ACME UNITED REPORTS THIRD QUARTER 2026 NET SALES INCREASE OF 18%
ACME UNITED CORP (ACU) filed an SEC Form 8-K — Results of Operations and Financial Condition. Ex 99.1 ACME UNITED CORPORATION NEWS RELEASE CONTACT: Paul G. Driscoll Acme United Corporation 1 Waterview Drive Shelton, CT 06484 Phone: (203) 254-6060 FOR IMMEDIATE RELEASE October 27, 2026 ACME UNITED REPORTS THIRD QUARTER 2026 NET SALES INCREASE OF 18% SHELTON, CT – October 2
How this was made
The 30-second read
Why it matters
The earnings beat and margin expansion provide a fresh catalyst for short‑term price appreciation, though future cost pressures and plant closures temper upside.
Market read
First‑report earnings release for a small‑cap consumer‑products company; provides actionable data for traders.
What to watch
Higher raw‑material costs and upcoming plant closures could pressure margins in 2027.
ACME UNITED REPORTS THIRD QUARTER 2026 NET SALES INCREASE OF 18%
Third-quarter net sales increased 18%, net income increased 80%, and gross margin expanded to 45.3%. Results included a $4.0 million tariff-refund benefit in cost of goods sold, partially offset by $1.8 million of DMT facility closure costs and $1.0 million of related variable compensation expense.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $58,013 (Amounts in 000's) | – | 18% |
| Cost of goods sold, three months ended September 30, 2026GAAP | 31,713 (Amounts in 000's) | – | – |
| Gross profit, three months ended September 30, 2026GAAP | 26,300 (Amounts in 000's) | – | – |
| Gross margin, third quarter of 2026GAAP | 45.3% | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | 21,837 (Amounts in 000's) | – | – |
| Operating income, three months ended September 30, 2026GAAP | 4,463 (Amounts in 000's) | – | – |
| Net interest expense, three months ended September 30, 2026GAAP | 594 (Amounts in 000's) | – | – |
| Other expense, net, three months ended September 30, 2026GAAP | 6 (Amounts in 000's) | – | – |
| Income before income tax expense, three months ended September 30, 2026GAAP | 3,863 (Amounts in 000's) | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | 428 (Amounts in 000's) | – | – |
| Net income, three months ended September 30, 2026GAAP | $3,435 (Amounts in 000's) | – | 80% |
| Shares outstanding - basic, three months ended September 30, 2026GAAP | 3,909 (Amounts in 000's) | – | – |
| Shares outstanding - diluted, three months ended September 30, 2026GAAP | 4,296 (Amounts in 000's) | – | – |
| Earnings per share - basic, three months ended September 30, 2026GAAP | $0.88 | – | – |
| Earnings per share - diluted, three months ended September 30, 2026GAAP | $0.80 | – | 74% |
| Net sales, nine months ended September 30, 2026GAAP | $173,030 (Amounts in 000's) | – | 16% |
| Cost of goods sold, nine months ended September 30, 2026GAAP | 99,257 (Amounts in 000's) | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | 73,773 (Amounts in 000's) | – | – |
| Gross margin, nine months ended September 30, 2026GAAP | 42.6% | – | – |
| Selling, general and administrative expenses, nine months ended September 30, 2026GAAP | 60,736 (Amounts in 000's) | – | – |
| Operating income, nine months ended September 30, 2026GAAP | 13,037 (Amounts in 000's) | – | – |
| Net interest expense, nine months ended September 30, 2026GAAP | 1,613 (Amounts in 000's) | – | – |
| Other expense (income), net, nine months ended September 30, 2026GAAP | 17 (Amounts in 000's) | – | – |
| Income before income tax expense, nine months ended September 30, 2026GAAP | 11,407 (Amounts in 000's) | – | – |
| Income tax expense, nine months ended September 30, 2026GAAP | 1,938 (Amounts in 000's) | – | – |
| Net income, nine months ended September 30, 2026GAAP | $9,469 (Amounts in 000's) | – | 14% |
| Shares outstanding - basic, nine months ended September 30, 2026GAAP | 3,851 (Amounts in 000's) | – | – |
| Shares outstanding - diluted, nine months ended September 30, 2026GAAP | 4,134 (Amounts in 000's) | – | – |
| Earnings per share - basic, nine months ended September 30, 2026GAAP | $2.46 | – | – |
| Earnings per share - diluted, nine months ended September 30, 2026GAAP | $2.29 | – | 13% |
| Free cash flow, twelve-month period ended September 30, 2026other | approximately $13.8 million | – | – |
