Brady Corporation Reports Record Adjusted EPS in its Fiscal 2026 Third Quarter and Raises its Fiscal 2026 Adjusted EPS Guidance
Rhea-AI Summary
Brady (NYSE:BRC) reported fiscal 2026 Q3 net sales of $435.2 million, up 13.8% with 8.2% organic growth. Diluted EPS was $1.21 and record adjusted diluted EPS rose 23.0% to $1.50. Operating cash flow increased to $78.2 million.
Brady raised its fiscal 2026 adjusted EPS guidance to $5.20–$5.30 and slightly updated GAAP EPS guidance to $4.66–$4.76. The company agreed on April 20, 2026 to acquire Honeywell’s Productivity Solutions and Services business, expected to close in the second half of calendar 2026, subject to approvals.
AI-generated analysis. Not financial advice.
Positive
- Q3 2026 net sales up 13.8% to $435.2 million
- Q3 adjusted diluted EPS up 23.0% to $1.50
- Nine-month fiscal 2026 sales up 9.7% to $1.22 billion
- Operating cash flow rose to $78.2 million in Q3, over 30% higher year-over-year
- Fiscal 2026 adjusted EPS guidance raised to $5.20–$5.30 per share
- Net cash position of $148.6 million supports growth investment and PSS acquisition
Negative
- Fiscal 2026 GAAP EPS guidance range narrowed to $4.66–$4.76 per share
- Q3 research and development expense increased to $23.5 million from $19.2 million
- Q3 selling, general and administrative expense increased to $128.7 million from $108.7 million
- Q3 included $13.5 million of acquisition-related costs affecting GAAP results
- Pending PSS acquisition subject to regulatory approvals and customary closing conditions
News Market Reaction – BRC
On the day this news was published, BRC gained 18.98%, reflecting a significant positive market reaction. Argus tracked a peak move of +20.3% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $677M to the company's valuation, bringing the market cap to $4.25B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BRC slipped 0.25% while peers like BCO (-2.10%), CXW (-2.12%) and ADT (-1.44%) also traded lower. The modest decline ahead of strong results and higher guidance looks more company‑specific than part of a strong sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 13 | Earnings call notice | Neutral | -2.3% | Announced timing of fiscal 2026 Q3 earnings call and webcast. |
| Apr 20 | Major acquisition | Positive | -1.6% | Agreed to acquire Honeywell’s PSS business to expand data capture portfolio. |
| Apr 20 | Acquisition counterparty | Positive | -1.6% | Honeywell detailed sale of PSS unit to Brady for strategic portfolio shift. |
| Feb 24 | Dividend declaration | Neutral | -1.3% | Declared regular quarterly dividend on Class A common stock. |
| Feb 19 | Q2 results, guidance | Positive | -2.2% | Reported stronger Q2 results and raised low end of fiscal 2026 EPS outlook. |
Recent positive announcements, including strong earnings and the Honeywell PSS deal, were followed by negative 24‑hour price moves.
Over the last six months, Brady has consistently reported improving fundamentals. Fiscal 2026 Q2 results on Feb 19 showed higher sales, earnings and raised EPS guidance. On Apr 20, Brady announced the agreement to acquire Honeywell’s PSS business, followed by Honeywell’s matching disclosure the same day. A regular dividend was declared on Feb 24, and the Q3 earnings call was scheduled on May 13. Today’s Q3 release continues the pattern of rising sales, record adjusted EPS and higher full‑year guidance.
Market Pulse Summary
The stock surged +19.0% in the session following this news. A strong positive reaction aligns with the robust fundamentals in this release. Q3 net sales reached $435.2 million with record adjusted diluted EPS of $1.50, while full‑year adjusted EPS guidance was raised to $5.20–$5.30. Historically, several positive events were followed by short‑term price declines, so any sharp upside move could reflect changing sentiment. Investors may still monitor integration and execution risks around the pending PSS acquisition and future capital allocation.
Key Terms
adjusted diluted eps financial
non-gaap financial
forward-looking statements regulatory
income tax rate financial
form 10-k regulatory
securities and exchange commission regulatory
AI-generated analysis. Not financial advice.
- Sales for the quarter increased 13.8 percent compared to the same quarter of the prior year. Organic sales increased 8.2 percent, acquisitions increased sales 2.1 percent and foreign currency translation increased sales 3.5 percent.
