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

Rhea-AI Summary

Brady (NYSE: BRC) reported fiscal Q2 results for the quarter ended Jan 31, 2026: sales $384.1M (+7.7%), diluted EPS $1.01 (+21.7%) and adjusted diluted EPS $1.09 (+9.0%).

The company raised the low end of fiscal 2026 guidance to $4.62 GAAP EPS and $4.95 adjusted EPS.

Positive

• Sales +7.7% to $384.1M in Q2
• Diluted EPS +21.7% to $1.01 in Q2
• Adjusted diluted EPS +9.0% to $1.09 in Q2
• Net cash from operations increased to $53.3M in Q2
• Raised fiscal 2026 guidance low end to $4.62 GAAP and $4.95 adjusted EPS

Negative

• Organic sales growth modest at 1.6% in Q2
• Europe & Australia organic sales declined 1.1% in Q2
• Inventories of $225.8M may pressure working capital

News Market Reaction

+2.56%

1 alert

+2.56% News Effect

+$117M Valuation Impact

$4.68B Market Cap

0.3x Rel. Volume

On the day this news was published, BRC gained 2.56%, reflecting a moderate positive market reaction. This price movement added approximately $117M to the company's valuation, bringing the market cap to $4.68B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Quarterly sales: $384.1M Sales growth: 7.7% Diluted EPS: $1.01 +5 more

8 metrics

Quarterly sales $384.1M Q2 2026 net sales vs. $356.7M prior-year quarter

Sales growth 7.7% Q2 2026 sales increase; organic +1.6%, acquisitions +2.3%, FX +3.8%

Diluted EPS $1.01 Q2 2026 diluted EPS vs. $0.83 in prior-year quarter

Adjusted diluted EPS $1.09 Q2 2026 adjusted diluted EPS vs. $1.00 prior-year quarter

Operating cash flow $53.3M Net cash from operating activities in Q2 2026 vs. $39.6M last year

FY2026 adj. EPS guide $4.95–$5.15 Raised low end from $4.90–$5.15 for year ending Jul 31, 2026

FY2026 GAAP EPS guide $4.62–$4.82 Raised low end from $4.57–$4.82 for year ending Jul 31, 2026

Net cash position $97.8M Net cash as of January 31, 2026, per CFO commentary

Market Reality Check

Price: $93.18 Vol: Volume 377,418 is 1.69x t...

high vol

$93.18 Last Close

Volume Volume 377,418 is 1.69x the 20-day average of 223,655, indicating elevated pre-news activity. high

Technical Shares at $95.26 trade above the 200-day MA of $76.40 and sit 2.38% below the 52-week high of $97.58.

Peers on Argus

BRC slipped 0.26% while peers showed a mixed picture: ADT +1.55%, GEO +0.97%, BC...

BRC slipped 0.26% while peers showed a mixed picture: ADT +1.55%, GEO +0.97%, BCO +0.05%, versus CXW -0.43% and MSA -1.09%. The lack of a consistent direction supports a stock-specific read on these earnings.

Historical Context

5 past events · Latest: Feb 10 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 10	Earnings call notice	Neutral	+0.6%	Scheduled Q2 2026 results call and webcast announcement.
Dec 03	Board & dividend	Neutral	-0.8%	Board re-election and declaration of regular quarterly dividend.
Nov 17	Q1 2026 earnings	Positive	-2.4%	Q1 sales and EPS growth with higher FY2026 adjusted EPS guidance.
Nov 03	Earnings call notice	Neutral	-0.3%	Announcement of upcoming Q1 2026 earnings call and webcast.
Sep 03	Dividend increase	Positive	+6.5%	40th consecutive annual dividend increase and payout details.

Pattern Detected

Recent history shows mixed reactions, including instances where positive earnings and dividend news coincided with negative or muted price moves.

Recent Company History

Over the last six months, Brady has consistently communicated shareholder-friendly developments, including a 40th consecutive annual dividend increase and multiple regular dividends. Fiscal 2026 first-quarter results featured solid sales and EPS growth with a raised adjusted EPS guidance range of $4.90–$5.15. Conference-call announcements have had limited impact. Today’s second-quarter beat and guidance raise extend the same FY2026 framework, reinforcing a pattern of steady operational execution.

Market Pulse Summary

This announcement highlights steady execution: Q2 net sales of $384.1M, diluted EPS of $1.01, adjust...

