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Brady Corporation Reports Fiscal 2026 First Quarter Results and Raises the Low End of its Fiscal 2026 Adjusted Diluted EPS Guidance

•Sales for the quarter increased 7.5 percent. Organic sales increased 2.8 percent, acquisitions increased sales 3.2 percent, and foreign currency increased sales 1.5 percent.
•Diluted EPS increased 16.5 percent to $1.13 in the first quarter of fiscal 2026 compared to $0.97 in the same quarter of the prior year. Adjusted Diluted EPS* increased 8.0 percent to $1.21 in the first quarter of fiscal 2026 compared to $1.12 in the same quarter of the prior year.
•Cash flow from operating activities increased 42.5 percent to $33.4 million in the first quarter of fiscal 2026 compared to $23.4 million in the same quarter of the prior year.
•The low end of Adjusted Diluted EPS* guidance was raised for the full year ending July 31, 2026 from the previous range of $4.85 to $5.15 per share to the new range of $4.90 to $5.15 per share. GAAP earnings per diluted Class A Nonvoting Common share guidance for the full year ending July 31, 2026 was adjusted for acquisition-related amortization to $4.57 to $4.82 per share, from $4.55 to $4.85 per share.

MILWAUKEE (November 17, 2025) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2026 first quarter ended October 31, 2025.

Quarter Ended October 31, 2025 Financial Results:
Sales for the quarter ended October 31, 2025 increased 7.5 percent, which consisted of an organic sales increase of 2.8 percent, an increase of 3.2 percent from acquisitions and an increase of 1.5 percent from foreign currency translation. Sales for the quarter ended October 31, 2025 were $405.3 million compared to $377.1 million in the same quarter last year. By region, sales increased 9.6 percent in the Americas & Asia and increased 3.6 percent in Europe & Australia, which included organic sales growth of 4.7 percent in the Americas & Asia and an organic sales decline of 0.8 percent in Europe & Australia.
Income before income taxes increased 16.5 percent to $68.5 million in the quarter ended October 31, 2025 compared to $58.8 million in the same quarter last year. Adjusted Income Before Income Taxes* in the quarter ended October 31, 2025, which was adjusted for amortization expense of $5.3 million, was $73.8 million, an increase of 7.6 percent compared to the first quarter of last year. Adjusted Income Before Income Taxes* in the quarter ended October 31, 2024, which was adjusted for amortization expense and other acquisition-related charges of $9.8 million, was $68.6 million.
Net income in the quarter ended October 31, 2025 was $53.9 million compared to $46.8 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share was $1.13 in the first quarter of fiscal 2025 compared to $0.97 in the same quarter last year. Adjusted Net Income* in the quarter ended October 31, 2025 was $58.0 million compared to $54.2 million in the same quarter last year. Adjusted Diluted EPS* in the quarter ended October 31, 2025 was $1.21 compared to $1.12 in the same quarter last year.



Commentary:
“Our investments in research and development continue to add value for our customers and drive organic sales growth. We reported strong organic sales growth in the Americas & Asia region, and our Europe & Australia region reported a significant improvement in segment profit in the quarter,” said Brady’s President and CEO, Russell R. Shaller. “We also closed on the acquisition of Mecco at the beginning of the quarter, which is an exciting addition to our laser marking system product line. Mecco is a natural complement to our acquisition of Gravotech that we closed last year, and we’re looking forward to the future through the combination of these businesses.”
“We generated adjusted EPS of $1.21, which represented 8.0 percent growth compared to last year’s first quarter. This improvement was driven by our organic sales growth and continued gross profit margin expansion throughout our organic businesses,” said Brady’s Chief Financial Officer, Ann Thornton. “We are in a net cash position of $66.8 million as of October 31, 2025, which allows us to continue to make strategic investments in both organic and inorganic opportunities to drive long-term shareholder value while returning funds to our shareholders through dividends and share buybacks.”

Fiscal 2026 Guidance:
The Company raised the low end of its Adjusted Diluted EPS* guidance for the year ending July 31, 2026 from $4.85 to $5.15 per share to $4.90 to $5.15 per share. The Company’s GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2026 was updated for acquisition-related amortization to $4.57 to $4.82 per share, from $4.55 to $4.85 per share.
The other assumptions included in our fiscal 2026 guidance include a full-year income tax rate of approximately 21 percent, depreciation and amortization expense of approximately $44 million, and capital expenditures of approximately $40 million. Our fiscal 2026 guidance is based on foreign currency exchange rates as of October 31, 2025 and assumes continued economic growth.

