Brady (BRC) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 sales increased 11.4% to $382.6M, with 1.6% organic growth and 10.5% from acquisitions, partially offset by currency impacts.

• Record adjusted diluted EPS of $1.22, up 11.9% year-over-year; GAAP EPS rose 3.8% to $1.09.

• Net income for the quarter was $52.3M, up 2.7% year-over-year; adjusted net income rose 11.6% to $58.8M.

• Returned $44.5M to shareholders in Q3 via dividends and share repurchases; $67.4M returned year-to-date.

• Acquisitions of Gravotech, AB & R, and Microfluidic Solutions expanded product offerings and contributed to sales growth.

Financial highlights

• Gross profit margin was 51.0%, down from 51.6% year-over-year, impacted by tariffs, facility closure, and acquisition-related costs.

• Operating income rose 5.7% to $67.2M; operating margin was 17.6% compared to 18.5% last year.

• Cash flow from operating activities was $59.9M in Q3; free cash flow was $55.6M, both down from the prior year.

• Ended Q3 with $152.2M in cash and $49.3M net cash position; $102.8M in debt.

• Share repurchases totaled 476,000 shares for $33.2M in Q3; $104.6M remained under the repurchase program.

Outlook and guidance

• FY2025 adjusted diluted EPS guidance tightened to $4.48–$4.63; GAAP EPS guidance updated to $3.95–$4.10.

• Expecting low single-digit organic sales growth, 20% tax rate, $40M depreciation/amortization, and $25M capex.

• Tariffs expected to impact Q4 by $3–$5M, net of mitigation.

• Liquidity and financial resources deemed sufficient to support growth and manage economic/geopolitical impacts.