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Brady Corporation Reports Record Adjusted EPS in its Fiscal 2025 Third Quarter and Tightens its Fiscal 2025 EPS Guidance

1. Sales increased 11.4% to $382.6 million this quarter. 2. Adjusted EPS rose 11.9% to $1.22, a record high. 3. Returned $44.5 million to shareholders via dividends and buybacks. 4. Guided Adjusted EPS tightened to $4.48-$4.63 for the year. 5. Strong growth from acquisitions offsets sales decline from currency.

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Why Bullish?

BRC's sales growth and record EPS suggest strong demand despite currency challenges. Similar past performance led to stock price appreciation.

How important is it?

Strong financial results typically influence investor sentiment positively, likely impacting stock price.

Why Short Term?

Immediate positive investor sentiment expected due to strong quarterly results, but market dynamics may change.

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Sales for the quarter increased 11.4 percent. Organic sales increased 1.6 percent, acquisitions increased sales 10.5 percent and foreign currency translation decreased sales 0.7 percent.Diluted EPS increased 3.8 percent to $1.09 in the third quarter of fiscal 2025 compared to $1.05 in the same quarter of the prior year. Adjusted Diluted EPS* increased 11.9 percent to a record high of $1.22 in the third quarter of fiscal 2025 compared to $1.09 in the same quarter of the prior year.Returned $44.5 million in the quarter to shareholders in the form of dividends and share repurchases.The Company’s Adjusted Diluted EPS* Guidance range for the full year ending July 31, 2025 was tightened from a range of $4.45 to $4.70 per share to $4.48 to $4.63 per share, and the previous range of GAAP earnings per diluted Class A Nonvoting Common share guidance was updated to $3.95 to $4.10 per share. MILWAUKEE, May 16, 2025 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2025 third quarter ended April 30, 2025. Quarter Ended April 30, 2025 Financial Results:Sales for the quarter ended April 30, 2025 increased 11.4 percent, which consisted of organic sales growth of 1.6 percent, growth of 10.5 percent from acquisitions and a decline of 0.7 percent from foreign currency translation. Sales for the quarter ended April 30, 2025 were $382.6 million compared to $343.4 million in the same quarter last year. By region, sales increased 12.9 percent in the Americas & Asia and sales increased 8.7 percent in Europe & Australia, which consisted of organic sales growth of 5.4 percent in the Americas & Asia and an organic sales decline of 5.4 percent in Europe & Australia. Income before income taxes increased 2.1 percent to $65.7 million in the quarter ended April 30, 2025, compared to $64.4 million in the same quarter last year. Adjusted Income Before Income Taxes* in the quarter ended April 30, 2025, which was adjusted for amortization expense and facility closure and other reorganization costs of $8.7 million, was $74.4 million, an increase of 11.5 percent compared to the same quarter last year. Net income for the quarter ended April 30, 2025 was $52.3 million compared to $50.9 million in the same quarter last year. Adjusted Net Income* in the quarter ended April 30, 2025 was $58.8 million compared to $52.7 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share was $1.09 compared to $1.05 in the same quarter last year. Adjusted Diluted EPS* in the quarter ended April 30, 2025 was $1.22 compared to $1.09 in the same quarter last year. Nine-Month Period Ended April 30, 2025 Financial Results:Sales for the nine-month period ended April 30, 2025 increased 11.9 percent, which consisted of organic sales growth of 2.6 percent, growth of 10.2 percent from acquisitions, a decline of 0.5 percent from foreign currency translation and a decline of 0.4 percent from divestitures. Sales for the nine months ended April 30, 2025 were $1.12 billion compared to $998.0 million in the same period last year. By region, sales increased 11.4 percent in the Americas & Asia and sales increased 12.8 percent in Europe & Australia, which consisted of organic growth of 5.0 percent in the Americas & Asia and an organic