Brady Corporation Reports Fiscal 2026 Second Quarter Results and Raises the Low End of its Fiscal 2026 EPS Guidance

Brady Corporation Reports Fiscal 2026 Second Quarter Results and Raises the Low End of its Fiscal 2026 EPS Guidance Brady Corporation Reports Fiscal 2026 Second Quarter Results and Raises the Low End of its Fiscal 2026 EPS Guidance GlobeNewswire February 19, 2026

MILWAUKEE, Feb. 19, 2026 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2026 second quarter ended January 31, 2026.

Quarter Ended January 31, 2026 Financial Results:
Sales for the quarter ended January 31, 2026 increased 7.7 percent, which consisted of organic sales growth of 1.6 percent, growth of 2.3 percent from acquisitions and an increase of 3.8 percent from foreign currency translation. Sales for the quarter ended January 31, 2026 were $384.1 million compared to $356.7 million in the same quarter last year. By region, sales increased 7.6 percent in the Americas & Asia and sales increased 7.9 percent in Europe & Australia, which consisted of organic sales growth of 3.1 percent in the Americas & Asia and an organic sales decline of 1.1 percent in Europe & Australia.

Income before income taxes increased 19.1 percent to $62.0 million in the quarter ended January 31, 2026, compared to $52.0 million in the same quarter last year. Adjusted Income Before Income Taxes* in the quarter ended January 31, 2026, which was adjusted for amortization expense of $5.2 million, was $67.2 million, an increase of 7.7 percent compared to the second quarter of last year. Adjusted Income Before Income Taxes* in the quarter ended January 31, 2025, which was adjusted for amortization expense and facility closure and other reorganization costs of $10.3 million, was $62.4 million.

Net income for the quarter ended January 31, 2026 was $48.1 million compared to $40.3 million in the same quarter last year. Adjusted Net Income* in the quarter ended January 31, 2026 was $52.0 million compared to $48.1 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share was $1.01 compared to $0.83 in the same quarter last year. Adjusted Diluted EPS* in the quarter ended January 31, 2026 was $1.09 compared to $1.00 in the same quarter last year.

Six-Month Period Ended January 31, 2026 Financial Results:
Sales for the six-month period ended January 31, 2026 increased 7.6 percent, which consisted of organic sales growth of 2.2 percent, growth of 2.8 percent from acquisitions and an increase of 2.6 percent from foreign currency translation. Sales for the six months ended January 31, 2026 were $789.4 million compared to $733.7 million in the same period last year. By region, sales increased 8.6 percent in the Americas & Asia and sales increased 5.7 percent in Europe & Australia, which consisted of organic sales growth of 3.9 percent in the Americas & Asia and an organic sales decline of 0.9 percent in Europe & Australia.

Income before income taxes increased 17.7 percent to $130.5 million in the six-month period ended January 31, 2026, compared to $110.8 million in the same period last year. Adjusted Income Before Income Taxes* in the six-month period ended January 31, 2026, which was adjusted for amortization expense of $10.5 million, was $141.0 million, an increase of 7.7 percent compared to the same period last year. Adjusted Income Before Income Taxes* in the six-month period ended January 31, 2025, which was adjusted for amortization expense, facility closure and other reorganization costs and acquisition-related charges of $20.1 million, was $130.9 million.

Net income in the six-month period ended January 31, 2026 was $102.0 million compared to $87.1 million in the same period last year. Adjusted Net Income* in the six-month period ended January 31, 2026 was $110.0 million compared to $102.3 million in the same period last year. Earnings per diluted Class A Nonvoting Common Share was $2.14 compared to $1.81 in the same period last year. Adjusted Diluted EPS* in the six-month period ended January 31, 2026 was $2.30 compared to $2.12 in the same period last year.

Commentary:
“This quarter marks Brady’s 20th consecutive quarter of organic sales growth, alongside a significant improvement in segment profit within both our Americas & Asia and Europe & Australia regions,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “We continue to increase our investment in research and development for innovative new products, which most recently included the i4311 industrial label printer launched last week. This printer is equipped with exciting new features unlike any other printer offering, including our LabelSense™ technology, which simplifies adhesive material changeover while resulting in zero waste. We have more innovative new products in our roadmap, which we will deliver while continuing to improve our operational efficiency.”

