TLDR
- Brady Corp stock trades at $83.38 pre-market, up from $82.75 at close on Sept. 4, 2025.
- Q4 adjusted EPS reached a record $1.26, beating expectations of $1.24.
- Revenue rose 15.7% to $397.3M, with acquisitions adding 11.3% growth.
- Dividend raised for the 40th straight year; $96M returned to shareholders.
- Fiscal 2026 adjusted EPS outlook set between $4.85 and $5.15.
Brady Corp (NYSE: BRC) closed at $82.75 on September 4, 2025, gaining 6.5%, and traded at $83.38 pre-market on September 5th.
The rise followed strong Q4 results for the period ended July 31. The company reported adjusted earnings of $1.26 per share, up 5.9% from last year and above Wall Street’s $1.24 consensus. Reported EPS came in lower at $1.04, reflecting facility closure costs.
Revenue climbed 15.7% to $397.28 million, surpassing expectations of $386.87 million. Organic sales rose 2.4%, while acquisitions contributed 11.3%. Net income for the quarter reached $49.88 million.
Regional and Product Performance
The Americas and Asia delivered organic sales growth of 4.8% and 4.3% respectively, led by strong demand for wire identification products. Europe and Australia faced macroeconomic headwinds, with sales declining 1.3%.
Gross margin slipped to 50.4% from 51.6% a year ago, pressured by facility closure and reorganization expenses totaling $8.9 million. SG&A expenses grew to $117.9 million, or 29.7% of sales, compared to 27.2% in the prior year.
Investments and Shareholder Returns
Brady increased R&D spending by 31% to $23.1 million in Q4, or 5.8% of sales, highlighting a strategic push into innovation. For the year, nearly $80 million was allocated to R&D, representing 5.3% of total sales.
The company continued rewarding shareholders, repurchasing 257,000 shares worth $17.7 million and declaring its 40th consecutive year of dividend increases. In total, $96 million was returned to shareholders through dividends and buybacks.
Cash Flow and Balance Sheet
Operating cash flow fell to $58.3 million from $84 million in the prior year, while free cash flow declined to $49.4 million from $73.2 million. The company attributed the drop to inventory buildup and restructuring costs. Brady ended the quarter with a net cash position of $74.6 million, providing financial flexibility despite near-term challenges.
Outlook for Fiscal 2026
For fiscal 2026, Brady projected GAAP EPS between $4.55 and $4.85, with adjusted EPS expected in the range of $4.85 to $5.15. However, management warned of potential $8 million to $12 million in tariff impacts that could pressure profitability.
Analysts remain optimistic, with a “strong buy” consensus and a 12-month price target of $87. Shares have risen 13.2% year-to-date, outpacing the S&P 500’s 10.6% return. Long-term, Brady’s consistent dividend growth and investment in innovation support its resilience, even as global headwinds persist.
