Brady Corp 8-K, filed Sep 4, 2025
Brady Corp (BRC)
8-K
2025-09-04
For: 2025-09-03
View Original
Added on
April 04, 2026
About this 8-K
Brady Corp filed this 8-K on September 4, 2025, reporting on events of September 3, 2025.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 3, 2025
(Exact name of registrant as specified in its charter)
Commission File Number 1-14959
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |||||||
(Address of Principal Executive Offices and Zip Code)
(414 ) 358-6600
(Registrant’s Telephone Number)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION | ||||
On September 4, 2025, Brady Corporation (the “Company”) issued a press release announcing its fiscal 2025 fourth quarter financial results. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99.1 attached hereto and is incorporated herein by reference.
| Item 7.01 | REGULATION FD DISCLOSURE | ||||
On September 4, 2025, the Company hosted a conference call related to its fiscal 2025 fourth quarter financial results. A copy of the slides referenced in the conference call, which is also posted on the Company's website, is being furnished to the Securities and Exchange Commission as Exhibit 99.3 attached hereto and is incorporated herein by reference.
| Item 8.01 | OTHER EVENTS | ||||
Increase in Annual Dividend
On September 3, 2025, the Company's Board of Directors approved an increase in the annual cash dividend on its Class A Common Stock from $0.96 to $0.98 per share. A quarterly dividend in the amount of $0.245 per share will be paid on October 31, 2025 to shareholders of record as of the close of business on October 10, 2025. A copy of the press release regarding the dividend is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
| Item 9.01 | FINANCIAL STATEMENTS AND EXHIBITS | ||||
(d) Exhibits
| EXHIBIT NUMBER | DESCRIPTION | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 99.3 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BRADY CORPORATION | ||||||||
| Date: September 4, 2025 | ||||||||
| /s/ ANN E. THORNTON | ||||||||
| Ann E. Thornton | ||||||||
| Chief Financial Officer, Chief Accounting Officer and Treasurer | ||||||||
EXHIBIT 99.1
For More Information:
Investor contact: Ann Thornton 414-438-6887
Media contact: Kate Venne 414-358-5176
Brady Corporation Reports Record Adjusted EPS in its Fiscal 2025 Fourth Quarter and Announces its Fiscal 2026 EPS Guidance
•Sales for the quarter increased 15.7 percent. Organic sales increased 2.4 percent, acquisitions increased sales 11.3 percent and foreign currency translation increased sales 2.0 percent.
•Diluted EPS was $1.04 in the fourth quarter of fiscal 2025 compared to $1.15 in the same quarter of the prior year. Adjusted Diluted EPS* increased 5.9 percent to a record high of $1.26 in the fourth quarter of fiscal 2025 compared to $1.19 in the same quarter of the prior year.
•Returned $96.4 million to shareholders in fiscal 2025 in the form of dividends and share repurchases.
•Announced diluted EPS guidance for the year ending July 31, 2026 at a range of $4.55 to $4.85 on a GAAP basis, and a range of $4.85 to $5.15 on an adjusted basis.
MILWAUKEE (September 4, 2025) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2025 fourth quarter ended July 31, 2025.
Quarter Ended July 31, 2025 Financial Results:
Sales for the quarter ended July 31, 2025 increased 15.7 percent, which consisted of organic sales growth of 2.4 percent, growth of 11.3 percent from acquisitions and an increase of 2.0 percent from foreign currency translation. Sales for the quarter ended July 31, 2025 were $397.3 million compared to $343.4 million in the same quarter last year. By region, sales increased 14.1 percent in the Americas & Asia and sales increased 18.8 percent in Europe & Australia, which consisted of organic sales growth of 4.3 percent in the Americas & Asia and an organic sales decline of 1.3 percent in Europe & Australia.
Income before income taxes was $60.5 million in the quarter ended July 31, 2025, compared to $68.2 million in the same quarter last year. Adjusted Income Before Income Taxes* in the quarter ended July 31, 2025, which was adjusted for amortization expense and facility closure and other reorganization costs of $13.7 million, was $74.2 million, an increase of 5.1 percent compared to the same quarter last year.
Net income for the quarter ended July 31, 2025 was $49.9 million compared to $55.5 million in the same quarter last year. Adjusted Net Income* in the quarter ended July 31, 2025 was $60.2 million compared to $57.3 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share was $1.04 compared to $1.15 in the same quarter last year. Adjusted Diluted EPS* in the quarter ended July 31, 2025 was $1.26 compared to $1.19 in the same quarter last year.
Year Ended July 31, 2025 Financial Results:
Sales for the year ended July 31, 2025 increased 12.8 percent, which consisted of organic sales growth of 2.6 percent, growth of 10.5 percent from acquisitions and a decline of 0.3 percent from divestitures. Sales for the year ended July 31, 2025 were $1.51 billion compared to $1.34 billion in the prior year. By region, sales increased
12.1 percent in the Americas & Asia and increased 14.3 percent in Europe & Australia, which consisted of organic sales growth of 4.8 percent in the Americas & Asia and an organic sales decline of 1.8 percent in Europe & Australia.
