Brady Corporation (BRC) Q1 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 17 2025
0mins
Should l Buy BRC?
Source: SeekingAlpha
Organic Sales Growth 2.8% growth year-over-year, driven by strong performance in the Americas and Asia regions (4.7% growth) and cost reduction actions in Europe and Australia.
Adjusted Earnings Per Share (EPS) 8% growth year-over-year, attributed to organic sales growth and cost reduction actions.
Gross Profit Margin 51.5% this quarter compared to 50.3% last year. The increase is due to sales growth from engineered products and the absence of acquisition-related adjustments from last year.
SG&A Expense $117.6 million this quarter compared to $111.8 million last year. As a percentage of sales, it decreased from 29.7% to 29%, reflecting efficiency improvements.
R&D Expense $23.3 million (5.7% of sales) this quarter, up from $18.9 million (5% of sales) last year, marking a 23% increase to support new product development.
Pretax Earnings 16.5% increase year-over-year, from $58.8 million to $68.5 million, driven by organic sales growth and cost reduction actions.
Net Income 15.3% increase year-over-year, from $46.8 million to $53.9 million, supported by organic sales growth and cost reduction actions.
Operating Cash Flow 42.5% increase year-over-year, from $23.4 million to $33.4 million, due to improved cash-based decisions.
Free Cash Flow 38.8% increase year-over-year, from $16.1 million to $22.4 million, reflecting strong cash generation.
Americas and Asia Region Sales $268.9 million, up 9.6% year-over-year, with 4.7% organic growth and 4.9% growth from acquisitions. Growth driven by Wire Identification product line and cost reduction actions in China.
Europe and Australia Region Sales $136.4 million, up 3.5% year-over-year, with a 0.8% organic sales decline offset by 4.3% growth from foreign currency translation. Profit improvement due to cost reduction actions.
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Analyst Views on BRC
Wall Street analysts forecast BRC stock price to fall
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 96.210
Low
96.00
Averages
96.00
High
96.00
Current: 96.210
Low
96.00
Averages
96.00
High
96.00
No data
About BRC
Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. Its product categories include Safety and facility identification and protection, which include safety signs, traffic signs and control products, floor-marking tape, pipe markers, labeling systems, spill control products, lockout/tagout devices, first aid products, and software and services for safety compliance auditing, procedures writing and training; Wire identification, which includes handheld printers, wire markers, sleeves, and tags. Healthcare identification, which includes wristbands, labels, printing systems, and other products used in hospital, laboratory, and other healthcare settings; People identification, which includes name tags, badges, lanyards, rigid card printing systems, and access control software; and Product identification. It also provides direct part marking solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- One-on-One Meeting Arrangements: Selected companies are accepting one-on-one management meeting requests until February 25, offering investors direct communication opportunities with company leadership, thereby fostering interaction and trust between investors and companies.
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- Conference Timing and Participants: The Precious Metals & Critical Minerals Virtual Investor Conference took place from February 10 to 12, 2026, attracting individual and institutional investors, advisors, and analysts, which heightened market interest in this sector.
- Availability of Presentation Materials: Company presentation materials from the conference are now available for on-demand viewing for 90 days, providing investors with convenient access to critical information that enhances decision-making efficiency.
- One-on-One Meeting Arrangements: Selected companies are accepting one-on-one management meeting requests until February 25, offering investors direct communication opportunities with company leadership, thereby fostering interaction and trust between investors and companies.
- Advantages of Virtual Conferences: Virtual Investor Conferences provide a real-time interactive platform that enables companies to engage investors more efficiently, enhancing investor participation and information access, marking a new trend in investor relations management.
See More
Brady Corporation to Announce Q2 Fiscal 2026 Financial Results
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- Conference Call Details: Following the earnings release, Brady will hold a conference call at 10:30 a.m. Eastern Time (9:30 a.m. Central Time), providing live and replay access to ensure timely information dissemination to investors and analysts.
- Company Overview: Founded in 1914, Brady Corporation is an international manufacturer focused on providing solutions that enhance safety, productivity, and performance, with a diverse product range including high-performance labels, signs, and safety devices across various industries.
- Employee and Sales Metrics: As of July 31, 2025, Brady employed approximately 6,400 people globally, with fiscal 2025 sales reaching around $1.51 billion, indicating robust market performance and growth potential.
See More
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- Conference Agenda Released: The Precious Metals & Critical Minerals Virtual Investor Conference is scheduled for February 10-12, inviting individual and institutional investors to participate at no cost, aiming to broaden the investor base and facilitate company strategy communication.
- One-on-One Meeting Setup: Investors are encouraged to pre-register and run system checks to expedite participation and receive event updates, ensuring smooth scheduling of 1x1 meetings with management, thereby enhancing investor relations management efficiency.
- Diverse Industry Participants: The conference will feature multiple companies in the precious metals and critical minerals sector, including Valkea Resources and Cabral Gold, showcasing innovations and developments within the industry to attract investor interest and investment.
- Enhanced Investor Engagement: Virtual Investor Conferences provide a real-time interactive platform that helps companies connect with investors more efficiently, improving their presentation capabilities and communication effectiveness, thus driving higher investor participation and market awareness.
See More
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- Significant Revenue Growth: The company achieved revenue of $277.87 million in Q3, up 58.5% from $175.36 million year-over-year, primarily driven by strong performance in its Capital Markets segment, reflecting enhanced competitiveness in the market.
- Improved Debt Position: At quarter-end, BRC's total debt stood at $1.44 billion with net debt of $702.9 million, down from $1.77 billion and $1.06 billion at the end of 2024, showcasing positive progress in financial management.
- Enhanced Compliance: BRC has completed the filing of its first three quarterly reports for 2025 within 120 days, ensuring Nasdaq compliance, which demonstrates the company's commitment to transparency and regulatory adherence, thereby enhancing market trust.
See More
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- Executive Stock Sale: Brett Wilms, President of EMEA & Australia at Brady Corporation, sold 3,791 shares of Class A Common Stock in a derivative transaction valued at approximately $296,191, demonstrating his timing acumen in the market.
- Ownership Stake Change: Following this transaction, Wilms's direct ownership decreased by 33.07%, from 11,463 shares to 7,672 shares, indicating a reduction in his direct influence within the company.
- Historical Transaction Comparison: The sale of 3,791 shares significantly exceeds Wilms's historical median of 675 shares for sell-only events, reflecting a notable increase in disposition size that may suggest a different outlook on future market trends.
- Company Financial Performance: Although Brady Corporation experienced a dip in FY 2025, its Q1 FY 2026 gross profit reached an all-time high of $208.83 million, showcasing the company's successful strategies in cost-cutting and maintaining low leverage.
See More
Brady Corporation President Sells 3,791 Shares for Nearly $300,000
- Executive Share Reduction: Brett Wilms, President of EMEA & Australia at Brady Corporation, sold 3,791 shares on December 10, 2025, through exercising options, valued at nearly $300,000, reducing his direct holdings by 33.07%, indicating executive confidence in market timing.
- Strong Stock Performance: BRC stock performed well in 2025 with a 5.60% annual gain, and Wilms's decision to sell at this time reflects confidence in the company's future prospects and a keen insight into market dynamics.
- Financial Recovery: Although Brady's financials dipped in FY 2025 compared to FY 2024, the company reported a record gross profit of $208.83 million in Q1 FY 2026, showcasing the success of its cost-cutting and low-leverage strategies.
- Record Dividend: Brady Corporation achieved an all-time quarterly high dividend of $0.245 per share in Q1 2026, demonstrating its ability to consistently increase dividend payouts, thereby enhancing investor confidence and appeal.
See More
