Core Insights - Acme United Corporation reported a net sales decrease of 3% for Q2 2025 compared to Q2 2024, totaling $54.0 million [1] - The company achieved a net income of $4.8 million for Q2 2025, reflecting a 7% increase from $4.5 million in Q2 2024 [2] - The CEO highlighted the company's successful navigation through tariff uncertainties and the completion of the most profitable quarter in its history [3] Financial Performance - Net sales for the six months ended June 30, 2025, were $100.0 million, a slight decrease from $100.4 million in the same period in 2024 [1] - Gross margin improved to 41.0% in Q2 2025 from 40.8% in Q2 2024, and for the six-month period, it was 40.1% compared to 39.9% in 2024 [6] - The company generated approximately $12.0 million in free cash flow and distributed about $2.2 million in dividends during the twelve months ended June 30, 2025 [7] Segment Performance - U.S. segment net sales decreased by 5% in Q2 2025, primarily due to cancellations of back-to-school orders linked to high tariffs [3] - European net sales for Q2 2025 decreased by 3% in U.S. dollars and 6% in local currency, attributed to shipment delays [4] - Canadian net sales increased significantly by 28% in Q2 2025, driven by strong sales of first-aid products [5] Strategic Initiatives - The company has diversified its supply base through acquisitions in the U.S. and Canada and is actively shifting production to optimize costs and service [3] - Acme United's sourcing team maintains a presence in multiple countries, including China, India, and Vietnam, to enhance supply chain resilience [3]

Core Viewpoint - Acme United Corporation has announced the acquisition of a manufacturing and distribution center in Mt. Pleasant, Tennessee for approximately $6 million, aimed at expanding its Spill Magic business and enhancing operational efficiency [1][2][3]. Group 1: Acquisition Details - The newly acquired property spans 77,000 square feet of manufacturing and warehouse space on 12 acres, with the potential for expansion by an additional 60,000 square feet [2]. - The facility is fully air-conditioned and meets FDA-approved food-grade specifications, indicating a commitment to quality and safety standards [2]. Group 2: Business Expansion - The facility will primarily serve Spill Magic, a company acquired by Acme United in 2017, which has outgrown its current leased space [2]. - Walter C. Johnsen, Chairman and CEO, expressed enthusiasm for the growth of Spill Magic and plans to invest in capital improvements focused on automation to enhance operational efficiency [3]. Group 3: Company Overview - Acme United Corporation is recognized as a leading supplier of innovative safety solutions and cutting technology across various markets, including school, home, office, and industrial sectors [4]. - The company’s prominent brands include First Aid Only®, Spill Magic®, and Westcott®, among others, showcasing a diverse product portfolio [4].