Brady Corporation (BRC) Announces Fiscal 2026 First Quarter Earnings Results And Raises The Low End Of Its Fiscal 2026 Adjusted Diluted EPS Guidance.

Brady Corporation (BRC) today announced its financial results for the most recent quarter, showcasing a strong performance that exceeded expectations. The company reported earnings per share of $1.21, beating the consensus estimate of $1.19, while revenue reached $405.3 million, surpassing the anticipated $395 million. This marks a notable increase in both earnings and revenue, reflecting Brady’s robust operational strategies and market demand.

Key Highlights:

• Sales for the first quarter of fiscal 2026 increased by 7.5%, reaching $405.3 million.
• Organic sales grew by 2.8%, while acquisitions contributed a 3.2% increase, and foreign currency translation added 1.5%.
• Diluted EPS rose by 16.5% to $1.13, with adjusted diluted EPS increasing by 8.0% to $1.21.
• Cash flow from operating activities surged by 42.5% to $33.4 million.
• The company raised the low end of its adjusted diluted EPS guidance for the fiscal year 2026 from $4.85 to $5.15 per share to a new range of $4.90 to $5.15 per share.

Brady Corporation reported strong financial results for the first quarter of fiscal 2026, highlighting a 7.5% increase in sales compared to the same period last year. The growth was driven by a combination of organic sales growth of 2.8%, acquisitions contributing 3.2%, and a 1.5% boost from foreign currency translation. President and CEO Russell R. Shaller emphasized the company’s commitment to research and development, stating, “Our investments in research and development continue to add value for our customers and drive organic sales growth.”

The company also announced a significant improvement in cash flow, which increased by 42.5% to $33.4 million. CFO Ann Thornton noted that the adjusted EPS of $1.21 reflects an 8.0% growth year-over-year, driven by organic sales growth and improved gross profit margins. Additionally, the company raised its adjusted diluted EPS guidance for the fiscal year, indicating confidence in continued growth and strategic investments.

Brady Corporation (BRC) has experienced a modest fluctuation in its stock price, with a slight decline of 0.62% over the past week, yet a more positive trajectory over the longer term, showing a 1.69% increase over the past year. This performance is underpinned by a solid price-to-earnings ratio of 19.05, suggesting that investors are willing to pay a premium for the company’s earnings potential. The company’s earnings per share have demonstrated a robust compound annual growth rate (CAGR) of 12.42% over the last two years, indicating strong profitability trends. However, the free cash flow has seen a negative CAGR of -10.06%, which raises some concerns about liquidity and operational efficiency. On a brighter note, Brady’s return on invested capital stands at an impressive 16.10%, reflecting effective management of its capital resources. Additionally, a net profit margin of 12.48% showcases the company’s ability to convert revenue into actual profit. Overall, while the stock price may have shown some volatility, the underlying fundamentals suggest a company that is navigating its financial landscape with a mix of strengths and challenges.

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. The IDS segment offers safety signs, floor-marking tapes, pipe markers, labeling systems, spill control products, and lockout/tagout devices for facility identification and protection; materials, printing systems, RFID and bar code scanners for product identification, brand protection labeling, work in process labeling, and finished product identification; and hand-held printers, wire markers, sleeves, and tags for wire identification, as well as software and services for safety compliance auditing, procedure writing, and training. Its products also comprise name tags, badges, lanyards, rigid card printing systems, and access control software for people identification; wristbands and labels for tracking and enhancing the safety of patients; and custom wristbands. This segment serves customers in various industries, such as industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, education, leisure and entertainment, telecommunications, and others through distributors, direct sales, catalog marketing, and digital channels. The WPS segment provides workplace safety and compliance products, such as safety and compliance signs, tags, labels, and markings; informational signage and markings; asset tracking labels; first aid products; facility safety and personal protection equipment; and labor law and other compliance posters for various industries, including process, government, education, construction, and utilities, as well as manufacturers through catalog and digital channels. It also offers stock and custom identification products, as well as sells related resale products. Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.