Brady Corporation Reports Fiscal 2025 Second Quarter Results and Raises the Low End of its Fiscal 2025 Adjusted Diluted EPS Guidance
Brady (BRC) reported its fiscal 2025 second quarter results with a 10.6% increase in sales to $356.7 million, comprising 2.6% organic growth and 10.2% from acquisitions. The company experienced regional sales growth of 10.5% in Americas & Asia and 10.7% in Europe & Australia.
While diluted EPS decreased 7.8% to $0.83, adjusted diluted EPS rose 7.5% to $1.00. Net cash from operations improved to $39.6 million from $36.1 million year-over-year. The company raised the low end of its fiscal 2025 adjusted EPS guidance from $4.40-$4.70 to $4.45-$4.70 per share.
The company's net income for Q2 was $40.3 million, down from $43.6 million in the same quarter last year. Brady maintains a strong balance sheet with a net cash position of $50.8 million, enabling continued investment in organic growth, acquisitions, and shareholder returns.
Brady (BRC) ha riportato i risultati del secondo trimestre fiscale 2025 con un aumento delle vendite del 10,6% a 356,7 milioni di dollari, comprendente una crescita organica del 2,6% e del 10,2% derivante da acquisizioni. L'azienda ha registrato una crescita delle vendite regionali del 10,5% nelle Americhe e in Asia e del 10,7% in Europa e Australia.
Sebbene l'utile per azione diluito sia diminuito del 7,8% a 0,83 dollari, l'utile per azione diluito rettificato è aumentato del 7,5% a 1,00 dollari. Il flusso di cassa netto dalle operazioni è migliorato a 39,6 milioni di dollari rispetto ai 36,1 milioni di dollari dell'anno precedente. L'azienda ha alzato il limite inferiore della sua guida per l'utile per azione rettificato fiscale 2025 da 4,40-4,70 dollari a 4,45-4,70 dollari per azione.
Il reddito netto dell'azienda per il secondo trimestre è stato di 40,3 milioni di dollari, in calo rispetto ai 43,6 milioni di dollari dello stesso trimestre dell'anno scorso. Brady mantiene un bilancio solido con una posizione di cassa netta di 50,8 milioni di dollari, che consente continui investimenti nella crescita organica, nelle acquisizioni e nei ritorni per gli azionisti.
Brady (BRC) reportó sus resultados del segundo trimestre fiscal 2025 con un aumento del 10,6% en las ventas a 356,7 millones de dólares, que incluye un crecimiento orgánico del 2,6% y un 10,2% proveniente de adquisiciones. La compañía experimentó un crecimiento de ventas regional del 10,5% en las Américas y Asia, y del 10,7% en Europa y Australia.
Aunque el EPS diluido disminuyó un 7,8% a 0,83 dólares, el EPS diluido ajustado aumentó un 7,5% a 1,00 dólar. El flujo de efectivo neto de las operaciones mejoró a 39,6 millones de dólares desde 36,1 millones de dólares en comparación con el año anterior. La compañía elevó el límite inferior de su guía de EPS ajustado para el fiscal 2025 de 4,40-4,70 dólares a 4,45-4,70 dólares por acción.
El ingreso neto de la compañía para el segundo trimestre fue de 40,3 millones de dólares, una disminución respecto a los 43,6 millones de dólares en el mismo trimestre del año pasado. Brady mantiene un balance sólido con una posición de efectivo neto de 50,8 millones de dólares, lo que permite continuar invirtiendo en crecimiento orgánico, adquisiciones y retornos para los accionistas.
브래디 (BRC)는 2025 회계연도 2분기 실적을 발표하며 매출이 10.6% 증가하여 3억 5,670만 달러에 이르렀으며, 이 중 2.6%는 유기적 성장, 10.2%는 인수로 인한 것입니다. 이 회사는 미주 및 아시아에서 10.5%, 유럽 및 호주에서 10.7%의 지역 매출 성장을 경험했습니다.