sales decline of 1.9 percent in Europe & Australia. Income before income taxes decreased 1.7 percent to $176.6 million in the nine-month period ended April 30, 2025, compared to $179.6 million in the same period last year. Adjusted Income Before Income Taxes* in the nine-month period ended April 30, 2025, which was adjusted for amortization expense, facility closure and other reorganization costs and acquisition-related charges of $28.8 million, was $205.4 million, an increase of 10.0 percent compared to the same period last year. Net income in the nine-month period ended April 30, 2025 was $139.4 million compared to $141.8 million in the same period last year. Adjusted Net Income* in the nine-month period ended April 30, 2025 was $161.1 million compared to $147.2 million in the same period last year. Earnings per diluted Class A Nonvoting Common Share was $2.89 compared to $2.91 in the same period last year. Adjusted Diluted EPS* in the nine-month period ended April 30, 2025 was $3.34 compared to $3.03 in the same period last year. Commentary:“Our organic sales growth in the Americas & Asia region was strong this quarter, which was driven by our increased investments in research and development and new product launches over the last several years. The result was a new all-time company record quarter of adjusted earnings per share,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “While the tariff situation is currently uncertain, we will continue to focus on the execution of our strategic initiatives and we expect to utilize our global manufacturing presence to navigate trade developments throughout our businesses.” “In addition to our record adjusted EPS this quarter, we also used our strong balance sheet and cash generation to return funds to our shareholders through share buybacks and increased dividends. This quarter, we repurchased 476,000 shares for $33.2 million, and we returned another $11.3 million to our shareholders in the form of dividends,” said Brady’s Chief Financial Officer, Ann Thornton. “Our balance sheet provides us with the ability to continue to invest in both organic growth and strategic acquisitions to increase shareholder value, along with stability during this period of uncertainty surrounding the global trade environment.” Fiscal 2025 Guidance:The Company tightened its Adjusted Diluted EPS* guidance for the year ending July 31, 2025 from $4.45 to $4.70 per share to $4.48 to $4.63 per share. The Company’s GAAP earnings per diluted Class A Nonvoting Share guidance for the year ending July 31, 2025 was updated for facility closure and other reorganization costs incurred to date to $3.95 to $4.10 per share, from $3.99 to $4.24 per share. The assumptions included in fiscal 2025 guidance include a full-year income tax rate of approximately 20 percent, depreciation and amortization expense of approximately $40 million, and capital expenditures of approximately $25 million. Fiscal 2025 guidance is based upon foreign currency exchange rates as of April 30, 2025 and assumes economic growth. A webcast regarding Brady’s fiscal 2025 third 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, 2024, employed approximately 5,700 people in its worldwide businesses. Brady’s fiscal 2024 sales were approximately $1.34 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; risks associated with the loss of key employees; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; global climate change and environmental regulations; litigation, including product liability claims; 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, 2024. 