Brady (BRC) Q4 2024 earnings summary

Executive summary

• Achieved record GAAP EPS of $4.07 and non-GAAP/adjusted EPS of $4.22 for fiscal 2024, marking the fourth consecutive year of record EPS, with Q4 GAAP EPS at $1.15 and adjusted EPS at $1.19, both up over 14% year-over-year.

• Organic sales grew 2.6% year-over-year for the full year, with Q4 organic sales up 1.6%; both Americas & Asia and Europe & Australia contributed.

• Gross profit margin improved to 51.3% for the year and 51.6% in Q4, up from prior periods.

• Returned $117.3 million to shareholders via dividends and share buybacks, including a 39th consecutive annual dividend increase.

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

Financial highlights

• Q4 organic sales growth was 1.6%, with total sales down 0.7% year-over-year; gross profit margin rose to 51.6% from 50.8% in Q4 last year.

• Q4 GAAP net income was $55.5 million, up 12.3% year-over-year; diluted EPS was $1.15, up 15%; adjusted EPS was $1.19, up 14.4%.

• Operating cash flow for Q4 was $84 million, up from $79.3 million last year; free cash flow was $73.2 million.

• Net cash position as of July 31, 2024, was $159.2 million; cash and equivalents at year-end were $250.1 million, with total debt of $90.9 million.

• SG&A expense declined to 27.2% of sales in Q4, with continued efficiency improvements.

Outlook and guidance

• Fiscal 2025 GAAP EPS guidance: $4.15–$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.

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