Brady (BRC) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted diluted EPS of $1.26 in Q4 and $4.60 for FY2025, marking the fifth consecutive year of record EPS and up 5.9% year-over-year.

• Organic sales grew 2.4% in Q4 and 2.6% for the year, with total sales up 15.7% in Q4 and 12.8% for the year, led by strong performance in Americas and Asia.

• Acquisitions (Gravotech, Funai's Microfluidic Solutions, MECCO) contributed significantly to sales growth and technical capabilities.

• Increased R&D investment to a record $80 million (5.3% of sales), supporting new product launches and future growth.

• Returned $96.4 million to shareholders via dividends and share repurchases in FY2025.

Financial highlights

• Q4 sales reached $397.3 million, up from $343.4 million year-over-year; full-year sales were $1.51 billion, up from $1.34 billion.

• Q4 adjusted net income was $60.2 million (up from $57.3 million); Q4 GAAP net income was $49.9 million (down from $55.5 million).

• Q4 adjusted diluted EPS was $1.26 (up from $1.19); Q4 GAAP diluted EPS was $1.04 (down from $1.15).

• Gross margin was 50.4% in Q4 (down from 51.6%), impacted by facility closures and reorganization costs.

• Operating cash flow was $58.3 million and free cash flow $49.4 million in Q4, both down year-over-year due to inventory build.

Outlook and guidance

• FY2026 GAAP EPS projected at $4.55–$4.85 (up 15.5%–23.1%); adjusted EPS at $4.85–$5.15 (up 5.4%–12%).

• Guidance assumes low single-digit organic sales growth, 21% tax rate, $42 million D&A, and $40 million CapEx.

• Tariffs expected to have an $8–$12 million incremental impact in FY2026, with mitigation efforts ongoing.