ACME United Reports Q2 2025 Financial Results with Decrease in Net Sales but Increase in Net Income

ACME United Corporation reported its financial results for the second quarter of 2025, revealing a net sales figure of $53.996 million, a decrease of 3% from $55.425 million in the same period of 2024. For the first half of 2025, net sales totaled $99.954 million, down slightly from $100.382 million year-over-year. The company's gross profit for the second quarter was $22.149 million, representing 41.0% of net sales, compared to $22.627 million or 40.8% of net sales in the prior year. Net income for the quarter increased to $4.752 million, up from $4.452 million in 2024, while basic earnings per share rose to $1.26 from $1.21.

The company experienced notable changes in its operational performance, particularly in its U.S. segment, where net sales decreased by 5% in the second quarter due to the cancellation of back-to-school orders linked to high tariffs. Conversely, sales in Canada increased by 28% in U.S. dollars, driven by strong demand for first aid products. European sales, however, saw a decline of 3% in U.S. dollars, attributed to shipment delays and a lack of repeat promotions from the previous year. Overall, the U.S. segment's operating income increased by $79,000 for the quarter, while the Canadian segment's operating income rose by $169,000.

In terms of strategic developments, ACME United completed the acquisition of Elite First Aid, Inc. in May 2024 for approximately $7.1 million, which is expected to enhance its product offerings in the medical supplies sector. The company also reported an increase in accounts receivable, which rose by approximately $7.9 million compared to the end of 2024, indicating a potential increase in customer demand. The total assets of the company increased to $170.868 million as of June 30, 2025, up from $162.171 million at the end of 2024.

The company’s operational metrics showed a current ratio of 4.32 and a long-term debt to equity ratio of 22.9% as of June 30, 2025, reflecting a solid liquidity position. However, the company noted challenges related to global trade policies, tariffs, and inflation, which could impact future performance. The management expressed confidence that cash generated from operations, along with available funds under its revolving loan agreement, would be sufficient to finance operations over the next twelve months.

Looking ahead, ACME United remains cautious about the potential impact of geopolitical tensions and changing tariffs on its supply chain and product demand. The company is actively working to diversify its supply base and mitigate risks associated with these external factors. The management anticipates that the strategic initiatives, including the integration of Elite First Aid and adjustments to sourcing strategies, will position the company for improved performance in the coming quarters.