On 10/10/25, AT&T, Verizon Communications and Brady will all trade ex-dividend for their respective upcoming dividends. AT&T will pay its quarterly dividend of $0.2775 on 11/3/25, Verizon Communications will pay its quarterly dividend of $0.69 on 11/3/25, and Brady will pay its quarterly dividend of $0.245 on 10/31/25. 10 Stocks Where Yields Got More Juicy »As a percentage of T’s recent stock price of $26.16, this dividend works out to approximately 1.06%, so look for shares of AT&T to trade 1.06% lower — a ...

Oct 8, 2025 7:54 AM Eastern Daylight Time NEW YORK--(BUSINESS WIRE)--Voya Investment Management (Voya IM), the asset management business of Voya Financial, Inc. (NYSE: VOYA), today announced the appointment of Scott Brady as managing director and head of Intermediary Business Development. Based in Boston, Brady will lead efforts to expand Voya IM's presence across the wirehouse, independent broker- dealer and registered investment advisor (RIA) channels. Brady reports to Tiffani Potesta, head of Distributio ...

Group 1 - Brady Corporation (NYSE: BRC) is positioning itself well for future growth in the industrial supply sector [1] - The analyst has over 14 years of experience in stock analysis, with a focus on the energy sectors and oilfield equipment services [1] - The article expresses an unbiased opinion on the company, indicating a thorough analysis of its market position [1] Group 2 - The analyst has been covering the industrial supply industry, indicating a broad understanding of market dynamics [1] - There is no current investment position in Brady Corporation or plans to initiate one within the next 72 hours [2] - The article is authored independently, with no compensation received from the company mentioned [2]

Group 1: Company News - Klarna debuted on the New York Stock Exchange, raising $1.37 billion, but experts express concerns about users potentially taking on excessive loans and payment burdens [6] - Oracle cofounder Larry Ellison has become the world's richest person with a net worth of approximately $393 billion, boosted by a significant increase in Oracle's stock value following positive earnings reports [7] Group 2: Market Updates - S&P 500 futures increased by 0.13%, while other major indices such as STOXX Europe 600 and Japan's Nikkei 225 saw gains of 0.35% and 1.22% respectively [11] - Bitcoin's value rose to $114,156.00, indicating a positive trend in cryptocurrency markets [11] Group 3: Industry Trends - The launch of Amazon-owned Zoox's robotaxi services in Las Vegas marks a significant step in the autonomous vehicle industry, with initial rides being offered free of charge [10]

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Financial Data and Key Metrics Changes - The company reported a record high adjusted EPS of $1.26 for the fourth quarter, representing a 5.9% increase year-over-year [5][12][17] - Organic sales grew by 2.4% in the fourth quarter, with acquisitions contributing an additional 11.3% to sales growth, resulting in total sales growth of 15.7% [12][14] - The gross profit margin decreased to 50.4% from 51.6% in the same quarter last year, primarily due to incremental expenses related to cost reduction actions [14][15] Business Line Data and Key Metrics Changes - Printers and consumable products accounted for nearly 40% of total sales, with organic sales growth of 67% annually over the last three years [6][10] - The Americas and Asia region reported organic sales growth of 4.3% in the fourth quarter, while Europe and Australia experienced a decline of 1.3% [5][12][24][26] - R&D investment increased by 31% in the fourth quarter, reaching nearly $80 million, which is 5.3% of sales [6][10][16] Market Data and Key Metrics Changes - The Americas and Asia region's sales were $260.8 million, with total sales growth of 14.1%, driven by strong performance in wire identification products [24] - The Europe and Australia region's sales were $136.5 million, with organic sales declining 1.3%, but acquisitions added 14.4% to growth [26] - Organic sales in Asia grew by 12%, with significant growth outside of China, which saw a decline of approximately 3% [25] Company Strategy and Development Direction - The company aims to expand its workplace safety and identification solutions by providing tailored solutions to meet customer needs [8][10] - Strategic acquisitions, such as Gravitec and MECO, are expected to enhance technical capabilities and drive future growth [10][29] - The focus remains on increasing R&D investments to stay ahead of competition and deliver specialized products [10][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment in Europe and Australia, which has impacted sales and necessitated cost reduction actions [12][13] - The company anticipates organic sales growth in the low single-digit percentages for the year ending July 31, 2026, with projected GAAP EPS ranging from $4.55 to $4.85 [21][22] - Management expressed confidence in mitigating tariff impacts through various strategies, including reshoring and supply chain adjustments [33][50] Other Important Information - The company returned $96 million to shareholders through dividends and share buybacks, marking the 40th consecutive year of annual dividend increases [10][11] - Operating cash flow was $58.3 million in the fourth quarter, down from $84 million in the previous year, primarily due to inventory build [18][36] Q&A Session Summary Question: Guidance on EPS growth amidst economic challenges - Management indicated that cost reductions and mitigating strategies for tariffs would support EPS growth despite economic challenges [32][34] Question: Impact of lower free cash flow in Q4 - Management explained that inventory build due to facility transitions affected cash flow, but expects to resolve these issues by the end of Q1 [36][39] Question: R&D investment outlook - Management noted that while R&D spending may decrease slightly in the short term, the long-term trend is to continue increasing R&D investments [40][47] Question: Tariff impact on guidance - Management confirmed that the projected tariff impact is included in the guidance and is expected to be more pronounced in the first half of the year [49][51] Question: Growth drivers in the printer and consumables segment - Management highlighted data centers and aerospace and defense as key growth areas for wire markers and related products [54][55]

Financial Data and Key Metrics Changes - The company reported a record high adjusted EPS of $1.26 for Q4 2025, representing a 5.9% increase year-over-year [4][11][17] - Organic sales grew by 2.4% in Q4, with acquisitions contributing an additional 11.3%, leading to a total sales growth of 15.7% [11][13] - The gross profit margin decreased to 50.4% from 51.6% in the same quarter last year, primarily due to increased costs [13][14] Business Line Data and Key Metrics Changes - Printers and consumable products accounted for nearly 40% of total sales, with organic growth of 67% annually over the last three years [6][9] - The Americas and Asia region saw organic sales growth of 4.3% in Q4, while Europe and Australia experienced a decline of 1.3% [4][11][24][26] - R&D investment increased by 31% in Q4, reaching nearly $80 million, which is 5.3% of sales [5][9][15] Market Data and Key Metrics Changes - The Americas and Asia region reported total sales of $260.8 million, with organic growth of 4.3% and acquisition growth of 9.8% [24] - In Asia, organic sales grew by 12%, with a notable 23% growth outside of China, despite a 3% decline in China [25] - The Europe and Australia region faced challenging economic conditions, leading to a 1.3% organic sales decline, although acquisitions contributed 14.4% growth [26] Company Strategy and Development Direction - The company aims to expand its workplace safety and identification solutions by providing tailored solutions to meet customer needs [7][9] - Strategic acquisitions, such as Gravitec and MECO, are expected to enhance technical capabilities and drive future growth [9][28] - The focus remains on R&D investment to stay ahead of competition and deliver specialized products [9][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment in Europe and Australia, which has impacted sales and necessitated cost reduction actions [11][12] - The company anticipates organic sales growth in the low single-digit percentages for the year ending July 31, 2026, with adjusted EPS projected to range from $4.85 to $5.15 [21][22] - Management expressed confidence in mitigating tariff impacts through various strategies, including reshoring and supply chain adjustments [33][52] Other Important Information - The company returned $96 million to shareholders through dividends and share buybacks, marking the 40th consecutive year of annual dividend increases [9][10] - Operating cash flow for Q4 was $58.3 million, down from $84 million in the previous year, attributed to inventory build [18][37] Q&A Session Summary Question: Guidance on EPS growth amidst economic challenges - Management indicated that cost reductions and mitigating strategies for tariffs would support EPS growth despite economic challenges [32][34] Question: Impact of lower free cash flow in Q4 - The decline in free cash flow was primarily due to inventory build related to facility transitions, which is expected to normalize [37][38] Question: Future R&D investment levels - Management stated that while R&D investment may slightly decrease in the short term due to team integration, the long-term trend is to continue increasing R&D investment [50][51] Question: Tariff impact on guidance - Management expects the incremental tariff impact to be more pronounced in the first half of the year, with mitigation efforts included in the guidance [52][54] Question: Growth drivers in the printer and consumables segment - The primary growth drivers identified were data centers and aerospace and defense sectors, which have shown significant demand [56][57]

[PART I](index=3&type=section&id=PART%20I) [Item 1. Business](index=3&type=section&id=Item%201.%20Business) Brady Corporation, a global identification and safety product manufacturer, drives growth and profitability through innovation and strategic acquisitions in fiscal 2025 - **Brady Corporation is a global manufacturer and supplier of identification solutions and workplace safety products**, organized into two reportable segments: **Americas & Asia** and **Europe & Australia**[11](index=11&type=chunk)[12](index=12&type=chunk) - The company's strategy focuses on driving **long-term growth**, **improving profitability**, and **strengthening its competitive position** through key competencies like innovative products, customer experience, global leadership in niche markets, digital capabilities, compliance expertise, and operational excellence[13](index=13&type=chunk)[16](index=16&type=chunk) - In **fiscal 2025**, Brady completed the acquisitions of **Gravotech Holding**, **American Barcode and RFID Incorporated (AB&R)**, and the **Microfluidic Solutions business unit**, which strengthen its position in faster-growing markets and expand product offerings and R&D capabilities[14](index=14&type=chunk) Sales by Reportable Segment (FY2023-FY2025) | Segment | 2025 (%) | 2024 (%) | 2023 (%) | | :----------------- | :----- | :----- | :----- | | Americas & Asia | 65.7 % | 66.1 % | 66.7 % | | Europe & Australia | 34.3 % | 33.9 % | 33.3 % | | Total | 100.0 %| 100.0 %| 100.0 %| Research and Development Expenses (FY2023-FY2025) | Fiscal Year | R&D Expense (Millions USD) | | :---------- | :------------------------- | | 2025 | $79.9 | | 2024 | $67.7 | | 2023 | $61.4 | - As of July 31, 2025, the Company employed approximately **6,400 individuals worldwide**, with **1,700 in the United States** and **4,700 outside the United States**[31](index=31&type=chunk) - The Company's health and safety programs achieved a **Total Recordable Incident Rate (TRIR) of 0.43** and a **Lost Time Case Rate (LTCR) of 0.23** in **fiscal 2025**, with **no work-related fatalities**[33](index=33&type=chunk) [Item 1A. Risk Factors](index=7&type=section&id=Item%201A.%20Risk%20Factors) Brady Corporation faces diverse business, operational, and financial risks, including cost inflation, supply chain, cybersecurity, regulations, and foreign currency fluctuations - Business risks include **raw material and other cost inflation**, **product shortages**, **decreased demand for products** due to various factors (economic conditions, catastrophic events, competition), **failure to compete effectively or execute strategy**, and **challenges in developing or acquiring technologically advanced products**[41](index=41&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - Global operating risks encompass **security breaches of sites, networks, and systems**, **failure to protect confidential information**, **extensive U.S. and non-U.S. governmental regulations**, **dependence on key employees**, **litigation** (including product liability and intellectual property claims), and the impact of **global climate change and ESG issues**[52](index=52&type=chunk)[55](index=55&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - Financial and security ownership risks include **foreign currency fluctuations** (affecting **approximately 50% of sales outside the U.S.**), **changes in tax legislation or rates** (e.g., OBBBA, Pillar Two), **potential impairment of goodwill and other intangible assets** (**45.1% of total assets**), and the **control of substantially all voting stock by two shareholders**, which may not align with non-voting shareholders' interests[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [Item 1B. Unresolved Staff Comments](index=12&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the SEC - There are **no unresolved staff comments**[70](index=70&type=chunk) [Item 1C. Cybersecurity](index=12&type=section&id=Item%201C.%20Cybersecurity) Brady Corporation integrates cybersecurity risk management into its company-wide framework, focusing on strengthening defenses and preparing for evolving threats - Brady **integrates cybersecurity risk management into its company-wide framework**, adhering to the **Center for Internet Security (CIS) Controls**[71](index=71&type=chunk) - The cybersecurity strategy emphasizes **strengthening defenses**, **improving operational efficiencies**, and **preparedness for evolving threats**, utilizing measures like **network monitoring, intrusion prevention, rapid detection, and external consultants for assessments and penetration testing**[72](index=72&type=chunk) - The **Audit Committee of the Board of Directors is responsible for cybersecurity oversight**, receiving **quarterly updates from management**. The **information technology security team, led by the CIO, manages risks and incidents**, **escalating material cybersecurity incidents to executive leadership**[74](index=74&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - To date, the company has **not experienced any material cybersecurity incidents**, but acknowledges that such threats could **materially affect business strategy, operations, or financial condition**[78](index=78&type=chunk) [Item 2. Properties](index=14&type=section&id=Item%202.%20Properties) Brady Corporation operates 41 modern and well-maintained manufacturing and distribution facilities globally, sufficient for current needs - **Brady Corporation operates 41 manufacturing and distribution facilities worldwide**[79](index=79&type=chunk) - The **Americas & Asia segment has 24 facilities**, including **8 in the United States**, **4 in China**, and others across South America and Asia[79](index=79&type=chunk) - The **Europe & Australia segment has 17 facilities**, including **4 each in France and the United Kingdom**, and others across Europe, the Middle East, Africa, and Australia[80](index=80&type=chunk) - The company considers its equipment and facilities to be **modern, well-maintained, and adequate for present needs**[81](index=81&type=chunk) [Item 3. Legal Proceedings](index=14&type=section&id=Item%203.