Brady Corporation Reports 2026 Fourth Quarter and Record Full Year Results

Q: How did Brady (BRC) perform in the fourth quarter of fiscal 2026?

For Q4 2026, Brady reported net sales of $436.9 million, up 10.0% year over year with 8.4% organic growth. Income before income taxes decreased 8.2% to $55.6 million, while Adjusted Income Before Income Taxes* increased 20.0% to $89.0 million. Adjusted Diluted EPS* rose 17.5% to $1.48, and GAAP diluted EPS was $0.96.

Q: What record did Brady (BRC) achieve for adjusted earnings in fiscal 2026?

Brady achieved a record Adjusted Diluted EPS* of $5.29 for fiscal 2026. This represented a 15.0% increase compared to Adjusted Diluted EPS* of $4.60 in fiscal 2025, driven by organic sales growth and expanding margins.

Q: How much earnings accretion and revenue does Brady (BRC) expect from its IPS segment in fiscal 2027?

Brady expects its IPS segment to contribute approximately $0.80 of Adjusted Diluted EPS* accretion in fiscal 2027, net of financing costs, with most impact in the second half. IPS revenue is projected to be about $1.15 billion for the year.

Brady posts record 2026 adjusted EPS, closes the IPS acquisition, and targets double‑digit adjusted earnings growth again in fiscal 2027.

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

Brady (BRC) reported fiscal 2026 fourth quarter and record full-year results driven by organic growth and margin expansion.

Q4 2026 net sales rose 10.0% to $436.9 million, with organic growth of 8.4%. Income before income taxes fell 8.2% to $55.6 million due to acquisition and integration costs, but Adjusted Income Before Income Taxes* increased 20.0% to $89.0 million. Adjusted Net Income* grew 17.5% to $70.7 million, and Adjusted Diluted EPS* increased 17.5% to $1.48, while GAAP diluted EPS declined to $0.96.

For fiscal 2026, sales increased 9.8% to $1.66 billion, driven by 5.3% organic growth. Net income rose 8.5% to $205.4 million, and Adjusted Net Income* increased 14.2% to $252.6 million. Diluted EPS grew 9.1% to $4.30, and Adjusted Diluted EPS* reached a record $5.29, up 15.0%. Cash flow from operating activities increased nearly 35% to $244.1 million, and the company returned $88.3 million via dividends and share buybacks, ending the year with net cash of $172.2 million.

On August 3, 2026, Brady completed the acquisition of Honeywell Technologies’ Productivity Solutions and Services business, now the Intelligent Productivity Solutions (IPS) segment. For fiscal 2027, Brady guides Adjusted Diluted EPS* of $6.25–$6.75, implying 18.1%–27.6% growth, expects about $0.80 EPS accretion from IPS and IPS revenue of approximately $1.15 billion, and forecasts around 5% organic revenue growth in its Identification Solutions (IDS) segment.

Positive

Fiscal 2026 net sales rose 9.8% to $1.66 billion, driven by 5.3% organic growth.
Record Adjusted Diluted EPS* reached $5.29 in 2026, up 15.0% from $4.60 in 2025.
Cash flow from operating activities increased nearly 35% to $244.1 million versus $181.2 million in 2025.
Shareholder returns totaled $88.3 million in 2026 through dividends and share repurchases.
Net cash position was $172.2 million as of July 31, 2026, supported by low long-term debt of $15.0 million.
Fiscal 2027 Adjusted Diluted EPS* guidance of $6.25–$6.75 implies 18.1%–27.6% growth versus 2026.
IPS acquisition is expected to add about $0.80 Adjusted Diluted EPS* and approximately $1.15 billion of revenue in fiscal 2027.

Negative

Q4 2026 income before income taxes declined 8.2% to $55.6 million, reflecting acquisition and integration-related costs.
Q4 2026 GAAP diluted EPS decreased to $0.96 from $1.04 in the prior-year quarter.
Q4 2026 selling, general and administrative expenses increased to $148.1 million from $117.9 million a year earlier.
Interest expense rose to $6.2 million in Q4 2026 from $1.1 million in Q4 2025, and to $9.7 million for fiscal 2026 from $4.7 million in 2025.