- Diluted EPS increased 11.0 percent to
$1.21 in the third quarter of fiscal 2026 compared to$1.09 in the same quarter of the prior year. Adjusted Diluted EPS* increased 23.0 percent to$1.50 in the third quarter of fiscal 2026 compared to$1.22 in the same quarter of the prior year. - Net cash provided by operating activities increased to
$78.2 million in the third quarter of fiscal 2026 compared to$59.9 million in the third quarter of last year. - GAAP earnings per diluted Class A Nonvoting Common share guidance for the year ending July 31, 2026 was adjusted from the previous range of
$4.62 t o$4.82 per share to$4.66 t o$4.76 per share. Adjusted Diluted EPS* Guidance was raised for the full year ending July 31, 2026 from the previous range of$4.95 t o$5.15 per share to the new range of$5.20 t o$5.30 per share. - Entered into a definitive purchase agreement on April 20, 2026, to acquire Honeywell’s Productivity Solutions and Services business, expected to close in the second half of calendar 2026, subject to regulatory approvals and customary closing conditions.
MILWAUKEE, May 18, 2026 (GLOBE NEWSWIRE) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2026 third quarter ended April 30, 2026.
Quarter Ended April 30, 2026 Financial Results:
Sales for the quarter ended April 30, 2026 increased 13.8 percent, which consisted of organic sales growth of 8.2 percent, growth of 2.1 percent from acquisitions and an increase of 3.5 percent from foreign currency translation. Sales for the quarter ended April 30, 2026 were
Income before income taxes increased 11.6 percent to
Net income for the quarter ended April 30, 2026 was
Nine-Month Period Ended April 30, 2026 Financial Results:
Sales for the nine-month period ended April 30, 2026 increased 9.7 percent, which consisted of organic sales growth of 4.3 percent, growth of 2.5 percent from acquisitions and an increase of 2.9 percent from foreign currency translation. Sales for the nine months ended April 30, 2026 were
Income before income taxes increased 15.4 percent to
Net income in the nine-month period ended April 30, 2026 was
Commentary:
“Our investment in research & development resulted in strong organic sales growth globally, along with a record quarter of adjusted earnings per share. New product launches over the last several years as well as data center construction drove our sales growth, which is an end market that is ideal for our high-performance identification solutions,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “Last month, we announced our agreement to acquire Honeywell’s Productivity Solutions and Services business, which we expect to close in the second half of calendar 2026. I’m incredibly excited to execute our plans for growth and expand our portfolio through PSS with high-quality mobility and scanning solutions, which are highly complementary to Brady’s portfolio of printers, software and specialty adhesive materials.”
“In addition to our new quarterly record adjusted earnings per share, we increased our cash flow from operating activities more than 30 percent to
Fiscal 2026 Guidance:
The Company adjusted its GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2026 from
The assumptions included in fiscal 2026 guidance include a full-year income tax rate of approximately 21 percent, depreciation and amortization expense of approximately
A webcast regarding Brady’s fiscal 2026 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, 2025, employed approximately 6,400 people in its worldwide businesses. Brady’s fiscal 2025 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 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; difficulties in protecting our websites, networks, and systems against security breaches and difficulties in preventing phishing attacks, social engineering or malicious break-ins; risks associated with the loss of key employees; litigation, including product liability claims; global climate change and environmental regulations; 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; the possibility that events, changes or other circumstances could result in termination of the agreement to acquire the PSS business; our ability to complete the pending acquisition of the PSS business on the anticipated timeline or at all, including risks related to the timing, receipt and terms of required governmental and regulatory approvals and the satisfaction or waiver of other closing conditions; the potential effects of the pending acquisition and related integration planning on Brady’s and the PSS business’s relationships with customers, suppliers and other business partners, ability to retain and hire key personnel, operating results and businesses generally; our ability to realize the anticipated strategic and financial benefits of the pending acquisition of the PSS business, including expected synergies, within the anticipated timeframe, or at all; 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, 2025.