%20Legal%20Proceedings) Brady Corporation is subject to various legal proceedings but expects no material adverse effect on its consolidated financial statements - The Company is subject to **various legal proceedings and claims arising in the normal course of business**, including intellectual property, employment, and contract matters[82](index=82&type=chunk) - Management believes that the ultimate resolution of current legal proceedings will **not have a material adverse impact on the Company's consolidated financial statements**[82](index=82&type=chunk) [Item 4. Mine Safety Disclosures](index=14&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Brady Corporation - Item 4. Mine Safety Disclosures is **not applicable**[83](index=83&type=chunk) [PART II](index=15&type=section&id=PART%20II) [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=15&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Brady Corporation's Class A Nonvoting Common Stock trades on the NYSE, with a history of quarterly dividends and an active share repurchase program - **Brady Corporation's Class A Nonvoting Common Stock trades on the NYSE under the symbol BRC**[85](index=85&type=chunk) - As of August 31, 2025, there were approximately **1,000 Class A Common Stock shareholders of record** and **17,000 beneficial shareholders**, with **three Class B Common Stock shareholders**[86](index=86&type=chunk) - The Company has **historically paid quarterly dividends**, with Class A Common Stock holders entitled to a **preferential annual cash dividend of $0.01665 per share** before Class B holders[87](index=87&type=chunk) Dividends Per Share (FY2024-Q1 FY2026) | Quarter | Class A ($) | Class B ($) | | :------ | :---------- | :---------- | | 1st Qtr 2026 | 0.2450 | 0.2284 | | 1st Qtr 2025 | 0.2400 | 0.2234 | | 2nd Qtr 2025 | 0.2400 | 0.2400 | | 3rd Qtr 2025 | 0.2400 | 0.2400 | | 4th Qtr 2025 | 0.2400 | 0.2400 | | 1st Qtr 2024 | 0.2350 | 0.2184 | | 2nd Qtr 2024 | 0.2350 | 0.2350 | | 3rd Qtr 2024 | 0.2350 | 0.2350 | | 4th Qtr 2024 | 0.2350 | 0.2350 | - On September 4, 2024, the Board **authorized an additional $100.0 million for the share repurchase program**, with **$87.0 million remaining as of July 31, 2025**[89](index=89&type=chunk) Issuer Purchases of Class A Nonvoting Common Stock (May-July 2025) | Period | Total Shares Purchased | Average Price Paid per Share ($) | Value Remaining (Thousands USD) | | :----------------------- | :--------------------- | :------------------------------- | :---------------------------- | | May 1, 2025 - May 31, 2025 | 29,740 | 69.63 | 102,562 | | June 1, 2025 - June 30, 2025 | 140,555 | 68.39 | 92,950 | | July 1, 2025 - July 31, 2025 | 86,987 | 68.97 | 86,951 | | Total | 257,282 | 68.73 | 86,951 | Cumulative Return on $100 Investment (FY2020-FY2025) | Index | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | :----------------------------- | :----- | :----- | :----- | :----- | :----- | :----- | | Brady Corporation | $100.00| $121.03| $107.87| $118.55| $167.16| $166.97| | S&P 500 Index | $100.00| $136.45| $130.11| $147.05| $179.62| $208.95| | S&P SmallCap 600 Industrials Index | $100.00| $151.04| $150.74| $178.72| $225.09| $240.03| | Russell 2000 Index | $100.00| $151.97| $130.25| $140.55| $160.58| $159.69| [Item 6. [Reserved]](index=16&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Brady Corporation's fiscal 2025 net sales increased 12.8% to $1,513.6 million, driven by organic growth and acquisitions, despite a gross margin decrease to 50.3% - Net sales **increased 12.8% to $1,513.6 million in fiscal 2025**, driven by **2.6% organic sales growth** and **10.5% from acquisitions**, partially offset by a **0.3% decrease due to divestitures**[104](index=104&type=chunk) - Gross margin **increased 10.6% to $760.8 million in fiscal 2025**, but **decreased as a percentage of net sales to 50.3%** (**from 51.3% in FY2024**) due to a **$4.1 million fair value adjustment to inventory from acquisitions**, **$4.9 million in facility closure costs**, and **incremental tariffs**[105](index=105&type=chunk) - R&D expenses **increased 17.9% to $79.9 million in fiscal 2025**, primarily due to the **Gravotech acquisition and increased R&D headcount**, reflecting a commitment to **innovative product development**[106](index=106&type=chunk) - Operating income **decreased 2.8% to $236.6 million in fiscal 2025**, with the **operating income margin decreasing to 15.6%** (**from 18.1% in FY2024**), mainly due to **facility closure and reorganization costs**, **incremental amortization from acquired businesses**, and **inventory fair value adjustments**[108](index=108&type=chunk) - Net income **decreased to $189.3 million in fiscal 2025 from $197.2 million in fiscal 2024**, with the **income tax rate at 20.2%** (**down from 20.4%**)[109](index=109&type=chunk)[111](index=111&type=chunk)[165](index=165&type=chunk) - The Americas & Asia segment saw **net sales increase 12.1% to $993.7 million**, driven by **4.8% organic growth** and **8.3% from acquisitions**. **Segment profit increased 6.6% to $209.8 million**, but **decreased as a percentage of sales to 21.1%** due to **facility closure costs and amortization**[114](index=114&type=chunk)[117](index=117&type=chunk) - The Europe & Australia segment's **sales increased 14.3% to $519.9 million**, primarily from **14.7% acquisition growth** and **1.4% currency impact**, despite a **1.8% organic sales decline** due to **softer industrial demand**. **Segment profit decreased 19.4% to $56.9 million**, with the **margin falling to 11.0%** due to **amortization, purchase accounting adjustments, and reorganization costs**[118](index=118&type=chunk)[121](index=121&type=chunk) - Cash and cash equivalents **decreased by $75.8 million to $174.3 million at July 31, 2025**. **Net cash provided by operating activities was $181.2 million** (**down from $255.1 million in FY2024**) due to **working capital changes**. **Net cash used in investing activities was $171.3 million**, mainly for **acquisitions ($144.5 million)** and **capital expenditures ($27.6 million)**[123](index=123&type=chunk)[124](index=124&type=chunk) - The company has a **credit agreement with $198.1 million available for future borrowing**, which can be **increased up to $1,093.1 million**, providing **total available liquidity of $1,267.4 million**[101](index=101&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Brady Corporation is exposed to foreign currency fluctuations, mitigating risks with forward contracts and foreign currency-denominated debt, with negligible sales impact in fiscal 2025 - **Approximately 50% of Brady's sales are derived outside the United States**, exposing the company to **foreign currency fluctuations**, particularly against the **Euro, British Pound, Mexican Peso, Canadian dollar, Australian dollar, Singapore dollar, Malaysian Ringgit, and Chinese Yuan**[63](index=63&type=chunk)[144](index=144&type=chunk) - The company uses **forward foreign exchange contracts (notional amount of $53.5 million as of July 31, 2025)** as **cash flow hedges** and **Euro-denominated ($50.2 million) and British Pound-denominated ($10.6 million) debt** as **net investment hedges** to minimize currency impact[145](index=145&type=chunk)[286](index=286&type=chunk) - In fiscal 2025, currency exchange rate fluctuations had a **negligible effect on sales**, but the **U.S. dollar's depreciation against other major currencies** had a more pronounced effect in interim periods[146](index=146&type=chunk) - As of July 31, 2025, the company had **no interest rate derivatives** and **no fixed-rate debt outstanding**, managing interest rate risk through its preferred mix of fixed and floating rate exposure[148](index=148&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=25&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Brady Corporation's audited consolidated financial statements for fiscal years 2023-2025, including balance sheets, income statements, and cash flows, with detailed notes - The **consolidated financial statements include the balance sheets as of July 31, 2025 and 2024, and statements of income, comprehensive income, stockholders' equity, and cash flows for the years ended July 31, 2025, 2024, and 2023**[150](index=150&type=chunk)[152](index=152&type=chunk) - **Deloitte & Touche LLP issued an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting as of July 31, 2025**[152](index=152&type=chunk)[153](index=153&type=chunk) Consolidated Balance Sheet Highlights (FY2024-FY2025, in thousands