Market Context

The August 3 acquisition announcement was followed by a 1.75% 24-hour move, adding a historical comp...

Analysis

The August 3 acquisition announcement was followed by a 1.75% 24-hour move, adding a historical comparator. Net buying of 13,011 shares by the CEO provided additional context; integration costs and indebtedness remain risks to monitor.

Key Figures

Q4 Sales: $436.9 million (+10.0%) Q4 Adjusted Diluted EPS: $1.48 (+17.5%) Fiscal Year Sales: $1.66 billion (+9.8%) +5 more

8 metrics

Q4 Sales $436.9 million (+10.0%) Quarter ended July 31, 2026, versus $397.3 million prior year

Q4 Adjusted Diluted EPS $1.48 (+17.5%) Fourth quarter 2026 versus $1.26 in the same quarter last year

Fiscal Year Sales $1.66 billion (+9.8%) Year ended July 31, 2026, versus $1.51 billion prior fiscal year

Fiscal Year Adjusted Diluted EPS $5.29 (+15.0%) Fiscal 2026 record versus $4.60 in 2025

Operating Cash Flow $244.1 million (+nearly 35%) Fiscal 2026 versus $181.2 million in fiscal 2025

Fiscal 2027 Adjusted Diluted EPS Guidance $6.25-$6.75 per share Year ending July 31, 2027; growth of 18.1%-27.6% versus 2026

IPS EPS Accretion $0.80 Expected fiscal 2027 adjusted diluted EPS accretion, net of financing costs

IPS Revenue Contribution $1.15 billion Expected revenue for the year ending July 31, 2027

Historical Context

5 past events · Latest: Aug 21 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 21	Earnings call notice	Neutral	+0.6%	Scheduled fiscal 2026 fourth-quarter results and conference call for September 3
Aug 03	Acquisition completion	Positive	+1.8%	Completed Honeywell Productivity Solutions acquisition in an all-cash transaction
Jun 08	CEO transition	Negative	-15.1%	Vineet Nargolwala succeeded Russell Shaller as chief executive officer
May 19	Dividend declaration	Positive	-0.0%	Declared regular cash dividend payable to shareholders of record
May 18	Third-quarter earnings	Positive	+19.0%	Reported record adjusted EPS and raised fiscal 2026 adjusted EPS guidance

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Positive operating announcements were generally followed by positive moves, while the CEO transition and dividend notice diverged from their announcement sentiment.

Key Terms

adjusted diluted eps, non-gaap measures, organic sales growth, net leverage

4 terms

adjusted diluted eps financial

"Adjusted Diluted EPS* was $1.48 compared to $1.26"

Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.

non-gaap measures financial

"Adjusted Income Before Income Taxes, Adjusted Net Income, and Adjusted Diluted EPS are non-GAAP measures."

Financial results that companies present using formulas or adjustments different from standard accounting rules (GAAP) to highlight what management considers the business’s ongoing performance. Investors care because these figures can make trends or profitability look clearer—like showing a car’s fuel efficiency after removing unusual trips—but they can also hide one‑time costs or aggressive assumptions, so comparing them with GAAP numbers helps judge reliability.

organic sales growth financial

"The year-over-year increase was primarily driven by organic sales growth of 8.4%."

Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.

net leverage financial

"Our strong balance sheet allows us to continue to invest in organic growth, reduce our net leverage"

Net leverage measures how many years it would take for a company to pay off its outstanding debt using its annual operating cash flow, after subtracting cash on hand from total debt. Think of it like a household’s mortgage balance minus savings divided by yearly income; a lower number means the company is in a safer position to handle debt, while a higher number signals greater financial risk and potential pressure on profits or growth.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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09/03/2026 - 06:00 AM

Achieved Record Annual Revenue and Adjusted Diluted Earnings Per Share

Completed Transformational Acquisition of Honeywell Technologies’ Productivity Solutions and Services Business on August 3, 2026

Announces Fiscal Year 2027 Guidance – Adjusted Diluted EPS Expected to Grow 23% at the Midpoint of Guidance Range

MILWAUKEE, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification, safety and productivity solutions, today announced its financial results for its fiscal 2026 fourth quarter and the year ended July 31, 2026.

