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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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