USD) | Item | 2025 (Thousands USD) | 2024 (Thousands USD) | | :------------------------ | :---------- | :---------- | | Total Current Assets | $621,835 | $599,715 | | Property, Plant & Equipment (net) | $225,572 | $195,758 | | Goodwill | $676,945 | $589,611 | | Other Intangible Assets | $105,374 | $51,839 | | Total Assets | $1,734,253 | $1,515,569 | | Total Current Liabilities | $330,332 | $264,682 | | Long-term Debt | $99,766 | $90,935 | | Total Liabilities | $542,042 | $448,911 | | Total Stockholders' Equity| $1,192,211 | $1,066,658 | Consolidated Statements of Income Highlights (FY2023-FY2025, in thousands USD) | Item | 2025 (Thousands USD) | 2024 (Thousands USD) | 2023 (Thousands USD) | | :------------------------ | :---------- | :---------- | :---------- | | Net Sales | $1,513,605 | $1,341,393 | $1,331,863 | | Gross Margin | $760,822 | $687,884 | $657,275 | | Operating Income | $236,638 | $243,414 | $225,213 | | Income Before Income Taxes| $237,097 | $247,841 | $225,696 | | Net Income | $189,256 | $197,215 | $174,857 | | Diluted EPS (Class A) | $3.94 | $4.07 | $3.51 | Consolidated Statements of Cash Flows Highlights (FY2023-FY2025, in thousands USD) | Item | 2025 (Thousands USD) | 2024 (Thousands USD) | 2023 (Thousands USD) | | :------------------------------------ | :---------- | :---------- | :---------- | | Net Cash Provided by Operating Activities | $181,196 | $255,074 | $209,149 | | Net Cash Used in Investing Activities | $(171,254) | $(81,047) | $(11,214) | | Net Cash Used in Financing Activities | $(83,871) | $(70,528) | $(163,568) | | Net (Decrease) Increase in Cash | $(75,769) | $98,586 | $37,463 | | Cash and Cash Equivalents, End of Period| $174,349 | $250,118 | $151,532 | - **Goodwill increased by $87.3 million in fiscal 2025**, primarily due to the **acquisitions of Gravotech ($66.2 million) and AB&R ($10.1 million)**, and **positive foreign currency translation effects ($11.1 million)**[207](index=207&type=chunk) - **Other intangible assets increased significantly**, with a **gross carrying amount of $154.5 million in FY2025 (from $81.9 million in FY2024)**, mainly due to Gravotech and AB&R acquisitions. **Amortization expense for intangible assets was $18.9 million in FY2025, up from $9.4 million in FY2024**[210](index=210&type=chunk)[211](index=211&type=chunk) - The company's credit agreement has a **final maturity date of November 14, 2027**, with an **outstanding balance of $99.8 million as of July 31, 2025**. The company was **in compliance with all financial covenants**, with a **debt-to-EBITDA ratio of 0.3 to 1.0** and an **interest expense coverage ratio of 67.3 to 1.0**[223](index=223&type=chunk)[224](index=224&type=chunk) Net Sales by Product Category (FY2023-FY2025, in thousands USD) | Product Category | 2025 (Thousands USD) | 2024 (Thousands USD) | 2023 (Thousands USD) | | :--------------------------- | :---------- | :---------- | :---------- | | Safety and Facility Identification | $611,242 | $607,235 | $608,938 | | Product Identification | $428,655 | $274,429 | $259,164 | | Wire Identification | $247,933 | $228,415 | $209,284 | | Healthcare Identification | $140,612 | $141,767 | $145,225 | | People Identification | $85,163 | $89,547 | $109,252 | | Total Company | $1,513,605 | $1,341,393 | $1,331,863 | - The **income tax rate was 20.2% in fiscal 2025, compared to 20.4% in fiscal 2024**. The **valuation allowance for deferred tax assets increased to $82.2 million in FY2025 from $47.2 million in FY2024**, primarily related to **foreign tax credit and net operating loss carryforwards**[111](index=111&type=chunk)[135](index=135&type=chunk) - In **fiscal 2025**, the company **acquired Gravotech Holding for $120.9 million, AB&R for $14.8 million, and Microfluidic Solutions for $10.7 million**, expanding its product offerings and market presence[290](index=290&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk) - **Subsequent to July 31, 2025, Brady acquired MECCO Partners LLC for approximately $20.0 million** and **announced a 2.1% increase in the annual dividend for Class A Common Stock to $0.98 per share**[298](index=298&type=chunk)[299](index=299&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=56&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been no changes in or disagreements with accountants on accounting and financial disclosure - There were **no changes in or disagreements with accountants on accounting and financial disclosure**[300](index=300&type=chunk) [Item 9A. Controls and Procedures](index=56&type=section&id=Item%209A.%20Controls%20and%20Procedures) Brady Corporation's management concluded disclosure controls and internal control over financial reporting were effective as of July 31, 2025, excluding recent acquisitions - The Company's President and Chief Executive Officer and Chief Financial Officer and Treasurer concluded that the Company's **disclosure controls and procedures are effective as of July 31, 2025**[302](index=302&type=chunk) - Management assessed the effectiveness of **internal control over financial reporting as of July 31, 2025**, based on the **COSO framework**, and concluded it was **effective**[304](index=304&type=chunk) - The assessment **excluded recently acquired businesses (Gravotech, AB&R, and Microfluidic Solutions)**, which collectively represented **7.7% of consolidated total assets** (excluding goodwill and intangible assets) and **9.4% of consolidated net sales for the year ended July 31, 2025**[304](index=304&type=chunk)[311](index=311&type=chunk) - **Deloitte & Touche LLP audited and expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of July 31, 2025**[306](index=306&type=chunk)[309](index=309&type=chunk) - There were **no changes in the Company's internal control over financial reporting during the most recently completed fiscal quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting**[307](index=307&type=chunk) [Item 9B. Other Information](index=58&type=section&id=Item%209B.%20Other%20Information) No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended July 31, 2025 - **No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended July 31, 2025**[317](index=317&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=59&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) There are no disclosures regarding foreign jurisdictions that prevent inspections - There are **no disclosures regarding foreign jurisdictions that prevent inspections**[318](index=318&type=chunk) [PART III](index=60&type=section&id=PART%20III) [Item 10. Directors, Executive Officers and Corporate Governance](index=60&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) This section lists Brady Corporation's executive officers and directors, detailing Board oversight of risk management, including cybersecurity and ESG issues Executive Officers and Directors | Name | Age | Title | | :----------------- | :-- | :----------------------------------------- | | Russell R. Shaller | 62 | President, CEO and Director | | Ann E. Thornton | 43 | Chief Financial Officer, CAO and Treasurer | | Olivier Bojarski | 46 | President – Americas & Asia | | Thomas F. DeBruine | 58 | Chief Operating Officer | | Andrew T. Gorman | 45 | General Counsel and Secretary | | Brett Wilms | 51 | President – EMEA & Australia | | Patrick W. Allender| 78 | Director | | David S. Bem | 56 | Director | | Elizabeth P. Bruno | 58 | Director | | Joanne Collins Smee| 68 | Director | | Deidre E. Cusack | 60 | Director | | Anne De Greef-Safft| 63 | Director | | Christopher M. Hix | 63 | Director | | Vineet Nargolwala | 53 | Director | | Bradley C. Richardson| 67 | Director | | Michelle E. Williams| 64 | Director | - The Board's leadership structure includes a **non-executive Chair (Bradley C. Richardson)** to **enhance oversight and independence from management**[339](index=339&type=chunk) - The **Board oversees the company's risk management processes, including cybersecurity and ESG strategies**, directly and through its committees[341](index=341&type=chunk) - **All directors, with the exception of the President and CEO, Mr. Shaller, are deemed independent based on NYSE criteria**[343](index=343&type=chunk) - The **Audit Committee includes at least one financial expert (Messrs. Hix, Allender, and Richardson) and all members are independent**[342](index=342&type=chunk)[345](index=345&type=chunk) - The company maintains a **Code of Ethics**, an **Insider Trading Policy (prohibiting hedging and pledging company stock)**, and **Corporate Governance Guidelines**, all **publicly available**[346](index=346&type=chunk)[347](index=347&type=chunk)[348](index=348&type=chunk) [Item 11. Executive Compensation](index=64&type=section&id=Item%2011.