Income before income taxes was $237.1 million for the year ended July 31, 2025, compared to $247.8 million for the year ended July 31, 2024. Adjusted Income Before Income Taxes* for the year ended July 31, 2025, which was adjusted for amortization expense, facility closure and other reorganization costs and acquisition-related charges of $42.4 million, was $279.5 million, an increase of 8.7 percent.
Net income for the year ended July 31, 2025 was $189.3 million compared to $197.2 million in the prior year. Earnings per diluted Class A Nonvoting Common Share were $3.94 for the year ended July 31, 2025 compared to $4.07 in the prior year. Adjusted Net Income* for the year ended July 31, 2025 was $221.3 million compared to $204.5 million in the prior year, and Adjusted Diluted EPS* for the year ended July 31, 2025 increased to a record-high $4.60 per share compared to $4.22 in the prior year.
Commentary:
“Our investments in new products once again led to strong results in the Americas & Asia region, with 4.3 percent organic sales growth in the fourth quarter and 4.8 percent organic sales growth in fiscal 2025. The result was a new all-time company record quarter and record year of adjusted earnings per share,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “From an M&A standpoint, we added to our product portfolio this year with the acquisition of Gravotech at the beginning of fiscal 2025, and the acquisition of Mecco, which we closed on August 4, 2025. Both of these companies add direct part marking and laser engraving capabilities to our portfolio of specialty identification products, expanding our ability to provide customers with a wide variety of end-to-end identification solutions to improve visibility and efficiency throughout the manufacturing process.”
“Our balance sheet is strong and we closed the fiscal year in a net cash position, which provides us with the flexibility to fund our anticipated organic and inorganic opportunities, and to return funds to our shareholders through dividends and share buybacks,” said Brady’s Chief Financial Officer, Ann Thornton. “In fiscal 2025, we returned $96.4 million to shareholders through dividends and share buybacks while also investing a record-high in research and development. Through these investments, we believe we are well-positioned to continue to deliver improved long-term value to our shareholders.”
Fiscal 2026 Guidance:
The Company expects GAAP earnings per diluted Class A Nonvoting Common Share to range from $4.55 to $4.85 for the year ending July 31, 2026, which represents an increase of 15.5 percent to 23.1 percent compared to GAAP earnings per diluted Class A Nonvoting Common Share of $3.94 for the year ended July 31, 2025.
The Company expects Adjusted Diluted EPS* to range from $4.85 to $5.15 for the year ending July 31, 2026, which represents an increase of 5.4 percent to 12.0 percent compared to Adjusted Diluted EPS* of $4.60 for the year ended July 31, 2025. Adjusted Diluted EPS* guidance excludes amortization expense estimated at $0.30 per share for the year ending July 31, 2026.
The assumptions included in fiscal 2026 guidance include a full-year income tax rate of approximately 21 percent, depreciation and amortization expense of approximately $42 million, and capital expenditures of approximately $40 million. Fiscal 2026 guidance is based upon foreign currency exchange rates as of July 31, 2025 and assumes economic growth.
A webcast regarding Brady’s fiscal 2025 fourth 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 $1.51 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradyid.com.
* Adjusted Income Before Income Taxes, Adjusted Net Income, and Adjusted Diluted EPS are non-GAAP measures. See appendix for more information on these measures, including reconciliations to the most directly comparable GAAP measures.
###
In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations.
The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: increased cost of materials, labor, material shortages and supply chain disruptions, including as a result of tariffs or other impacts of the global trade environment; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; Brady’s ability to identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks, and systems against security breaches; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; 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; 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 July 31, | Year ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net sales | $ | 397,275 | $ | 343,402 | $ | 1,513,605 | $ | 1,341,393 | |||||||||||||||
| Cost of goods sold | 197,044 | 166,347 | 752,783 | 653,509 | |||||||||||||||||||
| Gross margin | 200,231 | 177,055 | 760,822 | 687,884 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 23,054 | 17,533 | 79,889 | 67,748 | |||||||||||||||||||
| Selling, general and administrative | 117,885 | 93,307 | 444,295 | 376,722 | |||||||||||||||||||
