Acme United (ACU) Q4 2025: MyMedic $19M Acquisition Expands Direct-to-Consumer Platform

2026-02-26 | By EarningsIQ Research

Acme United closed 2025 with record sales and earnings despite tariff volatility and retail disruption. The company’s pivot to automation, diversified sourcing, and direct-to-consumer expansion underpinned resilience, while targeted M&A sharpened its first aid and medical platform. Management signals ongoing investment in vertical integration and selective retail channel growth for 2026.

Summary

• Direct-to-Consumer Expansion: MyMedic acquisition gives Acme a scalable entry point for digital-first growth in first aid.
• Operational Flexibility: Rapid supply chain shifts and automation investments blunted tariff shocks and margin pressure.
• 2026 Focus: Management is prioritizing first aid and medical segment growth, with further M&A likely in these categories.

Performance Analysis

Acme United delivered record annual sales and net income for 2025, with total sales rising modestly despite a turbulent macro backdrop. The company’s first aid and medical products outperformed, offsetting weakness in school and office supplies that resulted from tariff-driven order cancellations. Notably, gross margin for the year improved slightly to 39.4%, reflecting cost containment and efficiency gains even as fourth quarter margin dipped year-over-year.

Segment performance diverged geographically: Canada and Europe posted double-digit sales gains in local currency, driven by first aid and recent product line acquisitions, while U.S. sales were flat for the quarter and down 1% for the year. Operating profit grew 27% in Q4 as SG&A leverage and lower interest expense improved bottom-line flow-through. Free cash flow generation enabled both M&A activity and continued dividend payments, while net debt declined.

• Tariff Disruption Managed: Early inventory builds and diversified sourcing allowed Acme to maintain customer supply despite tariff swings.
• Automation and Robotics: Investments in U.S. plant robotics and inventory optimization improved quality and efficiency in first aid operations.
• Selective Acquisitions: MyMedic and a German cutting tools supplier added direct-to-consumer and European exposure, respectively.

Overall, Acme’s performance reflects a defensive posture paired with targeted growth bets in first aid, medical, and automation-enabled production.

Executive Commentary

Strategic Positioning

1. Direct-to-Consumer Platform via MyMedic

The MyMedic acquisition, $19 million revenue and over 500,000 social media followers, positions Acme as a direct-to-consumer (DTC, selling directly to end customers online) leader in advanced first aid and bleed control. Management plans to integrate MyMedic into the broader first aid offering, leverage sourcing scale, and selectively expand into retail channels where DTC and retail can complement each other.

2. Supply Chain Diversification and Tariff Navigation

Acme’s ability to rapidly shift sourcing across Asia and Africa (Vietnam, Thailand, Malaysia, India, Egypt) allowed it to maintain continuity during tariff volatility. This diversified sourcing, combined with strategic inventory builds, proved critical in supporting customer relationships and limiting lost sales during periods of uncertainty.

3. Automation and Domestic Production Investments

Robotics and automation in U.S. plants are driving productivity and quality gains, especially in the recurring first aid refill business. The new Tennessee facility and MedNap upgrades expand U.S. manufacturing capacity for high-margin medical consumables, supporting vertical integration (owning more of the supply chain) and positioning Acme for growth as a domestic supplier.

4. International Growth and Segment Mix

European and Canadian operations outpaced the U.S. in growth, benefiting from recent acquisitions and first aid market share gains. The company’s ability to grow in weaker macro environments highlights the resilience of its first aid and medical segments, which now account for a larger share of overall revenue.

5. M&A as a Growth Engine

Acquisitions remain a core pillar, with management signaling further deals in first aid, medical, or vertically integrated suppliers. The approach is both opportunistic and strategic, aiming to build scale, add capabilities, and address adjacent needs in pre-hospital emergency care.

Key Considerations

Acme United’s 2025 results reflect a company balancing operational agility with targeted investment in high-value segments. The year’s performance was shaped by external shocks and internal adaptability, with management using M&A and automation to position for future growth.

Key Considerations:

• MyMedic Integration: Success hinges on maintaining DTC brand equity while leveraging Acme’s sourcing and distribution strengths.
• Tariff and Sourcing Volatility: Ongoing global trade friction could require further supply chain pivots and inventory management agility.
• Margin Sustainability: Modest price increases and automation gains offset cost pressures, but input costs and promotional normalization remain watchpoints.
• International Expansion: Europe and Canada are outpacing the U.S., underscoring the importance of geographic diversification for growth stability.
• Capital Allocation Discipline: Free cash flow supported both acquisitions and debt reduction, but further M&A could elevate leverage if not carefully managed.

Risks

Tariff policy shifts, supply chain disruptions, and inflation remain persistent risks, as do potential integration challenges with recent acquisitions. Competitive pressure in first aid and medical segments is intensifying, especially as Acme moves deeper into DTC and retail channels. Any misstep in automation or quality control could impact recurring revenue streams and customer retention. Regulatory changes in medical product standards or trade policy could also create unforeseen headwinds.

Forward Outlook

For Q1 2026, Acme United expects:

• Continued growth in first aid and medical segments, aided by MyMedic and expanded U.S. production capacity
• Return to more normalized retail merchandising and promotional activity

For full-year 2026, management signaled:

• Further investment in automation, sourcing, and selective M&A, with a focus on first aid and medical

Management highlighted several factors that will shape 2026:

• Integration and expansion of MyMedic’s DTC platform and selective retail rollout
• Ramp-up of Tennessee and MedNap facilities to serve both traditional and new medical markets

Takeaways

Acme United’s 2025 results underscore the company’s ability to navigate macro shocks while investing for long-term growth in first aid and medical markets.

• Resilience Through Diversification: Sourcing agility and automation investment blunted margin and supply shocks from tariffs and inflation.
• Growth Via M&A and DTC: MyMedic acquisition is a strategic leap into DTC, with management targeting further vertical and horizontal expansion.
• 2026 Watchpoints: Investors should monitor MyMedic integration, automation execution, and the pace of normalized retail demand recovery.

Conclusion

Acme United enters 2026 with a stronger, more diversified platform in first aid and medical markets, underpinned by operational flexibility and disciplined capital allocation. Ongoing investment in automation and DTC channels positions the company for differentiated growth, but integration and macro risks warrant close investor attention.

Industry Read-Through

Acme’s results highlight the rising importance of supply chain diversification and automation across industrial and medical supply sectors. Direct-to-consumer expansion is becoming a critical lever for traditional B2B players as retail channels fragment and customer expectations shift. Margin management through automation and selective pricing is increasingly necessary in an era of input cost volatility and global trade uncertainty. Competitors in first aid, medical consumables, and adjacent industrial categories will need similar operational agility and digital channel strategies to sustain growth and protect share.

ACU Industrials Medical Supplies Direct-to-Consumer Automation Acquisition Supply Chain First Aid