Brady 2026 Q1 Earnings Revenue Surpasses Estimates, Net Income Grows 15.3%

Brady (BRC) delivered a strong start to fiscal 2026, with Q1 revenue and net income exceeding expectations. The company raised its full-year adjusted EPS guidance despite a minor EPS miss, reflecting confidence in margin expansion and strategic execution.

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 favorable foreign exchange. The Americas & Asia segment led with a 9.6% sales increase, fueled by 4.7% organic growth and strategic acquisitions. Meanwhile, Europe & Australia saw a 3.6% sales rise, with a 4.4% currency tailwind offsetting a 0.8% organic decline.

Earnings/Net Income

Brady’s net income climbed 15.3% to $53.94 million, with EPS rising 16.3% to $1.14. The company sustained profitability for over two decades, underscoring operational resilience. The EPS growth and margin expansion indicate robust earnings performance despite near-term challenges.

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. Here’s a detailed analysis: Brady’s revenue of $405.29 million exceeded estimates by $10.28 million, signaling strong demand. Organic sales growth, acquisitions, and currency benefits highlight a resilient business model. Despite a $0.02 EPS miss, the company raised full-year adjusted EPS guidance to $4.90–$5.15, reflecting confidence in margin improvements and tariff mitigation. Strategic acquisitions and product innovations, such as the BradyScan app, position BRC for long-term growth. However, risks like tariff headwinds and regional challenges in Europe and Australia require monitoring. The company’s net cash position and history of shareholder returns further support its appeal for a 30-day holding period.

CEO Commentary

CEO Russell Shaller highlighted 2.8% organic sales growth and 8% adjusted EPS growth, driven by Americas and Asia performance and Europe/Australia profit improvements. He emphasized R&D investments (5.7% of sales) and innovations like BradyScan, while addressing $8–12 million annual tariff impacts through global manufacturing flexibility.

Guidance

Brady raised fiscal 2026 adjusted EPS guidance to $4.90–$5.15 (6.5–12% growth vs. 2025) and GAAP EPS to $4.57–$4.82. Organic sales growth is projected in low single digits, with 21% tax rate, $44 million D&A, and $40 million CAPEX. Risks include USD strength, inflation, and economic slowdowns.

Additional News

Recent developments include the acquisition of Mecco, enhancing Brady’s laser marking capabilities, and a $0.245 dividend increase (1.3% yield). CEO Russell Shaller and other insiders sold shares totaling $2.3 million, though institutional ownership remains strong at 76.28%. Analysts remain optimistic, with a “Strong Buy” consensus rating.

Additional News

M&A activity: Brady acquired Mecco, a laser marking systems provider, expanding its engineered products portfolio.

C-level activity: CEO Russell Shaller sold 23,743 shares, while other executives also reduced holdings.

Dividend news: The company raised its quarterly dividend to $0.245 per share, reflecting confidence in cash flow and shareholder returns.