Acme United Q1 net sales rise 14% but profit drops

Acme United

23/04/2026 11:39

Overview

Safety solutions supplier's Q1 net sales rose 14% yr/yr, driven by My Medic acquisition

Q1 net income and diluted EPS fell 40% due to higher costs and one-time expenses

Company consolidating facilities and investing in automation to improve profitability

Outlook

Company expects My Medic to generate most profitability in fourth qtr due to seasonality

Acme United has added about $10 mln in incremental inventory orders for delivery in Q2 and Q3

Company is expanding My Medic’s retail distribution and leveraging purchasing network to reduce costs

Result Drivers

MY MEDIC ACQUISITION - Sales growth was driven by the acquisition of My Medic, though its impact on earnings was minimal in Q1 due to seasonality

HIGHER COSTS - Increased tariff-related costs, investments in quality assurance at Med-Nap, and rising employee healthcare expenses weighed on net income

SEASONALITY IMPACT - The effect of higher costs was magnified by lower first quarter sales due to the seasonal nature of the business, per CEO Walter C. Johnsen

Company press release: ID:nGNX1ZPTSk

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$52.30 mln
$47.63 mln (2 Analysts)
Q1 EPS
$0.24
Q1 Net Income
$985,000
Q1 Basic EPS
$0.26
Q1 Gross Profit
$20.79 mln
Q1 Operating Income
$1.75 mln
Q1 Pretax Profit
$1.24 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

Wall Street's median 12-month price target for Acme United Corp is $50.00, about 9.8% above its April 22 closing price of $45.53

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)