“The results of the fourth quarter and full year 2026 are a clear indication of the momentum we are achieving at Brady Corporation,” said Vineet Nargolwala, President and Chief Executive Officer. “Our strong organic growth, with additional contributions from acquisitions and foreign currency translation, drove 10% sales growth for the quarter and the year. Organic sales growth and expanding margins drove a 15% increase in adjusted earnings per share in 2026 versus 2025.”

He continued, “As we enter 2027, continued growth in our Identification Solutions business (IDS), complemented by the addition of the newly named Intelligent Productivity Solutions business (IPS), is expected to drive 23% growth in adjusted diluted earnings per share* at the midpoint of our guidance range.”

Mr. Nargolwala concluded, “With the closing of the IPS acquisition, Brady becomes a stronger and more global industrial technology company. Our addressable market is expanding to $14 billion as we grow our presence in manufacturing, transportation, logistics, retail and healthcare markets. As we enter a new chapter for Brady, I could not be more excited about our opportunity to drive value for all of our stakeholders.”

Fourth Quarter Financial Results:
Sales for the quarter ended July 31, 2026 were $436.9 million, an increase of 10.0% compared to $397.3 million in the same quarter last year. The year-over-year increase was primarily driven by organic growth of 8.4%. By region, sales increased 13.5% in the Americas & Asia and 3.2% in Europe & Australia, primarily driven by organic sales growth of 11.6% in the Americas & Asia and 2.1% in Europe & Australia. See the Segment Information table for growth drivers and segment profit.

Income before income taxes decreased 8.2% to $55.6 million in the quarter ended July 31, 2026, compared to $60.5 million in the same quarter last year, reflecting acquisition and integration-related costs in the fourth quarter of 2026. Adjusted Income Before Income Taxes* was $89.0 million, an increase of 20.0% compared to $74.2 million in the fourth quarter of last year. See the GAAP to Non-GAAP Measures table for detailed adjustments.

Net income for the quarter was $45.6 million compared to $49.9 million in the same quarter last year, reflecting acquisition and integration-related costs in the fourth quarter of 2026. Adjusted Net Income* increased 17.5% to $70.7 million compared to $60.2 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share was $0.96 compared to $1.04 in the same quarter last year. Adjusted Diluted EPS* was $1.48 compared to $1.26 in the same quarter last year, an increase of 17.5%.

Fiscal Year Financial Results:
Sales for the year ended July 31, 2026 increased 9.8% to $1.66 billion compared to $1.51 billion in the prior fiscal year. The year-over-year increase was primarily driven by organic growth of 5.3%. By region, sales increased 11.4% in the Americas & Asia and 6.7% in Europe & Australia, primarily driven by organic sales growth of 7.5% in the Americas & Asia and 1.2% in Europe & Australia.

Income before income taxes increased 9.4% to $259.4 million in the year ended July 31, 2026, compared to $237.1 million in the prior year. Adjusted Income Before Income Taxes* was $322.1 million, an increase of 15.2% compared to $279.5 million in 2025.

Net income was $205.4 million, an increase of 8.5% compared to $189.3 million last year. Adjusted Net Income* was $252.6 million, an increase of 14.2% compared to $221.3 million in 2025. Earnings per diluted Class A Nonvoting Common Share was $4.30, an increase of 9.1% compared to $3.94 in 2025. The company achieved record Adjusted Diluted EPS* of $5.29, a 15.0% increase compared to $4.60 in 2025.

