Brady (BRC) Q4 2024 earnings summary

Executive summary

• Achieved record-high GAAP EPS of $4.07 and non-GAAP/adjusted EPS of $4.22 for fiscal 2024, marking the fourth consecutive year of record EPS and a 16% increase over the prior year.

• Q4 diluted EPS was $1.15, up 15% year-over-year; adjusted EPS reached $1.19, up 14.4%.

• Organic sales grew 2.6% year-over-year, with both regional segments contributing; Q4 organic sales growth was 1.6%.

• Closed the acquisition of Gravotech, expanding direct part marking and laser engraving capabilities.

• Returned $117 million to shareholders via dividends and share buybacks, including a 39th consecutive annual dividend increase.

Financial highlights

• Gross profit margin improved to 51.3% for the year and 51.6% in Q4, up from 49.4% and 50.8% last year, respectively.

• Operating cash flow for Q4 was $84 million, up from $79.3 million last year; full-year net cash from operating activities reached $255.1 million.

• Free cash flow was $73.2 million in Q4; net cash position as of July 31 was $159.2 million.

• Share buybacks totaled $72.2 million (1.3 million shares) and dividends paid were $45.1 million in fiscal 2024.

• Board authorized an additional $100 million for share repurchases, about 3% of outstanding shares.

Outlook and guidance

• Fiscal 2025 GAAP EPS guidance: $4.20–$4.45 (2%–9.3% growth); non-GAAP/adjusted EPS: $4.40–$4.70 (4.3%–11.4% growth).

• Anticipates low single-digit organic sales growth for fiscal 2025.

• Forecasts income tax rate of 20%, depreciation/amortization of $38–$40 million, and CapEx of $35 million.

• Assumes continued economic growth and stable FX rates as of July 31, 2024.