| Total operating expenses | 140,939 | 110,840 | 524,184 | 444,470 | |||||||||||||||||||
| Operating income | 59,292 | 66,215 | 236,638 | 243,414 | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Investment and other income | 2,356 | 2,835 | 5,206 | 7,553 | |||||||||||||||||||
| Interest expense | (1,143) | (842) | (4,747) | (3,126) | |||||||||||||||||||
| Income before income taxes | 60,505 | 68,208 | 237,097 | 247,841 | |||||||||||||||||||
| Income tax expense | 10,629 | 12,752 | 47,841 | 50,626 | |||||||||||||||||||
| Net income | $ | 49,876 | $ | 55,456 | $ | 189,256 | $ | 197,215 | |||||||||||||||
| Net income per Class A Nonvoting Common Share: | |||||||||||||||||||||||
| Basic | $ | 1.05 | $ | 1.17 | $ | 3.97 | $ | 4.10 | |||||||||||||||
| Diluted | $ | 1.04 | $ | 1.15 | $ | 3.94 | $ | 4.07 | |||||||||||||||
| Net income per Class B Voting Common Share: | |||||||||||||||||||||||
| Basic | $ | 1.05 | $ | 1.17 | $ | 3.96 | $ | 4.08 | |||||||||||||||
| Diluted | $ | 1.04 | $ | 1.15 | $ | 3.92 | $ | 4.05 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 47,335 | 47,595 | 47,641 | 48,119 | |||||||||||||||||||
| Diluted | 47,780 | 48,063 | 48,092 | 48,496 | |||||||||||||||||||
BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited; Dollars in thousands)
| July 31, 2025 | July 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 174,349 | $ | 250,118 | |||||||
Accounts receivable, net of allowance for credit losses of $7,876 and $6,749, respectively | 231,944 | 185,486 | |||||||||
| Inventories | 200,881 | 152,729 | |||||||||
| Prepaid expenses and other current assets | 14,661 | 11,382 | |||||||||
| Total current assets | 621,835 | 599,715 | |||||||||
| Property, plant and equipment—net | 225,572 | 195,758 | |||||||||
| Goodwill | 676,945 | 589,611 | |||||||||
| Other intangible assets | 105,374 | 51,839 | |||||||||
| Deferred income taxes | 20,862 | 15,596 | |||||||||
| Operating lease assets | 58,422 | 38,504 | |||||||||
| Other assets | 25,243 | 24,546 | |||||||||
| Total | $ | 1,734,253 | $ | 1,515,569 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 105,028 | $ | 84,691 | |||||||
| Accrued compensation and benefits | 92,657 | 77,954 | |||||||||
| Taxes, other than income taxes | 21,537 | 14,061 | |||||||||
| Accrued income taxes | 5,547 | 7,424 | |||||||||
| Current operating lease liabilities | 15,234 | 13,382 | |||||||||
| Other current liabilities | 90,329 | 67,170 | |||||||||
| Total current liabilities | 330,332 | 264,682 | |||||||||
| Long-term debt | 99,766 | 90,935 | |||||||||
| Long-term operating lease liabilities | 43,565 | 25,342 | |||||||||
| Other liabilities | 68,379 | 67,952 | |||||||||
| Total liabilities | 542,042 | 448,911 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock: | |||||||||||
| Class A nonvoting common stock — Issued 51,261,487 shares, and outstanding 43,530,012 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 | 359,269 | 353,654 | |||||||||
| Retained earnings | 1,317,739 | 1,174,025 | |||||||||
Treasury stock — 7,731,475 and 7,219,025 shares, respectively, of Class A nonvoting common stock, at cost | (393,186) | (351,947) | |||||||||
| Accumulated other comprehensive loss | (92,159) | (109,622) | |||||||||
| Total stockholders’ equity | 1,192,211 | 1,066,658 | |||||||||
| Total | $ | 1,734,253 | $ | 1,515,569 | |||||||
BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in thousands)
| Year ended July 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 189,256 | $ | 197,215 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 40,639 | 29,873 | |||||||||
| Stock-based compensation expense | 11,882 | 7,361 | |||||||||
| Deferred income taxes | (7,623) | (9,399) | |||||||||
| Other | (2,540) | 1,401 | |||||||||
| Changes in operating assets and liabilities (net of effects of business acquisitions): | |||||||||||
| Accounts receivable | (14,356) | (6,581) | |||||||||
| Inventories | (18,889) | 21,697 | |||||||||
| Prepaid expenses and other assets | (2,098) | (743) | |||||||||
| Accounts payable and accrued liabilities | (9,862) | 19,198 | |||||||||
| Income taxes | (5,213) | (4,948) | |||||||||
| Net cash provided by operating activities | 181,196 | 255,074 | |||||||||
| Investing activities: | |||||||||||
| Purchases of property, plant and equipment | (27,577) | (79,892) | |||||||||
| Acquisition of businesses, net of cash acquired | (144,541) | — | |||||||||
| Other | 864 | (1,155) | |||||||||
| Net cash used in investing activities | (171,254) | (81,047) | |||||||||
| Financing activities: | |||||||||||
| Payment of dividends | (45,542) | (45,060) | |||||||||
| Proceeds from exercise of stock options | 6,171 | 8,186 | |||||||||
| Payments for employee taxes withheld from stock-based awards | (2,683) | (2,797) | |||||||||
| Purchase of treasury stock | (50,838) | (72,225) | |||||||||
| Proceeds from borrowing on credit facilities | 266,846 | 175,103 | |||||||||
