Brady Corporation Reports Fiscal 2025 Second Quarter Results and Raises the Low End of its Fiscal 2025 Adjusted Diluted EPS Guidance

Core Viewpoint - Brady Corporation reported a 10.6% increase in sales for the second quarter of fiscal 2025, driven by organic growth and acquisitions, despite a decline from foreign currency translation [2][8]. Financial Results - Sales for the quarter ended January 31, 2025, were $356.7 million, up from $322.6 million in the same quarter last year [2][4]. - Organic sales growth was 2.6%, with acquisitions contributing 10.2% and foreign currency translation resulting in a 2.2% decline [2][8]. - By region, sales increased by 10.5% in the Americas & Asia and 10.7% in Europe & Australia [2][5]. Income Metrics - Income before income taxes decreased by 6.8% to $52.0 million compared to $55.8 million in the same quarter last year [3][4]. - Adjusted Income Before Income Taxes for the quarter was $62.4 million, reflecting a 7.2% increase from the previous year [3][6]. - Net income for the quarter was $40.3 million, down from $43.6 million in the same quarter last year [4][7]. Earnings Per Share - Earnings per diluted Class A Nonvoting Common Share decreased to $0.83 from $0.90 in the same quarter last year [4][8]. - Adjusted Diluted EPS increased to $1.00 from $0.93 in the same quarter last year, representing a 7.5% growth [4][8]. Six-Month Performance - For the six-month period ended January 31, 2025, sales increased by 12.1% to $733.7 million compared to $654.6 million in the same period last year [5][7]. - Adjusted Net Income for the six-month period was $102.3 million, up from $94.5 million in the same period last year [7][8]. Cash Flow and Guidance - Net cash provided by operating activities increased to $39.6 million in the second quarter of fiscal 2025 from $36.1 million in the same quarter last year [8]. - The company raised the low end of its Adjusted Diluted EPS guidance for the fiscal year ending July 31, 2025, from $4.40 to $4.45 per share [10][11]. Strategic Commentary - The company emphasized its focus on research and development, highlighting the launch of the i7500 high-speed printer as a key innovation [9]. - The Americas and Asia region showed strong organic sales growth and improved segment profit, indicating effective operational strategies [9].