Brady (NYSE:BRC) Posts Earnings Results, Hits Estimates

Brady (NYSE:BRC) released its quarterly earnings results on Thursday. The industrial products company reported $1.09 earnings per share for the quarter, hitting the consensus estimate of $1.09, FiscalAI reports. Brady had a net margin of 12.74% and a return on equity of 19.06%. The firm had revenue of $384.14 million for the quarter, compared to analysts’ expectations of $376.14 million. During the same quarter in the prior year, the firm posted $1.00 earnings per share. The business’s quarterly revenue was up 7.7% on a year-over-year basis. Brady updated its FY 2026 guidance to 4.950-5.150 EPS.

Here are the key takeaways from Brady’s conference call:

• 20th consecutive quarter of organic sales growth — organic sales +1.6% this quarter and total sales +7.7% (acquisitions +2.3%, FX +3.8%), with Asia leading at +14.2% (India ~25%).
• Profitability and cash flow strengthened: gross margin improved to 50.6%, adjusted diluted EPS rose 9% to $1.09 (GAAP EPS $1.01), operating cash flow +34.7%, and the company finished the quarter with net cash $97.8M.
• Significant R&D ramp — R&D up nearly 30% to $24.3M (6.3% of sales) and a new CTO hired; management highlights new product launches like the i4311, positioning for long‑term growth but increasing near‑term investment.
• Regional softness and risks: Americas organic growth slowed to ~1.4% and Europe & Australia declined 1.1% on weak manufacturing; tariffs, FX, inflation or a macro slowdown remain cited downside risks despite a modest upward tweak to the bottom end of FY EPS guidance.

Brady Stock Down 2.2%

Shares of Brady stock opened at $93.19 on Friday. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.39 and a current ratio of 2.07. Brady has a 52-week low of $62.70 and a 52-week high of $99.29. The company’s 50 day moving average price is $85.23 and its 200-day moving average price is $79.59. The stock has a market capitalization of $4.40 billion, a price-to-earnings ratio of 22.78 and a beta of 0.63.

Brady Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Friday, January 9th were given a $0.245 dividend. The ex-dividend date was Friday, January 9th. This represents a $0.98 annualized dividend and a yield of 1.1%. Brady’s payout ratio is presently 23.96%.

Insider Activity

In related news, insider Brett Wilms sold 3,791 shares of the business’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $78.13, for a total transaction of $296,190.83. Following the transaction, the insider owned 7,672 shares in the company, valued at $599,413.36. The trade was a 33.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Thomas F. Debruine sold 5,538 shares of Brady stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $81.00, for a total value of $448,578.00. Following the completion of the sale, the chief operating officer owned 10,181 shares in the company, valued at approximately $824,661. This represents a 35.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 38,987 shares of company stock worth $3,138,947 in the last quarter. Insiders own 15.60% of the company’s stock.

Institutional Trading of Brady

Large investors have recently added to or reduced their stakes in the stock. First Trust Advisors LP raised its holdings in Brady by 22.2% in the 4th quarter. First Trust Advisors LP now owns 1,620,931 shares of the industrial products company’s stock worth $127,032,000 after purchasing an additional 294,818 shares in the last quarter. State Street Corp raised its stake in Brady by 1.7% in the fourth quarter. State Street Corp now owns 1,524,384 shares of the industrial products company’s stock worth $119,466,000 after buying an additional 26,151 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Brady by 0.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,461,632 shares of the industrial products company’s stock worth $114,551,000 after buying an additional 8,125 shares during the period. Geode Capital Management LLC boosted its position in Brady by 0.7% during the 4th quarter. Geode Capital Management LLC now owns 536,544 shares of the industrial products company’s stock valued at $42,061,000 after acquiring an additional 3,699 shares in the last quarter. Finally, Qube Research & Technologies Ltd grew its holdings in shares of Brady by 15.1% during the 3rd quarter. Qube Research & Technologies Ltd now owns 371,541 shares of the industrial products company’s stock worth $28,991,000 after acquiring an additional 48,668 shares during the period. Institutional investors own 76.28% of the company’s stock.

Analyst Ratings Changes

Several research firms recently weighed in on BRC. Weiss Ratings restated a “buy (b)” rating on shares of Brady in a research report on Wednesday, January 21st. Wall Street Zen lowered shares of Brady from a “buy” rating to a “hold” rating in a research report on Saturday, February 14th. One equities research analyst has rated the stock with a Strong Buy rating and one has assigned a Buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Strong Buy”.

Key Headlines Impacting Brady

Here are the key news stories impacting Brady this week:

• Positive Sentiment: Revenue beat and overall sales growth: Q2 sales rose 7.7% year‑over‑year (organic +1.6%, acquisitions +2.3%, currency +3.8%), showing underlying topline resilience. GlobeNewswire: Brady Reports Fiscal 2026 Second-Quarter Results
• Positive Sentiment: Guidance tweak lifts the low end of FY‑2026 EPS to a range of $4.95–$5.15, signaling management confidence in margin progress even as it updates assumptions. TipRanks: Brady Lifts Earnings Guidance
• Neutral Sentiment: Company plans increased R&D investment to support engineered product growth and innovation — positive long‑term but a near‑term cost that could weigh on margins. Seeking Alpha: Brady Outlines Increased R&D Investment
• Neutral Sentiment: Guidance is roughly in line with street expectations (consensus ≈ $5.04) — management raised the low end but the range leaves little upside surprise baked in. MSN: Deep Dive on Product Mix & R&D
• Negative Sentiment: EPS met consensus at $1.09 rather than beating — investors often punish “no surprise” results after a revenue beat. Yahoo Finance: Brady Q4 CY2025 Beats On Revenue
• Negative Sentiment: Modest organic growth (1.6%) and reliance on acquisitions and currency for most of the improvement raise questions about end‑market strength. Greenwich Time: Fiscal Q2 Earnings Snapshot

Brady Company Profile

Brady Corporation is a global provider of identification and safety solutions, specializing in the design, manufacture and sale of products that help businesses improve safety, security and efficiency. The company offers an array of durable labels, signs, safety devices, printing systems and software platforms tailored to a wide range of industrial and commercial environments.

Founded in 1914 by William H. Brady, Brady Corporation has grown from a regional marker manufacturer into a diversified global enterprise.