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 diluted EPS rose 3.8% to $1.09.

• Net income for Q3 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 in F'25.

• 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.

• Q3 operating income rose 5.7% to $67.2M; operating margin was 17.6% compared to 18.5% last year.

• Adjusted income before taxes was $74.4M, up 11.5% year-over-year.

• Cash and cash equivalents at April 30, 2025, were $152.2M; net cash position of $49.3M.

• Operating cash flow was $59.9M in Q3; free cash flow was $55.6M, both down from prior year.

Outlook and guidance

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

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

• Full-year income tax rate expected at ~20–21%, with Q4 slightly lower.

• Risks include FX volatility, inflation, tariffs, and global economic slowdown.

• Liquidity and financial resources are sufficient to support growth strategies and manage potential impacts.