| Repayment of borrowing on credit facilities | (258,015) | (133,884) | |||||||||
| Other | 190 | 149 | |||||||||
| Net cash used in financing activities | (83,871) | (70,528) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,840) | (4,913) | |||||||||
| Net (decrease) increase in cash and cash equivalents | (75,769) | 98,586 | |||||||||
| Cash and cash equivalents, beginning of period | 250,118 | 151,532 | |||||||||
| Cash and cash equivalents, end of period | $ | 174,349 | $ | 250,118 | |||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Cash paid during the period for: | |||||||||||
| Interest | $ | 4,656 | $ | 2,930 | |||||||
| Income taxes | 71,077 | 62,073 | |||||||||
BRADY CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited; Dollars in thousands)
| Three months ended July 31, | Year ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| NET SALES | |||||||||||||||||||||||
| Americas & Asia | $ | 260,789 | $ | 228,493 | $ | 993,715 | $ | 886,528 | |||||||||||||||
| Europe & Australia | 136,486 | 114,909 | 519,890 | 454,865 | |||||||||||||||||||
| Total | $ | 397,275 | $ | 343,402 | $ | 1,513,605 | $ | 1,341,393 | |||||||||||||||
| SALES INFORMATION | |||||||||||||||||||||||
| Americas & Asia | |||||||||||||||||||||||
| Organic | 4.3 | % | 3.4 | % | 4.8 | % | 3.1 | % | |||||||||||||||
| Acquisitions | 9.8 | % | — | % | 8.3 | % | — | % | |||||||||||||||
| Currency | — | % | (0.8) | % | (0.6) | % | (0.2) | % | |||||||||||||||
| Divestiture | — | % | (2.2) | % | (0.4) | % | (3.2) | % | |||||||||||||||
| Total | 14.1 | % | 0.4 | % | 12.1 | % | (0.3) | % | |||||||||||||||
| Europe & Australia | |||||||||||||||||||||||
| Organic | (1.3) | % | (1.8) | % | (1.8) | % | 1.6 | % | |||||||||||||||
| Acquisitions | 14.4 | % | — | % | 14.7 | % | — | % | |||||||||||||||
| Currency | 5.7 | % | (1.2) | % | 1.4 | % | 1.1 | % | |||||||||||||||
| Total | 18.8 | % | (3.0) | % | 14.3 | % | 2.7 | % | |||||||||||||||
| Total Company | |||||||||||||||||||||||
| Organic | 2.4 | % | 1.6 | % | 2.6 | % | 2.6 | % | |||||||||||||||
| Acquisitions | 11.3 | % | — | % | 10.5 | % | — | % | |||||||||||||||
| Currency | 2.0 | % | (0.8) | % | — | % | 0.2 | % | |||||||||||||||
| Divestiture | — | % | (1.5) | % | (0.3) | % | (2.1) | % | |||||||||||||||
| Total | 15.7 | % | (0.7) | % | 12.8 | % | 0.7 | % | |||||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||
| Americas & Asia | $ | 51,617 | $ | 53,353 | $ | 209,765 | $ | 196,842 | |||||||||||||||
| Europe & Australia | 15,070 | 19,277 | 56,942 | 70,612 | |||||||||||||||||||
| Total | $ | 66,687 | $ | 72,630 | $ | 266,707 | $ | 267,454 | |||||||||||||||
| SEGMENT PROFIT AS A PERCENT OF NET SALES | |||||||||||||||||||||||
| Americas & Asia | 19.8 | % | 23.3 | % | 21.1 | % | 22.2 | % | |||||||||||||||
| Europe & Australia | 11.0 | % | 16.8 | % | 11.0 | % | 15.5 | % | |||||||||||||||
| Total | 16.8 | % | 21.2 | % | 17.6 | % | 19.9 | % | |||||||||||||||
| Three months ended July 31, | Year ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Total segment profit | $ | 66,687 | $ | 72,630 | $ | 266,707 | $ | 267,454 | |||||||||||||||
| Unallocated amounts: | |||||||||||||||||||||||
| Administrative costs | (7,395) | (6,415) | (30,069) | (24,040) | |||||||||||||||||||
| Investment and other income | 2,356 | 2,835 | 5,206 | 7,553 | |||||||||||||||||||
| Interest expense | (1,143) | (842) | (4,747) | (3,126) | |||||||||||||||||||
| Income before income taxes | $ | 60,505 | $ | 68,208 | $ | 237,097 | $ | 247,841 | |||||||||||||||
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 July 31, | Year ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Income before income taxes (GAAP measure) | $ | 60,505 | $ | 68,208 | $ | 237,097 | $ | 247,841 | |||||||||||||||
| Amortization expense | 4,778 | 2,337 | 18,916 | 9,421 | |||||||||||||||||||
| Facility closure and other reorganization costs | 8,890 | — | 18,474 | — | |||||||||||||||||||
| Non-recurring acquisitions-related costs and other expenses | — | — | 5,059 | — | |||||||||||||||||||
| Adjusted Income Before Income Taxes (non-GAAP measure) | $ | 74,173 | $ | 70,545 | $ | 279,546 | $ | 257,262 | |||||||||||||||
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 July 31, | Year ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Income tax expense (GAAP measure) | $ | 10,629 | $ | 12,752 | $ | 47,841 | $ | 50,626 | |||||||||||||||
| Amortization expense | 1,148 | 540 | 4,550 | 2,182 | |||||||||||||||||||
| Facility closure and other reorganization costs | 2,222 | — | 4,618 | — | |||||||||||||||||||
| Non-recurring acquisitions-related costs and other expenses | — | — | 1,265 | — | |||||||||||||||||||
| Adjusted Income Tax Expense (non-GAAP measure) | $ | 13,999 | $ | 13,292 | $ | 58,274 | $ | 52,808 | |||||||||||||||
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 July 31, | Year ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income (GAAP measure) | $ | 49,876 | $ | 55,456 | $ | 189,256 | $ | 197,215 | |||||||||||||||