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 414-438-6887Media contact: Kate Venne 414-358-5176 BRADY CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(Unaudited; Dollars in thousands, except per share data)         Three months ended April 30, Nine months ended April 30,  2025   2024   2025   2024 Net sales$382,590  $343,384  $1,116,330  $997,991 Cost of goods sold 187,531   166,357   555,739   487,162 Gross margin 195,059   177,027   560,591   510,829 Operating expenses:       Research and development 19,191   17,681   56,835   50,215 Selling, general and administrative 108,678   95,803   326,410   283,415 Total operating expenses 127,869   113,484   383,245   333,630         Operating income 67,190   63,543   177,346   177,199         Other (expense) income:       Investment and other (expense) income (509)  1,596   2,850   4,718 Interest expense (936)  (728)  (3,604)  (2,284)        Income before income taxes 65,745   64,411   176,592   179,633         Income tax expense 13,482   13,521   37,212   37,874         Net income$52,263  $50,890  $139,380  $141,759         Net income per Class A Nonvoting Common Share:       Basic$1.10  $1.06  $2.92  $2.94 Diluted$1.09  $1.05  $2.89  $2.91         Net income per Class B Voting Common Share:       Basic$1.10  $1.06  $2.90  $2.92 Diluted$1.09  $1.05  $2.88  $2.90         Weighted average common shares outstanding:       Basic 47,644   48,004   47,743   48,294 Diluted 48,066   48,386   48,196   48,640          BRADY CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Dollars in thousands)     April 30, 2025 July 31, 2024 (Unaudited)  ASSETS   Current assets:   Cash and cash equivalents$152,154  $250,118 Accounts receivable, net of allowance for credit losses of $8,967 and $6,749 respectively 224,358   185,486 Inventories 189,991   152,729 Prepaid expenses and other current assets 15,399   11,382 Total current assets 581,902   599,715 Property, plant and equipment—net 219,082   195,758 Goodwill 682,554   589,611 Other intangible assets 111,685   51,839 Deferred income taxes 20,583   15,596 Operating lease assets 58,118   38,504 Other assets 24,191   24,546 Total$1,698,115  $1,515,569 LIABILITIES AND STOCKHOLDERS’ EQUITY   Current liabilities:   Accounts payable$99,754  $84,691 Accrued compensation and benefits 87,506   77,954 Taxes, other than income taxes 19,711   14,061 Accrued income taxes 2,976   7,424 Current operating lease liabilities 15,030   13,382 Other current liabilities 86,809   67,170 Total current liabilities 311,786   264,682 Long-term debt 102,819   90,935 Long-term operating lease liabilities 43,772   25,342 Other liabilities 72,185   67,952 Total liabilities 530,562   448,911 Stockholders’ equity:   Common stock:   Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,774,580 and 44,042,462 shares, respectively 513   513 Class B voting common stock—Issued and outstanding, 3,538,628 shares 35   35 Additional paid-in capital 357,545   353,654 Retained earnings 1,279,168   1,174,025 Treasury stock—7,486,907 and 7,219,025 shares, respectively, of Class A nonvoting common stock, at cost (375,974)  (351,947)Accumulated other comprehensive loss (93,734)  (109,622)Total stockholders’ equity 1,167,553   1,066,658 Total$1,698,115  $1,515,569      BRADY CORPORATION AND SUBSIDIARIES   CONSOLIDATED STATEMENTS OF CASH FLOWS   (Unaudited; Dollars in thousands)    Nine months ended April 30,  2025   2024 Operating activities:   Net income$139,380  $141,759 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization 30,279   22,406 Stock-based compensation expense 9,762   6,422 Deferred income taxes (6,038)  (6,902)Other (181)  1,358 Changes in operating assets and liabilities:   Accounts receivable (6,869)  (15,915)Inventories (8,209)  20,861 Prepaid expenses and other assets (3,754)  (1,849)Accounts payable and accrued liabilities (26,415)  7,347 Income taxes (5,081)  (4,393)   Net cash provided by operating activities 122,874   171,094     Investing activities:   Purchases of property, plant and equipment (18,685)  (69,157)Acquisition of businesses, net of cash acquired (147,248)  — Other 854   (1,174)   Net cash used in investing activities (165,079)  (70,331)    Financing activities:   Payment of dividends (34,237)  (33,890)Proceeds from exercise of stock options 5,759   5,583 Payments for employee taxes withheld from stock-based awards (2,518)  (2,664)Purchase of treasury stock (33,155)  (72,225)Proceeds from borrowing on credit agreement 206,249   111,790 Repayment of borrowing on credit agreement (194,365)  (97,732)Other 190   149    Net cash used in financing activities (52,077)  (88,989)    Effect of exchange rate changes on cash and cash equivalents (3,682)  (2,848)    Net (decrease) increase in cash and cash equivalents (97,964)  8,926 Cash and cash equivalents, beginning of period 