| Bank debt less cash, September 30, 2026other | $29.7M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. segment, third quarter of 2026Strong sales across all product lines and contribution from the acquisition of the My Medic business. | Not reported | – | 20% |
| U.S. segment, nine months ended September 30, 2026Strong sales across all product lines and contribution from the acquisition of the My Medic business. | Not reported | – | 17% |
| Europe, third quarter of 2026Higher ecommerce sales and contribution from the line of cutting and sharpening products acquired in Germany on October 1, 2025. | Not reported | – | 5% in U.S. dollars; 7% in local currency |
| Europe, nine months ended September 30, 2026Higher ecommerce sales and contribution from the line of cutting and sharpening products acquired in Germany on October 1, 2025. | Not reported | – | 20% in U.S. dollars; 15% in local currency |
| Canada, third quarter of 2026Higher sales of first-aid products. | Not reported | – | 9% in U.S. dollars; 12% in local currency |
| Canada, nine months ended September 30, 2026Higher sales of first-aid products. | Not reported | – | 8% in U.S. dollars and local currency |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2027 outlook
- NoteThe annual savings from the closure are expected to be more than $1.0 million in 2027.
Capital returns
- Distributed approximately $2.4 million in dividends on its common stock during the twelve-month period ended September 30, 2026.
What drove it
- Comparable three-month sales increased 10% excluding sales resulting from the acquisition of the assets of My Medic.
- Comparable nine-month sales increased 8% excluding My Medic sales.
- The Company recognized $4.0 million of IEEPA tariff refunds as a reduction of cost of goods sold in the third quarter of 2026.
- Back-to-school sales were strong.
- My Medic contributed to sales growth.
- European sales growth reflected higher ecommerce sales and the acquired German cutting and sharpening product line.
- Canadian sales growth was due to higher sales of first-aid products.
Concerns
- Cost of goods sold included $1.8 million of costs accrued in connection with the close of the DMT sharpening facility and the related move of production to more cost-effective facilities in Asia.
- The Company recorded $1.0 million of variable compensation expense related to the tariff refund in selling, general and administrative expenses.
- Transportation and many raw materials are increasing in cost.
- My Medic had minimal impact on earnings in the third quarter and first nine months of 2026 due to its seasonal nature.
- Bank debt less cash was $29.7 million as of September 30, 2026, compared to $23.1 million as of September 30, 2025.
What to watch
- The majority of My Medic profitability has historically been generated in the fourth quarter, and the Company expects this pattern to continue.
- Retail and distribution commitments for My Medic product lines next year.
- The planned closure of the DMT plant in Massachusetts later in 2026 and production and fulfillment shifts to other locations and offshore.
- Expected annual savings of more than $1.0 million in 2027 from the DMT closure.
- Transportation and raw-material costs, robotics deployment, sourcing and operational consolidation.
Balance sheet and cash flow
- Cash and cash equivalents were $7,944 (Amounts in $000's) as of September 30, 2026, compared to $5,146 (Amounts in $000's) as of September 30, 2025.
- Inventories were 69,034 (Amounts in $000's) as of September 30, 2026, compared to 60,163 (Amounts in $000's) as of September 30, 2025.
- Long-term debt was 28,090 (Amounts in $000's) as of September 30, 2026, compared to 18,255 (Amounts in $000's) as of September 30, 2025.
- Mortgage payable - short term was 467 (Amounts in $000's) and mortgage payable - long term was 9,125 (Amounts in $000's) as of September 30, 2026.
- Total assets were $207,859 (Amounts in $000's), total liabilities were 82,993 (Amounts in $000's), and total stockholders' equity was 124,866 (Amounts in $000's) as of September 30, 2026.
- Generated approximately $13.8 million in free cash flow during the twelve-month period ended September 30, 2026, including $6.0 million in tariff refunds.
- Paid approximately $14.5 million for the acquisition of the assets of My Medic and purchased the cutting and sharpening line of products in Germany for approximately $1.6 million during the twelve-month period ended September 30, 2026.
