Brady Corporation Reports Fiscal 2026 Second Quarter Results and Raises the Low End of its Fiscal 2026 EPS Guidance
•Sales for the quarter increased 7.7 percent. Organic sales increased 1.6 percent, acquisitions increased sales 2.3 percent and foreign currency translation increased sales 3.8 percent.
•Diluted EPS increased 21.7 percent to $1.01 in the second quarter of fiscal 2026 compared to $0.83 in the same quarter of the prior year. Adjusted Diluted EPS* increased 9.0 percent to $1.09 in the second quarter of fiscal 2026 compared to $1.00 in the same quarter of the prior year.
•Net cash provided by operating activities increased to $53.3 million in the second quarter of fiscal 2026 compared to $39.6 million in the second quarter of last year.
•The low end of Adjusted Diluted EPS* Guidance was raised for the full year ending July 31, 2026 from the previous range of $4.90 to $5.15 per share to the new range of $4.95 to $5.15 per share. GAAP earnings per diluted Class A Nonvoting Common share guidance for the year ending July 31, 2026 was raised from the previous range of $4.57 to $4.82 per share to $4.62 to $4.82 per share.
MILWAUKEE (February 19, 2026) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2026 second quarter ended January 31, 2026.
Quarter Ended January 31, 2026 Financial Results:
Sales for the quarter ended January 31, 2026 increased 7.7 percent, which consisted of organic sales growth of 1.6 percent, growth of 2.3 percent from acquisitions and an increase of 3.8 percent from foreign currency translation. Sales for the quarter ended January 31, 2026 were $384.1 million compared to $356.7 million in the same quarter last year. By region, sales increased 7.6 percent in the Americas & Asia and sales increased 7.9 percent in Europe & Australia, which consisted of organic sales growth of 3.1 percent in the Americas & Asia and an organic sales decline of 1.1 percent in Europe & Australia.
Income before income taxes increased 19.1 percent to $62.0 million in the quarter ended January 31, 2026, compared to $52.0 million in the same quarter last year. Adjusted Income Before Income Taxes* in the quarter ended January 31, 2026, which was adjusted for amortization expense of $5.2 million, was $67.2 million, an increase of 7.7 percent compared to the second quarter of last year. Adjusted Income Before Income Taxes* in the quarter ended January 31, 2025, which was adjusted for amortization expense and facility closure and other reorganization costs of $10.3 million, was $62.4 million.
Net income for the quarter ended January 31, 2026 was $48.1 million compared to $40.3 million in the same quarter last year. Adjusted Net Income* in the quarter ended January 31, 2026 was $52.0 million compared to $48.1 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share was $1.01
compared to $0.83 in the same quarter last year. Adjusted Diluted EPS* in the quarter ended January 31, 2026 was $1.09 compared to $1.00 in the same quarter last year.
Six-Month Period Ended January 31, 2026 Financial Results:
Sales for the six-month period ended January 31, 2026 increased 7.6 percent, which consisted of organic sales growth of 2.2 percent, growth of 2.8 percent from acquisitions and an increase of 2.6 percent from foreign currency translation. Sales for the six months ended January 31, 2026 were $789.4 million compared to $733.7 million in the same period last year. By region, sales increased 8.6 percent in the Americas & Asia and sales increased 5.7 percent in Europe & Australia, which consisted of organic sales growth of 3.9 percent in the Americas & Asia and an organic sales decline of 0.9 percent in Europe & Australia.
Income before income taxes increased 17.7 percent to $130.5 million in the six-month period ended January 31, 2026, compared to $110.8 million in the same period last year. Adjusted Income Before Income Taxes* in the six-month period ended January 31, 2026, which was adjusted for amortization expense of $10.5 million, was $141.0 million, an increase of 7.7 percent compared to the same period last year. Adjusted Income Before Income Taxes* in the six-month period ended January 31, 2025, which was adjusted for amortization expense, facility closure and other reorganization costs and acquisition-related charges of $20.1 million, was $130.9 million.
Net income in the six-month period ended January 31, 2026 was $102.0 million compared to $87.1 million in the same period last year. Adjusted Net Income* in the six-month period ended January 31, 2026 was $110.0 million compared to $102.3 million in the same period last year. Earnings per diluted Class A Nonvoting Common Share was $2.14 compared to $1.81 in the same period last year. Adjusted Diluted EPS* in the six-month period ended January 31, 2026 was $2.30 compared to $2.12 in the same period last year.
Commentary:
“This quarter marks Brady’s 20th consecutive quarter of organic sales growth, alongside a significant improvement in segment profit within both our Americas & Asia and Europe & Australia regions,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “We continue to increase our investment in research and development for innovative new products, which most recently included the i4311 industrial label printer launched last week. This printer is equipped with exciting new features unlike any other printer offering, including our LabelSenseTM technology, which simplifies adhesive material changeover while resulting in zero waste. We have more innovative new products in our roadmap, which we will deliver while continuing to improve our operational efficiency.”
