Brady Corporation (BRC) Q1 2026 Financial Results Summary
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Brady Corporation (BRC) Q1 2026 Financial Results Summary
Milwaukee, November 17, 2025—Brady Corporation, a leading provider of identification solutions, reported its financial results for its fiscal 2026 first quarter ended October 31, 2025.
Key Financial Highlights:
- Sales Growth:
- Total Sales: Increased by 7.5% to $405.3 million compared to $377.1 million in Q1 2025.
- Organic Sales: Grown by 2.8%.
- Acquisitions: Contributed an increase of 3.2%.
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Foreign Currency: Accounted for 1.5% of the sales increase.
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Regional Performance:
- Americas & Asia:
- Sales increased by 9.6%.
- Organic sales growth was 4.7%.
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Europe & Australia:
- Sales grew by 3.6% with an organic sales decline of 0.8%.
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Earnings Performance:
- Net Income: Increased by 15.0% to $53.9 million from $46.8 million in the same period last year.
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Earnings per Share:
- Diluted EPS: Rose 16.5% to $1.13 compared to $0.97 in Q1 2025.
- Adjusted Diluted EPS: Grew by 8.0% to $1.21, up from $1.12.
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Income Metrics:
- Income Before Income Taxes: Increased by 16.5% to $68.5 million from $58.8 million in Q1 2025.
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Adjusted Income Before Income Taxes: Rose 7.6% to $73.8 million compared to $68.6 million in the previous year.
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Cash Flow:
- Cash Flow from Operating Activities: Increased 42.5% to $33.4 million from $23.4 million in Q1 2025.
Dividend and Share Repurchase:
- Dividends:
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Brady paid a dividend of $11.5 million in Q1 2026, a slight increase from $11.4 million in Q1 2025.
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Share Repurchase:
- The company purchased approximately $4.05 million of its own shares during the quarter.
Fiscal 2026 Guidance:
- The low end of the Adjusted Diluted EPS guidance for the fiscal year ending July 31, 2026, was raised from $4.85—$5.15 per share to $4.90—$5.15.
- The GAAP EPS guidance was adjusted from $4.55—$4.85 per share to $4.57—$4.82 per share.
Summary of Operational Performance:
- Segment Performance:
- Americas & Asia:
- Total segment profit was $59.9 million, relatively stable with a 22.3% profit margin.
- Europe & Australia:
- Segment profit increased significantly to $18.7 million from $13.1 million, achieving a 13.7% profit margin.
Notes:
- Brady Corporation continues to invest in research and development, with the CEO noting the positive impact these investments have on organic sales growth.
- The Q1 results reflect the effective integration of the acquisition of Mecco, which enhances Brady’s product offerings in laser marking systems.
- The company remains in a strong cash position, supporting its strategic investments and shareholder returns.
Brady Corporation emphasizes its commitment to driving long-term shareholder value through careful management and strategic growth initiatives.
Here are the extracted tables from the press release:
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars in thousands, except per share data)
| Three months ended October 31, 2025 | Three months ended October 31, 2024 | |
|---|---|---|
| Net sales | $405,287 | $377,065 |
| Cost of goods sold | 196,455 | 187,376 |
| Gross margin | 208,832 | 189,689 |
| 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 |
| 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 |
| Basic | $1.14 | $0.98 |
| Diluted | $1.13 | $0.97 |
| Basic | $1.13 | $0.96 |
| Diluted | $1.11 | $0.95 |
| Basic | 47,273 | 47,732 |
| Diluted | 47,731 | 48,217 |
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
| October 31, 2025 | July 31, 2025 | |
|---|---|---|
| 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 |
| 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 |
| 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 |