Brady (BRC) investor relations material

Executive summary

• Achieved record adjusted diluted EPS of $1.26 in Q4 (up 5.9%) and $4.60 for the year, marking the fifth consecutive year of record EPS.

• Organic sales grew 2.4% in Q4, with acquisitions and FX driving total sales growth to 15.7%.

• Americas and Asia led with 4.3% organic sales growth in Q4, while Europe and Australia saw a 1.3% organic decline due to macro challenges.

• Significant investments in R&D and new product launches fueled growth, with R&D up 31% in Q4 and $80M for the year.

• Returned $96.4M to shareholders via dividends and share repurchases, marking the 40th consecutive year of dividend increases.

Financial highlights

• Q4 sales reached $397.3M, up from $343.4M; full-year sales were $1.51B, up from $1.34B.

• Adjusted net income rose 5.1% to $60.2M in Q4; adjusted EPS reached a record $1.26.

• GAAP net income for Q4 was $49.9M (down from $55.5M); GAAP EPS was $1.04 (down from $1.15).

• Gross margin was 50.4% in Q4 (down from 51.6%), impacted by facility closures and reorganization costs.

• Operating cash flow was $58.3M (down from $84M); free cash flow was $49.4M (down from $73.2M), mainly due to inventory build and facility moves.

Outlook and guidance

• Fiscal 2026 GAAP EPS guidance: $4.55–$4.85; adjusted EPS: $4.85–$5.15, up 5.4–12% over FY2025.

• Guidance assumes low single-digit organic sales growth, 21% tax rate, and $40M in capital expenditures.

• Expects $8–12M incremental tariff impact in 2026, mostly in the first half, with mitigation included in guidance.