“In addition to our improved profitability, we increased our cash flow from operating activities by nearly 38 percent through the first half of this fiscal year, and we were in a net cash position of $97.8 million at January 31, 2026,” said Brady’s Chief Financial Officer, Ann Thornton. “Our strong balance sheet provides us with opportunities to continue to invest in both organic growth and strategic acquisitions to increase shareholder value over the long-term.”
Fiscal 2026 Guidance:
The Company raised the low end of its GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2026 from $4.57 to $4.82 per share, to $4.62 to $4.82 per share. The Company raised the low end of its Adjusted Diluted EPS* guidance for the year ending July 31, 2026 from $4.90 to $5.15 per share to $4.95 to $5.15 per share.
The assumptions included in 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 $45 million. Fiscal 2026 guidance is based on foreign currency exchange rates as of January 31, 2026 and assumes continued economic growth.
A webcast regarding Brady’s fiscal 2026 second 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.
###
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 January 31,
Six months ended January 31,
2026
2025
2026
2025
Net sales
$
384,137
$
356,675
$
789,424
$
733,740
Cost of goods sold
189,743
180,832
386,198
368,208
Gross margin
194,394
175,843
403,226
365,532
Operating expenses:
Research and development
24,309
18,723
47,601
37,644
Selling, general and administrative
107,895
105,886
225,463
217,732
Total operating expenses
132,204
124,609
273,064
255,376
Operating income
62,190
51,234
130,162
110,156
Other income (expense):
Investment and other income
805
2,125
2,517
3,359
Interest expense
(990)
(1,312)
(2,198)
(2,668)
Income before income taxes
62,005
52,047
130,481
110,847
Income tax expense
13,954
11,713
28,494
23,730
Net income
$
48,051
$
40,334
$
101,987
$
87,117
Net income per Class A Nonvoting Common Share:
Basic
$
1.02
$
0.84
$
2.16
$
1.82
Diluted
$
1.01
$
0.83
$
2.14
$
1.81
Net income per Class B Voting Common Share:
Basic
$
1.02
$
0.84
$
2.14
$
1.81
Diluted
$
1.01
$
0.83
$
2.12
$
1.79
Weighted average common shares outstanding:
Basic
47,310
47,851
47,291
47,792
Diluted
47,738
48,306
47,734
48,261
BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
January 31, 2026
July 31, 2025
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
176,492
$
174,349
Accounts receivable, net of allowance for credit losses of $7,446 and $7,876, respectively
242,905
231,944
Inventories
225,821
200,881
Prepaid expenses and other current assets
17,105
14,661
Total current assets
662,323
621,835
Property, plant and equipment—net
244,048
225,572
Goodwill
696,996
676,945
Other intangible assets
109,702
105,374
Deferred income taxes
19,396
20,862
Operating lease assets
65,703
58,422
Other assets
27,032
25,243
Total
$
1,825,200
$
1,734,253
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
100,002
$
105,028
Accrued compensation and benefits
72,842
92,657
Taxes, other than income taxes
20,517
21,537
Accrued income taxes
5,631
5,547
Current operating lease liabilities
17,451
15,234
Other current liabilities
94,386
90,329
Total current liabilities
310,829
330,332
Long-term debt
78,706
99,766
Long-term operating lease liabilities
48,741
43,565
Other liabilities
73,904
68,379
Total liabilities
512,180
542,042
Stockholders’ equity:
Common stock:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,679,050 and 43,530,012 shares, respectively
513
513
Class B voting common stock—Issued and outstanding, 3,538,628 shares
35
35
Additional paid-in capital
361,567
359,269
Retained earnings
1,396,642
1,317,739
Treasury stock—7,582,437 and 7,731,475 shares, respectively, of Class A nonvoting common stock, at cost
(389,988)
(393,186)
Accumulated other comprehensive loss
(55,749)
(92,159)
Total stockholders’ equity
1,313,020
1,192,211
Total
$
1,825,200
$
1,734,253
BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in thousands)
Six months ended January 31,
2026
2025
Operating activities:
Net income
$
101,987
$
87,117
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
22,205
20,096
Stock-based compensation expense
9,259
7,993
Deferred income taxes
7,571
(3,076)
Other
410
231
Changes in operating assets and liabilities:
Accounts receivable
(1,924)
6,605
Inventories
(16,747)
(8,384)
Prepaid expenses and other assets
(1,280)
(2,571)
Accounts payable and accrued liabilities
(34,710)
(41,650)
Income taxes
(101)
(3,361)