Analysis

This announcement highlights steady execution: Q2 net sales of $384.1M, diluted EPS of $1.01, adjusted EPS of $1.09, and raised FY2026 EPS guidance ranges. It extends a record of organic growth and stronger cash generation. In context of prior dividend increases and earlier guidance raises, key factors to monitor include organic growth by region, acquisition performance, margin sustainability, and any changes in capital allocation or insider activity.

Key Terms

adjusted diluted eps, non-gaap, operating lease liabilities, deferred income taxes, +2 more

6 terms

adjusted diluted eps financial

"Adjusted Diluted EPS* increased 9.0 percent to $1.09 in the second quarter"

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 financial

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

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

operating lease liabilities financial

"Current operating lease liabilities | | 17,451 | | 15,234"

Long-term lease payments a company is legally committed to because it rents assets such as offices, factories, or equipment; under modern accounting rules these future rent obligations are recorded on the balance sheet as liabilities. Investors care because operating lease liabilities act like debt that drains future cash, affects measures of leverage and borrowing capacity, and can change profitability and valuation — think of them as a company’s large, ongoing rent payments that limit its financial flexibility.

deferred income taxes financial

"Deferred income taxes | | 19,396 | | 20,862"

Deferred income taxes are accounting entries that record taxes a company will owe or reclaim in the future because the company's financial accounting and its tax returns recognize income or expenses at different times. They matter to investors because deferred taxes affect future cash flow and can change a company’s real profit picture—think of them as a postponed tax bill or credit that shifts when and how much cash actually leaves or enters the business.

forward-looking statements regulatory

"statements that are not reported financial results or other historic information are “forward-looking statements.”"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

rule 144 regulatory

"plans to sell 5,538 Class A shares under Rule 144 through Fidelity Brokerage"

Rule 144 is a U.S. securities regulation that sets conditions under which restricted or insider-held shares can be legally resold to the public, such as required holding periods, availability of public information, limits on how much can be sold at once, and certain filing requirements. For investors it matters because it determines when previously locked-up shares can enter the market — like a release valve that can increase supply, affect share price, and signal insider intent.

AI-generated analysis. Not financial advice.

• 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, Feb. 19, 2026 (GLOBE NEWSWIRE) -- 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 20^th 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 LabelSense™ 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.

For More Information:
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 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	%			15.0	%
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 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				$	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
Diluted EPS Excluding Certain Items Guidance:										Fiscal 2026 Expectations
										Low			High
Earnings per diluted Class A Common Share (GAAP measure)										$	4.62		$	4.82
	Amortization expense										0.33			0.33
Adjusted Diluted EPS (non-GAAP measure)										$	4.95		$	5.15

FAQ

What were Brady (BRC) fiscal Q2 2026 sales and EPS results?

Brady reported $384.1 million in Q2 sales and $1.01 diluted EPS, reflecting 7.7% sales growth and 21.7% EPS growth. According to the company, adjusted diluted EPS was $1.09, up 9.0% year-over-year.

How did Brady (BRC) break down organic vs acquisition sales in Q2 2026?

Organic sales rose 1.6% while acquisitions contributed 2.3% of growth in Q2. According to the company, foreign currency translation added 3.8%, totaling the 7.7% quarter-over-quarter sales increase.

What guidance changes did Brady (BRC) announce for fiscal 2026 EPS on Feb 19, 2026?

Brady raised the low end of fiscal 2026 guidance to $4.62 GAAP EPS and $4.95 adjusted EPS. According to the company, the high ends remain $4.82 GAAP and $5.15 adjusted.

How strong was Brady's cash generation in the quarter ended Jan 31, 2026?

Net cash provided by operating activities increased to $53.3 million in Q2 and $86.7 million for the six months. According to the company, cash flow improvement boosted its net cash position to $97.8 million.

What regional performance did Brady (BRC) report for Q2 2026?

Sales rose 7.6% in Americas & Asia and 7.9% in Europe & Australia in Q2. According to the company, Americas organic sales grew 3.1% while Europe showed an organic decline of 1.1%.

What are key fiscal 2026 assumptions Brady (BRC) used for its guidance?

Guidance assumes a full-year tax rate of ~21%, depreciation and amortization of ~$44M, and capital expenditures of ~$45M. According to the company, guidance is based on exchange rates as of Jan 31, 2026.