Brady Corporation (BRC) Q3 2026 Financial Results Summary
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Brady Corporation (BRC) Q3 2026 Financial Results Summary
Release Date: May 18, 2026
Brady Corporation, a leader in identification solutions, has reported its financial results for the third quarter of fiscal year 2026, ended April 30, 2026. The following is a summary of the key metrics and performance indicators from the report:
Financial Highlights for Q3 2026
- Sales Growth
- Total Sales: Increased 13.8% to $435.2 million, compared to $382.6 million in the prior year's quarter.
- Organic Sales Growth: Increased by 8.2%.
- Acquisitions Impact: Contributed an additional 2.1% to sales.
- Foreign Currency Translation: Increased sales by 3.5%.
- Regional Sales Performance
- Americas & Asia: Sales increased by 14.4% with organic growth at 10.1%.
- Europe & Australia: Sales grew by 12.6% with organic growth of 4.5%.
- Income Before Income Taxes
- GAAP Basis: Increased by 11.6% to $73.4 million (compared to $65.7 million last year).
- Adjusted Income Before Income Taxes: Rose 23.8% to $92.1 million, compared to $74.4 million in the previous year.
- Net Income
- Increased to $57.8 million from $52.3 million a year ago.
- Adjusted Net Income: Increased to $71.9 million from $58.8 million last year.
- Earnings Per Share (EPS)
- Diluted EPS: Increased by 11.0% to $1.21 from $1.09 in the same quarter last year.
- Adjusted Diluted EPS: Rose by 23.0% to $1.50, compared to $1.22 in the prior year.
- Cash Flow from Operations
- Operating Cash Flow: Increased to $78.2 million from $59.9 million in the previous year.
Nine-Month Period Financial Results
- Sales for Nine Months: Rose 9.7% to $1.22 billion compared to $1.12 billion last year.
- Income Before Income Taxes: Increased by 15.4% to $203.8 million from $176.6 million last year.
- Net Income: Increased from $139.4 million to $159.8 million.
- Diluted EPS: Rose to $3.35 from $2.89.
- Adjusted Diluted EPS: Increased to $3.81 from $3.34 year-over-year.
Dividend and Share Repurchase
- Brady Corporation returned $16.7 million to shareholders via dividends and share buybacks.
- The dividend payment for the quarter was $34.7 million, slightly up from $34.2 million the previous year.
Fiscal 2026 Guidance Updates
- The GAAP EPS Guidance for the fiscal year ending July 31, 2026, was adjusted to a range of $4.66 to $4.76 from an earlier range of $4.62 to $4.82.
- The Adjusted Diluted EPS Guidance was increased to $5.20 to $5.30 from the previous range of $4.95 to $5.15.
Acquisition Plans
- On April 20, 2026, Brady entered into a definitive purchase agreement to acquire Honeywell’s Productivity Solutions and Services business, expected to close in the second half of calendar 2026, subject to regulatory approvals.
Closing Remarks
Brady Corporation experienced significant growth in both sales and earnings in Q3 2026, achieving record adjusted EPS and demonstrating solid cash flow performance. The company is poised for further growth with its planned acquisition and a commitment to enhancing its product line and market position.
For more details, Brady Corporation's full financial report is available on its investor relations website.
Here are the extracted tables from the press release:
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars in thousands, except per share data)
Note: All amounts are in thousands.
| Three months ended April 30, 2026 | Nine months ended April 30, 2026 | 2025 | |
|---|---|---|---|
| Net sales | $435,237 | $1,224,661 | $1,116,330 |
| Cost of goods sold | 209,768 | 595,966 | 555,739 |
| Gross margin | 225,469 | 628,695 | 560,591 |
| Operating expenses: Research and development | 23,531 | 71,132 | - |
| Selling, general and administrative | 128,732 | 354,195 | - |
| Total operating expenses | 152,263 | 425,327 | 383,245 |
| Operating income | 73,206 | 203,368 | 177,346 |
| Other income (expense): Investment and other income (expense) | 1,431 | 3,948 | 2,850 |
| Interest expense | -1,269 | -3,467 | -3,604 |
| Income before income taxes | 73,368 | 203,849 | 176,592 |
| Income tax expense | 15,568 | 44,062 | 37,212 |
| Net income | $57,800 | $159,787 | $139,380 |
| Net income per Class A Nonvoting Common Share: Basic | $1.22 | $3.38 | - |
| Diluted | $1.21 | $3.35 | - |
| Net income per Class B Voting Common Share: Basic | $1.22 | $3.36 | - |
| Diluted | $1.21 | $3.33 | - |
| Weighted average common shares outstanding: Basic | 47,357 | 47,313 | - |
| Diluted | 47,814 | 47,761 | - |
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Note: All amounts are in thousands.
| April 30, 2026 -Unaudited | July 31, 2025 | |
|---|---|---|
| ASSETS | - | - |
| Current assets: | - | - |
| Cash and cash equivalents | $175,491 | $174,349 |
| Accounts receivable, net of allowance for credit losses of $7,274 and $7,876, respectively | 266,354 | 231,944 |
| Inventories | 220,252 | 200,881 |
| Prepaid expenses and other current assets | 16,832 | 14,661 |
| Total current assets | 678,929 | 621,835 |
| Property, plant and equipment—net | 243,720 | 225,572 |
| Goodwill | 689,415 | 676,945 |
| Other intangible assets | 103,425 | 105,374 |
| Deferred income taxes | 18,503 | 20,862 |
| Operating lease assets | 61,154 | 58,422 |
| Other assets | 36,805 | 25,243 |
| Total | $1,831,951 | $1,734,253 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | - | - |
| Current liabilities: | - | - |
| Accounts payable | $108,454 | $105,028 |
| Accrued compensation and benefits | 92,253 | 92,657 |
| Taxes, other than income taxes | 22,308 | 21,537 |
| Accrued income taxes | 4,787 | 5,547 |
| Current operating lease liabilities | 16,382 | 15,234 |
| Other current liabilities | 93,620 | 90,329 |
| Total current liabilities | 337,804 | 330,332 |
| Long-term debt | 26,857 | 99,766 |
| Long-term operating lease liabilities | 45,270 | 43,565 |
| Other liabilities | 78,035 | 68,379 |
| Total liabilities | 487,966 | 542,042 |
| Stockholders’ equity: | - | - |
| Common stock: | - | - |
| Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,650,910 and 43,530,012 shares, respectively | 513 | 513 |
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