희석 주당 순이익은 7.8% 감소하여 0.83달러에 이르렀으나, 조정된 희석 주당 순이익은 7.5% 증가하여 1.00달러로 상승했습니다. 운영에서 발생한 순현금은 작년 대비 3,610만 달러에서 3,960만 달러로 개선되었습니다. 회사는 2025 회계연도 조정된 주당 순이익 가이던스의 하한을 4.40-4.70달러에서 4.45-4.70달러로 상향 조정했습니다.
회사의 2분기 순이익은 4,030만 달러로, 작년 같은 분기 4,360만 달러에서 감소했습니다. 브래디는 5,080만 달러의 순현금 위치를 유지하며, 유기적 성장, 인수 및 주주 수익에 대한 지속적인 투자를 가능하게 합니다.
Brady (BRC) a annoncé ses résultats du deuxième trimestre de l'exercice 2025, avec une augmentation des ventes de 10,6% à 356,7 millions de dollars, comprenant une croissance organique de 2,6% et 10,2% provenant d'acquisitions. L'entreprise a connu une croissance des ventes régionales de 10,5% en Amérique et en Asie, et de 10,7% en Europe et en Australie.
Bien que le BPA dilué ait diminué de 7,8% pour atteindre 0,83 dollar, le BPA dilué ajusté a augmenté de 7,5% pour atteindre 1,00 dollar. Le flux de trésorerie net des opérations s'est amélioré, passant de 36,1 millions de dollars à 39,6 millions de dollars d'une année sur l'autre. L'entreprise a relevé la limite inférieure de ses prévisions de BPA ajusté pour l'exercice 2025 de 4,40-4,70 dollars à 4,45-4,70 dollars par action.
Le bénéfice net de l'entreprise pour le deuxième trimestre s'élevait à 40,3 millions de dollars, en baisse par rapport à 43,6 millions de dollars au même trimestre de l'année dernière. Brady maintient un bilan solide avec une position de trésorerie nette de 50,8 millions de dollars, permettant des investissements continus dans la croissance organique, les acquisitions et les retours aux actionnaires.
Brady (BRC) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 bekannt gegeben, mit einem Umsatzanstieg von 10,6% auf 356,7 Millionen Dollar, bestehend aus 2,6% organischem Wachstum und 10,2% aus Akquisitionen. Das Unternehmen verzeichnete ein regionales Umsatzwachstum von 10,5% in Amerika und Asien sowie 10,7% in Europa und Australien.
Obwohl der verwässerte Gewinn pro Aktie um 7,8% auf 0,83 Dollar gesunken ist,
Der Nettogewinn des Unternehmens für das zweite Quartal betrug 40,3 Millionen Dollar, ein Rückgang von 43,6 Millionen Dollar im gleichen Quartal des Vorjahres. Brady hat eine starke Bilanz mit einer Nettocash-Position von 50,8 Millionen Dollar, die fortlaufende Investitionen in organisches Wachstum, Akquisitionen und Rückflüsse an die Aktionäre ermöglicht.
- Sales increased 10.6% to $356.7 million
- Adjusted diluted EPS grew 7.5% to $1.00
- Operating cash flow improved to $39.6 million from $36.1 million
- Raised low end of adjusted EPS guidance to $4.45-$4.70
- Strong net cash position of $50.8 million
- Diluted EPS decreased 7.8% to $0.83
- Net income declined to $40.3 million from $43.6 million
- Income before taxes decreased 6.8% to $52.0 million
- Organic sales in Europe & Australia declined 0.8%
Insights
Brady 's Q2 FY2025 results reveal a strategic transformation in progress, balancing growth initiatives with operational optimization. The
The divergence between GAAP and adjusted earnings metrics tells an important story. While GAAP EPS declined
The regional performance disparity between Americas & Asia (
The company's robust financial position, with net cash of
The launch of the i7500 high-speed printer with LabelSense™ technology demonstrates Brady's commitment to innovation and operational efficiency solutions for customers. This focus on technological advancement, coupled with strategic acquisitions, positions the company well in the high-value identification solutions market.
