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Brady Corporation Reports Fiscal 2025 Second Quarter Results and Raises the Low End of its Fiscal 2025 Adjusted Diluted EPS Guidance

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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 Nettobetriebs-Cashflow verbesserte sich im Jahresvergleich auf 39,6 Millionen Dollar von 36,1 Millionen Dollar. Das Unternehmen hat die untere Grenze seiner Prognose für den angepassten Gewinn pro Aktie für das Geschäftsjahr 2025 von 4,40-4,70 Dollar auf 4,45-4,70 Dollar pro Aktie angehoben.

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.

Positive
  • 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
Negative
  • 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 10.6% revenue growth to $356.7 million demonstrates successful execution of both organic and inorganic growth strategies, though the 2.6% organic growth rate suggests some underlying market challenges.

The divergence between GAAP and adjusted earnings metrics tells an important story. While GAAP EPS declined 7.8%, the 7.5% increase in adjusted EPS to $1.00 reflects underlying operational improvements once restructuring costs are excluded. The $10.3 million in facility closure and reorganization costs indicates significant operational streamlining efforts that should enhance long-term profitability.

The regional performance disparity between Americas & Asia (4.3% organic growth) and Europe & Australia (-0.8% organic decline) highlights both opportunities and challenges. The stronger performance in Americas & Asia suggests successful market penetration and product adoption, while European operations may face macro headwinds requiring strategic adjustments.

The company's robust financial position, with net cash of $50.8 million, provides significant strategic flexibility. This strong balance sheet, combined with consistent operating cash flow growth ($39.6 million vs. $36.1 million), enables continued investment in R&D, strategic acquisitions, and shareholder returns through dividends and buybacks.

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 $35 million in capital expenditures and focus on operational efficiency initiatives indicate continued investment in long-term competitive advantages.

  • 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 to $4.70 per share to the new range of $4.45 to $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 to $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 $356.7 million compared to $322.6 million in the same quarter last year. By region, sales increased 10.5 percent in the Americas & Asia and sales increased 10.7 percent in Europe & Australia, which consisted of organic sales growth of 4.3 percent in the Americas & Asia and an organic sales decline of 0.8 percent in Europe & Australia.

Income before income taxes decreased 6.8 percent to $52.0 million in the quarter ended January 31, 2025, compared to $55.8 million in the same quarter last year. Adjusted Income Before Income Taxes* in the quarter ended January 31, 2025, which was adjusted for amortization expense and facility closure and other reorganization costs of $10.3 million, was $62.4 million, an increase of 7.2 percent compared to the second quarter of last year. Adjusted Income Before Income Taxes* in the quarter ended January 31, 2024, which was adjusted for amortization expense of $2.4 million, was $58.2 million.

Net income for the quarter ended January 31, 2025 was $40.3 million compared to $43.6 million in the same quarter last year. Adjusted Net Income* in the quarter ended January 31, 2025 was $48.1 million compared to $45.4 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share was $0.83 compared to $0.90 in the same quarter last year. Adjusted Diluted EPS* in the quarter ended January 31, 2025 was $1.00 compared to $0.93 in the same quarter last year.

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 $733.7 million compared to $654.6 million in the same period last year. By region, sales increased 10.6 percent in the Americas & Asia and sales increased 15.0 percent in Europe & Australia, which consisted of organic growth of 4.7 percent in the Americas & Asia and flat organic sales in Europe & Australia.

Income before income taxes decreased 3.8 percent to $110.8 million in the six-month period ended January 31, 2025, compared to $115.2 million in the same period last year. Adjusted Income Before Income Taxes* in the six-month period ended January 31, 2025, which was adjusted for amortization expense, facility closure and other reorganization costs and acquisition-related charges of $20.1 million, was $130.9 million, an increase of 9.2 percent compared to the same period last year. Adjusted Income Before Income Taxes* in the six-month period ended January 31, 2024, which was adjusted for amortization expense of $4.7 million, was $119.9 million.

Net income in the six-month period ended January 31, 2025 was $87.1 million compared to $90.9 million in the same period last year. Adjusted Net Income* in the six-month period ended January 31, 2025 was $102.3 million compared to $94.5 million in the same period last year. Earnings per diluted Class A Nonvoting Common Share was $1.81 compared to $1.86 in the same period last year. Adjusted Diluted EPS* in the six-month period ended January 31, 2025 was $2.12 compared to $1.94 in the same period last year.

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 $1.00 this quarter, which represented 7.5 percent growth compared to the second quarter of last year,” said Brady’s Chief Financial Officer, Ann Thornton. “This performance was driven by organic sales growth and a continued focus on long-term operational efficiency opportunities. Our balance sheet is strong and our net cash position increased to $50.8 million this quarter, which provides us with the flexibility to fully fund our organic and inorganic opportunities, and return funds to our shareholders through dividends and share buybacks. We believe we are positioned to continue to deliver improved long-term financial results to our shareholders.”

Fiscal 2025 Guidance:
The Company raised the low end of its Adjusted Diluted EPS* guidance for the year ending July 31, 2025 from $4.40 to $4.70 per share to $4.45 to $4.70 per share. The Company’s GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2025 was updated for facility closure and other reorganization costs incurred to date to $3.99 to $4.24 per share, from $4.02 to $4.32 per share.

The assumptions included in fiscal 2025 guidance include a full-year income tax rate of approximately 21 percent, depreciation and amortization expense of approximately $40 million, and capital expenditures of approximately $35 million. Fiscal 2025 guidance is based upon foreign currency exchange rates as of January 31, 2025 and assumes economic growth.

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 $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 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 $9,227 and $6,749 respectively 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 

FAQ

What was Brady 's (BRC) revenue growth in Q2 2025?

Brady reported a 10.6% increase in sales for Q2 2025, reaching $356.7 million, which included 2.6% organic growth and 10.2% growth from acquisitions.

How did BRC's adjusted EPS perform in Q2 2025?

Brady's adjusted diluted EPS increased 7.5% to $1.00 in Q2 2025, compared to $0.93 in the same quarter of the previous year.

What is Brady 's updated EPS guidance for fiscal 2025?

Brady raised the low end of its adjusted diluted EPS guidance for fiscal 2025 from $4.40-$4.70 to $4.45-$4.70 per share.

How much operating cash flow did BRC generate in Q2 2025?

Brady generated $39.6 million in operating cash flow during Q2 2025, an increase from $36.1 million in the same quarter last year.

What was BRC's regional sales performance in Q2 2025?

Sales increased 10.5% in Americas & Asia with 4.3% organic growth, and 10.7% in Europe & Australia with a 0.8% organic sales decline.

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