Acme United Corporation (NYSE American: ACU) reported financial results for the quarter ended September 30, 2026, in an 8-K filing dated October 27, 2026. The company announced net sales of $58.0 million for the third quarter, representing an 18% increase compared to $49.1 million in the same period in 2025. Excluding sales from the acquisition of My Medic, which was completed on January 15, 2026, comparable three-month sales increased by 10%. For the nine months ended September 30, 2026, net sales totaled $173.0 million, a 16% increase over the prior year's $149.0 million.
Net income for the third quarter of 2026 was $3.4 million, or $0.80 per diluted share, compared to $1.9 million, or $0.46 per diluted share, in the prior year. This reflects an 80% increase in net income and a 74% increase in diluted earnings per share. For the nine-month period, net income was $9.5 million, or $2.29 per diluted share, up 14% and 13% respectively from the prior year.
Gross margin for the third quarter of 2026 was 45.3%, compared to 39.1% in the prior year. This improvement was attributed to a $6.0 million IEEPA tariff refund, which partially offset costs related to the closure of a DMT sharpening facility. The company applied for and received the tariff refunds, recognizing $4.0 million as a reduction of cost of goods sold in the third quarter, with the remaining $2.0 million recorded as an accrued liability. Additionally, the company recorded $1.0 million of variable compensation expense and $1.8 million in costs associated with moving DMT production to Asia.
Segment performance varied by region. U.S. segment net sales increased 20% for the quarter and 17% for the nine months. European net sales increased 5% in U.S. dollars and 7% in local currency for the quarter, and 20% in U.S. dollars and 15% in local currency for the nine months. Canadian net sales increased 9% in U.S. dollars and 12% in local currency for the quarter, and 8% in both metrics for the nine months.
Chairman and CEO Walter C. Johnsen noted that the company had record sales in the quarter with growth across all business units and internationally. He stated that the My Medic integration is progressing on plan and that the company expects to receive retail and distribution commitments for its product lines next year. The company also announced plans to close its DMT plant in Massachusetts and shift production to other locations and offshore, with annual savings expected to exceed $1.0 million in 2027.
Regarding its balance sheet, the company’s bank debt less cash stood at $29.7 million as of September 30, 2026. During the twelve-month period ended September 30, 2026, the company generated approximately $13.8 million in free cash flow and paid approximately $14.5 million for the acquisition of My Medic assets.