%20Executive%20Compensation) Brady Corporation's executive compensation aligns with shareholder value through pay-for-performance, utilizing variable compensation, equity grants, and stock ownership requirements - The **executive compensation philosophy aims to attract, retain, motivate, develop, and reward talented executives, aligning their interests with shareholders through a pay-for-performance approach**[363](index=363&type=chunk)[365](index=365&type=chunk) - For **fiscal 2025**, the **CEO's base salary increased by 17.2% to $1,025,000**, and **other NEOs also received increases to recognize performance and responsibilities**[355](index=355&type=chunk)[374](index=374&type=chunk) - **Annual equity grants in fiscal 2025 consisted of 50% time-based RSUs and 50% PRSUs**, with **PRSUs vesting based on company revenue and diluted EPS targets over a three-year performance period**, with **payouts ranging from 0% to 200% of target**[356](index=356&type=chunk)[358](index=358&type=chunk)[359](index=359&type=chunk)[393](index=393&type=chunk) - The compensation program includes **stock ownership requirements (e.g., CEO: 5x base salary)**, **clawback provisions for erroneous incentive-based compensation**, **performance thresholds and caps on incentive payouts**, and an **insider trading and anti-hedging policy**[361](index=361&type=chunk)[362](index=362&type=chunk)[404](index=404&type=chunk)[407](index=407&type=chunk) Summary Compensation Table (FY2023-FY2025, in thousands USD) | Name and Principal Position | Fiscal Year | Salary ($) | Stock Awards ($) | Non-Equity Incentive Plan Compensation ($) | All Other Compensation ($) | Total ($) | | :-------------------------- | :---------- | :--------- | :--------------- | :----------------------------------------- | :------------------------- | :-------- | | R.R. Shaller, President, CEO & Director | 2025 | 996,058 | 4,990,208 | 1,373,414 | 237,686 | 7,597,366 | | | 2024 | 859,212 | 3,551,028 | 1,439,180 | 198,208 | 6,047,628 | | | 2023 | 774,808 | 1,164,390 | 1,162,212 | 141,087 | 3,242,497 | | A.E. Thornton, CFO, CAO & Treasurer | 2025 | 506,828 | 800,043 | 425,380 | 99,952 | 1,832,203 | | | 2024 | 468,173 | 675,016 | 439,146 | 75,978 | 1,658,313 | | | 2023 | 314,614 | 50,025 | 203,881 | 44,423 | 663,003 | | O. Bojarski, President - Americas & Asia | 2025 | 485,481 | 750,035 | 527,960 | 124,826 | 1,888,302 | | | 2024 | 461,404 | 682,053 | 449,869 | 97,005 | 1,690,331 | | | 2023 | 401,077 | 600,029 | 387,290 | 78,133 | 1,666,529 | | T.F. DeBruine, Chief Operating Officer | 2025 | 450,000 | 490,078 | 412,020 | 96,171 | 1,448,269 | | | 2024 | 354,327 | 220,084 | 306,896 | 80,432 | 961,739 | | | 2023 | 317,500 | 151,926 | 238,125 | 68,912 | 836,526 | | A.T. Gorman, General Counsel and Secretary | 2025 | 369,230 | 368,998 | 265,625 | 83,305 | 1,087,158 | | | 2024 | 341,250 | 315,072 | 342,957 | 69,987 | 1,069,266 | | | 2023 | 322,616 | 191,792 | 193,569 | 72,292 | 856,097 | - The **CEO's annual total compensation for fiscal 2025 was $7,597,366**, resulting in a **pay ratio of approximately 138:1 compared to the median employee's total compensation of $55,173**[465](index=465&type=chunk) - The **most important financial performance measures linking Compensation Actually Paid to NEOs in fiscal 2025 were Operating Income, Organic Sales Growth, Total Shareholder Return, and Earnings Per Share**[489](index=489&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=94&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Two trusts control Brady Corporation's Class B Voting Common Stock, while management and directors beneficially own 3.6% of Class A Common Stock - As of July 31, 2025, the **EBL GST Non-Exempt Stock B Trust (controlled by Elizabeth P. Bruno) and the William H. Brady III Living Trust each beneficially own 50% of the Class B Common Stock**, which is the **only voting stock**[499](index=499&type=chunk) - **Elizabeth P. Bruno is the largest beneficial owner of Class A Common Stock among directors and NEOs, holding 939,130 shares (2.2%)**[503](index=503&type=chunk) - **All officers and directors as a group (16 persons) beneficially own 1,582,393 shares, representing 3.6% of the Class A Common Stock**[503](index=503&type=chunk) - As of July 31, 2025, the company's **equity compensation plans have 1,367,247 securities to be issued upon exercise of outstanding options, warrants, and rights**, with a **weighted-average exercise price of $49.19**[506](index=506&type=chunk) - There are **4,721,007 shares remaining available for future issuance under equity compensation plans**[506](index=506&type=chunk) - **No arrangements are known to the Company that may result in a change of control**[504](index=504&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=99&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Brady Corporation reviews potential conflicts and related party transactions annually, concluding no material related party transactions in fiscal 2025 - The Company **annually solicits and reviews information from directors to ensure no conflicts of interest** and **refers potential issues to the Corporate Governance Committee**[507](index=507&type=chunk) - The Board concluded that **commercial relationships with entities employing directors were not material** and **did not prevent directors from being considered independent**[508](index=508&type=chunk) - The Company determined that there were **no material related party transactions affecting its financial condition or operations in fiscal 2025**, and **no transactions requiring disclosure under Item 404(a) of Regulation S-K**[508](index=508&type=chunk) [Item 14. Principal Accountant Fees and Services](index=100&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Brady Corporation incurred $2,392 thousand in total fees from Deloitte & Touche LLP in fiscal 2025, with all services pre-approved by the Audit Committee Aggregate Fees for Professional Services (FY2024-FY2025, in thousands USD) | Category | 2025 (Thousands USD) | 2024 (Thousands USD) | | :---------------------------------------- | :---- | :---- | | Audit fees | $1,402| $1,209| | Tax fees — compliance | $550 | $525 | | Subtotal audit, audit-related and tax compliance fees | $1,952| $1,734| | Tax fees — planning and advice | $440 | $477 | | Subtotal non-audit related fees | $440 | $477 | | Total fees | $2,392| $2,211| - **All services performed by the Independent Registered Public Accounting Firm in fiscal 2025 were pre-approved by the Audit Committee to assure auditor independence**[513](index=513&type=chunk) [PART IV](index=101&type=section&id=PART%20IV) [Item 15. Exhibits and Financial Statement Schedules](index=101&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the Consolidated Financial Statement Schedule and a comprehensive Exhibit Index, detailing various agreements and certifications - The report includes **Consolidated Financial Statement Schedule II Valuation and Qualifying Accounts**[516](index=516&type=chunk) - A **comprehensive Exhibit Index is provided**, **detailing various agreements, plans, and policies**, with **many documents incorporated by reference from prior SEC filings**[517](index=517&type=chunk)[519](index=519&type=chunk)[520](index=520&type=chunk)[525](index=525&type=chunk) Schedule II — Valuation and Qualifying Accounts (FY2023-FY2025, in thousands USD) | Description | 2025 (Thousands USD) | 2024 (Thousands USD) | 2023 (Thousands USD) | | :---------------------------------------- | :------ | :------ | :------ | | Accounts receivable — allowance for credit losses (end of period) | $7,876 | $6,749 | $8,467 | | Inventory — Reserve for slow-moving inventory (end of period) | $46,768 | $31,982 | $35,855 | | Valuation allowances against deferred tax assets (end of period) | $82,180 | $47,224 | $52,750 | [Item 16. Form 10-K Summary](index=105&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K Summary is provided - **No Form 10-K Summary is provided**[522](index=522&type=chunk) [Signatures](index=106&type=section&id=Signatures) The report is duly signed on behalf of Brady Corporation by its Principal Financial Officer, Principal Executive Officer, and other directors as of September 4, 2025 - The report is **signed by Ann E. Thornton (Principal Financial Officer and Principal Accounting Officer) and Russell R. Shaller (Principal Executive Officer), along with other directors, as of September 4, 2025**[527](index=527&type=chunk)[528](index=528&type=chunk)

