Key Points Louisiana-based Paradiem sold 166,374 shares of Brady Corporation in the fourth quarter. The estimated transaction value was $12.98 million based on the last disclosed position. The position previously accounted for 3.03% of the fund’s AUM. These 10 stocks could mint the next wave of millionaires › On Tuesday, Louisiana-based Paradiem disclosed in a U.S. Securities and Exchange Commission filing that it sold out its Brady Corporation (NYSE:BRC) stake, an estimated $12.98 million transa ...

Company Overview - Brady Corporation is known for providing identification solutions and workplace safety products, including safety signs, labeling systems, RFID/barcode scanners, and compliance software [7][8] - The company generates revenue through the sale of proprietary identification and safety products, complemented by related software and services, distributed via direct sales, distributors, catalog, and digital channels [7] - Brady serves a diverse range of sectors globally, including industrial, healthcare, chemical, oil and gas, automotive, aerospace, government, education, and utility [7] Financial Performance - For the trailing twelve months (TTM), Brady reported revenue of $1.54 billion and net income of $195.67 million [4] - The company has a dividend yield of 1.21% and a 1-year price change of 7.79% [4] - In its fiscal first quarter ending October 31, sales rose by 7.5% year over year to $405.3 million, and net income increased to $53.9 million from $46.8 million in the prior year [10] Insider Transaction - CFO Ann Thornton exercised 4,080 stock options for Class A Common Stock and sold the shares for approximately $334,356 [1][2] - Post-transaction, her direct holdings decreased by 12.36%, from 33,015 shares to 28,935 shares, valued at approximately $2.34 million as of December 19, 2025 [6] - This transaction was the first open-market sale reported for Ms. Thornton, with previous filings limited to administrative or option-related activities [6] Market Context - The sale occurred when Brady's stock was experiencing an upswing, with shares reaching a 52-week high of $84.03 on September 4, and the sale price was at a weighted average of $81.95 [9] - The company's price-to-earnings (P/E) ratio was noted to be 19.5, near a three-year high, indicating a favorable market condition for the sale [9] - Brady has raised the low end of its fiscal 2026 adjusted diluted earnings per share guidance from a range of $4.85 to $5.15 per share to $4.90 to $5.15 per share, contributing to the stock's rise [10]

Brady Corporation ( BRC ) is an industrial company headquartered in Milwaukee that traces its origins back to 1914, and the business itself is not especially glamorous as it makes and sellsI focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.Analyst’s Disclosure:I/we have a beneficial long position in ...

Core Insights - Brady Corporation (NYSE:BRC) specializes in manufacturing identification solutions and workplace safety products for industrial customers globally [1] Company Overview - The company serves a diverse range of industrial customers worldwide, indicating a broad market reach and potential for growth in various sectors [1]

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Group 1 - The meeting is the Fiscal 2025 Annual Shareholders Meeting for Brady Corporation [2] - The agenda includes the election results of Brady's Board of Directors, comments from the President and CEO, and a Q&A session [3] - The presentation is being broadcast live and will be available for replay on the company's website [3] Group 2 - Forward-looking statements may be made during the call, which are subject to various risk factors and uncertainties [2] - The company filed its 2025 Form 10-K with the SEC in September, detailing risk factors [2]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - The company reported organic sales growth of 2.8% and adjusted earnings per share growth of 8% for Q1 2026 [3][10] - Total sales growth was 7.5%, driven by organic sales growth, acquisitions contributing 3.2%, and foreign currency translation adding 1.5% [6][10] - Gross profit margin improved to 51.5% from 50.3% in the same quarter last year [7][10] - Operating cash flow increased by 42.5% to $33.4 million compared to $23.4 million in Q1 last year [10][11] - Free cash flow rose by 38.8% to $22.4 million from $16.1 million in the previous year [11] Business Line Data and Key Metrics Changes - The Americas and Asia region saw sales of $268.9 million, up 9.6% year-over-year, with organic sales growth of 4.7% [15] - The wire identification product line experienced significant growth of nearly 19%, leading organic sales growth [15][16] - The Europe and Australia region reported sales of $136.4 million, with organic sales declining by 0.8% but benefiting from foreign currency translation [18] Market Data and Key Metrics Changes - The Asia business performed well with total organic sales growth of 11.9%, particularly in Japan [15] - Organic sales in Europe declined by 0.9%, while Australia saw a slight increase of 0.3% [18] - The company anticipates low single-digit organic sales growth for the full year ending July 31, 2026 [14] Company Strategy and Development Direction - The company is focused on increasing R&D investments, which rose to $23.3 million or 5.7% of sales, reflecting a 23% increase [9] - The introduction of the BradyScan app aims to enhance customer experience by integrating various products into a seamless platform [4][6] - The company is committed to maintaining a net cash position to support organic growth and strategic acquisitions [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's ability to grow despite challenging macroeconomic conditions and tariff impacts [44][45] - The company expects to continue facing incremental tariffs but believes its global manufacturing presence will help mitigate these effects [45] - Management highlighted the importance of focusing on growth rather than margin expansion, indicating a preference for increasing product penetration in the market [40] Other Important Information - The company announced an increase in the bottom end of its adjusted diluted EPS guidance for Fiscal 2026 from $4.85 to $4.90 per share [14] - The company has a history of increasing dividends, marking its 40th consecutive year of annual dividend increases [13] Q&A Session Summary Question: Inquiry about gross margin strength - Management indicated that gross margin strength was due to effective pricing strategies and supply chain adjustments [21][22] Question: R&D investment sustainability - Management confirmed that the current R&D spending is primarily due to acquisitions and indicated a potential stabilization around 5.5% in the coming quarters [23][24] Question: Cost-out actions impact - Management stated that approximately 80% of the benefits from cost-out actions have been realized, with some additional improvements expected [24][25] Question: Cash conversion expectations - Management expressed confidence in achieving closer to 100% cash conversion this year, acknowledging typical Q1 challenges [26] Question: Inventory levels - Management noted that inventory increases are due to several factors, including acquisitions and strategic decisions to stock high-demand products [27][28] Question: Europe and Australia segment growth outlook - Management remains cautiously optimistic about potential growth in the Europe and Australia segment, citing economic forecasts for improvement in 2026 [32][33] Question: BradyScan app target audience - Management clarified that the BradyScan app targets industrial users while also offering a consumer version, with plans for further integration with other products [34][35] Question: Revenue synergies from acquisitions - Management acknowledged the challenging environment for acquired businesses but expressed confidence in their long-term potential and strategic alignment with Brady's core markets [36][37] Question: Future gross margin expectations - Management reiterated that engineered products drive higher gross margins and emphasized a focus on growth over margin expansion [38][39]

