Brady (BRC) Q1 2026 earnings summary

Executive summary

• Organic sales grew 2.8% year-over-year, with Americas & Asia leading at 4.7% growth and Europe & Australia showing significant profit improvement despite a slight sales decline.

• Adjusted Diluted EPS increased 8% year-over-year to $1.21, with net income up 15.3% to $53.9M and diluted EPS up 16.5% to $1.13.

• Record Adjusted Diluted EPS of $4.60 for F'25, up 9.0% year-over-year, marking the fifth consecutive year of record results.

• Continued investment in R&D, highlighted by the launch of the BradyScan app and the acquisition of Mecco Partners LLC, expanding the product portfolio.

• Returned $96.4M to shareholders in F'25 through dividends and share buybacks, including a 40th consecutive year of dividend increases.

Financial highlights

• Total sales grew 7.5% year-over-year to $405.3M, with organic growth of 2.8%, acquisitions contributing 3.2%, and currency translation 1.5%.

• Gross profit margin rose to 51.5% from 50.3% last year; gross margin for F'25 was 50.1%.

• Operating income increased to $68.0M, with net income up 15.3% to $53.9M; adjusted net income up 7.1% to $58M.

• Cash flow from operating activities rose 42.5% to $33.4M for the quarter; F'25 operating cash flow was $181.2M.

• Net cash position was $66.8M as of October 31, 2025; cash and cash equivalents stood at $182.7M at quarter-end.

Outlook and guidance

• Raised low end of Adjusted Diluted EPS guidance for FY26 to $4.90–$5.15, representing 5.4–12% growth; GAAP EPS guidance updated to $4.57–$4.85.

• Expecting low single-digit organic sales growth and segment profit growth in both Americas & Asia and Europe & Australia.

• Fiscal 2026 guidance assumes a 21% tax rate, $44M depreciation/amortization, and $40M capex.

• Risks include US dollar strengthening, inflation, supply chain disruptions, and global economic slowdown.