“In addition to our improved profitability, we increased our cash flow from operating activities by nearly 38 percent through the first half of this fiscal year, and we were in a net cash position of $97.8 million at January 31, 2026,” said Brady’s Chief Financial Officer, Ann Thornton. “Our strong balance sheet provides us with opportunities to continue to invest in both organic growth and strategic acquisitions to increase shareholder value over the long-term.”

Fiscal 2026 Guidance:
The Company raised the low end of its GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2026 from $4.57 to $4.82 per share, to $4.62 to $4.82 per share. The Company raised the low end of its Adjusted Diluted EPS* guidance for the year ending July 31, 2026 from $4.90 to $5.15 per share to $4.95 to $5.15 per share.

The assumptions included in fiscal 2026 guidance include a full-year income tax rate of approximately 21 percent, depreciation and amortization expense of approximately $44 million, and capital expenditures of approximately $45 million. Fiscal 2026 guidance is based on foreign currency exchange rates as of January 31, 2026 and assumes continued economic growth.

A webcast regarding Brady’s fiscal 2026 second quarter financial results will be available at www.bradycorp.com/investors beginning at 9:30 a.m. central time today.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2025, employed approximately 6,400 people in its worldwide businesses. Brady’s fiscal 2025 sales were approximately $1.51 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradyid.com.

* Adjusted Income Before Income Taxes, Adjusted Net Income, and Adjusted Diluted EPS are non-GAAP measures. See appendix for more information on these measures, including reconciliations to the most directly comparable GAAP measures.

In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations.

The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: increased cost of materials, labor, material shortages and supply chain disruptions, including as a result of tariffs or other impacts of the global trade environment; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; Brady’s ability to identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks, and systems against security breaches; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; risks associated with the loss of key employees; litigation, including product liability claims; global climate change and environmental regulations; foreign currency fluctuations; changes in tax legislation and tax rates; potential write-offs of goodwill and other intangible assets; differing interests of voting and non-voting shareholders and changes in the regulatory and business environment around dual-class voting structures; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2025.

These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements except as required by law.

For More Information:
Investor contact: Ann Thornton 414-438-6887
Media contact: Kate Venne 414-358-5176


BRADY CORPORATION AND SUBSIDIARIES       
CONSOLIDATED STATEMENTS OF INCOME       
(Unaudited; Dollars in thousands, except per share data)       
        
 Three months ended January 31, Six months ended January 31,
  2026   2025   2026   2025 
Net sales$384,137  $356,675  $789,424  $733,740 
Cost of goods sold 189,743   180,832   386,198   368,208 
Gross margin 194,394   175,843   403,226   365,532 
Operating expenses:       
Research and development 24,309   18,723   47,601   37,644 
Selling, general and administrative 107,895   105,886   225,463   217,732 
Total operating expenses 132,204   124,609   273,064   255,376 
        
Operating income 62,190   51,234   130,162   110,156 
        
Other income (expense):       
Investment and other income 805   2,125   2,517   3,359 
Interest expense (990)  (1,312)  (2,198)  (2,668)
        
Income before income taxes 62,005   52,047   130,481   110,847 
        
Income tax expense 13,954   11,713   28,494   23,730 
        
Net income$48,051  $40,334  $101,987  $87,117 
        
Net income per Class A Nonvoting Common Share:       
Basic$1.02  $0.84  $2.16  $1.82 
Diluted$1.01  $0.83  $2.14  $1.81 
        
Net income per Class B Voting Common Share:       
Basic$1.02  $0.84  $2.14  $1.81 
Diluted$1.01  $0.83  $2.12  $1.79 
        
Weighted average common shares outstanding:       
Basic 47,310   47,851   47,291   47,792 
Diluted 47,738   48,306   47,734   48,261 
        


BRADY CORPORATION AND SUBSIDIARIES   
CONSOLIDATED BALANCE SHEETS   
(Dollars in thousands)   
    