[Executive Summary & Key Announcements](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Announcements) Brady Corporation's fiscal 2025 performance highlights strong sales and adjusted EPS growth, alongside fiscal 2026 guidance [Fiscal 2025 Fourth Quarter Highlights](index=1&type=section&id=Quarter%20Ended%20July%2031%2C%202025%20Financial%20Results%20Highlights) Brady Corporation reported a 15.7% increase in sales for Q4 FY2025, reaching $397.3 million, driven by acquisitions and foreign currency translation, alongside 2.4% organic growth. Adjusted Diluted EPS increased by 5.9% to a record $1.26, despite a GAAP EPS decline Q4 FY2025 Sales Performance | Metric | Q4 FY2025 | Q4 FY2024 | | :-------------------------- | :--------- | :--------- | | Total Sales | $397.3M | $343.4M | | Organic Sales Growth | 2.4% | - | | Acquisitions Impact | 11.3% | - | | Foreign Currency Impact | 2.0% | - | | Americas & Asia Sales Growth | 14.1% | - | | Europe & Australia Sales Growth | 18.8% | - | | Americas & Asia Organic Sales Growth | 4.3% | - | | Europe & Australia Organic Sales Growth | (1.3)% | - | Q4 FY2025 Earnings Per Share | Metric | Q4 FY2025 | Q4 FY2024 | Change (%) | | :-------------------- | :--------- | :--------- | :--------- | | Diluted EPS (GAAP) | $1.04 | $1.15 | (9.6)% | | Adjusted Diluted EPS | $1.26 | $1.19 | 5.9% | [Fiscal 2025 Annual Highlights](index=1&type=section&id=Year%20Ended%20July%2031%2C%202025%20Financial%20Results%20Highlights) For the full fiscal year 2025, Brady Corporation achieved a 12.8% sales increase to $1.51 billion, with 2.6% organic sales growth. Adjusted Diluted EPS reached a record $4.60, up 9.0% year-over-year. The company also returned $96.4 million to shareholders FY2025 Sales Performance | Metric | FY2025 | FY2024 | | :-------------------- | :------- | :------- | | Total Sales | $1.51B | $1.34B | | Organic Sales Growth | 2.6% | - | | Acquisitions Impact | 10.5% | - | | Divestitures Impact | (0.3)% | - | FY2025 Earnings Per Share | Metric | FY2025 | FY2024 | Change (%) | | :-------------------- | :------- | :------- | :--------- | | Diluted EPS (GAAP) | $3.94 | $4.07 | (3.2)% | | Adjusted Diluted EPS | $4.60 | $4.22 | 9.0% | - Returned **$96.4 million** to shareholders in fiscal 2025 through dividends and share repurchases[7](index=7&type=chunk)[11](index=11&type=chunk) [Fiscal 2026 EPS Guidance Announcement](index=1&type=section&id=Fiscal%202026%20EPS%20Guidance%20Announcement) Brady Corporation announced its diluted EPS guidance for the fiscal year ending July 31, 2026, projecting a range of $4.55 to $4.85 on a GAAP basis and $4.85 to $5.15 on an adjusted basis Fiscal 2026 Diluted EPS Guidance | Metric | Low End | High End | | :-------------------- | :------ | :------- | | GAAP EPS | $4.55 | $4.85 | | Adjusted Diluted EPS | $4.85 | $5.15 | [Company Overview](index=3&type=section&id=Company%20Overview) Brady Corporation is a global manufacturer of identification solutions, serving diverse industries with high-performance labels, signs, and printing systems [About Brady Corporation](index=3&type=section&id=About%20Brady%20Corporation) Brady Corporation is an international manufacturer and marketer of complete identification solutions, providing products like high-performance labels, signs, safety devices, printing systems, and software to diverse industries globally - Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places[16](index=16&type=chunk) - Products include high-performance labels, signs, safety devices, printing systems and software, helping customers increase safety, security, productivity and performance[16](index=16&type=chunk) - Serves a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and other industries[16](index=16&type=chunk) - Headquartered in Milwaukee, Wisconsin, with approximately **6,400 employees worldwide** as of July 31, 2025[16](index=16&type=chunk) - Fiscal 2025 sales were approximately **$1.51 billion**[16](index=16&type=chunk) [Fiscal 2025 Financial Performance](index=1&type=section&id=Fiscal%202025%20Financial%20Performance) This section details Brady Corporation's Q4 and full fiscal year 2025 financial results, highlighting sales, profitability, and earnings per share [Fourth Quarter Results](index=1&type=section&id=Fourth%20Quarter%20Results) For Q4 FY2025, Brady reported total sales of $397.3 million, a 15.7% increase. Income before income taxes decreased by 11.3% to $60.5 million, while Adjusted Income Before Income Taxes increased by 5.1% to $74.2 million. Net income and GAAP diluted EPS also saw declines, but Adjusted Net Income and Adjusted Diluted EPS increased Q4 FY2025 Sales Performance (in millions) | Metric | Q4 FY2025 | Q4 FY2024 | Change (%) | | :-------------------- | :--------- | :--------- | :--------- | | Net Sales | $397.3 | $343.4 | 15.7% | | Americas & Asia Sales | $260.8 | $228.5 | 14.1% | | Europe & Australia Sales | $136.5 | $114.9 | 18.8% | Q4 FY2025 Profitability (in millions) | Metric | Q4 FY2025 | Q4 FY2024 | Change (%) | | :-------------------------------- | :--------- | :--------- | :--------- | | Income before income taxes (GAAP) | $60.5 | $68.2 | (11.3)% | | Adjusted Income Before Income Taxes | $74.2 | $70.5 | 5.1% | | Net Income (GAAP) | $49.9 | $55.5 | (10.1)% | | Adjusted Net Income | $60.2 | $57.3 | 5.1% | Q4 FY2025 Earnings Per Share | Metric | Q4 FY2025 | Q4 FY2024 | Change (%) | | :-------------------- | :--------- | :--------- | :--------- | | Diluted EPS (GAAP) | $1.04 | $1.15 | (9.6)% | | Adjusted Diluted EPS | $1.26 | $1.19 | 5.9% | [Full Year Results](index=1&type=section&id=Full%20Year%20Results) For the full fiscal year 2025, Brady's sales increased 12.8% to $1.51 billion. Income before income taxes decreased by 4.3% to $237.1 million, while Adjusted Income Before Income Taxes rose 8.7% to $279.5 million. Net income and GAAP diluted EPS declined, but Adjusted Net Income and Adjusted Diluted EPS achieved record highs FY2025 Sales Performance (in billions) | Metric | FY2025 | FY2024 | Change (%) | | :-------------------- | :------- | :------- | :--------- | | Net Sales | $1.51 | $1.34 | 12.8% | | Americas & Asia Sales | $0.99 | $0.89 | 12.1% | | Europe & Australia Sales | $0.52 | $0.45 | 14.3% | FY2025 Profitability (in millions) | Metric | FY2025 | FY2024 | Change (%) | | :-------------------------------- | :------- | :------- | :--------- | | Income before income taxes (GAAP) | $237.1 | $247.8 | (4.3)% | | Adjusted Income Before Income Taxes | $279.5 | $257.3 | 8.7% | | Net Income (GAAP) | $189.3 | $197.2 | (4.0)% | | Adjusted Net Income | $221.3 | $204.5 | 8.2% | FY2025 Earnings Per Share | Metric | FY2025 | FY2024 | Change (%) | | :-------------------- | :------- | :------- | :--------- | | Diluted EPS (GAAP) | $3.94 | $4.07 | (3.2)% | | Adjusted Diluted EPS | $4.60 | $4.22 | 9.0% | [Management Commentary and Outlook](index=2&type=section&id=Management%20Commentary%20and%20Outlook) Management commentary highlights strategic investments and acquisitions driving performance, alongside the fiscal 2026 diluted EPS guidance [Management Remarks](index=2&type=section&id=Commentary) Management highlighted strong organic sales growth in Americas & Asia due to new product investments, leading to record adjusted EPS. Strategic acquisitions (Gravotech, Mecco) expanded product portfolio in direct part marking and laser engraving. The company maintains a strong balance sheet, enabling continued investment in R&D and shareholder returns - Investments in new products led to strong results in the Americas & Asia region, with **4.3% organic sales growth in Q4** and **4.8% in fiscal 2025**, contributing to record adjusted earnings per share[11](index=11&type=chunk) - Acquired Gravotech (beginning of fiscal 2025) and Mecco (closed August 4, 2025) to add direct part marking and laser engraving capabilities, expanding identification solutions[11](index=11&type=chunk) - Strong balance sheet and net cash position provide flexibility to fund organic and inorganic opportunities, and return funds to shareholders[11](index=11&type=chunk) - Returned **$96.4 million** to shareholders in fiscal 2025 through dividends and share buybacks, while also investing a record-high in research and development[11](index=11&type=chunk) [Fiscal 2026 Guidance](index=2&type=section&id=Fiscal%202026%20Guidance) Brady Corporation provided diluted EPS guidance for fiscal year 2026, expecting GAAP EPS between $4.55 and $4.85 (15.5% to 23.1% increase) and Adjusted Diluted EPS between $4.85 and $5.15 (5.4% to 12.0% increase) Fiscal 2026 Diluted EPS Guidance | Metric | Low End | High End | YoY Change (vs. FY2025 GAAP $3.94) | YoY Change (vs. FY2025 Adj. $4.60) | | :-------------------- | :------ | :------- | :-------------------------------- | :---------------------------------- | | GAAP EPS | $4.55 | $4.85 | 15.5% - 23.1% | - | | Adjusted Diluted EPS | $4.85 | $5.15 | - | 5.4% - 12.0% | - Guidance assumptions include a full-year income tax rate of approximately **21%**, depreciation and amortization expense of approximately **$42 million**, and capital expenditures of approximately **$40 million**[14](index=14&type=chunk) - Fiscal 2026 guidance is based upon foreign currency exchange rates as of July 31, 2025, and assumes economic growth[14](index=14&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Brady Corporation's consolidated financial statements detail income, balance sheet positions, and cash flow activities for fiscal years 2025 and 2024 [Consolidated Statements of Income](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The consolidated statements of income show a significant increase in net sales for both the quarter and full year ended July 31, 2025, primarily driven by acquisitions. Gross margin also increased, but operating income and net income (GAAP) saw slight declines for the full year Key Income Statement Figures (in thousands) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------- | :-------- | :-------- | :------- | :------- | | Net sales | $397,275 | $343,402 | $1,513,605 | $1,341,393 | | Cost of goods sold | $197,044 | $166,347 | $752,783 | $653,509 | | Gross margin | $200,231 | $177,055 | $760,822 | $687,884 | | Operating income | $59,292 | $66,215 | $236,638 | $243,414 | | Income before income taxes | $60,505 | $68,208 | $237,097 | $247,841 | | Net income | $49,876 | $55,456 | $189,256 | $197,215 | | Diluted EPS | $1.04 | $1.15 | $3.94 | $4.07 | [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet as of July 31, 2025, shows an increase in total assets, primarily driven by goodwill and other intangible assets, reflecting recent acquisitions. Total liabilities also increased, while stockholders' equity grew Key Balance Sheet Figures (in thousands) | Metric | July 31, 2025 | July 31, 2024 | | :---------------------------------------------------------------- | :------------ | :------------ | | Cash and cash equivalents | $174,349 | $250,118 | | Accounts receivable, net | $231,944 | $185,486 | | Inventories | $200,881 | $152,729 | | Total current assets | $621,835 | $599,715 | | Property, plant and equipment—net | $225,572 | $195,758 | | Goodwill | $676,945 | $589,611 | | Other intangible assets | $105,374 | $51,839 | | Total Assets | $1,734,253 | $1,515,569 | | Total current liabilities | $330,332 | $264,682 | | Long-term debt | $99,766 | $90,935 | | Total Liabilities | $542,042 | $448,911 | | Total Stockholders' Equity | $1,192,211 | $1,066,658 | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash provided by operating activities decreased significantly in FY2025 compared to FY2024, largely due to changes in operating assets and liabilities. Cash used in investing activities increased substantially due to business acquisitions, while cash used in financing activities also increased Key Cash Flow Figures (in thousands) | Metric | FY2025 | FY2024 | | :---------------------------------------- | :------- | :------- | | Net cash provided by operating activities | $181,196 | $255,074 | | Net cash used in investing activities | $(171,254) | $(81,047) | | Net cash used in financing activities | $(83,871) | $(70,528) | | Net (decrease) increase in cash and cash equivalents | $(75,769) | $98,586 | | Cash and cash equivalents, end of period | $174,349 | $250,118 | [Segment Information](index=7&type=section&id=Segment%20Information) This section details Brady Corporation's net sales, growth, and profitability across its Americas & Asia and Europe & Australia operating segments [Net Sales and Growth by Segment](index=7&type=section&id=NET%20SALES%20by%20Segment) Both Americas & Asia and Europe & Australia segments reported increased net sales for Q4 and the full year FY2025. Americas & Asia showed strong organic growth, while Europe & Australia experienced organic sales decline but significant growth from acquisitions and currency translation Net Sales by Segment (in thousands) | Segment | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :----------------- | :-------- | :-------- | :------- | :------- | | Americas & Asia | $260,789 | $228,493 | $993,715 | $886,528 | | Europe & Australia | $136,486 | $114,909 | $519,890 | $454,865 | | Total | $397,275 | $343,402 | $1,513,605 | $1,341,393 | Sales Growth Components (Q4 YoY) | Segment | Organic | Acquisitions | Currency | Divestiture | Total | | :----------------- | :------ | :----------- | :------- | :---------- | :---- | | Americas & Asia | 4.3% | 9.8% | 0% | 0% | 14.1% | | Europe & Australia | (1.3)% | 14.4% | 5.7% | 0% | 18.8% | | Total Company | 2.4% | 11.3% | 2.0% | 0% | 15.7% | Sales Growth Components (FY YoY) | Segment | Organic | Acquisitions | Currency | Divestiture | Total | | :----------------- | :------ | :----------- | :------- | :---------- | :---- | | Americas & Asia | 4.8% | 8.3% | (0.6)% | (0.4)% | 12.1% | | Europe & Australia | (1.8)% | 14.7% | 1.4% | 0% | 14.3% | | Total Company | 2.6% | 10.5% | 0% | (0.3)% | 12.8% | [Segment Profitability](index=7&type=section&id=SEGMENT%20PROFIT) Total segment profit decreased for both the quarter and full year FY2025. Both Americas & Asia and Europe & Australia segments experienced a decline in segment profit and segment profit as a percentage of net sales Segment Profit (in thousands) | Segment | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :----------------- | :-------- | :-------- | :------- | :------- | | Americas & Asia | $51,617 | $53,353 | $209,765 | $196,842 | | Europe & Australia | $15,070 | $19,277 | $56,942 | $70,612 | | Total Segment Profit | $66,687 | $72,630 | $266,707 | $267,454 | Segment Profit as a Percent of Net Sales | Segment | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :----------------- | :-------- | :-------- | :------- | :------- | | Americas & Asia | 19.8% | 23.3% | 21.1% | 22.2% | | Europe & Australia | 11.0% | 16.8% | 11.0% | 15.5% | | Total | 16.8% | 21.2% | 17.6% | 19.9% | [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles Brady Corporation's GAAP to non-GAAP adjusted financial measures, including income, net income, and diluted EPS, for historical and guidance periods [Adjusted Income Before Income Taxes Reconciliation](index=8&type=section&id=Adjusted%20Income%20Before%20Income%20Taxes) Brady reconciles GAAP Income before income taxes to Adjusted Income Before Income Taxes by adding back amortization expense, facility closure and other reorganization costs, and non-recurring acquisition-related costs. This adjustment shows a 5.1% increase for Q4 and 8.7% for the full year FY2025 Adjusted Income Before Income Taxes Reconciliation (in thousands) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :------------------------------------------ | :-------- | :-------- | :------- | :------- | | Income