Brady (BRC) - 2025 Q4 - Annual Report

PART I Item 1. Business 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][12] - 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][16] - 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] 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] - 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] Item 1A. Risk Factors 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][43][44][46][47] - 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][55][58][59][60][61] - 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][64][65][67][68][69] Item 1B. Unresolved Staff Comments The company has no unresolved staff comments from the SEC - There are no unresolved staff comments[70] Item 1C. Cybersecurity 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] - 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] - 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][75][77] - 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] Item 2. Properties 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] - The Americas & Asia segment has 24 facilities, including 8 in the United States, 4 in China, and others across South America and Asia[79] - 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] - The company considers its equipment and facilities to be modern, well-maintained, and adequate for present needs[81] Item 3. Legal Proceedings 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] - 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] Item 4. Mine Safety Disclosures This item is not applicable to Brady Corporation - Item 4. Mine Safety Disclosures is not applicable[83] PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 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] - 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] - The Company has historically paid quarterly dividends, with Class A Common Stock holders entitled to a preferential annual cash dividend of $0.01665 per share before Class B holders[87] Dividends Per Share (FY2024-Q1 FY2026) | Quarter | Class A ($) | 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 $87.0 million remaining as of July 31, 2025[89] Issuer Purchases of Class A Nonvoting Common Stock (May-July 2025) | Period | Total Shares Purchased | Average Price Paid per Share ($) | 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] This item is reserved and contains no information Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 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] - 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] - 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] - 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] - 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][111][165] - 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][117] - 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][121] - 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][124] - 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] Item 7A. Quantitative and Qualitative Disclosures About Market Risk 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][144] - 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][286] - 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] - 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] Item 8. Financial Statements and Supplementary Data 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][152] - 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][153] 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] - 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][211] - 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][224] 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][135] - 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][294][295] - 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][299] Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 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] Item 9A. Controls and Procedures 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] - 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] - 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][311] - 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][309] - 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] Item 9B. Other Information 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] Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections There are no disclosures regarding foreign jurisdictions that prevent inspections - There are no disclosures regarding foreign jurisdictions that prevent inspections[318] PART III Item 10. Directors, Executive Officers and Corporate Governance 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] - The Board oversees the company's risk management processes, including cybersecurity and ESG strategies, directly and through its committees[341] - All directors, with the exception of the President and CEO, Mr. Shaller, are deemed independent based on NYSE criteria[343] - The Audit Committee includes at least one financial expert (Messrs. Hix, Allender, and Richardson) and all members are independent[342][345] - 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][347][348] Item 11. Executive Compensation 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][365] - For fiscal 2025, the CEO's base salary increased by 17.2% to $1,025,000, and other NEOs also received increases to recognize performance and responsibilities[355][374] - Annual equity grants in fiscal 2025 consisted of 50% time-based RSUs and 50% PRSUs, with PRSUs vesting based on company revenue and diluted EPS targets over a three-year performance period, with payouts ranging from 0% to 200% of target[356][358][359][393] - The compensation program includes stock ownership requirements (e.g., CEO: 5x base salary), clawback provisions for erroneous incentive-based compensation, performance thresholds and caps on incentive payouts, and an insider trading and anti-hedging policy[361][362][404][407] Summary Compensation Table (FY2023-FY2025, in thousands USD) | Name and Principal Position | Fiscal Year | Salary ($) | 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] - 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] Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 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] - Elizabeth P. Bruno is the largest beneficial owner of Class A Common Stock among directors and NEOs, holding 939,130 shares (2.2%)[503] - 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] - 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] - There are 4,721,007 shares remaining available for future issuance under equity compensation plans[506] - No arrangements are known to the Company that may result in a change of control[504] Item 13. Certain Relationships and Related Transactions, and Director Independence 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] - The Board concluded that commercial relationships with entities employing directors were not material and did not prevent directors from being considered independent[508] - 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] Item 14. Principal Accountant Fees and Services 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] PART IV Item 15. Exhibits and Financial Statement Schedules 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] - A comprehensive Exhibit Index is provided, detailing various agreements, plans, and policies, with many documents incorporated by reference from prior SEC filings[517][519][520][525] 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 This item indicates that no Form 10-K Summary is provided - No Form 10-K Summary is provided[522] 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][528]