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Acme United Reports Record Net Income for Second Quarter of 2025

1. ACU's Q2 2025 sales decreased by 3% year-over-year. 2. Net income rose 7% to $4.8 million, achieving a record profit. 3. Customer order cancellations due to tariffs impacted US sales significantly. 4. Strong demand in Canada boosted sales by 28% in Q2 2025. 5. Tariff uncertainties remain a challenge for future growth.

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FAQ

Why Bullish?

Increased profitability despite sales decline demonstrates resilience. Similar situations previously led to investor confidence, such as early 2021 increases.

How important is it?

The article highlights strong financial performance and growth, but ongoing tariffs present risks that investors will weigh carefully.

Why Short Term?

Immediate market reactions to net income improvements and future projections are likely. Longer-term impacts depend on tariff resolutions and supply chain stability.

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ACMEXYZABC
SHELTON, Conn., July 23, 2025 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended June 30, 2025 were $54.0 million compared to $55.4 million in the second quarter of 2024, a decrease of 3%. Net sales for the six months ended June 30, 2025 were $100.0 million, compared to $100.4 million in the same period in 2024. Net income was $4.8 million, or $1.16 per diluted share, for the quarter ended June 30, 2025, compared to $4.5 million, or $1.09 per diluted share, for the same period in 2024, an increase of 7% in net income and 6% in diluted earnings per share. Net income for the six months ended June 30, 2025 was $6.4 million, or $1.57 per diluted share, compared to $6.1 million, or $1.47 per diluted share, for the same period in 2024, an increase of 5% in net income and 7% in diluted earnings per share. Chairman and CEO Walter C. Johnsen said, “Acme United has just completed the most profitable quarter in our history. There was extreme uncertainty with tariffs during the period, resulting in customer indecisiveness, but we were ready. We placed extra orders with our factories in late 2024 and had plenty of inventory on hand. When the tariffs were announced, many of our customers delayed or cancelled their orders and promotions because the costs of the imported products were greater than their selling prices. We supported our customer base with our extra inventory, worked with them by providing substitute items, and managed the supply chain as well as possible. It was challenging to say the least, but we are very pleased with the Company’s performance.” Mr. Johnsen continued, “We have been actively diversifying Acme United’s supply base for many years. Our last 10 acquisitions have been manufacturers in the U.S. and Canada. Our sourcing team has an active presence in China, India, Malaysia, Thailand, Vietnam, and Egypt. We are currently shifting production within our supply base to provide the best total cost and service to our customers. We believe we are well positioned for the future despite continuing tariff uncertainty.” Mr. Johnsen added, “We want to acknowledge the excellent work of our entire team as they navigate the difficult environment.” For the three months ended June 30, 2025, net sales in the U.S. segment decreased 5% compared to the same period in 2024, mainly due to the cancellation of certain back-to-school customer orders as a result of exceptionally high tariffs in April and May. Additionally, there was a large initial order of new kitchen sharpeners to a major mass market retailer that took place in the second quarter of 2024. For the six months ended June 30, 2025, net sales in the U.S. segment decreased 2% compared to the same period in 2024. European net sales for the three months ended June 30, 2025 decreased 3% in U.S. dollars and 6% in local currency compared to the same period of 2024, mainly due to certain customer shipments delayed until the third quarter. Net sales for the six months ended June 30, 2025 decreased 5% in U.S. dollars and 6% in local currency compared to the same period of 2024. Net sales in Canada for the three months ended June 30, 2025 increased 28% in both U.S. dollars and local currency compared to the same period in 2024. Net sales for the six months ended June 30, 2025 increased 18% in U.S. dollars and 21% in local currency compared to the first half of 2024. The increase in sales for both periods was due to strong sales of first-aid products. Gross margin was 41.0% in the three months ended June 30, 2025 versus 40.8% in the comparable period last year. Gross margin was 40.1% for the six-month period ended June 30, 2025 compared to 39.9% for the same period in 2024. The Company’s bank debt less cash as of June 30, 2025 was $22.8 million compared to $33.1 million as of June 30, 2024. During the twelve-month period ended June 30, 2025, the Company distributed approximately $2.2 million in dividends on its common stock and generated approximately $12.0 million in free cash flow. Conference Call and Webcast InformationAcme United will hold a conference call to discuss its quarterly results, which will be broadcast on Wednesday, July 23, 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 13754188. 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. 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 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 uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers; (iii) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates by the United States or foreign governments; (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 INCOMESECOND QUARTER REPORT 2025(Unaudited)            Three Months Ended Three Months EndedAmounts in 000's except per share data  June 30, 2025  June 30, 2024                 Net sales $53,996  $55,425  Cost of goods sold  31,847   32,798  Gross profit  22,149   22,627  Selling, general and administrative expenses  15,759   16,252  Operating income  6,390   6,375  Interest expense  430   578  Interest income  (29)  (39) Net interest expense  401   539  Other income, net  (99)  (28) Income before income tax expense  6,088   5,864  Income tax expense  1,336   1,412  Net income $4,752  $4,452          Shares outstanding - basic  3,785   3,679  Shares outstanding - diluted  4,104   4,088          Earnings per share - basic $1.26  $1.21  Earnings per share - diluted  1.16   1.09           ACME UNITED CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOMESECOND QUARTER REPORT 2025(Unaudited)            Six Months Ended  Six Months Ended Amounts in 000's except per share data  June 30, 2025  June 30, 2024                 Net sales $99,954  $100,382  Cost of goods sold  59,888   60,358  Gross profit  40,066   40,024  Selling, general and administrative expenses  31,250   31,090  Operating income  8,816   8,934  Interest expense  857   1,054  Interest income  (59)  (72) Net interest expense  798   982  Other income, net  (188)  (72) Income before income tax expense  8,206   8,024  Income tax expense  1,802   1,935  Net income $6,404  $6,089          Shares outstanding - basic  3,772   3,664  Shares outstanding - diluted  4,070   4,134          Earnings per share - basic $1.70  $1.66  Earnings per share - diluted  1.57   1.47           ACME UNITED CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETSSECOND QUARTER REPORT 2025(Unaudited)        Amounts in $000's          June 30, 2025  June 30, 2024 Assets       Current assets:       Cash and cash equivalents $3,641  $3,791  Accounts receivable, net  36,174   40,074  Inventories  57,309   56,621  Prepaid expenses and other current assets  4,217   5,662  Total current assets  101,341   106,148          Property, plant and equipment, net  32,901   30,569          Operating lease right of use asset  7,886   5,176  Intangible assets, less accumulated amortization  19,111   23,459  Goodwill  9,908   8,189  Total assets $171,147  $173,541          Liabilities and stockholders' equity       Current liabilities:       Accounts payable $10,181  $10,319  Operating lease liability - short term  1,492   1,589  Mortgage payable - short term  445   429  Other current liabilities  11,376   15,656  Total current liabilities  23,494   27,993          Long-term debt  16,352   26,419  Mortgage payable - long term  9,662   10,073  Operating lease liability - long term  6,436   3,684  Deferred income taxes  1,465   899  Other non-current liabilities  16   516  Total liabilities  57,425   69,584  Total stockholders' equity  113,722   103,957  Total liabilities and stockholders' equity $171,147  $173,541          

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