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

Company overview and product portfolio

• Specializes in high-performance specialty adhesives and printing solutions for safety and identification applications across diverse end markets.

• Product categories include safety and facility identification, wire identification, product ID, healthcare ID, and people ID, with no single customer accounting for more than 10% of sales.

• 48% of revenue is generated outside the U.S., reflecting a diversified global presence.

• Recent acquisitions (Gravotech and MECCO) expanded capabilities into direct part marking, filling a previous product gap.

Financial performance and capital allocation

• Achieved five consecutive years of record adjusted EPS, with 2025 up 9% over the prior year.

• Maintains a strong balance sheet with a net cash position of $149 million as of April 30th.

• Consistently returns capital to shareholders through dividends (40 consecutive annual increases) and share buybacks.

• Organic sales growth has been positive for five straight years, with a 4.3% increase year-to-date through Q3.

Operational efficiency and investment in innovation

• R&D investment reached an all-time high of 5.3% of sales in 2025 and is set to increase further.

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

• Gross profit margins exceeded 50% in 2024 and 2025, driven by high-margin engineered products and operational improvements.

• Cash flow from operations increased 34% through the first three quarters of the current fiscal year.