The narrowing of guidance range, while maintaining the upper end, suggests management's increased confidence in achieving their financial targets while acknowledging ongoing market uncertainties. The projected
- Sales for the quarter increased 10.6 percent. Organic sales increased 2.6 percent, acquisitions increased sales 10.2 percent and foreign currency translation decreased sales 2.2 percent.
- Diluted EPS decreased 7.8 percent to
$0.83 in the second quarter of fiscal 2025 compared to$0.90 in the same quarter of the prior year. Adjusted Diluted EPS* increased 7.5 percent to$1.00 in the second quarter of fiscal 2025 compared to$0.93 in the same quarter of the prior year. - Net cash provided by operating activities increased to
$39.6 million in the second quarter of fiscal 2025 compared to$36.1 million in the second quarter of last year. - The low end of Adjusted Diluted EPS* Guidance was raised for the full year ending July 31, 2025 from the previous range of
$4.40 t o$4.70 per share to the new range of$4.45 t o$4.70 per share. GAAP earnings per diluted Class A Nonvoting Common share guidance for the year ending July 31, 2025 was updated to reflect facility closure and other reorganization costs to$3.99 t o$4.24 per share.
MILWAUKEE, Feb. 21, 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 second quarter ended January 31, 2025.
Quarter Ended January 31, 2025 Financial Results:
Sales for the quarter ended January 31, 2025 increased 10.6 percent, which consisted of organic sales growth of 2.6 percent, growth of 10.2 percent from acquisitions and a decline of 2.2 percent from foreign currency translation. Sales for the quarter ended January 31, 2025 were
Income before income taxes decreased 6.8 percent to
Net income for the quarter ended January 31, 2025 was
Six-Month Period Ended January 31, 2025 Financial Results:
Sales for the six-month period ended January 31, 2025 increased 12.1 percent, which consisted of organic sales growth of 3.1 percent, growth of 10.0 percent from acquisitions, a decline of 0.5 percent from foreign currency translation and a decline of 0.5 percent from divestitures. Sales for the six months ended January 31, 2025 were
Income before income taxes decreased 3.8 percent to
Net income in the six-month period ended January 31, 2025 was
Commentary:
“Our investments in research and development continue to drive the introduction of new products such as our i7500 high-speed printer, which was launched this quarter. It creates value for our customers by using our LabelSenseTM technology to enable rapid material changeover with zero waste,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “On a regional basis, the Americas and Asia region performed well with another quarter of strong organic sales growth and improvement in segment profit. Brady has a clear roadmap defined using our R&D to create innovative products while continuing to improve our operational efficiency.”