A webcast regarding Brady’s fiscal 2026 first quarter financial results will be available at www.bradycorp.com/investors beginning at 9:30 a.m. central time today.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2025, employed approximately 6,400 people in its worldwide businesses. Brady’s fiscal 2025 sales were approximately $1.51 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradyid.com.


* Adjusted Income Before Income Taxes, Adjusted Net Income, and Adjusted Diluted EPS are non-GAAP measures. See appendix for more information on these measures, including reconciliations to the most directly comparable GAAP measures.



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In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations.

The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: increased cost of materials, labor, material shortages and supply chain disruptions, including as a result of tariffs or other impacts of the global trade environment; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; Brady’s ability to identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks, and systems against security breaches; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; risks associated with the loss of key employees; litigation, including product liability claims; global climate change and environmental regulations; foreign currency fluctuations; changes in tax legislation and tax rates; potential write-offs of goodwill and other intangible assets; differing interests of voting and non-voting shareholders and changes in the regulatory and business environment around dual-class voting structures; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2025.

These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements except as required by law.


BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars in thousands, except per share data)
Three months ended October 31,
 20252024
Net sales$405,287 $377,065 
Cost of goods sold196,455 187,376 
Gross margin208,832 189,689 
Operating expenses:
Research and development23,292 18,921 
Selling, general and administrative117,568 111,846 
Total operating expenses140,860 130,767 
Operating income67,972 58,922 
Other income (expense):
    Investment and other income1,712 1,234 
    Interest expense(1,208)(1,356)
Income before income taxes68,476 58,800 
Income tax expense14,540 12,017 
Net income$53,936 $46,783 
Net income per Class A Nonvoting Common Share:
Basic$1.14 $0.98 
Diluted$1.13 $0.97 
Net income per Class B Voting Common Share:
Basic$1.13 $0.96 
Diluted$1.11 $0.95 
Weighted average common shares outstanding:
Basic47,273 47,732 
Diluted47,731 48,217 



BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
 October 31, 2025July 31, 2025
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$182,684 $174,349 
Accounts receivable, net of allowance for credit losses of $7,253 and $7,876, respectively
248,551 231,944 
Inventories215,568 200,881 
Prepaid expenses and other current assets15,568 14,661 
Total current assets662,371 621,835 
Property, plant and equipment—net232,522 225,572 
Goodwill681,721 676,945 
Other intangible assets114,932 105,374 
Deferred income taxes18,495 20,862 
Operating lease assets60,350 58,422 
Other assets24,283 25,243 
Total$1,794,674 $1,734,253 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$103,804 $105,028 
Accrued compensation and benefits69,886 92,657 
Taxes, other than income taxes22,933 21,537 
Accrued income taxes6,812 5,547 
Current operating lease liabilities16,590 15,234 
Other current liabilities100,683 90,329 
Total current liabilities320,708 330,332 
Long-term debt115,906 99,766 
Long-term operating lease liabilities44,288 43,565 
Other liabilities68,952 68,379 
Total liabilities549,854 542,042 
Stockholders’ equity:
Common stock:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,666,121 and 43,530,012 shares, respectively
513 513 
Class B voting common stock—Issued and outstanding, 3,538,628 shares35 35 
Additional paid-in capital359,690 359,269 
Retained earnings1,360,156 1,317,739 
Treasury stock—7,595,366 and 7,731,475 shares, respectively, of Class A nonvoting common stock, at cost
(388,847)(393,186)
Accumulated other comprehensive loss(86,727)(92,159)
Total stockholders’ equity1,244,820 1,192,211 
Total$1,794,674 $1,734,253 



BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in thousands)
Three months ended October 31,
20252024
Operating activities:
Net income$53,936 $46,783 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization11,008 10,164 
Stock-based compensation expense6,746 5,813 
Deferred income taxes3,973 (903)
Other223 (880)
Changes in operating assets and liabilities:
Accounts receivable(12,875)(4,385)
Inventories(10,980)(2,107)
Prepaid expenses and other assets(391)(1,136)
Accounts payable and accrued liabilities(19,530)(33,960)
Income taxes1,246 4,017 
Net cash provided by operating activities33,356 23,406 
Investing activities:
Purchases of property, plant and equipment(10,980)(7,286)
Acquisition of businesses, net of cash acquired(17,416)(140,625)
Other8 10 
Net cash used in investing activities(28,388)(147,901)
Financing activities:
Payment of dividends(11,519)(11,402)
Proceeds from exercise of stock options5,001 5,855 
Payments for employee taxes withheld from stock-based awards(3,198)(2,090)
Purchase of treasury stock(4,054)— 
Proceeds from borrowing on credit agreement46,640 135,149 
Repayment of borrowing on credit agreement(30,500)(109,439)
Other266 190 
Net cash provided by financing activities2,636 18,263 
Effect of exchange rate changes on cash and cash equivalents731 1,775 
Net increase (decrease) in cash and cash equivalents8,335 (104,457)
Cash and cash equivalents, beginning of period174,349 250,118 
Cash and cash equivalents, end of period$182,684 $145,661 


