Brady Corporation Reports 2026 Fourth Quarter and Record Full Year Results
BRADY CORP (BRC) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Brady Corporation Reports 2026 Fourth Quarter and Record Full Year Results Achieved Record Annual Revenue and Adjusted Diluted Earnings Per Share Completed Transformational Acquisition of Honeywell Technologies’ Productivity Solutions and Services Business on August
How this was made
The 30-second read
Why it matters
Earnings beat and strong guidance suggest a bullish catalyst, but integration risk remains.
Market read
The release provides fresh, material data for traders; the combination of earnings beat and forward guidance creates actionable trading opportunities.
What to watch
Potential macro‑economic slowdown could temper demand for safety and productivity solutions.
Brady Corporation Reports 2026 Fourth Quarter and Record Full Year Results; Announces Fiscal Year 2027 Guidance
Fourth-quarter sales grew 10.0%, fiscal-year sales grew 9.8%, and fiscal 2026 Adjusted Diluted EPS increased 15.0% to a record $5.29. Fiscal 2027 Adjusted Diluted EPS guidance of $6.25 to $6.75 per share includes expected IPS accretion.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 net salesGAAP | $436.9M | – | 10.0% |
| Q4 gross marginGAAP | $231.1M | – | – |
| Q4 operating incomeGAAP | $60.12M | – | – |
| Q4 income before income taxesGAAP | $55.6M | – | (8.2%) |
| Q4 Adjusted Income Before Income Taxesnon-GAAP | $89M | – | 20.0% |
| Q4 net incomeGAAP | $45.6M | – | – |
| Q4 Adjusted Net Incomenon-GAAP | $70.7M | – | 17.5% |
| Q4 diluted EPS per Class A Nonvoting Common ShareGAAP | $0.96 | – | – |
| Q4 Adjusted Diluted EPSnon-GAAP | $1.48 | – | 17.5% |
| Fiscal year net salesGAAP | $1.66B | – | 9.8% |
| Fiscal year gross marginGAAP | $859.8M | – | – |
| Fiscal year operating incomeGAAP | $263.5M | – | – |
| Fiscal year income before income taxesGAAP | $259.4M | – | 9.4% |
| Fiscal year Adjusted Income Before Income Taxesnon-GAAP | $322.1M | – | 15.2% |
| Fiscal year net incomeGAAP | $205.4M | – | 8.5% |
| Fiscal year Adjusted Net Incomenon-GAAP | $252.6M | – | 14.2% |
| Fiscal year diluted EPS per Class A Nonvoting Common ShareGAAP | $4.30 | – | 9.1% |
| Fiscal year Adjusted Diluted EPSnon-GAAP | $5.29 | – | 15.0% |
| Fiscal year net cash provided by operating activitiesGAAP | $244.1M | – | nearly 35% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas & Asia, Q4Organic sales growth of 11.6%, acquisitions of 1.7%, and currency of 0.2%. | $296.1M | – | 13.5% |
| Europe & Australia, Q4Organic sales growth of 2.1% and currency of 1.1%. | $140.8M | – | 3.2% |
| Americas & Asia, fiscal yearOrganic sales growth of 7.5%, acquisitions of 3.3%, and currency of 0.6%. | $1.11B | – | 11.4% |
| Europe & Australia, fiscal yearOrganic sales growth of 1.2% and currency of 5.5%. | $554.9M | – | 6.7% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
year ending July 31, 2027 outlook
- RevenueIDS segment revenue expected to grow approximately 5 percent organically; IPS segment revenue expected to be approximately $1.15 billion
- Tax rateapproximately 21 percent
- NoteAdjusted Diluted EPS of $6.25 to $6.75 per share
- NoteAdjusted Diluted EPS growth of between 18.1 percent to 27.6 percent compared to 2026
- NoteApproximately $0.80 Adjusted Diluted EPS accretion from the IPS segment, net of the cost of financing the transaction
- NoteIDS segment profit as a percentage of sales of approximately 20 percent
- NoteIPS segment profit as a percentage of sales in the low-double digits
- NoteDepreciation expense of approximately $45 million
- NoteCapital expenditures of approximately $40 million
- NoteGuidance is based upon foreign currency exchange rates as of July 31, 2026, and assumes continued economic growth
Capital returns
- $88.3 million returned to shareholders in the form of dividends and share buybacks
- Payment of dividends: $46,139
- Purchase of treasury stock: $42,204
What drove it
- Total Company organic sales growth was 8.4% in the fourth quarter and 5.3% for fiscal 2026.
