Brady Corporation Sets New Adjusted EPS Record and Lifts Fiscal 2026 Guidance Amid Strong Sales Growth
Record Third-Quarter Results Reflect Resilient Sales Momentum
Brady Corporation (NYSE: BRC) reported a new high for adjusted earnings per share (EPS) in its fiscal 2026 third quarter, building on global sales momentum across key markets. Sales for the quarter grew 13.8% over the prior year, totaling $435.24 million compared to $382.59 million last year. Organic sales contributed 8.2% of this increase, with additional boosts from acquisitions (2.1%) and foreign currency translation (3.5%). Both the Americas & Asia and Europe & Australia posted robust double-digit growth, supported by strong organic demand and successful product launches.
| Region | Q3 2026 Sales ($M) | Q3 2025 Sales ($M) | Q3 2026 Organic Growth (%) | Q3 2026 Total Growth (%) |
|---|---|---|---|---|
| Americas & Asia | 290.06 | 253.65 | 10.1 | 14.4 |
| Europe & Australia | 145.18 | 128.94 | 4.5 | 12.6 |
| Total Company | 435.24 | 382.59 | 8.2 | 13.8 |
Adjusted Earnings Reach New Heights; Outlook Raised for Full Year
The company posted a 23.0% jump in adjusted diluted EPS, achieving $1.50 for the quarter versus $1.22 the prior year. Net cash provided by operating activities surged to $78.20 million, up more than 30% from last year’s $59.90 million. Income before income taxes rose 11.6% to $73.37 million ($65.75 million last year), while adjusted income before income taxes increased 23.8% to $92.13 million. Adjusted net income for the quarter was $71.92 million, compared to $58.82 million from a year ago.
| Financial Metric | Q3 2026 | Q3 2025 | Change (%) |
|---|---|---|---|
| Adjusted Diluted EPS ($) | 1.50 | 1.22 | 23.0 |
| Adjusted Net Income ($M) | 71.92 | 58.82 | 22.2 |
| Net Cash from Operations ($M) | 78.20 | 59.90 | 30.5 |
| Adjusted Income Before Tax ($M) | 92.13 | 74.43 | 23.8 |
Reflecting the company’s strong trajectory, Brady increased its full-year fiscal 2026 adjusted EPS guidance to a range of $5.20 to $5.30 per share, up from the prior $4.95 to $5.15 range. GAAP EPS guidance was also nudged higher to $4.66–$4.76 per share.
Operational Strength and Shareholder Returns Bolster Position
Brady’s commitment to research and development has underpinned its organic growth and record profitability. In addition to the financial achievements, the company returned $16.7 million to shareholders through dividends and buybacks during the quarter. Brady’s net cash position stood at $148.6 million as of April 30, 2026, providing further flexibility for investment and capital allocation—including the recently announced plan to acquire Honeywell's Productivity Solutions and Services (PSS) business, expected to close in the second half of 2026.
Segment Performance Indicates Broad-Based Growth
Both the Americas & Asia and Europe & Australia segments delivered stronger profit margins year-over-year. Segment profit for the quarter rose to $90.20 million, with company-wide segment margins expanding to 20.7%. Notably, Americas & Asia reached a segment margin of 23.7%, reflecting effective operational execution across markets.
| Segment | Q3 2026 Profit ($M) | Q3 2025 Profit ($M) | Q3 2026 Profit Margin (%) | Q3 2025 Profit Margin (%) |
|---|---|---|---|---|
| Americas & Asia | 68.73 | 57.16 | 23.7 | 22.5 |
| Europe & Australia | 21.47 | 17.48 | 14.8 | 13.6 |
| Total Company | 90.20 | 74.64 | 20.7 | 19.5 |
What to Watch Moving Forward
Brady’s management highlighted ongoing organic investments, a robust cash position, and new product launches as key drivers of momentum. The pending Honeywell PSS acquisition, if completed as planned, could open new markets and synergies for Brady's portfolio. With raised guidance and a solid operational foundation, the company is positioning itself for further growth and value creation amid a dynamic global environment. Shareholders and market watchers may want to keep the company’s strategic developments and quarterly performance firmly on the radar in the coming months.
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