Brady (BRC) Sidoti March Small-Cap Virtual Conference summary

Business overview and product strategy

• Specializes in high-performance adhesives and printing solutions for safety and identification across diverse end markets, with a broad product portfolio including wire identification, specialty labels, printers, and healthcare wristbands.

• Diversified customer base with no single customer accounting for more than 10% of sales; 48% of revenue generated outside the U.S.

• Five major product categories: safety/facility identification, wire identification, product identification (including RFID/barcode), healthcare identification, and people identification.

• Recent acquisitions (Code, Nordic ID, Gravotech, Mecco) expanded capabilities in optical scanning and direct part marking, filling previous product gaps.

• Razor blade model for printers and consumables drives recurring high-margin revenue.

Financial performance and capital allocation

• Achieved five consecutive record years of EPS, with 2025 EPS up 9% over 2024.

• R&D investment reached an all-time high of 5.3% of sales in 2025, supporting innovation and high-margin product growth.

• SG&A as a percentage of sales reduced by 800 basis points over eight years, with ongoing efficiency and automation initiatives.

• Net cash position of $98 million as of January 31, 2026, after significant acquisitions.

• Returned $96 million to shareholders in 2025 via dividends and buybacks; 40th consecutive annual dividend increase announced.

Geographic and market trends

• 52% of revenue from the U.S., 30% from Europe, and 12% from Asia/Australia; two main operating regions: Americas/Asia and Europe/Australia.

• Europe and Australia faced macroeconomic weakness and lower manufacturing activity, prompting cost structure adjustments and facility closures, resulting in improved segment profit.

• U.S. and other regions remain stable, with ongoing focus on organic sales growth and geographic expansion.