| Amortization expense | 3,630 | 1,797 | 14,366 | 7,239 | |||||||||||||||||||
| Facility closure and other reorganization costs | 6,668 | — | 13,856 | — | |||||||||||||||||||
| Non-recurring acquisitions-related costs and other expenses | — | — | 3,794 | — | |||||||||||||||||||
| Adjusted Net Income (non-GAAP measure) | $ | 60,174 | $ | 57,253 | $ | 221,272 | $ | 204,454 | |||||||||||||||
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 July 31, | Year ended July 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income per Class A Nonvoting Common Share (GAAP measure) | $ | 1.04 | $ | 1.15 | $ | 3.94 | $ | 4.07 | |||||||||||||||
| Amortization expense | 0.08 | 0.04 | 0.30 | 0.15 | |||||||||||||||||||
| Facility closure and other reorganization costs | 0.14 | — | 0.29 | — | |||||||||||||||||||
| Non-recurring acquisitions-related costs and other expenses | — | — | 0.08 | — | |||||||||||||||||||
| Adjusted Diluted EPS (non-GAAP measure) | $ | 1.26 | $ | 1.19 | $ | 4.60 | $ | 4.22 | |||||||||||||||
Adjusted Diluted EPS Guidance:
| Fiscal 2026 Expectations | |||||||||||||||||||||||
| Low | High | ||||||||||||||||||||||
| Earnings per Class A Nonvoting Common Share (GAAP measure) | $ | 4.55 | $ | 4.85 | |||||||||||||||||||
| Amortization expense | 0.30 | 0.30 | |||||||||||||||||||||
| Adjusted Diluted EPS (non-GAAP measure) | $ | 4.85 | $ | 5.15 | |||||||||||||||||||
EXHIBIT 99.2
For More Information Contact:
Investor Contact: Ann Thornton 414 438-6887
Media Contact: Kate Venne 414 358-5176
Brady Corporation increases its dividend to shareholders for the 40th consecutive year
MILWAUKEE (September 3, 2025) -- On September 3, 2025, Brady Corporation’s (NYSE: BRC) Board of Directors approved an increase in the annual dividend to shareholders of the Company’s Class A Common Stock from $0.96 per share to $0.98 per share. A quarterly dividend to shareholders of the Company’s Class A Common Stock of $0.245 per share will be paid on October 31, 2025, to shareholders of record at the close of business on October 10, 2025. This dividend represents the 40th consecutive annual increase in dividends.
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.bradycorp.com.
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F’25 Q4 Financial Results Brady Corporation September 4, 2025
Forward-Looking Statements 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, income, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations. The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: increased cost of materials, labor, material shortages and supply chain disruptions, including as a result of tariffs or other impacts of the global trade environment; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; Brady’s ability to identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks and systems against security breaches; extensive regulations by U.S. and non-U.S. governmental and self- regulatory entities; 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; 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. 2
Q4 F’25 Highlights 3 * Adjusted Diluted EPS is a non-GAAP measure. See appendix. Organic sales growth of 2.4%. Total sales growth of 15.7% including acquisitions and Fx. Sales Growth GAAP EPS of $1.04 in Q4 F’25 vs. $1.15 in Q4 F’24. Adjusted Diluted EPS* increased 5.9% to $1.26 in Q4 F’25 from $1.19 in Q4 F’24. Record High Adjusted Diluted EPS* Americas & Asia organic sales growth of 4.3%. Europe & Australia organic sales decline of 1.3%. Regional Sales Results Purchased 733,360 shares in F’25 for $50.9M. Paid dividends of $45.5M and announced our 40th consecutive year of dividend increases. Returned $96.4M to our Shareholders F’26 GAAP EPS guidance of $4.55 - $4.85 (increase of 15.5% to 23.1% vs. F’25). F’26 Adjusted Diluted EPS* guidance of $4.85 - $5.15 (increase of 5.4% to 12.0% vs. F’25). F’26 EPS Guidance GAAP EPS was $3.94 in F’25 vs. $4.07 in F’24. Adjusted Diluted EPS* was up 9.0% from $4.22 to an all-time high of $4.60. Record High Adjusted Diluted EPS* Full-Year F’25 Highlights
Sales Overview 4 Q4 F’25 SALES: Total sales increased 15.7%. Organic sales increased 2.4%. • Americas & Asia – Organic sales increased 4.3%. • Europe & Australia – Organic sales declined 1.3%. Foreign currency translation increased sales 2.0%. Acquisitions increased sales 11.3%. $321 $318 $339 $324 $323 $326 $337 $346 $332 $323 $343 $343 $377 $357 $383 $397 $225 $250 $275 $300 $325 $350 $375 $400 $425 Q1 F'22 7.0% Q2 F'22 13.1% Q3 F'22 9.0% Q4 F'22 9.0% Q1 F'23 6.9% Q2 F'23 6.3% Q3 F'23 1.9% Q4 F'23 6.9% Q1 F'24 2.7% Q2 F'24 1.6% Q3 F'24 4.5% Q4 F'24 1.6% Q1 F'25 3.6% Q2 F'25 2.6% Q3 F'25 1.6% Q4 F'25 2.4%Organic Growth SALES (millions of USD) Q4 F’25 SALES COMMENTARY: Organic sales grew 3.3% in the Americas with growth in most major product lines. Asia organic sales grew 12.0% with growth throughout the region except for China. Organic sales declined 0.8% in Europe and declined 5.1% in Australia.
