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Brady (BRC) investor relations material

Brady Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary19 Feb, 2026

Executive summary

  • Achieved 20th consecutive quarter of organic sales growth, with net sales for the quarter ended January 31, 2026, up 7.7% to $384.1 million, driven by organic growth, acquisitions, and favorable currency translation.

  • Gross margin improved to 50.6% from 49.8% (adjusted) last year, reflecting a higher-margin product mix and absence of prior-year reorganization costs.

  • Operating income rose 21.4% to $62.2 million, with net income up 19.1% to $48.1 million year-over-year.

  • Launched the i4311 Transportable Industrial Desktop Label Printer, expanding product capabilities and featuring LabelSense technology.

  • Increased R&D investment to nearly 6% of revenue, supporting innovation and future growth.

Financial highlights

  • Organic sales grew 1.6% year-over-year; total sales growth was 7.7% including acquisitions and FX.

  • Gross profit margin improved to 50.6% from 49.8% (adjusted) last year.

  • Adjusted diluted EPS increased 9% to $1.09; GAAP EPS rose to $1.01 from $0.83.

  • Operating cash flow up 34.7% to $53.3 million for the quarter; free cash flow up 30.5% to $42.3 million.

  • Net income increased 19.1% to $48.1 million; adjusted net income up 8% to $52 million.

Outlook and guidance

  • Raised lower end of full-year adjusted EPS guidance to $4.95–$5.15 (from $4.90–$5.15); GAAP EPS to $4.62–$4.82.

  • Expecting low single-digit organic sales growth for fiscal 2026.

  • Guidance includes $44 million depreciation/amortization, $45 million capex, and 21% tax rate.

  • Management expects continued investment in organic growth, digital capabilities, and operational efficiency.

  • Risks include USD strengthening, inflation, and economic slowdown.

Explain Europe & Australia's organic sales trend
Quantify acquisition impact on sales growth
How will cash flow support future growth?
R&D impact on near-term organic growth
Outlook for US/Europe manufacturing activity
Gravotech's role in product mix shift
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Frequently asked questions

Brady Corporation is a manufacturer of identification and safety products for industrial and commercial applications. Its offerings include labels, signs, safety devices, and printing systems used for asset tracking, workplace safety, and regulatory compliance. The company serves clients in sectors such as manufacturing, healthcare, and utilities. Brady Corporation is headquartered in Milwaukee, Wisconsin, and its shares are listed on the NYSE.

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