ACME UNITED CORP Q1 FY2026 earnings call

Acme purchased MyMedic for $18.6 million during the first quarter of 2026. The company's sales increase in Q1 2026 includes approximately 8% from MyMedic. Operationally, working to increase MyMedic's revenues by expanding retail distribution. Completing move into new Spill Magic facility in Mount Pleasant, Tennessee with production begun. Europe sales increased 19% in local currency, including acquisition of Schmiedeglut. Canadian business increased 16% compared to Q1 2025.

Acme United's net sales for the first quarter of 2026 were $52.3 million, a 14% increase from $46 million in 2025. Excluding MyMedic, sales increased 6%. Net sales in the U.S. segment increased 12% driven by higher sales of first aid and medical products including MyMedic products. Net sales in Europe for the first quarter of 2026 increased 19% in local currency compared to the first quarter of 2025 due mainly to the new line of cutting and sharpening tools. Net sales in Canada for the first quarter of 2026 increased 11% in local currency due to higher sales of first aid products. The gross margin was 39.7% in the first quarter of 2026 versus 39% in the first quarter of 2025.

Expect tariff impact to gradually lessen over next three quarters as tariff rates declined. Canadian operation to add another 30% capacity this year.

Challenging global macroeconomic environment with continued high inflation, high interest rates, and new tariffs or changes in existing tariff rates. Experienced supply chain disruptions in the past and may experience in the future.

Q: Could you put a dollar amount or a rough dollar amount on what the quality assurance protocols are involving?

A: Last March, FDA inspected facility in Brooksville, Florida, hired consulting firm to upgrade, about $1 million in consulting last year, about $300,000 in Q1 2026.

Q: Do MiMedx DTC business expertise translate over into other businesses?

A: MyMedic is first step in US to do direct-to-consumer, hope to broaden other product lines.

Q: Revenue trends in cutting and sharpening segment in Q1?

A: Westcott was down 2% in Q1, expecting good promotional activity in second, third, fourth quarters.

Q: SG&A and gross margin and CapEx?

A: SG&A related to acquisition, gross margin legacy business down about 200 basis points due to tariffs, CapEx expected to be about 7 million.