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

Rhea-AI Summary

Brady Corporation (NYSE: BRC) reported fiscal 2026 first quarter results for the period ended October 31, 2025. Sales rose 7.5% to $405.3M (organic +2.8%, acquisitions +3.2%, FX +1.5%). Diluted EPS was $1.13 (+16.5%) and Adjusted diluted EPS was $1.21 (+8.0%). Operating cash flow increased 42.5% to $33.4M. The company closed the acquisition of Mecco and reported a net cash position of $66.8M as of October 31, 2025.

For FY2026 the company raised the low end of its adjusted diluted EPS guidance to $4.90–$5.15 and updated GAAP EPS guidance for acquisition-related amortization to $4.57–$4.82. Other guidance assumptions include a ~21% tax rate, ~$44M D&A, and ~$40M capex.

Positive

• Sales +7.5% to $405.3M (Q1 FY2026)
• Adjusted diluted EPS +8.0% to $1.21 (Q1)
• Diluted EPS +16.5% to $1.13 (Q1)
• Operating cash flow +42.5% to $33.4M (Q1)
• Raised low end of FY2026 adjusted EPS guidance to $4.90

Negative

• Long-term debt +16.2% to $115.9M (Oct 31, 2025 vs July 31, 2025)
• R&D expense +23% to $23.3M (Q1 vs prior year quarter)

Insights

Corporate Finance Analyst

Brady delivered healthy top‑line and EPS growth and nudged up fiscal‑year adjusted EPS guidance.

Brady grew sales to $405.3 million (+7.5%) and reported diluted EPS of $1.13 (+16.5%) in the quarter ended October 31, 2025. Adjusted diluted EPS rose to $1.21 (+8.0%), operating cash flow was $33.4 million (up 42.5%), and the company raised the low end of its fiscal 2026 adjusted diluted EPS guidance to $4.90–$5.15 per share for the year ending July 31, 2026.

These results show profitable growth driven by a mix of organic expansion and acquisitions. Organic sales contributed 2.8% of the quarter's growth while acquisitions added 3.2%, and segment profit improved notably in Europe & Australia. The company is in a net cash position of $66.8 million, supporting reinvestment and shareholder returns as stated.

Key dependencies and risks include the company's reliance on acquisitions to lift near‑term revenue and assumed foreign exchange rates as of October 31, 2025. Guidance assumes continued economic growth and specific tax, depreciation, and capex assumptions, which could change outcomes. Watch integration progress and organic sales momentum across regions, adjusted EPS updates, and quarterly cash flow through the fiscal year ending July 31, 2026.

• 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, Nov. 17, 2025 (GLOBE NEWSWIRE) -- 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.

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.

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

BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited; Dollars in thousands, except per share data)
	Three months ended October 31,
		2025				2024
Net sales	$	405,287			$	377,065
Cost of goods sold		196,455				187,376
Gross margin		208,832				189,689
Operating expenses:
Research and development		23,292				18,921
Selling, general and administrative		117,568				111,846
Total operating expenses		140,860				130,767
Operating income		67,972				58,922
Other income (expense):
Investment and other income		1,712				1,234
Interest expense		(1,208	)			(1,356	)
Income before income taxes		68,476				58,800
Income tax expense		14,540				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:
Basic		47,273				47,732
Diluted		47,731				48,217

BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
	October 31, 2025				July 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
Inventories		215,568				200,881
Prepaid expenses and other current assets		15,568				14,661
Total current assets		662,371				621,835
Property, plant and equipment—net		232,522				225,572
Goodwill		681,721				676,945
Other intangible assets		114,932				105,374
Deferred income taxes		18,495				20,862
Operating lease assets		60,350				58,422
Other assets		24,283				25,243
Total	$	1,794,674			$	1,734,253
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	103,804			$	105,028
Accrued compensation and benefits		69,886				92,657
Taxes, other than income taxes		22,933				21,537
Accrued income taxes		6,812				5,547
Current operating lease liabilities		16,590				15,234
Other current liabilities		100,683				90,329
Total current liabilities		320,708				330,332
Long-term debt		115,906				99,766
Long-term operating lease liabilities		44,288				43,565
Other liabilities		68,952				68,379
Total liabilities		549,854				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 shares		35				35
Additional paid-in capital		359,690				359,269
Retained earnings		1,360,156				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’ equity		1,244,820				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,
		2025				2024
Operating activities:
Net income	$	53,936			$	46,783
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		11,008				10,164
Stock-based compensation expense		6,746				5,813
Deferred income taxes		3,973				(903	)
Other		223				(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 taxes		1,246				4,017
Net cash provided by operating activities		33,356				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	)
Other		8				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 options		5,001				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 agreement		46,640				135,149
Repayment of borrowing on credit agreement		(30,500	)			(109,439	)
Other		266				190
Net cash provided by financing activities		2,636				18,263
Effect of exchange rate changes on cash		731				1,775
Net increase (decrease) in cash and cash equivalents		8,335				(104,457	)
Cash and cash equivalents, beginning of period		174,349				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,
		2025				2024
NET SALES
Americas & Asia	$	268,893			$	245,428
Europe & Australia		136,394				131,637
Total	$	405,287			$	377,065
SALES INFORMATION
Americas & Asia
Organic		4.7	%			5.1	%
Acquisitions		4.9	%			7.4	%
Currency		—	%			(0.2	)%
Divestiture		—	%			(1.6	)%
Total		9.6	%			10.7	%
Europe & Australia
Organic		(0.8	)%			0.7	%
Acquisitions		—	%			15.0	%
Currency		4.4	%			3.6	%
Total		3.6	%			19.3	%
Total Company
Organic		2.8	%			3.6	%
Acquisitions		3.2	%			9.9	%
Currency		1.5	%			1.2	%
Divestiture		—	%			(1.1	)%
Total		7.5	%			13.6	%
SEGMENT PROFIT
Americas & Asia	$	59,863			$	54,900
Europe & Australia		18,732				13,114
Total	$	78,595			$	68,014
SEGMENT PROFIT AS A PERCENT OF NET SALES
Americas & Asia		22.3	%			22.4	%
Europe & Australia		13.7	%			10.0	%
Total		19.4	%			18.0	%
	Three months ended October 31,
		2025				2024
Total segment profit	$	78,595			$	68,014
Unallocated amounts:
Administrative costs		(10,623	)			(9,092	)
Investment and other income		1,712				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,
				2025				2024
Income before income taxes (GAAP measure)			$	68,476			$	58,800
	Amortization expense			5,341				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,
				2025				2024
Income tax expense (GAAP measure)			$	14,540			$	12,017
	Amortization expense			1,289				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,
				2025				2024
Net income (GAAP measure)			$	53,936			$	46,783
	Amortization expense			4,052				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,
				2025				2024
Net income per Class A Nonvoting Common Share (GAAP measure)			$	1.13			$	0.97
	Amortization expense			0.08				0.07
	Non-recurring acquisition-related costs and other expenses			-				0.08
Adjusted Diluted EPS (non-GAAP measure)			$	1.21			$	1.12
Diluted EPS Excluding Certain Items Guidance:			Fiscal 2026 Expectations
			Low				High
Earnings per diluted Class A Common Share (GAAP measure)			$	4.57			$	4.82
	Amortization expense			0.33				0.33
Adjusted Diluted EPS (non-GAAP measure)			$	4.90			$	5.15

FAQ

What were Brady Corporation (BRC) sales and organic growth in Q1 FY2026?

Q1 FY2026 sales were $405.3M with organic sales growth of 2.8%.

How much did Brady (BRC) report for diluted and adjusted diluted EPS in Q1 FY2026?

Diluted EPS was $1.13 (+16.5%) and adjusted diluted EPS was $1.21 (+8.0%).

What guidance change did Brady (BRC) make on November 17, 2025 for FY2026 adjusted EPS?

Brady raised the low end of FY2026 adjusted diluted EPS guidance to $4.90–$5.15 per share.

How much operating cash flow did Brady (BRC) generate in Q1 FY2026?

Brady generated $33.4M of cash flow from operating activities in Q1 FY2026, up 42.5% year-over-year.

Did Brady (BRC) complete any acquisitions in Q1 FY2026 and what was the target?

Yes. Brady closed the acquisition of Mecco, adding to its laser marking system product line.

What are key FY2026 assumptions in Brady's guidance and how do they affect EPS?

Guidance assumes a ~21% tax rate, approximately $44M depreciation and amortization, and $40M capital expenditures; GAAP EPS guidance was updated for acquisition-related amortization to $4.57–$4.82.