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.
| BRADY CORPORATION AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (Unaudited; Dollars in thousands, except per share data) | |||||||||||||||
| Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net sales | $ | 435,237 | $ | 382,590 | $ | 1,224,661 | $ | 1,116,330 | |||||||
| Cost of goods sold | 209,768 | 187,531 | 595,966 | 555,739 | |||||||||||
| Gross margin | 225,469 | 195,059 | 628,695 | 560,591 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 23,531 | 19,191 | 71,132 | 56,835 | |||||||||||
| Selling, general and administrative | 128,732 | 108,678 | 354,195 | 326,410 | |||||||||||
| Total operating expenses | 152,263 | 127,869 | 425,327 | 383,245 | |||||||||||
| Operating income | 73,206 | 67,190 | 203,368 | 177,346 | |||||||||||
| Other income (expense): | |||||||||||||||
| Investment and other income (expense) | 1,431 | (509 | ) | 3,948 | 2,850 | ||||||||||
| Interest expense | (1,269 | ) | (936 | ) | (3,467 | ) | (3,604 | ) | |||||||
| Income before income taxes | 73,368 | 65,745 | 203,849 | 176,592 | |||||||||||
| Income tax expense | 15,568 | 13,482 | 44,062 | 37,212 | |||||||||||
| Net income | $ | 57,800 | $ | 52,263 | $ | 159,787 | $ | 139,380 | |||||||
| Net income per Class A Nonvoting Common Share: | |||||||||||||||
| Basic | $ | 1.22 | $ | 1.10 | $ | 3.38 | $ | 2.92 | |||||||
| Diluted | $ | 1.21 | $ | 1.09 | $ | 3.35 | $ | 2.89 | |||||||
| Net income per Class B Voting Common Share: | |||||||||||||||
| Basic | $ | 1.22 | $ | 1.10 | $ | 3.36 | $ | 2.90 | |||||||
| Diluted | $ | 1.21 | $ | 1.09 | $ | 3.33 | $ | 2.88 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 47,357 | 47,644 | 47,313 | 47,743 | |||||||||||
| Diluted | 47,814 | 48,066 | 47,761 | 48,196 | |||||||||||
| BRADY CORPORATION AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Dollars in thousands) | |||||||
| April 30, 2026 | July 31, 2025 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 175,491 | $ | 174,349 | |||
| Accounts receivable, net of allowance for credit losses of | 266,354 | 231,944 | |||||
| Inventories | 220,252 | 200,881 | |||||
| Prepaid expenses and other current assets | 16,832 | 14,661 | |||||
| Total current assets | 678,929 | 621,835 | |||||
| Property, plant and equipment—net | 243,720 | 225,572 | |||||
| Goodwill | 689,415 | 676,945 | |||||
| Other intangible assets | 103,425 | 105,374 | |||||
| Deferred income taxes | 18,503 | 20,862 | |||||
| Operating lease assets | 61,154 | 58,422 | |||||
| Other assets | 36,805 | 25,243 | |||||
| Total | $ | 1,831,951 | $ | 1,734,253 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 108,454 | $ | 105,028 | |||
| Accrued compensation and benefits | 92,253 | 92,657 | |||||
| Taxes, other than income taxes | 22,308 | 21,537 | |||||
| Accrued income taxes | 4,787 | 5,547 | |||||
| Current operating lease liabilities | 16,382 | 15,234 | |||||
| Other current liabilities | 93,620 | 90,329 | |||||
| Total current liabilities | 337,804 | 330,332 | |||||
| Long-term debt | 26,857 | 99,766 | |||||
| Long-term operating lease liabilities | 45,270 | 43,565 | |||||
| Other liabilities | 78,035 | 68,379 | |||||
| Total liabilities | 487,966 | 542,042 | |||||
| Stockholders’ equity: | |||||||
| Common stock: | |||||||
| Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,650,910 and 43,530,012 shares, respectively | 513 | 513 | |||||
| Class B voting common stock—Issued and outstanding, 3,538,628 shares | 35 | 35 | |||||
| Additional paid-in capital | 363,578 | 359,269 | |||||
| Retained earnings | 1,442,868 | 1,317,739 | |||||
| Treasury stock—7,610,577 and 7,731,475 shares, respectively, of Class A nonvoting common stock, at cost | (393,992 | ) | (393,186 | ) | |||
| Accumulated other comprehensive loss | (69,017 | ) | (92,159 | ) | |||
