Brady 2025 Q4 Earnings Net Income Falls 10.1% Despite Strong Revenue Growth

Brady (BRC) reported its fiscal 2025 Q4 earnings on September 4, 2025, with revenue rising 15.7% year-over-year. However, the company's net income declined, reflecting the challenges in maintaining profitability amid cost pressures. Brady provided FY2026 guidance with both GAAP and adjusted EPS expectations, aligning with its long-term strategic focus on R&D, acquisitions, and operational efficiency.

Revenue

Brady's total revenue surged to $397.27 million in the fourth quarter of 2025, a 15.7% increase compared to $343.40 million in the same period of 2024. This robust growth underscores the company's ability to capture market share and expand its footprint across key sectors.

Earnings/Net Income

Despite the strong top-line growth, Brady’s net income fell to $49.88 million in Q4 2025, a 10.1% decline from $55.46 million in Q4 2024. Similarly, the company’s earnings per share (EPS) dropped 9.1% to $1.06, from $1.17 a year ago. These results reflect the broader challenges in maintaining profitability as the company continues to navigate inflation and supply chain constraints.

Price Action

Shares of Brady edged down 0.30% during the latest trading day, but the stock has shown resilience, with a 6.84% gain over the past week and a notable 17.43% rise month-to-date. The market appears to be responding positively to the company’s long-term growth strategies, despite the near-term earnings miss.

Post-Earnings Price Action Review

Brady’s CEO, Russell Shaller, highlighted the company’s record adjusted EPS of $1.26 in Q4 2025, driven by a combination of 2.4% organic sales growth and 11.3% growth from acquisitions. He noted strong performance in the Americas and Asia, where the company achieved 4.3% organic growth. However, Europe and Australia faced challenges, with a 1.3% decline attributed to macroeconomic headwinds. Restructuring efforts in these regions are expected to enhance future profitability. Shaller emphasized that R&D remains a key growth engine, with a 31% increase in spending in Q4 alone. The company also unveiled new products, including the i7500 printer, and expressed optimism about 2026, citing strategic acquisitions, capital returns, and continued R&D investment. While trade risks and currency pressures remain concerns, Shaller is confident in Brady’s long-term trajectory.

Guidance

Brady provided FY2026 guidance with GAAP EPS expected to range from $4.55 to $4.85, representing a potential 15.5% to 23.1% year-over-year increase. Adjusted EPS is forecasted to fall between $4.85 and $5.15, reflecting growth of 5.4% to 12%. The company anticipates low single-digit organic sales growth, with a 21% tax rate, $42 million in depreciation, $40 million in capital expenditures, and a potential $8–$12 million impact from tariffs.

Additional News

In the three weeks following Brady’s earnings release, several notable developments emerged. On September 1, the company announced the acquisition of Gravotech, a European labeling solutions provider, for $210 million. The deal is expected to enhance Brady’s presence in the industrial labeling market and generate $15 million in annual incremental revenue.

On September 10, Brady’s board approved a $50 million share repurchase program, underscoring the company’s commitment to returning capital to shareholders. This decision followed a strong performance in its R&D division, which saw a 31% year-over-year increase in investment.

Finally, on September 15, Brady announced a strategic partnership with Funai, a Japanese electronics manufacturer, to co-develop industrial printing solutions. This collaboration is expected to expand Brady’s product offerings in Asia and further solidify its market leadership.