Brady’s Chief Financial Officer, Ann Thornton, said, “We continued our strong momentum and achieved another annual adjusted earnings per share record, increased our cash flow from operating activities nearly 35% to $244.1 million in fiscal 2026 compared to $181.2 million in fiscal 2025, and returned $88.3 million to our shareholders in the form of dividends and share buybacks. Our net cash position of $172.2 million as of July 31, 2026, provided significant support for our acquisition of the Intelligent Productivity Solutions business. Our strong balance sheet allows us to continue to invest in organic growth, reduce our net leverage, and continue to return funds to our shareholders through dividends and share buybacks to drive long-term shareholder value.”

Fiscal 2027 Guidance:
The Company expects Adjusted Diluted EPS* for the year ending July 31, 2027 to range from $6.25 to $6.75 per share, which represents a range of growth of between 18.1 percent to 27.6 percent compared to 2026. The Company expects approximately $0.80 Adjusted Diluted EPS* accretion from the IPS segment, net of the cost of financing the transaction, with the majority of the contribution in the second half of the fiscal year as the business is integrated.

The Company expects revenue from the IDS segment to grow approximately 5 percent organically, and expects the IPS segment to contribute revenue of approximately $1.15 billion for the year ending July 31, 2027. Segment profit as a percentage of sales is expected to be approximately 20 percent within the IDS segment, and is expected to be in the low-double digits within the IPS segment.

Other elements of the Company’s 2027 guidance include depreciation expense of approximately $45 million, capital expenditures of approximately $40 million, and a full-year income tax rate of approximately 21 percent. Fiscal 2027 guidance is based upon foreign currency exchange rates as of July 31, 2026, and assumes continued economic growth.

A webcast regarding Brady’s fiscal 2026 fourth quarter financial results will be available at www.bradycorp.com/investors beginning at 7:30 a.m. central time today.

Brady Corporation (NYSE: BRC) is a global industrial technology company and a leading provider of identification, safety, and productivity solutions that help organizations of all sizes to identify, connect, protect, track, and optimize what matters most. By combining trusted identification technologies with advanced data capture, enterprise mobility, software and workflow solutions, Brady’s comprehensive offerings enable its customers to improve safety, productivity, accuracy, and operational performance across their most critical functions and in the world’s most demanding environments. For more than 110 years, Brady has established trust and demonstrated its commitment to innovation, serving customers across manufacturing, logistics, healthcare, electronics, telecommunications, aerospace, construction, and other key industries, to make their work safer, smarter, and more connected. Headquartered in Milwaukee, Wisconsin, Brady employs approximately 9,300 people worldwide. Brady stock trades on the New York Stock Exchange under the symbol BRC. Learn more at www.bradycorp.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 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, statements about the success of the acquisition, including anticipated benefits and synergies of the transaction, future opportunities for the combined company, and any other statements regarding the establishment of a new reporting segment for the IPS business, the combined company’s future operations and future financial position, anticipated economic activity, business strategies, targets, future earnings, anticipated growth, market opportunities, debt levels and cash flows, competition and other expectations and estimates for future periods including 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 the Company’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For the Company, uncertainties arise from: the ability of the Company and the IPS business to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally; potential difficulties integrating the IPS business, or the costs of integrating the IPS business exceeding original estimates; failure of the Company to achieve the anticipated benefits and synergies of the transaction identified in this release on the timeline indicated or at all; the establishment of a new reporting segment for the IPS business; 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 the Company’s products; the Company’s ability to compete effectively or to successfully execute our strategy; the Company’s ability to develop technologically advanced products that meet customer demands; the Company’s ability to identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting the Company’s 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; our indebtedness, financial condition and fulfillment of obligations thereunder; the ability to service our indebtedness; 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 the Company’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 the Company’s Form 10-K for the year ended July 31, 2026.

