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

Brady (NYSE:BRC) announced its quarterly earnings data on Thursday. The industrial products company reported $1.48 EPS for the quarter, beating analysts’ consensus estimates of $1.47 by $0.01, FiscalAI reports. The company had revenue of $436.90 million during the quarter, compared to the consensus estimate of $427.91 million. Brady had a net margin of 12.36% and a return on equity of 19.21%. The company’s quarterly revenue was up 10.0% on a year-over-year basis. During the same quarter last year, the firm posted $1.04 EPS. 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 Trading Up 0.2%

Shares of BRC stock opened at $90.54 on Friday. Brady has a fifty-two week low of $70.57 and a fifty-two week high of $99.29. The stock’s fifty day moving average price is $93.22 and its two-hundred day moving average price is $87.65. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.36 and a current ratio of 1.94. The company has a market cap of $4.27 billion, a PE ratio of 21.01 and a beta of 0.61.

Brady Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Friday, October 9th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.1%. This is a boost from Brady’s previous quarterly dividend of $0.24. Brady’s dividend payout ratio (DPR) is 22.32%.

Trending Headlines about Brady

Here are the key news stories impacting Brady this week:

• Positive Sentiment: Fourth-quarter revenue increased 10% year over year to $436.9 million, exceeding analysts’ $427.9 million estimate. Adjusted EPS of $1.48 also narrowly beat consensus of $1.47, while full-year revenue rose 9.8% to a record $1.66 billion. Brady Corporation Reports 2026 Fourth Quarter and Record Full Year Results
• Positive Sentiment: Management forecast fiscal 2027 adjusted EPS of $6.25 to $6.75, representing approximately 23% growth at the midpoint. The outlook includes contributions from the Honeywell Technologies Productivity Solutions and Services acquisition, completed August 3. Brady forecasts fiscal 2027 EPS and IPS revenue
• Positive Sentiment: Brady raised its quarterly dividend to $0.25 per share from $0.245, its 41st consecutive annual increase. The payment is scheduled for October 30 to shareholders of record October 9, reinforcing the company’s shareholder-return track record. Brady increases dividend for the 41st consecutive year
• Neutral Sentiment: The fiscal 2027 EPS guidance midpoint of $6.50 is slightly below the $6.55 analyst consensus, although the range indicates meaningful earnings growth if Brady executes its acquisition integration and operating plans.
• Negative Sentiment: Reported fourth-quarter net income declined despite higher sales, creating some concern about margin pressure and the near-term costs of integrating the Honeywell business. Brady fourth-quarter net income declines

Insiders Place Their Bets

In other Brady news, CEO Vineet A. Nargolwala bought 13,011 shares of the firm’s stock in a transaction on Wednesday, June 10th. The shares were purchased at an average price of $76.86 per share, for a total transaction of $1,000,025.46. Following the completion of the transaction, the chief executive officer directly owned 52,709 shares in the company, valued at approximately $4,051,213.74. The trade was a 32.77% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. 15.60% of the stock is owned by company insiders.

Institutional Trading of Brady

A number of hedge funds and other institutional investors have recently modified their holdings of BRC. Osaic Holdings Inc. boosted its holdings in shares of Brady by 1,232.1% during the 2nd quarter. Osaic Holdings Inc. now owns 5,928 shares of the industrial products company’s stock valued at $418,000 after acquiring an additional 5,483 shares in the last quarter. MML Investors Services LLC increased its holdings in Brady by 78.2% in the 4th quarter. MML Investors Services LLC now owns 4,970 shares of the industrial products company’s stock worth $390,000 after purchasing an additional 2,181 shares in the last quarter. Guggenheim Capital LLC bought a new position in Brady in the fourth quarter valued at about $362,000. Susquehanna Fundamental Investments LLC acquired a new stake in shares of Brady during the fourth quarter valued at about $283,000. Finally, Occudo Quantitative Strategies LP bought a new stake in shares of Brady during the second quarter worth about $260,000. Institutional investors own 76.28% of the company’s stock.

Wall Street Analysts Forecast Growth

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

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.