Gross Profit Margin 5 $155 $149 $164 $163 $155 $156 $170 $176 $172 $162 $177 $177 $190 $176 $195 $20048.2% 47.0% 48.4% 50.4% 48.1% 48.0% 50.3% 50.8% 51.7% 50.2% 51.6% 51.6% 50.3% 49.3% 51.0% 50.4% 40% 42% 44% 46% 48% 50% 52% $100 $125 $150 $175 $200 $225 $250 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 GROSS PROFIT & GPM% (millions of USD) Q4 F’25 – GROSS PROFIT MARGIN: Gross profit margin of 50.4% compared to 51.6% in Q4 of F’24. The impact of facility closures and other reorganization costs reduced gross profit margin by approximately 50 basis points in Q4 of F’25.
SG&A Expense 6 Q4 F’25 – SG&A EXPENSE: SG&A expense increased as a percent of sales when compared to Q4 last year due to increased amortization and facility closure and other reorganization costs. Amortization expense was $4.8M in Q4 of F’25 and $2.3M in Q4 of F’24, and facility closure and other reorganization costs were $6.8M in Q4 of F’25. $97 $93 $96 $95 $90 $92 $91 $97 $96 $91 $96 $93 $112 $106 $109 $118 30.1% 29.1% 28.4% 29.2% 27.9% 28.3% 27.0% 28.2% 29.0% 28.3% 27.9% 27.2% 29.7% 29.7% 28.4% 29.7% 22% 24% 26% 28% 30% 32% $75 $90 $105 $120 $135 $150 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD)
R&D Expense 7 Q4 F’25 – R&D EXPENSE: Investments in R&D continue to drive long-term organic sales growth; F’25 acquisitions have a higher level of R&D as a percentage of sales. $13.9 $14.0 $14.9 $15.8 $13.9 $15.4 $15.7 $16.3 $15.7 $16.8 $17.7 $17.5 $18.9 $18.7 $19.2 $23.1 4.3% 4.4% 4.4% 4.9% 4.3% 4.7% 4.7% 4.7% 4.7% 5.2% 5.1% 5.1% 5.0% 5.2% 5.0% 5.8% 2.0% 3.0% 4.0% 5.0% 6.0% $10.0 $14.0 $18.0 $22.0 $26.0 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD)
Income Before Income Taxes 8 $44.7 $42.0 $51.3 $54.0 $50.3 $48.5 $63.0 $63.8 $59.4 $55.8 $64.4 $68.2 $58.8 $52.0 $65.7 $60.5 $10 $20 $30 $40 $50 $60 $70 Q1 F'22 5.8% Q2 F'22 6.7% Q3 F'22 7.3% Q4 F'22 29.7% Q1 F'23 12.6% Q2 F'23 15.4% Q3 F'23 23.0% Q4 F'23 18.2% Q1 F'24 18.0% Q2 F'24 15.1% Q3 F'24 2.2% Q4 F'24 6.9% Q1 F'25 (1.0%) Q2 F'25 (6.8%) Q3 F'25 2.1% Q4 F'25 (11.3%) * Adjusted Income Before Income Taxes is a non-GAAP measure. See appendix. (millions of USD)INCOME BEFORE INCOME TAXES (GAAP) Q4 F’25 – INCOME BEFORE INCOME TAXES: GAAP Income before income taxes decreased 11.3% to $60.5M in Q4 of F’25 compared to $68.2M in Q4 of F’24. Adjusted Income Before Income Taxes* increased 5.1% to $74.2M in Q4 of F’25 compared to $70.5M in Q4 of F’24. Year-on-Year Growth (Decline)
Net Income & Diluted EPS 9 Q4 F’25 – NET INCOME & DILUTED EPS: GAAP Net Income was $49.9M in Q4 of F’25 compared to $55.5M in Q4 of F’24. • Adjusted Net Income* was $60.2M in Q4 of F’25 compared to $57.3M in Q4 of F’24 (increased 5.1%). GAAP Diluted EPS was $1.04 in Q4 of F’25 compared to $1.15 in Q4 of F’24. • Adjusted Diluted EPS* was $1.26 in Q4 of F’25 compared to $1.19 in Q4 of F’24 (increased 5.9%). * Adjusted Net Income and Adjusted Diluted EPS are non-GAAP measures. See appendix. $35.0 $33.8 $40.1 $41.1 $39.4 $38.0 $48.1 $49.4 $47.2 $43.6 $50.9 $55.5 $46.8 $40.3 $52.3 $49.9 $20 $30 $40 $50 $60 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 NET INCOME (GAAP) (millions of USD) $0.67 $0.65 $0.78 $0.81 $0.79 $0.76 $0.96 $1.00 $0.97 $0.90 $1.05 $1.15 $0.97 $0.83 $1.09 $1.04 $0.40 $0.60 $0.80 $1.00 $1.20 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 DILUTED EPS (GAAP)