 January 31,
2026		 July 31,
2025
 (Unaudited)  
ASSETS   
Current assets:   
Cash and cash equivalents$176,492  $174,349 
Accounts receivable, net of allowance for credit losses of $7,446 and $7,876 respectively 242,905   231,944 
Inventories 225,821   200,881 
Prepaid expenses and other current assets 17,105   14,661 
Total current assets 662,323   621,835 
Property, plant and equipment—net 244,048   225,572 
Goodwill 696,996   676,945 
Other intangible assets 109,702   105,374 
Deferred income taxes 19,396   20,862 
Operating lease assets 65,703   58,422 
Other assets 27,032   25,243 
Total$1,825,200  $1,734,253 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities:   
Accounts payable$100,002  $105,028 
Accrued compensation and benefits 72,842   92,657 
Taxes, other than income taxes 20,517   21,537 
Accrued income taxes 5,631   5,547 
Current operating lease liabilities 17,451   15,234 
Other current liabilities 94,386   90,329 
Total current liabilities 310,829   330,332 
Long-term debt 78,706   99,766 
Long-term operating lease liabilities 48,741   43,565 
Other liabilities 73,904   68,379 
Total liabilities 512,180   542,042 
Stockholders’ equity:   
Common stock:   
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,679,050 and 43,530,012 shares, respectively 513   513 
Class B voting common stock—Issued and outstanding, 3,538,628 shares 35   35 
Additional paid-in capital 361,567   359,269 
Retained earnings 1,396,642   1,317,739 
Treasury stock—7,582,437 and 7,731,475 shares, respectively, of Class A nonvoting common stock, at cost (389,988)  (393,186)
Accumulated other comprehensive loss (55,749)  (92,159)
Total stockholders’ equity 1,313,020   1,192,211 
Total$1,825,200  $1,734,253 
    


BRADY CORPORATION AND SUBSIDIARIES   
CONSOLIDATED STATEMENTS OF CASH FLOWS   
(Unaudited; Dollars in thousands)   
 Six months ended January 31,
  2026   2025 
Operating activities:   
Net income$101,987  $87,117 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization 22,205   20,096 
Stock-based compensation expense 9,259   7,993 
Deferred income taxes 7,571   (3,076)
Other 410   231 
Changes in operating assets and liabilities:   
Accounts receivable (1,924)  6,605 
Inventories (16,747)  (8,384)
Prepaid expenses and other assets (1,280)  (2,571)
Accounts payable and accrued liabilities (34,710)  (41,650)
Income taxes (101)  (3,361)
Net cash provided by operating activities 86,670   63,000 
    
Investing activities:   
Purchases of property, plant and equipment (21,947)  (14,423)
Acquisition of businesses, net of cash acquired (17,416)  (137,348)
Other (1,958)  53 
Net cash used in investing activities (41,321)  (151,718)
    
Financing activities:   
Payment of dividends (23,084)  (22,867)
Proceeds from exercise of stock options 8,255   5,712 
Payments for employee taxes withheld from stock-based awards (3,318)  (2,130)
Purchase of treasury stock (8,964)  — 
Proceeds from borrowing on credit agreement 72,500   159,373 
Repayment of borrowing on credit agreement (93,560)  (162,621)
Other 266   190 
Net cash used in financing activities (47,905)  (22,343)
    
Effect of exchange rate changes on cash and cash equivalents 4,699   (605)
    
Net increase (decrease) in cash and cash equivalents 2,143   (111,666)
Cash and cash equivalents, beginning of period 174,349   250,118 
    
Cash and cash equivalents, end of period$176,492  $138,452 
    


BRADY CORPORATION AND SUBSIDIARIES       
SEGMENT INFORMATION       
(Unaudited; Dollars in thousands)       
        
 Three months ended January 31, Six months ended January 31,
  2026   2025   2026   2025 
NET SALES       
Americas & Asia$251,604  $233,846  $520,497  $479,274 
Europe & Australia 132,533   122,829   268,927   254,466 
Total$384,137  $356,675  $789,424  $733,740 
        
SALES INFORMATION       
Americas & Asia       
Organic 3.1%  4.3%  3.9%  4.7%
Acquisitions 3.5%  7.6%  4.2%  7.5%
Currency 1.0%  (1.4)%  0.5%  (0.8)%
Divestiture —%  —%  —%  (0.8)%
Total 7.6%  10.5%  8.6%  10.6%
Europe & Australia       
Organic (1.1)%  (0.8)%  (0.9)%  —%
Acquisitions —%  15.1%  —%  15.1%
Currency 9.0%  (3.6)%  6.6%  (0.1)%
Total 7.9%  10.7%  5.7%  15.0%
Total Company       
Organic 1.6%  2.6%  2.2%  3.1%
Acquisitions 2.3%  10.2%  2.8%  10.0%
Currency 3.8%  (2.2)%  2.6%  (0.5)%
Divestiture —%  —%  —%  (0.5)%
Total 7.7%  10.6%  7.6%  12.1%
        