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

For More Information Contact:
Investor Contact: Ann Thornton (414) 438-6887
Media Contact: Kate Venne (414) 358-5176


BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars in thousands, except per share data)

	Three months ended July 31,						Year ended July 31,
		2026			2025			2026			2025
Net sales	$	436,904		$	397,275		$	1,661,565		$	1,513,605
Cost of goods sold		205,770			197,044			801,736			752,783
Gross margin		231,134			200,231			859,829			760,822
Operating expenses:
Research and development		22,899			23,054			94,031			79,889
Selling, general and administrative		148,117			117,885			502,312			444,295
Total operating expenses		171,016			140,939			596,343			524,184

Operating income		60,118			59,292			263,486			236,638

Other income (expense):
Investment and other income		1,680			2,356			5,628			5,206
Interest expense		(6,232	)		(1,143	)		(9,699	)		(4,747	)

Income before income taxes		55,566			60,505			259,415			237,097

Income tax expense		9,975			10,629			54,037			47,841

Net income	$	45,591		$	49,876		$	205,378		$	189,256

Net income per Class A Nonvoting Common Share:
Basic	$	0.97		$	1.05		$	4.34		$	3.97
Diluted	$	0.96		$	1.04		$	4.30		$	3.94

Net income per Class B Voting Common Share:
Basic	$	0.97		$	1.05		$	4.33		$	3.96
Diluted	$	0.96		$	1.04		$	4.29		$	3.92

Weighted average common shares outstanding:
Basic		47,200			47,335			47,285			47,641
Diluted		47,716			47,780			47,750			48,092

BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

	July 31, 2026			July 31, 2025

ASSETS
Current assets:
Cash and cash equivalents	$	187,149		$	174,349
Accounts receivable, net of allowance for credit losses of $7,742 and $7,876, respectively		260,938			231,944
Inventories		225,214			200,881
Prepaid expenses and other current assets		15,231			14,661
Total current assets		688,532			621,835
Property, plant and equipment—net		254,460			225,572
Goodwill		685,968			676,945
Other intangible assets		97,833			105,374
Deferred income taxes		21,126			20,862
Operating lease assets		67,916			58,422
Other assets		36,114			25,243
Total	$	1,851,949		$	1,734,253
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	108,703		$	105,028
Accrued compensation and benefits		105,777			92,657
Taxes, other than income taxes		22,161			21,537
Accrued income taxes		7,443			5,547
Current operating lease liabilities		17,020			15,234
Other current liabilities		94,399			90,329
Total current liabilities		355,503			330,332
Long-term debt		14,985			99,766
Long-term operating lease liabilities		51,588			43,565
Other liabilities		72,311			68,379
Total liabilities		494,387			542,042
Stockholders’ equity:
Common stock:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,360,586 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		374,456			359,269
Retained earnings		1,476,978			1,317,739
Treasury stock—7,900,901 and 7,731,475 shares, respectively, of Class A nonvoting common stock, at cost		(419,618	)		(393,186	)
Accumulated other comprehensive loss		(74,802	)		(92,159	)
Total stockholders’ equity		1,357,562			1,192,211
Total	$	1,851,949		$	1,734,253

BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in thousands)
	Year ended July 31,
		2026			2025
Operating activities:
Net income	$	205,378		$	189,256
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		44,870			40,639
Stock-based compensation expense		22,855			11,882
Deferred income taxes		2,361			(7,623	)
Other		(1,675	)		(2,540	)
Changes in operating assets and liabilities:
Accounts receivable		(24,074	)		(14,356	)
Inventories		(19,183	)		(18,889	)
Prepaid expenses and other assets		(1,369	)		(2,098	)
Accounts payable and accrued liabilities		13,208			(9,862	)
Income taxes		1,756			(5,213	)
Net cash provided by operating activities		244,127			181,196

Investing activities:
Purchases of property, plant and equipment		(51,473	)		(27,577	)
Acquisition of businesses, net of cash acquired		(17,416	)		(144,541	)
Other		9,873			864
Net cash used in investing activities		(59,016	)		(171,254	)

Financing activities:
Payment of dividends		(46,139	)		(45,542	)
Proceeds from exercise of stock options		11,318			6,171
Payments for employee taxes withheld from stock-based awards		(3,345	)		(2,683	)
Purchase of treasury stock		(42,204	)		(50,838	)
Proceeds from borrowing on credit agreement		69,500			266,846
Repayment of borrowing on credit agreement		(154,281	)		(258,015	)
Other		(12,220	)		190
Net cash used in financing activities		(177,371	)		(83,871	)

