Acme United Is Winning New Business For 2025

Acme United Corporation (US: ACU – $41.51) broke its third quarter earnings record that it had established last year. The Company’s net income for the third quarter of 2024 was $2.23 million, or $0.54 per diluted share, compared to a net income of $2.15 million or $0.58 per diluted share for the same period of 2023. An increase of 3% in net income.

In addition to the record breaking third quarter, Acme’s management indicated that the fourth quarter has started well. Moreover, the Company is winning new business for 2025 in its Westcott and first aid businesses, as well as DMT sharpeners.

In first aid, for example, Acme recently introduced the latest generation of Smart Compliance first aid cabinets at the National Safety Conference. What makes these cabinets so special is that they have patented automatic replenishment capabilities, which monitor real-time consumption of the components and permit automatic ordering of refills.

These first aid units not only facilitate compliance with OSHA, ANSI, and other regulations, but also remove the hassle of manually checking the expiration and quantity of components. We are excited about the prospects for this next generation product and look forward to seeing its impact on the market next year. There are no similar products from competitors on the market today.

During the past quarter, the Company also integrated the Elite First Aid product line into its overall product offering. Elite First Aid, which was acquired by Acme late May of this year, is a prominent supplier of first aid and tactical medical kits for a variety of markets, including military, law enforcement, and emergency services.

Acme’s sales team is actively presenting these items to its first aid customers in the U.S. and Canada and is promoting them in the e-commerce channels. Elite generated revenues of approximately $4.2 million in 2023, and we expect to see a solid boost of that number in 2025.

A final growth driver that we want to highlight are Westcott’s tools for the craft market. Although this was a small part of the business, it has grown quite well the past few months because several well-known accounts in the crafts market have started selling the Westcott tools. The number of products offered in this area will likely be expanded by Westcott, and lots more growth is expected in 2025

We reiterate our buy recommendation for Acme United Corp. with a price target of $60.01 for 2024, which is 44% above today’s stock price.

Smallcaps.us Advice: Buy	Price Target: $60.01	Latest Company Report (pdf)
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