Cash Generation 10 CASH FLOW FROM OPERATING ACTIVITIES $27.5 ($3.2) $40.9 $53.2 $28.0 $29.4 $72.5 $79.3 $62.3 $36.1 $72.7 $84.0 $23.4 $39.6 $59.9 $58.3 -$5 $20 $45 $70 $95 Q1 F'22 78% Q2 F'22 (9%) Q3 F'22 102% Q4 F'22 130% Q1 F'23 71% Q2 F'23 77% Q3 F'23 151% Q4 F'23 161% Q1 F'24 132% Q2 F'24 83% Q3 F'24 143% Q4 F'24 151% Q1 F'25 50% Q2 F'25 98% Q3 F'25 115% Q4 F'25 117%% of Net Income CASH FLOWS IN Q4 OF F’25: Overview: Cash flow from operating activities was $58.3M in Q4 of F’25 vs. $84.0M in Q4 of F’24. Free cash flow* was $49.4M in Q4 of F’25 compared to $73.2M in Q4 of F’24. Returning Funds to our Shareholders: In F’25, we returned a total of $96.4M to our shareholders in the form of dividends and share buybacks. Dividends – Increased our annual dividend for the 40th consecutive year. Share Buybacks – Repurchased 733k shares in Q4 F’25 for $50.9M (average price of $69.32/share). * Free cash flow is calculated as Net Cash Provided by Operating Activities less Capital Expenditures. (millions of USD) (millions of USD) 3 Mos. Ended Jul. 31, 2025 3 Mos. Ended Jul. 31, 2024 12 Mos. Ended Jul. 31, 2025 12 Mos. Ended Jul. 31, 2024 Cash Balance - Beginning of Period 152.2$ 160.5$ 250.1$ 151.5$ Cash Flow from Operating Activities 58.3 84.0 181.2 255.1 Capital Expenditures (8.9) (10.7) (27.6) (79.9) Dividends (11.3) (11.2) (45.5) (45.1) Share Repurchases (17.6) - (50.9) (72.2) Business Acquisitions - - (144.5) - Net Debt (Repayments) Borrowings (3.1) 27.2 8.8 41.2 Effect of Exchange Rates on Cash 1.8 (2.1) (1.8) (4.9) Other 2.9 2.4 4.5 4.4 Cash Balance - End of Period 174.3$ 250.1$ 174.3$ 250.1$
Net Cash 11 STRONG BALANCE SHEET: July 31, 2025 cash = $174.3M. July 31, 2025 debt = $99.8M. Balance sheet provides flexibility for future organic investments and strategic M&A. $91 $64 $26 $19 $15 $31 $84 $102 $123 $96 $97 $159 $29 $51 $49 $75 $0 $50 $100 $150 $200 $250 $300 $350 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 NET CASH (millions of USD)
F’26 Diluted EPS Guidance GAAP Diluted EPS $4.55 to $4.85 (+15.5% to +23.1% vs. F’25) F’26 Adjusted Diluted EPS* $4.85 to $5.15 (+5.4% to $12.0% vs. F’25) Guidance Assumptions: Organic sales growth in the low-single digit percentages. Full-year income tax rate of approximately 21%. Foreign currency exchange rates as of July 31, 2025. Depreciation and amortization expense of approximately $42M. Capital expenditures of approximately $40M. 12 * Adjusted Diluted EPS is a non-GAAP measure. See appendix.
Americas & Asia 13 • Revenues increased 14.1% in Q4 of F’25: • Organic growth = + 4.3%. • Acquisition = + 9.8%. • Organic sales grew 3.3% in the Americas with growth in most major product lines. • Organic sales grew 12.0% in Asia; growth throughout the region except for China. • Growth in segment profit due to organic sales growth in higher gross margin product lines, which was offset by increased amortization from acquisitions and facility closure and other reorganization costs. Excluding these increased costs, segment profit increased 3.7%. Q4 F’25 SUMMARY:Q4 F’25 vs. Q4 F’24 (millions of USD) $218 $220 $223 $227 $222 $212 $225 $228 $245 $234 $254 $261 19% 18% 22% 22% 23% 21% 22% 23% 22% 20% 23% 20% 0% 5% 10% 15% 20% 25% $100 $150 $200 $250 $300 $350 Q1 F'23 4.0% (1.4%) - Q2 F'23 6.9% (1.0%) - Q3 F'23 1.2% (0.8%) (0.3%) Q4 F'23 5.6% (0.2%) (1.0%) Q1 F'24 3.3% - (1.9%) Q2 F'24 1.2% 0.1% (5.1%) Q3 F'24 4.5% (0.1%) (3.5%) Q4 F'24 3.4% (0.8%) (2.2%) Q1 F'25 5.1% (0.2%) 5.8% Q2 F'25 4.3% (1.4%) 7.6% Q3 F'25 5.4% (1.1%) 8.6% Q4 F'25 4.3% - 9.8% SALES & SEGMENT PROFIT % (millions of USD) Q4 F’25 Q4 F’24 Change Sales $ 260.8 $ 228.5 14.1% Segment Profit 51.6 53.4 - 3.3% Segment Profit % 19.8% 23.3% - 360 bps • Low-single digit organic sales growth in F’26. • Growth in segment profit excluding amortization. OUTLOOK: Organic For. Curr. Acq. & Div.
