Brady (NYSE:BRC) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Brady (NYSE:BRC) issued its quarterly earnings data on Thursday. The industrial products company reported $1.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.47 by $0.01, FiscalAI reports. The firm had revenue of $436.90 million during the quarter, compared to analysts’ expectations of $427.91 million. Brady had a net margin of 12.93% and a return on equity of 19.01%. The business’s revenue for the quarter was up 10.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.04 earnings per share. Brady updated its FY 2027 guidance to 6.250-6.750 EPS.

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

• Positive Sentiment: Brady reported record fiscal 2026 revenue and adjusted EPS, with quarterly organic sales growth of 8.4%, adjusted EPS up 17.5% to $1.48, and operating cash flow up 35.8%. Printer unit sales rose 25% in the quarter, supporting continued growth in specialty adhesive consumables.
• Positive Sentiment: The Honeywell PSS acquisition has closed and is expected to add approximately $1.15 billion of fiscal 2027 revenue and roughly $0.80 of adjusted EPS accretion, primarily in the second half. Management sees opportunities in software, RFID, scanning, printing, cross-selling, and broader enterprise workflows.
• Positive Sentiment: Fiscal 2027 guidance calls for combined adjusted EPS of $6.25-$6.75, representing 18.1%-27.6% growth, while legacy Identification Solutions is expected to grow approximately 5% organically. Brady also expects to reduce net leverage below 2x within two years of owning IPS.
• Neutral Sentiment: Regional performance diverged: Americas and Asia delivered 11.6% organic growth, helped by data centers and manufacturing, while Europe and Australia grew only 2.1% organically amid weaker manufacturing conditions. Management expects to pursue growth in European defense spending, digital regulations, and other targeted markets.
• Negative Sentiment: Rising input costs, particularly memory and electronics, along with higher diesel prices, are pressuring the IPS business. Brady has secured supply, qualified alternate suppliers, and implemented price increases, but the newly acquired segment is guided to only low-double-digit operating margins during its first year as integration proceeds.

Brady Price Performance

BRC stock opened at $90.22 on Friday. The stock has a 50-day moving average price of $93.21 and a two-hundred day moving average price of $87.63. The stock has a market cap of $4.25 billion, a PE ratio of 20.55 and a beta of 0.61. The company has a current ratio of 2.01, a quick ratio of 1.36 and a debt-to-equity ratio of 0.02. Brady has a 1 year low of $70.57 and a 1 year high of $99.29.

Brady Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 9th will be given a $0.25 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.00 annualized dividend and a yield of 1.1%. This is an increase from Brady’s previous quarterly dividend of $0.24. Brady’s payout ratio is presently 22.32%.

More Brady News

Here are the key news stories impacting Brady this week:

• Positive Sentiment: Brady reported fourth-quarter revenue of $436.9 million, up 10% year over year and above the $427.9 million analyst consensus. Adjusted EPS was $1.48, narrowly exceeding estimates of $1.47, while full-year revenue rose 9.8% to a record $1.66 billion. Brady fiscal 2026 results
• Positive Sentiment: The company completed its acquisition of Honeywell Technologies’ Productivity Solutions and Services business on August 3. Management expects the deal to strengthen growth, with the acquired IPS business targeted to generate approximately $1.15 billion in fiscal 2027 revenue. Brady FY2027 outlook
• Positive Sentiment: Fiscal 2027 adjusted EPS guidance of $6.25 to $6.75 implies 23% growth at the midpoint, signaling confidence in earnings expansion following the acquisition.
• Positive Sentiment: Brady raised its quarterly dividend to $0.25 from $0.245, marking the 41st consecutive annual increase. The change reinforces the company’s shareholder-return record. Brady dividend increase
• Neutral Sentiment: Management’s fiscal 2027 EPS guidance midpoint of $6.50 is slightly below the $6.55 consensus estimate, potentially limiting the upside reaction despite the projected year-over-year growth.
• Negative Sentiment: Fourth-quarter net income declined, creating a counterpoint to the strong revenue growth and EPS beat. Investors may also monitor execution and integration risks associated with the large Honeywell transaction. Brady fourth-quarter profit report

Analysts Set New Price Targets

Several brokerages have recently issued reports on BRC. Weiss Ratings raised shares of Brady from a “buy (b)” rating to a “buy (b+)” rating in a report on Monday. Sidoti upgraded Brady from a “neutral” rating to a “buy” rating and set a $103.00 target price on the stock in a report on Tuesday, June 9th. Finally, Wall Street Zen raised Brady from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Two analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $103.00.

Insider Activity at Brady

In other news, CEO Vineet A. Nargolwala purchased 13,011 shares of the business’s stock in a transaction dated Wednesday, June 10th. The shares were bought at an average cost of $76.86 per share, for a total transaction of $1,000,025.46. Following the completion of the acquisition, the chief executive officer directly owned 52,709 shares in the company, valued at approximately $4,051,213.74. This trade represents a 32.77% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 15.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Brady

A number of large investors have recently bought and sold shares of the company. Advisory Services Network LLC acquired a new stake in shares of Brady in the third quarter valued at approximately $31,000. Global Retirement Partners LLC boosted its holdings in Brady by 42.4% during the fourth quarter. Global Retirement Partners LLC now owns 450 shares of the industrial products company’s stock worth $35,000 after purchasing an additional 134 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Brady by 89.0% during the second quarter. EverSource Wealth Advisors LLC now owns 684 shares of the industrial products company’s stock worth $46,000 after purchasing an additional 322 shares during the last quarter. Tower Research Capital LLC TRC grew its position in Brady by 156.1% in the second quarter. Tower Research Capital LLC TRC now owns 1,014 shares of the industrial products company’s stock valued at $69,000 after purchasing an additional 618 shares in the last quarter. Finally, Danske Bank A S bought a new position in Brady in the third quarter valued at $70,000. Institutional investors and hedge funds own 76.28% of the company’s stock.

About Brady

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.