Brady 2026 Q1 Earnings Beats Revenue Estimates, Net Income Surges 15.3%

Brady Corporation (BRC) reported fiscal 2026 Q1 earnings on Nov 17, 2025, with revenue exceeding expectations and net income growth outpacing the prior year. The company raised its full-year adjusted EPS guidance to $4.90–$5.15, reflecting confidence in margin expansion and strategic initiatives.

Revenue

Revenue surged 7.5% year-over-year to $405.29 million, driven by 2.8% organic sales growth, 3.2% from acquisitions, and 1.5% from foreign currency. The Americas & Asia region led with 9.6% sales growth, including 4.7% organic expansion, while Europe & Australia saw 3.6% growth despite a 0.8% organic sales decline.

Earnings/Net Income

Brady’s EPS rose 16.3% to $1.14, with net income jumping 15.3% to $53.94 million. The company has maintained profitability for over 20 years, underscoring operational resilience. The EPS increase and net income growth indicate strong earnings performance.

Price Action

The stock fell 5.05% in a single trading day, 3.49% in the week, and 2.52% month-to-date, reflecting mixed market sentiment.

Post-Earnings Price Action Review

The strategy of buying BRC shares when revenue beats and holding for 30 days shows promising potential based on the latest financial data and market conditions. Brady’s $405.29 million revenue beat by $10.28 million highlights its robust sales growth, driven by organic expansion and acquisitions. Despite a $0.02 EPS miss, the company raised its full-year adjusted EPS guidance to $4.90–$5.15, signaling confidence in margin improvements and tariff mitigation. Strategic acquisitions, such as Mecco and Gravotech, have bolstered its engineered product portfolio, while the new CardVault store at the Mall of America expands its retail presence. Although tariff challenges and regional headwinds persist, Brady’s diversified model and $66.8 million net cash position provide resilience. These factors collectively support a buy-and-hold strategy, though investors should monitor macroeconomic shifts and operational updates.

CEO Commentary

CEO Russell Shaller emphasized 2.8% organic sales growth and 15% adjusted profit gains in Europe & Australia, crediting 2025 restructuring actions. He highlighted BradyScan, a barcode app enhancing traceability, and increased R&D investment (5.7% of sales) to drive innovation. Shaller expressed optimism about mitigating $8M–$12M in tariff impacts and long-term growth through acquisitions and geographic diversification.

Guidance

Brady raised its adjusted diluted EPS guidance to $4.90–$5.15 (6.5%–12% growth over 2025) and GAAP EPS to $4.57–$4.82. Organic sales growth is projected in low single digits, with a tax rate of ~21%, D&A of ~$44M, and capex of ~$40M.

Additional News

Within three weeks of the earnings report, Brady closed the acquisition of Mecco, enhancing its laser marking systems. The company also launched a new CardVault store at the Mall of America, expanding its retail footprint. Additionally, Brady increased its quarterly dividend to $0.245 per share, reflecting a 1.3% yield and continued commitment to shareholder returns.