Acme United delivered a resilient QQ2 2025 performance despite meaningful tariff headwinds. Net sales declined 3% year over year to $54.0 million, while net income rose to $4.8 million and diluted EPS reached $1.16, marking a quarterly earnings record when excluding legacy onetime items. The gross margin stood at 41.0%, with operating margin at 11.8% and net margin at 8.8%. Management attributes the top-line softness primarily to 145% tariffs on Chinese imports, which disrupted Westcott (cutting tools) and to a lesser extent other segments, prompting customers to delay or cancel orders. Acme responded with price discipline, cost reduction, and accelerated localization of production. The company continues to invest for capacity and efficiency gains, including the Mount Pleasant Spill Magic facility acquisition ( ~$6 million ), expanded Med‑Nap operations in Florida, and automation upgrades across multiple plants. Management remains confident in growth in the second half of 2025, with anticipated sequential growth in Q3 and Q4 driven by recovery of delayed programs and share gains in Westcott and First Aid products. Net debt declined meaningfully to about $30.7 million (vs. ~$33 million a year prior), while free cash flow for the trailing twelve months was around $12 million, supporting an unchanged or increasing dividend and ongoing buy‑back capacity if pursued. The company also signaled ongoing supply‑chain diversification, including shifting production away from China to Malaysia, Thailand, Vietnam, Egypt, and internal facilities, to better navigate tariff risk and strengthen service levels.