Financial Data and Key Metrics Changes - The company reported organic sales growth of 2.8% and adjusted earnings per share growth of 8% for Q1 2026 [3][10] - Total sales growth was 7.5%, driven by organic sales growth, acquisitions contributing 3.2%, and foreign currency translation adding 1.5% [6][10] - Gross profit margin improved to 51.5% from 50.3% in the same quarter last year [7][10] - Operating cash flow increased by 42.5% to $33.4 million compared to $23.4 million in Q1 last year [10][11] - Free cash flow rose by 38.8% to $22.4 million in Q1 of this year [11] Business Line Data and Key Metrics Changes - The Americas and Asia region reported sales of $268.9 million, up 9.6% year-over-year, with organic sales growth of 4.7% [15] - The wire identification product line saw significant growth of nearly 19%, leading organic sales growth [15] - The Europe and Australia region had sales of $136.4 million, with organic sales declining 0.8% but total growth of 3.5% due to foreign currency translation [18] Market Data and Key Metrics Changes - The Asia business experienced total organic sales growth of 11.9%, led by Japan [15] - In China, organic sales grew slightly by 0.8%, while the rest of Asia combined for nearly 20% growth [16] - The company anticipates low single-digit organic sales growth for the full year ending July 31, 2026 [14] Company Strategy and Development Direction - The company is focused on increasing R&D investments, which rose to $23.3 million or 5.7% of sales, reflecting a 23% increase [9] - The introduction of the BradyScan app aims to enhance customer experience by integrating various products into a seamless platform [4][5] - The company is committed to maintaining a net cash position to support organic growth and strategic acquisitions [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's ability to grow sales and profitability despite challenging macroeconomic conditions [44][45] - The company is adapting to tariff impacts and believes its global manufacturing presence will help mitigate these effects [45] - Management expects the economic environment to improve in 2026 compared to 2025, although no immediate improvements have been observed [33] Other Important Information - The company announced an increase in the bottom end of its adjusted diluted EPS guidance range for fiscal 2026 from $4.85 to $4.90 per share [14] - The company has a disciplined approach to capital allocation, focusing on organic growth, dividends, and share buybacks [11][13] Q&A Session Summary Question: Inquiry about gross margin strength - Management indicated that the gross margin improvement was due to effective pricing strategies and supply chain management [21][22] Question: R&D investment sustainability - Management confirmed that the current R&D spending is primarily due to acquisitions and is expected to stabilize around 5.5% in the coming quarters [23] Question: Cost reduction actions impact - Management stated that approximately 80% of the benefits from cost reduction actions have been realized, with more to come [24][25] Question: Cash conversion expectations - Management expressed confidence in achieving closer to 100% cash conversion this year, noting improvements in Q1 [26] Question: Inventory levels explanation - Management explained that inventory increases are due to acquisitions and strategic decisions to stock high-demand products [27][28] Question: Confidence in Europe and Australia segment growth - Management noted that while the segment faced challenges, they expect improvements based on economic forecasts for 2026 [32][33] Question: BradyScan app target audience - Management clarified that the BradyScan app targets industrial users primarily, with a consumer version available for broader engagement [34][35] Question: Revenue synergies from acquisitions - Management highlighted ongoing efforts to identify revenue synergies from recent acquisitions, particularly in challenging market conditions [36][37] Question: Future gross margin expectations - Management reiterated that gross margins are influenced by the product mix, with engineered products driving higher margins [38][39]