Analysis
Acme United reported third-quarter net sales of $58.0 million, compared to $49.1 million in the same period in 2025, an increase of 18%. Comparable three-month sales increased 10% excluding sales resulting from the My Medic asset acquisition. The company cited record sales, growth across all business units and internationally, and strong back-to-school sales. For the nine months ended September 30, 2026, net sales were $173.0 million compared to $149.0 million, an increase of 16%, while comparable nine-month sales increased 8% excluding My Medic.
Profitability improved materially in the quarter. Net income was $3.4 million, or $0.80 per diluted share, versus $1.9 million, or $0.46 per diluted share. Gross margin was 45.3%, compared with 39.1% in the prior-year period. The quarter's gross margin included an approximately 690-basis-point benefit from the tariff refund, partially offset by approximately 310 basis points related to DMT facility closure costs. Net income also included approximately $0.4 million of tax benefits resulting from stock option exercises.
The tariff refund and DMT actions were important moving parts in costs. Acme received $6.0 million in IEEPA tariff refunds and recognized $4.0 million as a reduction of cost of goods sold in the third quarter, while the remaining $2.0 million was recorded as an accrued liability. Cost of goods sold also included $1.8 million of DMT closure and production-transfer costs, and selling, general and administrative expenses included $1.0 million of variable compensation expense related to the refund. Excluding the tariff refund and DMT closure costs, the company said gross margin remained above prior-year levels primarily because of the My Medic direct-to-consumer business.
All reported geographic businesses grew. U.S. segment sales increased 20% in the quarter, European net sales increased 5% in U.S. dollars and 7% in local currency, and Canadian net sales increased 9% in U.S. dollars and 12% in local currency. My Medic added to sales growth but had minimal earnings impact in the third quarter and first nine months because the business historically generates the majority of its profitability in the fourth quarter. The company also identified rising transportation and raw-material costs as ongoing pressure.
Capital deployment included approximately $14.5 million for the My Medic asset acquisition, approximately $1.6 million for the German cutting and sharpening product line, and approximately $2.4 million of dividends during the twelve-month period ended September 30, 2026. The company generated approximately $13.8 million in free cash flow, including $6.0 million in tariff refunds. Bank debt less cash was $29.7 million at September 30, 2026, compared with $23.1 million a year earlier. Acme plans to close its DMT plant in Massachusetts later in 2026 and expects annual savings from the closure of more than $1.0 million in 2027.
Management, verbatim
We had record sales in the quarter, with growth in all our business units and internationally. Back-to-school sales were strong. The My Medic integration is progressing on plan, and we are beginning to receive retail and distribution commitments for its product lines next year.
Walter C. Johnsen, Chairman and CEO
Transportation and many raw materials are increasing in cost. We continue to address these issues by using new robotics in our plants, sourcing very competitively, and consolidating operations. Later this year, we plan to close our DMT plant in Massachusetts and shift production and fulfillment to other locations and offshore. The annual savings from the closure are expected to be more than $1.0 million in 2027.
Walter C. Johnsen, Chairman and CEO
Our balance sheet is strong, and we continue to look for acquisitions that fit our strategic criteria.
Walter C. Johnsen, Chairman and CEO
Not in the filing
stated, not guessed- Formal revenue, gross-margin, operating-expense and tax-rate guidance was not provided.
- Prior-quarter comparisons were not provided for reported income-statement metrics.
- Segment revenue amounts were not provided for the U.S., Europe or Canada.
- Operating cash flow was not provided.
- Share repurchases were not provided.
- A prior outlook release was not provided, so no comparison with prior guidance is available.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Acme United Corp (NYSE American: ACU) filed a Form 8‑K reporting its third‑quarter 2026 results, highlighting organic sales growth, a recent acquisition, and tariff refunds.
Ticker impact
Q3 2026 net sales rose 18% to $58.0 M and net income jumped 80% to $3.4 M, beating prior-year figures.
likely upside as investors price in robust sales and profit expansion
Quarterly results exceed prior‑year levels and include margin improvement; no guidance was provided, but the magnitude of growth is material for a small cap.
Market effects
Positive signal for the safety‑products and consumer goods sector as demand remains strong.
U.S. market may see modest buying pressure in small‑cap consumer staples.
Limited; impact confined to niche consumer‑product segment.
Counterpoint
If the market had already priced in the My Medic acquisition, the incremental growth may be modest.
Key entities
- companyAcme United Corp
U.S. consumer‑goods manufacturer reporting Q3 2026 results.
- acquired_businessMy Medic
Direct‑to‑consumer tactical medical products acquired in Jan 2026.