“We generated adjusted EPS of
Fiscal 2025 Guidance:
The Company raised the low end of its Adjusted Diluted EPS* guidance for the year ending July 31, 2025 from
The assumptions included in fiscal 2025 guidance include a full-year income tax rate of approximately 21 percent, depreciation and amortization expense of approximately
A webcast regarding Brady’s fiscal 2025 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, 2024, employed approximately 5,700 people in its worldwide businesses. Brady’s fiscal 2024 sales were approximately
* 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 raw materials and labor as well as material shortages and supply chain disruptions; 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 414-438-6887
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, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net sales | $ | 356,675 | $ | 322,624 | $ | 733,740 | $ | 654,607 | ||||||||
Cost of goods sold | 180,832 | 160,541 | 368,208 | 320,805 | ||||||||||||
Gross margin | 175,843 | 162,083 | 365,532 | 333,802 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 18,723 | 16,832 | 37,644 | 32,534 | ||||||||||||
Selling, general and administrative | 105,886 | 91,325 | 217,732 | 187,612 | ||||||||||||
Total operating expenses | 124,609 | 108,157 | 255,376 | 220,146 | ||||||||||||
Operating income | 51,234 | 53,926 | 110,156 | 113,656 | ||||||||||||
Other income (expense): | ||||||||||||||||
Investment and other income | 2,125 | 2,684 | 3,359 | 3,122 | ||||||||||||
Interest expense | (1,312 | ) | (790 | ) | (2,668 | ) | (1,556 | ) | ||||||||
Income before income taxes | 52,047 | 55,820 | 110,847 | 115,222 | ||||||||||||
Income tax expense | 11,713 | 12,192 | 23,730 | 24,353 | ||||||||||||
Net income | $ | 40,334 | $ | 43,628 | $ | 87,117 | $ | 90,869 | ||||||||
Net income per Class A Nonvoting Common Share: | ||||||||||||||||
Basic | $ | 0.84 | $ | 0.90 | $ | 1.82 | $ | 1.88 | ||||||||
Diluted | $ | 0.83 | $ | 0.90 | $ | 1.81 | $ | 1.86 | ||||||||
Net income per Class B Voting Common Share: | ||||||||||||||||
Basic | $ | 0.84 | $ | 0.90 | $ | 1.81 | $ | 1.86 | ||||||||
Diluted | $ | 0.83 | $ | 0.90 | $ | 1.79 | $ | 1.85 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 47,851 | 48,374 | 47,792 | 48,440 | ||||||||||||
Diluted | 48,306 | 48,725 | 48,261 | 48,768 | ||||||||||||
BRADY CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Dollars in thousands) | |||||||
January 31, 2025 | July 31, 2024 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 138,452 | $ | 250,118 | |||
Accounts receivable, net of allowance for credit losses of | 201,973 | 185,486 | |||||
Inventories | 181,810 | 152,729 | |||||
Prepaid expenses and other current assets | 14,080 | 11,382 | |||||
Total current assets | 536,315 | 599,715 | |||||
Property, plant and equipment—net | 199,075 | 195,758 | |||||
Goodwill | 661,288 | 589,611 | |||||
Other intangible assets | 108,456 | 51,839 | |||||
Deferred income taxes | 16,587 | 15,596 | |||||
Operating lease assets | 42,135 | 38,504 | |||||
Other assets | 24,844 | 24,546 | |||||
Total | $ | 1,588,700 | $ | 1,515,569 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 90,968 | $ | 84,691 | |||
Accrued compensation and benefits | 69,551 | 77,954 | |||||
Taxes, other than income taxes | 18,794 | 14,061 | |||||
Accrued income taxes | 4,416 | 7,424 | |||||
Current operating lease liabilities | 14,922 | 13,382 | |||||
Other current liabilities | 83,699 | 67,170 | |||||
Total current liabilities | 282,350 | 264,682 | |||||
Long-term debt | 87,687 | 90,935 | |||||
Long-term operating lease liabilities | 27,546 | 25,342 | |||||
Other liabilities | 70,649 | 67,952 | |||||