SEGMENT PROFIT       
Americas & Asia$53,751  $45,986  $113,614  $100,886 
Europe & Australia 15,422   11,378   34,154   24,492 
Total segment profit$69,173  $57,364  $147,768  $125,378 
SEGMENT PROFIT AS A PERCENT OF NET SALES       
Americas & Asia 21.4%  19.7%  21.8%  21.0%
Europe & Australia 11.6%  9.3%  12.7%  9.6%
Total 18.0%  16.1%  18.7%  17.1%
        
        
 Three months ended January 31, Six months ended January 31,
  2026   2025   2026   2025 
Total segment profit$69,173  $57,364  $147,768  $125,378 
Unallocated amounts:       
Administrative costs (6,983)  (6,130)  (17,606)  (15,222)
Investment and other income 805   2,125   2,517   3,359 
Interest expense (990)  (1,312)  (2,198)  (2,668)
Income before income taxes$62,005  $52,047  $130,481  $110,847 
        


GAAP to NON-GAAP MEASURES         
(Unaudited; Dollars in Thousands, Except Per Share Amounts) 
            
In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. 
 
            
            
Adjusted Income Before Income Taxes:     
Brady is presenting the non-GAAP measure, “Adjusted Income Before Income Taxes.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes to the non-GAAP measure of Adjusted Income Before Income Taxes: 
 
 
 
            
    Three months ended January 31, Six months ended January 31, 
     2026  2025  2026  2025 
Income before income taxes$62,005 $52,047 $130,481 $110,847 
 Amortization expense  5,172  4,671  10,513  9,384 
 Facility closure and other reorganization costs  -  5,654  -  5,654 
 Non-recurring acquisition-related costs and other expenses  -  -  -  5,059 
Adjusted Income Before Income Taxes (non-GAAP measure)$ 67,177 $ 62,372 $ 140,994 $ 130,944 
            
            
Adjusted Income Tax Expense:     
Brady is presenting the non-GAAP measure, “Adjusted Income Tax Expense.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Adjusted Income Tax Expense: 
 
 
 
            
    Three months ended January 31, Six months ended January 31, 
     2026  2025  2026  2025 
Income tax expense (GAAP measure)$13,954 $11,713 $28,494 $23,730 
 Amortization expense  1,247  1,125  2,536  2,258 
 Facility closure and other reorganization costs   -  1,413  -  1,413 
 Non-recurring acquisition-related costs and other expenses  -  -  -  1,265 
Adjusted Income Tax Expense (non-GAAP measure)$ 15,201 $ 14,251 $ 31,030 $ 28,666 
            
            
Adjusted Net Income:     
Brady is presenting the non-GAAP measure, “Adjusted Net Income.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Adjusted Net Income: 
 
 
 
            
    Three months ended January 31, Six months ended January 31, 
     2026  2025  2026  2025 
Net income (GAAP measure)$48,051 $40,334 $101,987 $87,117 
 Amortization expense  3,925  3,546  7,977  7,126 
 Facility closure and other reorganization costs   -  4,241  -  4,241 
 Non-recurring acquisition-related costs and other expenses  -  -  -  3,794 
Adjusted Net Income (non-GAAP measure)$ 51,976 $ 48,121 $ 109,964 $ 102,278 
            
            
Adjusted Diluted EPS:     
Brady is presenting the non-GAAP measure, “Adjusted Diluted EPS.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Adjusted Diluted EPS (Note that certain amounts will not foot due to rounding): 
 
 
 
            
    Three months ended January 31, Six months ended January 31, 
     2026  2025  2026  2025 
Net income per Class A Nonvoting Common Share (GAAP measure)$1.01 $0.83 $2.14 $1.81 
 Amortization expense  0.08  0.07  0.17  0.15 
 Facility closure and other reorganization costs   -  0.09  -  0.09 
 Non-recurring acquisition-related costs and other expenses  -  -  -  0.08 
Adjusted Diluted EPS (non-GAAP measure)$ 1.09 $ 1.00 $ 2.30 $ 2.12 
            
            
Diluted EPS Excluding Certain Items Guidance:     Fiscal 2026 Expectations 
        Low High 
Earnings per diluted Class A Common Share (GAAP measure)     $4.62 $4.82 
 Amortization expense      0.33  0.33 
Adjusted Diluted EPS (non-GAAP measure)     $ 4.95 $ 5.15 
            



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