Acme United Corporation announced its financial results for the second quarter ended June 30, 2025, achieving a record for net income, excluding one-time gains. Net income for the quarter was $4.8 million, a 7% increase from $4.5 million in Q2 2024. Diluted earnings per share rose by 6% to $1.16, up from $1.09 in the prior-year period.
Despite the record profitability, consolidated net sales for Q2 2025 were $54.0 million, a 3% decrease from $55.4 million in Q2 2024. This sales decline was primarily attributed to back-to-school order cancellations in the U.S. segment, driven by exceptionally high tariffs in April and May, and a tough comparable from a large kitchen sharpener order in Q2 2024.
The company demonstrated strong financial management, with bank debt less cash reduced by $11 million to $22.8 million as of June 30, 2025, compared to $33.1 million a year prior. Acme United also generated approximately $12.0 million in free cash flow over the last 12 months, marking a record for the company.
Canadian net sales showed robust growth, increasing 28% in Q2 2025 due to strong first aid product sales. The company's gross margin improved to 41.0% in Q2 2025 from 40.8% in Q2 2024. Management highlighted proactive measures, including building extra inventory ahead of tariff changes and diversifying its supply base to Malaysia, Thailand, Vietnam, Egypt, and India, to mitigate global trade uncertainties.
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