Effect of exchange rate changes on cash and cash equivalents		5,060			(1,840	)

Net increase (decrease) in cash and cash equivalents		12,800			(75,769	)
Cash and cash equivalents, beginning of period		174,349			250,118

Cash and cash equivalents, end of period	$	187,149		$	174,349

BRADY CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited; Dollars in thousands)

	Three months ended July 31,						Year ended July 31,
		2026			2025			2026			2025
NET SALES
Americas & Asia	$	296,068		$	260,789		$	1,106,620		$	993,715
Europe & Australia		140,836			136,486			554,945			519,890
Total	$	436,904		$	397,275		$	1,661,565		$	1,513,605

SALES INFORMATION
Americas & Asia
Organic		11.6	%		4.3	%		7.5	%		4.8	%
Acquistions		1.7	%		9.8	%		3.3	%		8.3	%
Currency		0.2	%		—	%		0.6	%		(0.6	)%
Divestiture		—	%		—	%		—	%		(0.4	)%
Total		13.5	%		14.1	%		11.4	%		12.1	%
Europe & Australia
Organic		2.1	%		(1.3	)%		1.2	%		(1.8	)%
Acquistions		—	%		14.4	%		—	%		14.7	%
Currency		1.1	%		5.7	%		5.5	%		1.4	%
Total		3.2	%		18.8	%		6.7	%		14.3	%
Total Company
Organic		8.4	%		2.4	%		5.3	%		2.6	%
Acquistions		1.1	%		11.3	%		2.2	%		10.5	%
Currency		0.5	%		2.0	%		2.3	%		—	%
Divestiture		—	%		—	%		—	%		(0.3	)%
Total		10.0	%		15.7	%		9.8	%		12.8	%

SEGMENT PROFIT
Americas & Asia	$	74,271		$	51,617		$	256,615		$	209,765
Europe & Australia		18,677			15,070			74,301			56,942
Total segment profit	$	92,948		$	66,687		$	330,916		$	266,707
SEGMENT PROFIT AS A PERCENT OF NET SALES
Americas & Asia		25.1	%		19.8	%		23.2	%		21.1	%
Europe & Australia		13.3	%		11.0	%		13.4	%		11.0	%
Total		21.3	%		16.8	%		19.9	%		17.6	%


	Three months ended July 31,						Year ended July 31,
		2026			2025			2026			2025
Total segment profit	$	92,948		$	66,687		$	330,916		$	266,707
Unallocated amounts:
Administrative costs		(32,830	)		(7,395	)		(67,430	)		(30,069	)
Investment and other income		1,680			2,356			5,628			5,206
Interest expense		(6,232	)		(1,143	)		(9,699	)		(4,747	)
Income before income taxes	$	55,566		$	60,505		$	259,415		$	237,097

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 July 31,				Year ended July 31,
			2026		2025		2026		2025
Income before income taxes (GAAP measure)		$	55,566	$	60,505	$	259,415	$	237,097
	Amortization expense		5,151		4,778		20,919		18,916
	Non-recurring acquisition-related costs and other related expenses ⁽¹⁾		22,241		-		35,747		5,059
	Executive transition costs		6,051		-		6,051		-
	Facility closure and other reorganization costs		-		8,890		-		18,474
Adjusted Income Before Income Taxes (non-GAAP measure)		$	89,009	$	74,173	$	322,132	$	279,546
	^{(1) Non-recurring acquisition-related costs and other related expenses includes third party integration support, financing fees, legal and other administrative expenses.}

