Brady Corporation Reports Fiscal 2026 Second Quarter Results and Raises the Low End of its Fiscal 2026 EPS Guidance

• Sales for the quarter increased 7.7 percent. Organic sales increased 1.6 percent, acquisitions increased sales 2.3 percent and foreign currency translation increased sales 3.8 percent.

• Diluted EPS increased 21.7 percent to $1.01 in the second quarter of fiscal 2026 compared to $0.83 in the same quarter of the prior year. Adjusted Diluted EPS* increased 9.0 percent to $1.09 in the second quarter of fiscal 2026 compared to $1.00 in the same quarter of the prior year.

• Net cash provided by operating activities increased to $53.3 million in the second quarter of fiscal 2026 compared to $39.6 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, 2026 from the previous range of $4.90 to $5.15 per share to the new range of $4.95 to $5.15 per share. GAAP earnings per diluted Class A Nonvoting Common share guidance for the year ending July 31, 2026 was raised from the previous range of $4.57 to $4.82 per share to $4.62 to $4.82 per share.

MILWAUKEE, Feb. 19, 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 second quarter ended January 31, 2026.

Quarter Ended January 31, 2026 Financial Results:
Sales for the quarter ended January 31, 2026 increased 7.7 percent, which consisted of organic sales growth of 1.6 percent, growth of 2.3 percent from acquisitions and an increase of 3.8 percent from foreign currency translation. Sales for the quarter ended January 31, 2026 were $384.1 million compared to $356.7 million in the same quarter last year. By region, sales increased 7.6 percent in the Americas & Asia and sales increased 7.9 percent in Europe & Australia, which consisted of organic sales growth of 3.1 percent in the Americas & Asia and an organic sales decline of 1.1 percent in Europe & Australia.

Income before income taxes increased 19.1 percent to $62.0 million in the quarter ended January 31, 2026, compared to $52.0 million in the same quarter last year. Adjusted Income Before Income Taxes* in the quarter ended January 31, 2026, which was adjusted for amortization expense of $5.2 million, was $67.2 million, an increase of 7.7 percent compared to the second quarter of 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.

Net income for the quarter ended January 31, 2026 was $48.1 million compared to $40.3 million in the same quarter last year. Adjusted Net Income* in the quarter ended January 31, 2026 was $52.0 million compared to $48.1 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share was $1.01 compared to $0.83 in the same quarter last year. Adjusted Diluted EPS* in the quarter ended January 31, 2026 was $1.09 compared to $1.00 in the same quarter last year.

Six-Month Period Ended January 31, 2026 Financial Results:
Sales for the six-month period ended January 31, 2026 increased 7.6 percent, which consisted of organic sales growth of 2.2 percent, growth of 2.8 percent from acquisitions and an increase of 2.6 percent from foreign currency translation. Sales for the six months ended January 31, 2026 were $789.4 million compared to $733.7 million in the same period last year. By region, sales increased 8.6 percent in the Americas & Asia and sales increased 5.7 percent in Europe & Australia, which consisted of organic sales growth of 3.9 percent in the Americas & Asia and an organic sales decline of 0.9 percent in Europe & Australia.

Income before income taxes increased 17.7 percent to $130.5 million in the six-month period ended January 31, 2026, compared to $110.8 million in the same period last year. Adjusted Income Before Income Taxes* in the six-month period ended January 31, 2026, which was adjusted for amortization expense of $10.5 million, was $141.0 million, an increase of 7.7 percent compared to 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.

Net income in the six-month period ended January 31, 2026 was $102.0 million compared to $87.1 million in the same period last year. Adjusted Net Income* in the six-month period ended January 31, 2026 was $110.0 million compared to $102.3 million in the same period last year. Earnings per diluted Class A Nonvoting Common Share was $2.14 compared to $1.81 in the same period last year. Adjusted Diluted EPS* in the six-month period ended January 31, 2026 was $2.30 compared to $2.12 in the same period last year.

Commentary:
“This quarter marks Brady’s 20^th consecutive quarter of organic sales growth, alongside a significant improvement in segment profit within both our Americas & Asia and Europe & Australia regions,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “We continue to increase our investment in research and development for innovative new products, which most recently included the i4311 industrial label printer launched last week. This printer is equipped with exciting new features unlike any other printer offering, including our LabelSense™ technology, which simplifies adhesive material changeover while resulting in zero waste. We have more innovative new products in our roadmap, which we will deliver while continuing to improve our operational efficiency.”

“In addition to our improved profitability, we increased our cash flow from operating activities by nearly 38 percent through the first half of this fiscal year, and we were in a net cash position of $97.8 million at January 31, 2026,” said Brady’s Chief Financial Officer, Ann Thornton. “Our strong balance sheet provides us with opportunities to continue to invest in both organic growth and strategic acquisitions to increase shareholder value over the long-term.”

Fiscal 2026 Guidance:
The Company raised the low end of its GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2026 from $4.57 to $4.82 per share, to $4.62 to $4.82 per share. The Company raised the low end of its Adjusted Diluted EPS* guidance for the year ending July 31, 2026 from $4.90 to $5.15 per share to $4.95 to $5.15 per share.

The assumptions included in fiscal 2026 guidance include a full-year income tax rate of approximately 21 percent, depreciation and amortization expense of approximately $44 million, and capital expenditures of approximately $45 million. Fiscal 2026 guidance is based on foreign currency exchange rates as of January 31, 2026 and assumes continued economic growth.

A webcast regarding Brady’s fiscal 2026 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, 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.

For More Information:
Investor contact: Ann Thornton 414-438-6887
Media contact: Kate Venne 414-358-5176