BRADY CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited; Dollars in thousands)
Three months ended October 31,
20252024
NET SALES
Americas & Asia$268,893 $245,428 
Europe & Australia136,394 131,637 
Total$405,287 $377,065 
SALES INFORMATION
Americas & Asia
Organic4.7 %5.1 %
Acquisitions4.9 %7.4 %
Currency— %(0.2)%
Divestiture— %(1.6)%
Total9.6 %10.7 %
Europe & Australia
Organic(0.8)%0.7 %
Acquisitions— %15.0 %
Currency4.4 %3.6 %
Total3.6 %19.3 %
Total Company
Organic2.8 %3.6 %
Acquisitions3.2 %9.9 %
Currency1.5 %1.2 %
Divestiture— %(1.1)%
Total7.5 %13.6 %
SEGMENT PROFIT
Americas & Asia$59,863 $54,900 
Europe & Australia18,732 13,114 
Total segment profit$78,595 $68,014 
SEGMENT PROFIT AS A PERCENT OF NET SALES
Americas & Asia22.3 %22.4 %
Europe & Australia13.7 %10.0 %
Total19.4 %18.0 %
Three months ended October 31,
20252024
Total segment profit$78,595 $68,014 
Unallocated amounts:
Administrative costs(10,623)(9,092)
Investment and other income1,712 1,234 
Interest expense(1,208)(1,356)
Income before income taxes$68,476 $58,800 



GAAP to NON-GAAP MEASURES
(Unaudited; Dollars in Thousands, Except Per Share Amounts)
In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure.
Adjusted Income Before Income Taxes:
Brady is presenting the non-GAAP measure, "Adjusted Income Before Income Taxes." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes to the non-GAAP measure of Adjusted Income Before Income Taxes:
Three months ended October 31,
20252024
Income before income taxes (GAAP measure)$68,476 $58,800 
Amortization expense5,341 4,713 
Non-recurring acquisition-related costs and other expenses— 5,059 
Adjusted Income Before Income Taxes (non-GAAP measure)$73,817 $68,572 

Adjusted Income Tax Expense:
Brady is presenting the non-GAAP measure, "Adjusted Income Tax Expense." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Adjusted Income Tax Expense:
Three months ended October 31,
20252024
Income tax expense (GAAP measure)$14,540 $12,017 
Amortization expense1,289 1,133 
Non-recurring acquisition-related costs and other expenses— 1,265 
Adjusted Income Tax Expense (non-GAAP measure)$15,829 $14,415 


Adjusted Net Income:
Brady is presenting the non-GAAP measure, "Adjusted Net Income." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Adjusted Net Income:
Three months ended October 31,
20252024
Net income (GAAP measure)$53,936 $46,783 
Amortization expense4,052 3,580 
Non-recurring acquisition-related costs and other expenses— 3,794 
Adjusted Net Income (non-GAAP measure)$57,988 $54,157 




Adjusted Diluted EPS:
Brady is presenting the non-GAAP measure, "Adjusted Diluted EPS." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Adjusted Diluted EPS (Note that certain amounts will not foot due to rounding):
Three months ended October 31,
20252024
Net income per Class A Nonvoting Common Share (GAAP measure)$1.13 $0.97 
Amortization expense0.08 0.07 
Non-recurring acquisition-related costs and other expenses— 0.08 
Adjusted Diluted EPS (non-GAAP measure)$1.21 $1.12 


Adjusted Diluted EPS Guidance:
Fiscal 2026 Expectations
LowHigh
Earnings per Class A Nonvoting Common Share (GAAP measure)$4.57 $4.82 
Amortization expense0.33 0.33 
Adjusted Diluted EPS (non-GAAP measure)$4.90 $5.15