks

• Tariff and product cost pressure — Management said U.S. gross margins were affected by products purchased at elevated tariff levels and expects prior high tariffs to continue pressuring margins in coming quarters, though at a decreasing rate.
• Acquisition integration risk — The company must successfully integrate My Medic, a direct-to-consumer business, and the German cutting line; the 10-K lists ability to manage growth and integrate acquisitions among its risk factors.
• Supply chain and international sourcing concentration — Most products are sourced from suppliers outside the United States, primarily in Asia, exposing the company to supply-chain disruptions, port closures and delays, and international trade policy changes.
• Seasonality and quarterly variability — Sales and profits are stronger in the second and third quarters and weaker in the first and fourth due to the Westcott back-to-school market, and My Medic is described as generating the majority of its profitability in the fourth quarter.

Outlook

Management expects prior elevated tariffs to keep pressuring margins in coming quarters but at a decreasing rate. My Medic is expected to follow its historical pattern of generating the majority of its profitability in the fourth quarter, with management targeting strengthening quarterly profitability from growth on a lower cost base. The company reported approximately $53 million of availability under its $65 million credit facility as of December 31, 2025, which it says will fund acquisitions and growth.