| Total stockholders’ equity | 1,343,985 | 1,192,211 | |||||
| Total | $ | 1,831,951 | $ | 1,734,253 | |||
| BRADY CORPORATION AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Unaudited; Dollars in thousands) | |||||||
| Nine months ended April 30, | |||||||
| 2026 | 2025 | ||||||
| Operating activities: | |||||||
| Net income | $ | 159,787 | $ | 139,380 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 33,549 | 30,279 | |||||
| Stock-based compensation expense | 11,605 | 9,762 | |||||
| Deferred income taxes | 9,506 | (6,038 | ) | ||||
| Other | (4,857 | ) | (181 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (28,102 | ) | (6,869 | ) | |||
| Inventories | (12,970 | ) | (8,209 | ) | |||
| Prepaid expenses and other assets | (1,098 | ) | (3,754 | ) | |||
| Accounts payable and accrued liabilities | (1,638 | ) | (26,415 | ) | |||
| Income taxes | (883 | ) | (5,081 | ) | |||
| Net cash provided by operating activities | 164,899 | 122,874 | |||||
| Investing activities: | |||||||
| Purchases of property, plant and equipment | (32,994 | ) | (18,685 | ) | |||
| Acquisition of businesses, net of cash acquired | (17,416 | ) | (147,248 | ) | |||
| Other | 6,848 | 854 | |||||
| Net cash used in investing activities | (43,562 | ) | (165,079 | ) | |||
| Financing activities: | |||||||
| Payment of dividends | (34,658 | ) | (34,237 | ) | |||
| Proceeds from exercise of stock options | 9,168 | 5,759 | |||||
| Payments for employee taxes withheld from stock-based awards | (3,406 | ) | (2,518 | ) | |||
| Purchase of treasury stock | (14,130 | ) | (33,155 | ) | |||
| Proceeds from borrowing on credit agreement | 73,500 | 206,249 | |||||
| Repayment of borrowing on credit agreement | (146,409 | ) | (194,365 | ) | |||
| Other | (9,534 | ) | 190 | ||||
| Net cash used in financing activities | (125,469 | ) | (52,077 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | 5,274 | (3,682 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 1,142 | (97,964 | ) | ||||
| Cash and cash equivalents, beginning of period | 174,349 | 250,118 | |||||
| Cash and cash equivalents, end of period | $ | 175,491 | $ | 152,154 | |||
| BRADY CORPORATION AND SUBSIDIARIES | |||||||||||||||
| SEGMENT INFORMATION | |||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||
| Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| NET SALES | |||||||||||||||
| Americas & Asia | $ | 290,055 | $ | 253,652 | $ | 810,552 | $ | 732,926 | |||||||
| Europe & Australia | 145,182 | 128,938 | 414,109 | 383,404 | |||||||||||
| Total | $ | 435,237 | $ | 382,590 | $ | 1,224,661 | $ | 1,116,330 | |||||||
| SALES INFORMATION | |||||||||||||||
| Americas & Asia | |||||||||||||||
| Organic | 10.1 | % | 5.4 | % | 6.0 | % | 5.0 | % | |||||||
| Acquisitions | 3.1 | % | 8.6 | % | 3.9 | % | 7.9 | % | |||||||
| Currency | 1.2 | % | (1.1 | )% | 0.7 | % | (1.0 | )% | |||||||
| Divestiture | — | % | — | % | — | % | (0.5 | )% | |||||||
| Total | 14.4 | % | 12.9 | % | 10.6 | % | 11.4 | % | |||||||
| Europe & Australia | |||||||||||||||
| Organic | 4.5 | % | (5.4 | )% | 0.9 | % | (1.9 | )% | |||||||
| Acquisitions | — | % | 14.2 | % | — | % | 14.8 | % | |||||||
| Currency | 8.1 | % | (0.1 | )% | 7.1 | % | (0.1 | )% | |||||||
| Total | 12.6 | % | 8.7 | % | 8.0 | % | 12.8 | % | |||||||
| Total Company | |||||||||||||||
| Organic | 8.2 | % | 1.6 | % | 4.3 | % | 2.6 | % | |||||||
| Acquisitions | 2.1 | % | 10.5 | % | 2.5 | % | 10.2 | % | |||||||
| Currency | 3.5 | % | (0.7 | )% | 2.9 | % | (0.5 | )% | |||||||
| Divestiture | — | % | — | % | — | % | (0.4 | )% | |||||||
| Total | 13.8 | % | 11.4 | % | 9.7 | % | 11.9 | % | |||||||
| SEGMENT PROFIT | |||||||||||||||
| Americas & Asia | $ | 68,730 | $ | 57,164 | $ | 182,344 | $ | 158,148 | |||||||