Total liabilities | 468,232 | 448,911 | |||||
Stockholders’ equity: | |||||||
Common stock: | |||||||
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 44,241,601 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 | 356,531 | 353,654 | |||||
Retained earnings | 1,238,275 | 1,174,025 | |||||
Treasury stock—7,019,886 and 7,219,025 shares, respectively, of Class A nonvoting common stock, at cost | (343,059 | ) | (351,947 | ) | |||
Accumulated other comprehensive loss | (131,827 | ) | (109,622 | ) | |||
Total stockholders’ equity | 1,120,468 | 1,066,658 | |||||
Total | $ | 1,588,700 | $ | 1,515,569 | |||
BRADY CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited; Dollars in thousands) | |||||||
Six months ended January 31, | |||||||
2025 | 2024 | ||||||
Operating activities: | |||||||
Net income | $ | 87,117 | $ | 90,869 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 20,096 | 15,008 | |||||
Stock-based compensation expense | 7,993 | 5,263 | |||||
Deferred income taxes | (3,076 | ) | (3,640 | ) | |||
Other | 231 | 947 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 6,605 | (5,030 | ) | ||||
Inventories | (8,384 | ) | 10,078 | ||||
Prepaid expenses and other assets | (2,571 | ) | (1,187 | ) | |||
Accounts payable and accrued liabilities | (41,650 | ) | (9,754 | ) | |||
Income taxes | (3,361 | ) | (4,203 | ) | |||
Net cash provided by operating activities | 63,000 | 98,351 | |||||
Investing activities: | |||||||
Purchases of property, plant and equipment | (14,423 | ) | (60,832 | ) | |||
Acquisition of businesses, net of cash acquired | (137,348 | ) | — | ||||
Other | 53 | — | |||||
Net cash used in investing activities | (151,718 | ) | (60,832 | ) | |||
Financing activities: | |||||||
Payment of dividends | (22,867 | ) | (22,694 | ) | |||
Proceeds from exercise of stock options | 5,712 | 5,366 | |||||
Payments for employee taxes withheld from stock-based awards | (2,130 | ) | (2,362 | ) | |||
Purchase of treasury stock | — | (21,797 | ) | ||||
Proceeds from borrowing on credit agreement | 159,373 | 69,145 | |||||
Repayment of borrowing on credit agreement | (162,621 | ) | (70,771 | ) | |||
Other | 190 | 149 | |||||
Net cash used in financing activities | (22,343 | ) | (42,964 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (605 | ) | (2,227 | ) | |||
Net decrease in cash and cash equivalents | (111,666 | ) | (7,672 | ) | |||
Cash and cash equivalents, beginning of period | 250,118 | 151,532 | |||||
Cash and cash equivalents, end of period | $ | 138,452 | $ | 143,860 | |||
BRADY CORPORATION AND SUBSIDIARIES | |||||||||||||||
SEGMENT INFORMATION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Three months ended January 31, | Six months ended January 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
NET SALES | |||||||||||||||
Americas & Asia | $ | 233,846 | $ | 211,643 | $ | 479,274 | $ | 433,269 | |||||||
Europe & Australia | 122,829 | 110,981 | 254,466 | 221,338 | |||||||||||
Total | $ | 356,675 | $ | 322,624 | $ | 733,740 | $ | 654,607 | |||||||
SALES INFORMATION | |||||||||||||||
Americas & Asia | |||||||||||||||
Organic | 4.3 | % | 1.2 | % | 4.7 | % | 2.3 | % | |||||||
Acquisitions | 7.6 | % | — | % | 7.5 | % | — | % | |||||||
Currency | (1.4 | )% | 0.1 | % | (0.8 | )% | — | % | |||||||
Divestiture | — | % | (5.1 | )% | (0.8 | )% | (3.5 | )% | |||||||
Total | 10.5 | % | (3.8 | )% | 10.6 | % | (1.2 | )% | |||||||
Europe & Australia | |||||||||||||||
Organic | (0.8 | )% | 2.5 | % | — | % | 2.0 | % | |||||||
Acquisitions | 15.1 | % | — | % | 15.1 | % | — | % | |||||||
Currency | (3.6 | )% | 2.0 | % | (0.1 | )% | 3.3 | % | |||||||
Total | 10.7 | % | 4.5 | % | 15.0 | % | 5.3 | % | |||||||
Total Company | |||||||||||||||