Net cash provided by operating activities
86,670
63,000
Investing activities:
Purchases of property, plant and equipment
(21,947)
(14,423)
Acquisition of businesses, net of cash acquired
(17,416)
(137,348)
Other
(1,958)
53
Net cash used in investing activities
(41,321)
(151,718)
Financing activities:
Payment of dividends
(23,084)
(22,867)
Proceeds from exercise of stock options
8,255
5,712
Payments for employee taxes withheld from stock-based awards
(3,318)
(2,130)
Purchase of treasury stock
(8,964)
—
Proceeds from borrowing on credit agreement
72,500
159,373
Repayment of borrowing on credit agreement
(93,560)
(162,621)
Other
266
190
Net cash used in financing activities
(47,905)
(22,343)
Effect of exchange rate changes on cash and cash equivalents
4,699
(605)
Net increase (decrease) in cash and cash equivalents
2,143
(111,666)
Cash and cash equivalents, beginning of period
174,349
250,118
Cash and cash equivalents, end of period
$
176,492
$
138,452
BRADY CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited; Dollars in thousands)
Three months ended January 31,
Six months ended January 31,
2026
2025
2026
2025
NET SALES
Americas & Asia
$
251,604
$
233,846
$
520,497
$
479,274
Europe & Australia
132,533
122,829
268,927
254,466
Total
$
384,137
$
356,675
$
789,424
$
733,740
SALES INFORMATION
Americas & Asia
Organic
3.1
%
4.3
%
3.9
%
4.7
%
Acquisitions
3.5
%
7.6
%
4.2
%
7.5
%
Currency
1.0
%
(1.4)
%
0.5
%
(0.8)
%
Divestiture
—
%
—
%
—
%
(0.8)
%
Total
7.6
%
10.5
%
8.6
%
10.6
%
Europe & Australia
Organic
(1.1)
%
(0.8)
%
(0.9)
%
—
%
Acquisitions
—
%
15.1
%
—
%
15.1
%
Currency
9.0
%
(3.6)
%
6.6
%
(0.1)
%
Total
7.9
%
10.7
%
5.7
%
15
%
Total Company
Organic
1.6
%
2.6
%
2.2
%
3.1
%
Acquisitions
2.3
%
10.2
%
2.8
%
10.0
%
Currency
3.8
%
(2.2)
%
2.6
%
(0.5)
%
Divestiture
—
%
—
%
—
%
(0.5)
%
Total
7.7
%
10.6
%
7.6
%
12.1
%
SEGMENT PROFIT
Americas & Asia
$
53,751
$
45,986
$
113,614
$
100,886
Europe & Australia
15,422
11,378
34,154
24,492
Total segment profit
$
69,173
$
57,364
$
147,768
$
125,378
SEGMENT PROFIT AS A PERCENT OF NET SALES
Americas & Asia
21.4
%
19.7
%
21.8
%
21.0
%
Europe & Australia
11.6
%
9.3
%
12.7
%
9.6
%
Total
18.0
%
16.1
%
18.7
%
17.1
%
Three months ended January 31,
Six months ended January 31,
2026
2025
2026
2025
Total segment profit
$
69,173
$
57,364
$
147,768
$
125,378
Unallocated amounts:
Administrative costs
(6,983)
(6,130)
(17,606)
(15,222)
Investment and other (expense) income
805
2,125
2,517
3,359
Interest expense
(990)
(1,312)
(2,198)
(2,668)
Income before income taxes
$
62,005
$
52,047
$
130,481
$
110,847
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 January 31,
Six months ended January 31,
2026
2025
2026
2025
Income before income taxes (GAAP measure)
$
62,005
$
52,047
$
130,481
$
110,847
Amortization expense
5,172
4,671
10,513
9,384
Facility closure and other reorganization costs
—
5,654
—
5,654
Non-recurring acquisition-related costs and other expenses
—
—
—
5,059
Adjusted Income Before Income Taxes (non-GAAP measure)
$
67,177
$
62,372
$
140,994
$
130,944
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 January 31,
Six months ended January 31,
2026
2025
2026
2025
Income tax expense (GAAP measure)
$
13,954
$
11,713
$
28,494
$
23,730
Amortization expense
1,247
1,125
2,536
2,258
Facility closure and other reorganization costs
—
1,413
—
1,413
Non-recurring acquisition-related costs and other expenses
—
—
—
1,265
Adjusted Income Tax Expense (non-GAAP measure)
$
15,201
$
14,251
$
31,030
$
28,666
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 January 31,
Six months ended January 31,
2026
2025
2026
2025
Net income (GAAP measure)
$
48,051
$
40,334
$
101,987
$
87,117
Amortization expense
3,925
3,546
7,977
7,126
Facility closure and other reorganization costs
—
4,241
—
4,241
Non-recurring acquisition-related costs and other expenses
—
—
—
3,794
Adjusted Net Income (non-GAAP measure)
$
51,976
$
48,121
$
109,964
$
102,278
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 January 31,
Six months ended January 31,
2026
2025
2026
2025
Net income per Class A Nonvoting Common Share (GAAP measure)
$
1.01
$
0.83
$
2.14
$
1.81
Amortization expense
0.08
0.07
0.17
0.15
Facility closure and other reorganization costs
—
0.09
—
0.09
Non-recurring acquisition-related costs and other expenses
—
—
—
0.08
Adjusted Diluted EPS (non-GAAP measure)
$
1.09
$
1.00
$
2.30
$
2.12
Adjusted Diluted EPS Guidance:
Fiscal 2026 Expectations
Low
High
Earnings per Class A Nonvoting Common Share (GAAP measure)