250,118   151,532     Cash and cash equivalents, end of period$152,154  $160,458      BRADY CORPORATION AND SUBSIDIARIESSEGMENT INFORMATION(Unaudited; Dollars in thousands)         Three months ended April 30, Nine months ended April 30,  2025   2024   2025   2024 NET SALES       Americas & Asia$253,652  $224,766  $732,926  $658,035 Europe & Australia 128,938   118,618   383,404   339,956 Total$382,590  $343,384  $1,116,330  $997,991         SALES INFORMATION       Americas & Asia       Organic 5.4%  4.5%  5.0%  3.0%Acquisitions 8.6%  —%  7.9%  —%Currency (1.1)%  (0.1)%  (1.0)%  —%Divestiture —%  (3.5)%  (0.5)%  (3.5)%Total 12.9%  0.9%  11.4%  (0.5)%Europe & Australia       Organic (5.4)%  4.4%  (1.9)%  2.8%Acquisitions 14.2%  —%  14.8%  —%Currency (0.1)%  (0.6)%  (0.1)%  1.9%Total 8.7%  3.8%  12.8%  4.7%Total Company       Organic 1.6%  4.5%  2.6%  3.0%Acquisitions 10.5%  —%  10.2%  —%Currency (0.7)%  (0.3)%  (0.5)%  0.6%Divestiture —%  (2.3)%  (0.4)%  (2.4)%Total 11.4%  1.9%  11.9%  1.2%        SEGMENT PROFIT       Americas & Asia$57,164  $49,697  $158,148  $143,489 Europe & Australia 17,478   19,537   41,872   51,335 Total segment profit$74,642  $69,234  $200,020  $194,824 SEGMENT PROFIT AS A PERCENT OF NET SALES       Americas & Asia 22.5%  22.1%  21.6%  21.8%Europe & Australia 13.6%  16.5%  10.9%  15.1%Total 19.5%  20.2%  17.9%  19.5%                 Three months ended April 30, Nine months ended April 30,  2025   2024   2025   2024 Total segment profit$74,642  $69,234  $200,020  $194,824 Unallocated amounts:       Administrative costs (7,452)  (5,691)  (22,674)  (17,625)Investment and other income (509)  1,596   2,850   4,718 Interest expense (936)  (728)  (3,604)  (2,284)Income before income taxes$65,745  $64,411  $176,592  $179,633          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 April 30, Nine months ended April 30,     2025   2024   2025   2024 Income before income taxes$65,745  $64,411  $176,592  $179,633  Amortization expense  4,754   2,365   14,138   7,084  Facility closure and other reorganization costs  3,930   -   9,584   -  Non-recurring acquisition-related costs and other expenses  -   -   5,059   - Adjusted Income Before Income Taxes (non-GAAP measure)$ 74,429  $ 66,776  $ 205,373  $ 186,717                       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 April 30, Nine months ended April 30,     2025   2024   2025   2024 Income tax expense (GAAP measure)$13,482  $13,521  $37,212  $37,874  Amortization expense  1,144   548   3,402   1,642  Facility closure and other reorganization costs   983   -   2,396   -  Non-recurring acquisition-related costs and other expenses  -   -   1,265   - Adjusted Income Tax Expense (non-GAAP measure)$ 15,609  $ 14,069  $ 44,275  $ 39,516                       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 April 30, Nine months ended April 30,     2025   2024   2025   2024 Net income (GAAP measure)$52,263  $50,890  $139,380  $141,759  Amortization expense  3,610   1,817   10,736   5,442  Facility closure and other reorganization costs   2,947   -   7,188   -  Non-recurring acquisition-related costs and other expenses  -   -   3,794   - Adjusted Net Income (non-GAAP measure)$ 58,820  $ 52,707  $ 161,098  $ 147,201                       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 April 30, Nine months ended April 30,     2025   2024   2025   2024 Net income per Class A Nonvoting Common Share (GAAP measure)$1.09  $1.05  $2.89  $2.91  Amortization expense  0.08   0.04   0.22   0.11  Facility closure and other reorganization costs   0.06   -   0.15   -  Non-recurring acquisition-related costs and other expenses  -   -   0.08   - Adjusted Diluted EPS (non-GAAP measure)$ 1.22  $ 1.09  $ 3.34  $ 3.03                       Diluted EPS Excluding Certain Items Guidance:     Fiscal 2025 Expectations        Low HighEarnings per diluted Class A Common Share (GAAP measure)     $3.95  $4.10  Amortization expense      0.30   0.30  Facility closure and other reorganization costs       0.15   0.15  Non-recurring acquisition-related costs and other expenses      0.08   0.08 Adjusted Diluted EPS (non-GAAP measure)     $ 4.48  $ 4.63 

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