Organic | 2.6 | % | 1.6 | % | 3.1 | % | 2.2 | % | |||||||
Acquisitions | 10.2 | % | — | % | 10.0 | % | — | % | |||||||
Currency | (2.2 | )% | 0.8 | % | (0.5 | )% | 1.1 | % | |||||||
Divestiture | — | % | (3.5 | )% | (0.5 | )% | (2.4 | )% | |||||||
Total | 10.6 | % | (1.1 | )% | 12.1 | % | 0.9 | % | |||||||
SEGMENT PROFIT | |||||||||||||||
Americas & Asia | $ | 45,986 | $ | 43,895 | $ | 100,886 | $ | 93,792 | |||||||
Europe & Australia | 11,378 | 15,054 | 24,492 | 31,798 | |||||||||||
Total segment profit | $ | 57,364 | $ | 58,949 | $ | 125,378 | $ | 125,590 | |||||||
SEGMENT PROFIT AS A PERCENT OF NET SALES | |||||||||||||||
Americas & Asia | 19.7 | % | 20.7 | % | 21.0 | % | 21.6 | % | |||||||
Europe & Australia | 9.3 | % | 13.6 | % | 9.6 | % | 14.4 | % | |||||||
Total | 16.1 | % | 18.3 | % | 17.1 | % | 19.2 | % | |||||||
Three months ended January 31, | Six months ended January 31, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Total segment profit | $ | 57,364 | $ | 58,949 | $ | 125,378 | $ | 125,590 | |||||||
Unallocated amounts: | |||||||||||||||
Administrative costs | (6,130 | ) | (5,023 | ) | (15,222 | ) | (11,934 | ) | |||||||
Investment and other income | 2,125 | 2,684 | 3,359 | 3,122 | |||||||||||
Interest expense | (1,312 | ) | (790 | ) | (2,668 | ) | (1,556 | ) | |||||||
Income before income taxes | $ | 52,047 | $ | 55,820 | $ | 110,847 | $ | 115,222 | |||||||
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, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Income before income taxes | $ | 52,047 | $ | 55,820 | $ | 110,847 | $ | 115,222 | |||||||
Amortization expense | 4,671 | 2,364 | 9,384 | 4,719 | |||||||||||
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) | $ | 62,372 | $ | 58,184 | $ | 130,944 | $ | 119,941 | |||||||
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, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Income tax expense (GAAP measure) | $ | 11,713 | $ | 12,192 | $ | 23,730 | $ | 24,353 | |||||||
Amortization expense | 1,125 | 548 | 2,258 | 1,094 | |||||||||||
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) | $ | 14,251 | $ | 12,740 | $ | 28,666 | $ | 25,447 | |||||||
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, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Net income (GAAP measure) | $ | 40,334 | $ | 43,628 | $ | 87,117 | $ | 90,869 | |||||||
Amortization expense | 3,546 | 1,816 | 7,126 | 3,625 | |||||||||||
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) | $ | 48,121 | $ | 45,444 | $ | 102,278 | $ | 94,494 | |||||||
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, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Net income per Class A Nonvoting Common Share (GAAP measure) | $ | 0.83 | $ | 0.90 | $ | 1.81 | $ | 1.86 | |||||||
Amortization expense | 0.07 | 0.04 | 0.15 | 0.07 | |||||||||||
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) | $ | 1.00 | $ | 0.93 | $ | 2.12 | $ | 1.94 | |||||||
Diluted EPS Excluding Certain Items Guidance: | Fiscal 2025 Expectations | ||||||||||||||
Low | High | ||||||||||||||
Earnings per diluted Class A Common Share (GAAP measure) | $ | 3.99 | $ | 4.24 | |||||||||||
Amortization expense | 0.29 | 0.29 | |||||||||||||
Facility closure and other reorganization costs | 0.09 | 0.09 | |||||||||||||
Non-recurring acquisition-related costs and other expenses | 0.08 | 0.08 | |||||||||||||
Adjusted Diluted EPS (non-GAAP measure) | $ | 4.45 | $ | 4.70 |
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FAQ
What was Brady 's (BRC) revenue growth in Q2 2025?
How did BRC's adjusted EPS perform in Q2 2025?
What is Brady 's updated EPS guidance for fiscal 2025?
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