Europe & Australia 14 • Revenues increased 18.8% in Q4 of F’25: • Organic decline = (1.3%). • Fx increase = + 5.7%. • Acquisition = + 14.4% • Organic sales declined 0.8% in Europe and declined 5.1% in Australia. • Segment profit decreased primarily due to increased amortization and facility closure and other reorganization costs. Excluding these increased costs, segment profit increased 7.6%. Q4 F’25 SUMMARY:Q4 F’25 vs. Q4 F’24 (millions of USD) $104 $106 $114 $118 $110 $111 $119 $115 $132 $123 $129 $136 16% 13% 15% 16% 15% 14% 16% 17% 10% 9% 14% 11% 0% 5% 10% 15% 20% $50 $100 $150 $200 $250 Q1 F'23 12.8% (17.0%) - Q2 F'23 5.2% (8.9%) - Q3 F'23 3.4% (4.8%) - Q4 F'23 9.5% 2.0% - Q1 F'24 1.4% 4.6% - Q2 F'24 2.5% 2.0% - Q3 F'24 4.4% (0.6%) - Q4 F'24 (1.8%) (1.2%) - Q1 F'25 0.7% 3.6% 15.0% Q2 F'25 (0.8%) (3.6%) 15.1% Q3 F'25 (5.4%) (0.1%) 14.2% Q4 F'25 (1.3%) 5.7% 14.4% SALES & SEGMENT PROFIT % Q4 F’25 Q4 F’24 Change Sales $ 136.5 $ 114.9 + 18.8% Segment Profit 15.1 19.3 - 21.8% Segment Profit % 11.0% 16.8% - 580 bps Organic For. Curr. Acquisitions • Low-single digit organic sales growth in F’26. • Growth in segment profit excluding amortization. OUTLOOK: (millions of USD)
Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors 15
Appendix GAAP to Non-GAAP Reconciliations
Non-GAAP Reconciliations 17 2025 2024 2025 2024 60,505$ 68,208$ 237,097$ 247,841$ Amortization expense 4,778 2,337 18,916 9,421 Facility closure and other reorganization costs 8,890 - 18,474 - Non-recurring acquisitions-related costs and other expenses - - 5,059 - 74,173$ 70,545$ 279,546$ 257,262$ 2025 2024 2025 2024 10,629$ 12,752$ 47,841$ 50,626$ Amortization expense 1,148 540 4,550 2,182 Facility closure and other reorganization costs 2,222 - 4,618 - Non-recurring acquisitions-related costs and other expenses - - 1,265 - 13,999$ 13,292$ 58,274$ 52,808$ Year ended July 31, 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 July 31, Three months ended July 31, Adjusted Income Tax Expense (non-GAAP measure) Income before income taxes (GAAP measure) Adjusted Income Before Income Taxes (non-GAAP measure) 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: Year ended July 31, Income tax expense (GAAP measure) Adjusted Income Tax Expense:
Non-GAAP Reconciliations 18 2025 2024 2025 2024 49,876$ 55,456$ 189,256$ 197,215$ Amortization expense 3,630 1,797 14,366 7,239 Facility closure and other reorganization costs 6,668 - 13,856 - Non-recurring acquisitions-related costs and other expenses - - 3,794 - 60,174$ 57,253$ 221,272$ 204,454$ 2025 2024 2025 2024 $ 1.04 $ 1.15 $ 3.94 $ 4.07 Amortization expense 0.08 0.04 0.30 0.15 Facility closure and other reorganization costs 0.14 - 0.29 - Non-recurring acquisitions-related costs and other expenses - - 0.08 - 1.26$ 1.19$ 4.60$ 4.22$ Adjusted Diluted EPS Guidance: Low High Earnings per diluted Class A Common Share (GAAP measure) $ 4.55 $ 4.85 Amortization expense 0.30 0.30 Adjusted Diluted EPS (non-GAAP measure) 4.85$ 5.15$ Fiscal 2026 Expectations 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 Diluted EPS (non-GAAP measure) Three months ended July 31, 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: Year ended July 31, Net income (GAAP measure) Adjusted Net Income (non-GAAP measure) Adjusted Net Income: Three months ended July 31, 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): Year ended July 31, Net income per Class A Nonvoting Common Share (GAAP measure) Adjusted Diluted EPS: