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Acme United Reports 2% Increase In Net Sales For The Third Quarter Of 2025

1. ACU reported a 2% net sales increase for Q3 2025. 2. Net income decreased by 14% compared to the previous year. 3. First aid revenues increased by 9% due to strong online sales. 4. ACU's gross margin improved to 39.1% in Q3 2025. 5. Tariffs impacted sales of school products, affecting overall performance.

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Why Bearish?

Despite sales growth, net income and earnings per share decreased significantly. Historical examples show that declining profitability typically pressures stock prices.

How important is it?

The article reflects significant revenue, income changes, and ongoing uncertainties that affect stock performance. The fluctuation in consumer demand and profitability can lead to a cautious market response.

Why Short Term?

Recent quarterly results indicate immediate impacts on investor sentiment. The ongoing tariff situation might lead to further volatility affecting performance in upcoming quarters.

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October 21, 2025 06:30 ET  | Source: Acme United Corporation SHELTON, Conn., Oct. 21, 2025 (GLOBE NEWSWIRE) --  Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended September 30, 2025 were $49.1 million compared to $48.2 million in the third quarter of 2024, an increase of 2%.   Net sales for the nine months ended September 30, 2025 were $149.0 million compared to $148.5 million in the same period in 2024. Net income was $1.9 million, or $0.46 per diluted share, for the quarter ended September 30, 2025, compared to $2.2 million, or $0.54 per diluted share, for the same period in 2024, a decrease of 14% in net income and 15% in diluted earnings per share. Net income declined due to significantly lower tax expense in the third quarter of 2024, when the Company recorded a large excess tax benefit resulting from the exercise of stock options. The effective tax rate in the third quarter of 2024 was 8% compared to 22% in the same quarter of this year. Net income for each of the nine month periods ended September 30, 2025 and 2024 was $8.3 million, or $2.03 per diluted share. Chairman and CEO Walter C. Johnsen said, “We have continued to effectively manage through tariff-related uncertainties. Our first aid revenues increased 9% due to strong online and refill sales. Revenues from our Westcott cutting tools continued to be reduced, however, by the impact of the tariff environment on our customers, which has resulted in our customers’ cancellation of nearly all retail promotions. We are now experiencing increased promotional activity as buyers are again focused on growing sales. Mr. Johnsen continued, “We are pleased that Acme United’s business continued to be profitable, with operating income increasing 3%. In addition, we continue to reduce debt and, as a result of our strong balance sheet, the Company is well-positioned for growth, both internally and through acquisitions, particularly in the first aid space.” For the three months ended September 30, 2025, net sales in the U.S. segment increased 1% compared to the same period in 2024. Sales of first aid and medical products were strong. However, sales of school and office products were lower mainly due to the cancellation of customer orders as a result of tariff uncertainty. For the nine months ended September 30, 2025, net sales in the U.S. segment decreased 1% compared to the same period in 2024.   European net sales for the three months ended September 30, 2025 increased 13% in U.S. dollars and 6% in local currency compared to the same period of 2024, mainly due to higher sales of school and office products into the ecommerce channel.   Net sales for the nine months ended September 30, 2025 increased 1% in U.S. dollars and decreased 2% in local currency compared to the same period of 2024. Net sales in Canada for the three months ended September 30, 2025 increased 5% in U.S. dollars and 7% in local currency compared to the same period in 2024.   Net sales for the nine months ended September 30, 2025 increased 14% in U.S. dollars and 16% in local currency compared to the first nine months of 2024. The increases in sales for both periods were due to strong sales of first-aid products. Gross margin was 39.1% in the three months ended September 30, 2025 versus 38.5% in the same period last year. Gross margin was 39.8% for the nine-month period ended September 30, 2025 compared to 39.0% for the same period in 2024. The Company’s bank debt less cash as of September 30, 2025 was $23.1 million compared to $26.7 million as of September 30, 2024. During the twelve-month period ended September 30, 2025, the Company distributed approximately $2.3 million in dividends on its common stock and generated approximately $11.1 million in free cash flow, before the purchase for cash of a new $6 million facility in Tennessee in July 2025 to expand the Company’s Spill Magic business. Conference Call and Webcast InformationAcme United will hold a conference call to discuss its quarterly results, which will be broadcast on Tuesday, October 21, 2025, at 12:00 p.m. ET. To listen or participate in a question-and-answer session, dial 877-407-0784. International callers may dial 201-689-8560. The confirmation code is 13756138.   You may access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.acmeunited.com. A replay may be accessed under Investor Relations, Audio Archives. About Acme UnitedACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, First Aid Central®, PhysiciansCare®, Pac-Kit®, Spill Magic®, Westcott®, Clauss®, DMT®, Med-Nap and Elite First Aid. For more information, visit www.acmeunited.com.   Forward Looking Statements The Company may from time to time make written or oral “forward-looking statements” including statements contained in this report and in other communications by the Company, which are made in good faith pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on our beliefs as well as assumptions made by and information currently available to us. When used in this document, words like “may,” “might,” “will,” “except,” “anticipate,” “believe,” “potential,” and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from our current expectations. Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of 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 involve risks and uncertainties that may impact the Company’s business, operations and financial results. These risks and uncertainties  include, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of volatility in global economic conditions,  including the impact on the Company’s suppliers and customers; (iii) international trade policies of the United States or foreign governments and their impact on demand for our products and our competitive position, including the imposition of new tariffs, changes in existing tariff rates or the threat of any such action;*1(iv) the continuing adverse impact of inflation, including product costs, and interest rates; (v) potential adverse effects on the Company, its customers, and suppliers resulting from the conflicts in Ukraine and the Middle East; (vi) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, including trucker shortages, strikes, port closures or otherwise; (vii) labor related costs the Company has and may continue to incur, including costs of acquiring and training new employees and rising wages and benefits; (viii) currency fluctuations; (ix) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (x) changes in client needs and consumer spending habits; (xi) the impact of competition; (xii) the impact of technological changes including, specifically, the growth of online marketing and sales activity; and (xiii) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; and (xiv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission. CONTACT:Paul G. DriscollAcme United Corporation1 Waterview DriveShelton, CT 06484Phone: (203) 254-6060 ACME UNITED CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOMETHIRD QUARTER REPORT 2025(Unaudited)        Three Months Ended Three Months EndedAmounts in 000's except per share data September 30, 2025  September 30, 2024            Net sales$49,063  $48,166 Cost of goods sold 29,868   29,602 Gross profit 19,195   18,564 Selling, general and administrative expenses 16,188   15,638 Operating income 3,007   2,926 Interest expense 451   568 Interest income (29)  (33)Net interest expense 422   535 Other expense (income), net 146   (17)Income before income tax expense 2,439   2,408 Income tax expense 536   182 Net income$1,903  $2,226       Shares outstanding - basic 3,802   3,726 Shares outstanding - diluted 4,168   4,104       Earnings per share - basic$0.50  $0.60 Earnings per share - diluted 0.46   0.54                   ACME UNITED CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOMETHIRD QUARTER REPORT 2025(Unaudited)        Nine Months Ended  Nine Months EndedAmounts in 000's except per share data September 30, 2025  September 30, 2024            Net sales$149,018  $148,547 Cost of goods sold 89,756   89,960 Gross profit 59,262   58,587 Selling, general and administrative expenses 47,438   46,728 Operating income 11,824   11,859 Interest expense 1,310   1,622 Interest income (88)  (105)Net interest expense 1,222   1,517 Other income, net (44)  (90)Income before income tax expense 10,646   10,432 Income tax expense 2,338   2,117 Net income$8,308  $8,315       Shares outstanding - basic 3,781   3,686 Shares outstanding - diluted 4,091   4,087       Earnings per share - basic$2.20  $2.26 Earnings per share - diluted 2.03   2.03                         ACME UNITED CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETSTHIRD QUARTER REPORT 2025(Unaudited)      Amounts in $000's       September 30, 2025  September 30, 2024Assets     Current assets:     Cash and cash equivalents$5,146  $5,702 Accounts receivable, net 30,034   31,349 Inventories 60,163   55,990 Prepaid expenses and other current assets 3,363   5,733 Total current assets 98,706   98,774       Property, plant and equipment, net 38,691   30,892       Operating lease right of use asset 7,261   4,808 Intangible assets, less accumulated amortization 18,476   22,810 Goodwill 9,908   8,189 Total assets$173,042  $165,473       Liabilities and stockholders' equity     Current liabilities:     Accounts payable$6,488  $7,008 Operating lease liability - short term 1,427   1,550 Mortgage payable - short term 450   433 Other current liabilities 13,722   13,403 Total current liabilities 22,087   22,394       Long-term debt 18,255   22,018 Mortgage payable - long term 9,556   9,970 Operating lease liability - long term 5,900   3,357 Deferred income taxes 1,465   899 Other non-current liabilities 15   518 Total liabilities 57,278   59,156 Total stockholders' equity 115,764   106,317 Total liabilities and stockholders' equity$173,042  $165,473       

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