Acme United Q2 2026 Earnings Call Transcript

Acme United (AMEX: ACU ) released second-quarter financial results and hosted an earnings call on Thursday.

Read the complete transcript below.

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The full earnings call is available at Summary Acme United Corporation reported a 16% increase in net sales for Q2 2026, reaching $63 million, with net income rising to $5.1 million and earnings per share up by 5% to $1.22.

The acquisition of MiMedic contributed $4.3 million in sales for the quarter, with plans to expand its product offerings to retail and improve profitability through cost reductions.

Gross margins improved from 41% to 42.6%, largely driven by MiMedic's high-margin products, though U.S. margins were impacted by tariffs.

Strategic growth initiatives include expanding Spill Magic capacity, advancing MedNap's regulatory compliance, and launching new SmartCompliance software for automatic replenishment.

Future outlook is positive with expected growth in first aid and cutting tools, improving profitability at MiMedic, and continued margin expansion as high-tariff inventory is sold off.

SG&A expenses increased due to MiMedic's advertising costs, impacting the bottom line, but net income still showed improvement compared to Q2 2025.

The Canadian segment experienced modest growth, driven by the first aid business, with some weakness in the Westcott segment.

The company is actively pursuing further acquisitions and retail distribution expansion for MiMedic products.

Full Transcript OPERATOR Good day and welcome to the Acme United second quarter 2026 financial results conference call.

At this time, I'd like to turn the call over to your host, Walter Johnsen, Chairman and CEO.

Please go ahead, sir.

Walter Johnsen, Chairman and CEO Good morning.

Welcome to the second quarter 2026 earnings conference call for Acme United Corporation.

I am Walter C.

Johnsen, Chairman and CEO.

With me is Paul Driscoll, our Chief Financial Officer, who will first read a safe harbor statement.

Paul Driscoll, CFO Forward-looking statements in this conference call, including, without limitation, statements related to the company's plans, strategies, objectives, expectations, intentions, and adequacy of capital and other resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Investors are cautioned that such forward-looking statements may involve risks and uncertainties, including, among others, those arising as a result of a challenging global macroeconomic environment characterized by continued high inflation, high interest rates, and the imposition of new tariffs or changes in existing tariff rates.

In addition, we have experienced supply chain disruptions, and we may experience these disruptions in the future.

We are also subject to additional risks and uncertainties as described in our periodic filings with the Securities and Exchange Commission and in our current earnings release.

Walter Johnsen, Chairman and CEO Thank you, Paul.

Acme United made progress.

During the second quarter of 2026, our net sales increased from $54 million to $63 million, an increase of 16%.

Net income increased from $4.8 million to $5.1 million, and earnings per share increased 5% to $1.22.

As you may remember, we acquired MiMedic in January 2026.

This addition to the Acme United family sells high-quality first aid kits designed to save lives.

It extends the reach of our product line from simple retail kits to advanced ones with chest seals, tourniquets, and tools to clear airways.

MiMedic today sells mostly directly to consumers and is seasonal.

It has high gross margins and also high advertising and marketing costs.

Net sales in 2025 were $19 million.

MiMedic sales in the second quarter were approximately $4.3 million, with breakeven operations as expected.

We are working to increase the core direct-to-consumer business as well as expand the product offering to retail.