| Europe & Australia | 21,470 | 17,478 | 55,624 | 41,872 | |||||||||||
| Total segment profit | $ | 90,200 | $ | 74,642 | $ | 237,968 | $ | 200,020 | |||||||
| SEGMENT PROFIT AS A PERCENT OF NET SALES | |||||||||||||||
| Americas & Asia | 23.7 | % | 22.5 | % | 22.5 | % | 21.6 | % | |||||||
| Europe & Australia | 14.8 | % | 13.6 | % | 13.4 | % | 10.9 | % | |||||||
| Total | 20.7 | % | 19.5 | % | 19.4 | % | 17.9 | % | |||||||
| Three months ended April 30, | Nine months ended April 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Total segment profit | $ | 90,200 | $ | 74,642 | $ | 237,968 | $ | 200,020 | |||||||
| Unallocated amounts: | |||||||||||||||
| Administrative costs | (16,994 | ) | (7,452 | ) | (34,600 | ) | (22,674 | ) | |||||||
| Investment and other income (expense) | 1,431 | (509 | ) | 3,948 | 2,850 | ||||||||||
| Interest expense | (1,269 | ) | (936 | ) | (3,467 | ) | (3,604 | ) | |||||||
| Income before income taxes | $ | 73,368 | $ | 65,745 | $ | 203,849 | $ | 176,592 | |||||||
| 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, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Income before income taxes | $ | 73,368 | $ | 65,745 | $ | 203,849 | $ | 176,592 | |||||
| Amortization expense | 5,255 | 4,754 | 15,768 | 14,138 | |||||||||
| Non-recurring acquisition-related costs and other related expenses | 13,506 | - | 13,506 | 5,059 | |||||||||
| Facility closure and other reorganization costs | - | 3,930 | - | 9,584 | |||||||||
| Adjusted Income Before Income Taxes (non-GAAP measure) | $ | 92,129 | $ | 74,429 | $ | 233,123 | $ | 205,373 | |||||
| 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, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Income tax expense (GAAP measure) | $ | 15,568 | $ | 13,482 | $ | 44,062 | $ | 37,212 | |||||
| Amortization expense | 1,267 | 1,144 | 3,803 | 3,402 | |||||||||
| Non-recurring acquisition-related costs and other related expenses | 3,376 | - | 3,376 | 1,265 | |||||||||
| Facility closure and other reorganization costs | - | 983 | - | 2,396 | |||||||||
| Adjusted Income Tax Expense (non-GAAP measure) | $ | 20,211 | $ | 15,609 | $ | 51,241 | $ | 44,275 | |||||
| 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, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net income (GAAP measure) | $ | 57,800 | $ | 52,263 | $ | 159,787 | $ | 139,380 | |||||
| Amortization expense | 3,988 | 3,610 | 11,965 | 10,736 | |||||||||
| Non-recurring acquisition-related costs and other related expenses | 10,130 | - | 10,130 | 3,794 | |||||||||
| Facility closure and other reorganization costs | - | 2,947 | - | 7,188 | |||||||||
| Adjusted Net Income (non-GAAP measure) | $ | 71,918 | $ | 58,820 | $ | 181,882 | $ | 161,098 | |||||
| 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, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net income per Class A Nonvoting Common Share (GAAP measure) | $ | 1.21 | $ | 1.09 | $ | 3.35 | $ | 2.89 | |||||
| Amortization expense | 0.08 | 0.08 | 0.25 | 0.22 | |||||||||
| Non-recurring acquisition-related costs and other related expenses | 0.21 | - | 0.21 | 0.08 | |||||||||
| Facility closure and other reorganization costs | - | 0.06 | - | 0.15 | |||||||||
| Adjusted Diluted EPS (non-GAAP measure) | $ | 1.50 | $ | 1.22 | $ | 3.81 | $ | 3.34 | |||||
| Adjusted Dilued EPS Guidance: | Fiscal 2026 Expectations | ||||||||||||
| Low | High | ||||||||||||
| Earnings per diluted Class A Common Share (GAAP measure) | $ | 4.66 | $ | 4.76 | |||||||||
| Amortization expense | 0.33 | 0.33 | |||||||||||
| Non-recurring acquisition-related costs and other related expenses | 0.21 | 0.21 | |||||||||||
| Adjusted Diluted EPS (non-GAAP measure) | $ | 5.20 | $ | 5.30 | |||||||||
For More Information:
Investor contact: Ann Thornton 414-438-6887
Media contact: Kate Venne 414-358-5176