before income taxes (GAAP) | $60,505 | $68,208 | $237,097 | $247,841 | | Amortization expense | $4,778 | $2,337 | $18,916 | $9,421 | | Facility closure and other reorganization costs | $8,890 | — | $18,474 | — | | Non-recurring acquisitions-related costs and other expenses | — | — | $5,059 | — | | Adjusted Income Before Income Taxes (non-GAAP) | $74,173 | $70,545 | $279,546 | $257,262 | [Adjusted Income Tax Expense Reconciliation](index=8&type=section&id=Adjusted%20Income%20Tax%20Expense) The reconciliation of GAAP Income tax expense to Adjusted Income Tax Expense shows an increase in adjusted tax expense for both the quarter and full year FY2025, reflecting the tax impact of the adjustments made to income before taxes Adjusted Income Tax Expense Reconciliation (in thousands) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :------------------------------------------ | :-------- | :-------- | :------- | :------- | | Income tax expense (GAAP) | $10,629 | $12,752 | $47,841 | $50,626 | | Amortization expense | $1,148 | $540 | $4,550 | $2,182 | | Facility closure and other reorganization costs | $2,222 | — | $4,618 | — | | Non-recurring acquisitions-related costs and other expenses | — | — | $1,265 | — | | Adjusted Income Tax Expense (non-GAAP) | $13,999 | $13,292 | $58,274 | $52,808 | [Adjusted Net Income Reconciliation](index=9&type=section&id=Adjusted%20Net%20Income) Adjusted Net Income, which excludes the after-tax impact of amortization, facility closure, and acquisition-related costs, increased by 5.1% for Q4 and 8.2% for the full year FY2025, indicating stronger underlying profitability Adjusted Net Income Reconciliation (in thousands) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :------------------------------------------ | :-------- | :-------- | :------- | :------- | | Net income (GAAP) | $49,876 | $55,456 | $189,256 | $197,215 | | Amortization expense | $3,630 | $1,797 | $14,366 | $7,239 | | Facility closure and other reorganization costs | $6,668 | — | $13,856 | — | | Non-recurring acquisitions-related costs and other expenses | — | — | $3,794 | — | | Adjusted Net Income (non-GAAP) | $60,174 | $57,253 | $221,272 | $204,454 | [Adjusted Diluted EPS Reconciliation](index=9&type=section&id=Adjusted%20Diluted%20EPS) Adjusted Diluted EPS, a key non-GAAP measure, increased to a record $1.26 for Q4 and $4.60 for the full year FY2025, reflecting the company's operational performance excluding certain non-recurring or non-cash items Adjusted Diluted EPS Reconciliation | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :------------------------------------------------ | :--------- | :--------- | :------- | :------- | | Net income per Class A Nonvoting Common Share (GAAP) | $1.04 | $1.15 | $3.94 | $4.07 | | Amortization expense | $0.08 | $0.04 | $0.30 | $0.15 | | Facility closure and other reorganization costs | $0.14 | — | $0.29 | — | | Non-recurring acquisitions-related costs and other expenses | — | — | $0.08 | — | | Adjusted Diluted EPS (non-GAAP) | $1.26 | $1.19 | $4.60 | $4.22 | [Adjusted Diluted EPS Guidance Reconciliation](index=9&type=section&id=Adjusted%20Diluted%20EPS%20Guidance) The company provides a reconciliation for its Fiscal 2026 Adjusted Diluted EPS guidance, which excludes an estimated $0.30 per share for amortization expense from the GAAP EPS guidance Adjusted Diluted EPS Guidance Reconciliation (FY2026) | Metric | Low End | High End | | :------------------------------------------ | :------ | :------- | | Earnings per Class A Nonvoting Common Share (GAAP) | $4.55 | $4.85 | | Amortization expense | $0.30 | $0.30 | | Adjusted Diluted EPS (non-GAAP) | $4.85 | $5.15 | [Forward-Looking Statements & Risks](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Risks) This section outlines Brady Corporation's forward-looking statements and the various risk factors that could materially impact future financial results [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future financial position, business strategy, targets, and operations, which are inherently uncertain and subject to various risks - Statements that are not reported financial results or other historic information are 'forward-looking statements,' relating to future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels, cash flows, and management plans[19](index=19&type=chunk) - Identified by words such as 'may,' 'will,' 'expect,' 'intend,' 'estimate,' 'anticipate,' 'believe,' 'should,' 'project,' 'plan' or similar terminology[20](index=20&type=chunk) - These statements address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors beyond Brady's control[20](index=20&type=chunk) [Risk Factors](index=3&type=section&id=Risk%20Factors) Various factors could cause actual results to differ materially from forward-looking statements, including increased costs, decreased demand, competition, ability to develop new products, M&A integration, cybersecurity risks, regulatory changes, and global economic conditions - Uncertainties arise from increased cost of materials, labor, material shortages, supply chain disruptions, and decreased demand for products[20](index=20&type=chunk) - Risks include the ability to compete effectively, successfully execute strategy, develop technologically advanced products, and identify, integrate, and grow acquired companies[20](index=20&type=chunk) - Other factors include difficulties in protecting against security breaches, extensive regulations, loss of key employees, litigation, global climate change, foreign currency fluctuations, changes in tax legislation, potential write-offs of goodwill, and differing interests of shareholders[20](index=20&type=chunk)

Core Viewpoint - Brady Corporation reported strong financial results for the fourth quarter and fiscal year 2025, highlighting significant sales growth driven by acquisitions and product investments, despite a decline in net income compared to the previous year [1][4][5]. Financial Results for the Quarter Ended July 31, 2025 - Sales increased by 15.7% to $397.3 million, with organic sales growth of 2.4%, acquisition-related growth of 11.3%, and a 2.0% increase from foreign currency translation [2][9]. - Income before income taxes was $60.5 million, down from $68.2 million in the same quarter last year, while adjusted income before income taxes rose by 5.1% to $74.2 million [3][9]. - Net income decreased to $49.9 million from $55.5 million year-over-year, with diluted EPS at $1.04 compared to $1.15 previously; however, adjusted diluted EPS increased to a record $1.26 from $1.19 [4][9]. Financial Results for the Year Ended July 31, 2025 - Annual sales rose by 12.8% to $1.51 billion, with organic growth of 2.6% and a 10.5% increase from acquisitions [5][7]. - Income before income taxes for the year was $237.1 million, down from $247.8 million, while adjusted income before income taxes increased by 8.7% to $279.5 million [6]. - Net income for the year was $189.3 million, down from $197.2 million, with diluted EPS at $3.94 compared to $4.07; adjusted diluted EPS reached a record $4.60, up from $4.22 [7][9]. Regional Sales Performance - In the Americas & Asia, sales increased by 14.1%, with organic growth of 4.3%, while Europe & Australia saw an 18.8% increase, despite a 1.3% organic sales decline [2][5]. - For the fiscal year, sales in the Americas & Asia grew by 12.1%, with organic growth of 4.8%, while Europe & Australia experienced a 14.3% increase, with an organic decline of 1.8% [5][9]. Strategic Commentary - The company emphasized the success of new product investments, particularly in the Americas & Asia, and noted the strategic acquisitions of Gravotech and Mecco to enhance its product portfolio [8][10]. - Brady Corporation returned $96.4 million to shareholders through dividends and share repurchases while investing heavily in research and development [10][9]. Fiscal 2026 Guidance - The company anticipates GAAP earnings per diluted Class A Nonvoting Common Share to range from $4.55 to $4.85, representing a 15.5% to 23.1% increase compared to the previous year [11]. - Adjusted diluted EPS is expected to range from $4.85 to $5.15, indicating a 5.4% to 12.0% increase from the prior year [12].