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 July 31,				Year ended July 31,
			2026		2025		2026		2025
Income tax expense (GAAP measure)		$	9,975	$	10,629	$	54,037	$	47,841
	Amortization expense		1,247		1,148		5,050		4,550
	Non-recurring acquisition-related costs and other related expenses ⁽¹⁾		5,561		-		8,937		1,265
	Executive transition costs		1,513		-		1,513		-
	Facility closure and other reorganization costs		-		2,222		-		4,618
Adjusted Income Tax Expense (non-GAAP measure)		$	18,296	$	13,999	$	69,537	$	58,274


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 July 31,				Year ended July 31,
			2026		2025		2026		2025
Net income (GAAP measure)		$	45,591	$	49,876	$	205,378	$	189,256
	Amortization expense		3,904		3,630		15,869		14,366
	Non-recurring acquisition-related costs and other related expenses ⁽¹⁾		16,680		-		26,810		3,794
	Executive transition costs		4,538		-		4,538		-
	Facility closure and other reorganization costs		-		6,668		-		13,856
Adjusted Net Income (non-GAAP measure)		$	70,713	$	60,174	$	252,595	$	221,272


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 July 31,				Year ended July 31,
			2026		2025		2026		2025
Net income per Class A Nonvoting Common Share (GAAP measure)		$	0.96	$	1.04	$	4.30	$	3.94
	Amortization expense		0.08		0.08		0.33		0.30
	Non-recurring acquisition-related costs and other related expenses ⁽¹⁾		0.35		-		0.56		0.08
	Executive transition costs		0.10		-		0.10		-
	Facility closure and other reorganization costs		-		0.14		-		0.29
Adjusted Diluted EPS (non-GAAP measure)		$	1.48	$	1.26	$	5.29	$	4.60

FAQ

How did Brady (BRC) perform in the fourth quarter of fiscal 2026?

For Q4 2026, Brady reported net sales of $436.9 million, up 10.0% year over year with 8.4% organic growth. Income before income taxes decreased 8.2% to $55.6 million, while Adjusted Income Before Income Taxes* increased 20.0% to $89.0 million. Adjusted Diluted EPS* rose 17.5% to $1.48, and GAAP diluted EPS was $0.96.

What were Brady (BRC)'s full-year fiscal 2026 financial results?

For the year ended July 31, 2026, Brady generated net sales of $1.66 billion, up 9.8% versus 2025, with 5.3% organic growth. Net income was $205.4 million, up 8.5%, and Adjusted Net Income* reached $252.6 million, up 14.2%. Diluted EPS was $4.30, and Adjusted Diluted EPS* was a record $5.29, up 15.0%.

What record did Brady (BRC) achieve for adjusted earnings in fiscal 2026?

Brady achieved a record Adjusted Diluted EPS* of $5.29 for fiscal 2026. This represented a 15.0% increase compared to Adjusted Diluted EPS* of $4.60 in fiscal 2025, driven by organic sales growth and expanding margins.

What acquisition did Brady (BRC) complete in August 2026 and how is it structured?

On August 3, 2026, Brady completed the acquisition of Honeywell Technologies’ Productivity Solutions and Services business. The acquired operations form Brady’s newly named Intelligent Productivity Solutions (IPS) business, creating a second reporting segment alongside Identification Solutions.

What is Brady (BRC)'s Adjusted Diluted EPS* guidance for fiscal 2027?

For the year ending July 31, 2027, Brady expects Adjusted Diluted EPS* between $6.25 and $6.75. This implies growth of approximately 18.1% to 27.6% compared with fiscal 2026 Adjusted Diluted EPS* of $5.29, based on current foreign exchange rates and assuming continued economic growth.

How much earnings accretion and revenue does Brady (BRC) expect from its IPS segment in fiscal 2027?

Brady expects its IPS segment to contribute approximately $0.80 of Adjusted Diluted EPS* accretion in fiscal 2027, net of financing costs, with most impact in the second half. IPS revenue is projected to be about $1.15 billion for the year.

What were Brady (BRC)'s 2026 cash flow and shareholder return figures?

In fiscal 2026, Brady’s cash flow from operating activities increased nearly 35% to $244.1 million from $181.2 million in 2025. The company returned $88.3 million to shareholders through dividends and share repurchases during the year.