- Fourth-quarter sales growth included 11.6% organic growth in Americas & Asia and 2.1% organic growth in Europe & Australia.
- Fiscal-year segment profit as a percent of net sales was 23.2% in Americas & Asia and 13.4% in Europe & Australia, compared with 21.1% and 11.0%, respectively, in 2025.
- The Company completed the acquisition of Honeywell Technologies’ Productivity Solutions and Services business on August 3, 2026, which has been named Intelligent Productivity Solutions.
Concerns
- Fourth-quarter income before income taxes decreased 8.2% to $55.6 million and net income declined to $45.6 million, reflecting acquisition and integration-related costs.
- Fourth-quarter administrative costs were $(32,830), compared with $(7,395) in the same quarter last year.
- Fourth-quarter interest expense was $(6,232), compared with $(1,143) in the same quarter last year.
- The filing identifies risks related to IPS customer and personnel retention, integration difficulties, integration costs, financing, anticipated benefits and synergies, demand, materials and labor costs, supply chain disruptions, tariffs, foreign currency fluctuations, and indebtedness.
What to watch
- IDS segment organic revenue growth expected to be approximately 5 percent in fiscal 2027.
- IPS segment revenue expected to be approximately $1.15 billion and segment profit as a percentage of sales expected to be in the low-double digits.
- Expected approximately $0.80 Adjusted Diluted EPS accretion from IPS, with the majority of the contribution in the second half of fiscal 2027 as the business is integrated.
- Fiscal 2027 Adjusted Diluted EPS guidance of $6.25 to $6.75 per share.
- Capital expenditures expected to be approximately $40 million and the full-year income tax rate expected to be approximately 21 percent.
Balance sheet and cash flow
- Cash and cash equivalents as of July 31, 2026: $187,149; July 31, 2025: $174,349
- Long-term debt as of July 31, 2026: $14,985; July 31, 2025: $99,766
- Net cash position as of July 31, 2026: $172.2 million
- Net cash provided by operating activities: $244,127; 2025: $181,196
- Purchases of property, plant and equipment: $(51,473); 2025: $(27,577)
- Acquisition of businesses, net of cash acquired: $(17,416); 2025: $(144,541)
- Net cash used in investing activities: $(59,016); 2025: $(171,254)
- Net cash used in financing activities: $(177,371); 2025: $(83,871)
Analysis
Brady reported 10.0% fourth-quarter sales growth to $436.9 million, driven primarily by 8.4% organic growth. Americas & Asia grew 13.5%, including 11.6% organic growth, while Europe & Australia grew 3.2%, including 2.1% organic growth. For fiscal 2026, sales rose 9.8% to $1.66 billion, with 5.3% organic growth, 2.2% from acquisitions, and 2.3% from currency.
Underlying profitability improved faster than reported GAAP earnings. Fourth-quarter Adjusted Income Before Income Taxes rose 20.0% to $89.0 million, Adjusted Net Income increased 17.5% to $70.7 million, and Adjusted Diluted EPS increased 17.5% to $1.48. GAAP income before income taxes declined 8.2% to $55.6 million and GAAP net income was $45.6 million, reflecting acquisition and integration-related costs, executive transition costs, and amortization expense.
For the full year, Adjusted Diluted EPS reached a record $5.29, up 15.0% from $4.60, while GAAP diluted EPS increased 9.1% to $4.30. Segment profitability improved in both reporting regions: Americas & Asia segment profit as a percent of net sales was 23.2%, compared with 21.1%, and Europe & Australia was 13.4%, compared with 11.0%. Fiscal-year operating cash flow increased to $244.1 million from $181.2 million.
Capital allocation included $88.3 million returned to shareholders through dividends and share buybacks. Cash and cash equivalents were $187,149 and long-term debt was $14,985 at July 31, 2026; the Company cited a net cash position of $172.2 million. The Company completed the IPS acquisition on August 3, 2026, after the fiscal year-end.
Fiscal 2027 guidance calls for Adjusted Diluted EPS of $6.25 to $6.75 per share, with approximately $0.80 of IPS accretion net of financing costs. The guide expects IDS organic revenue growth of approximately 5 percent, IPS revenue of approximately $1.15 billion, and most IPS earnings contribution in the second half as integration proceeds. Execution on IPS integration, its low-double-digit segment-profit expectation, and the stated approximately 21 percent tax rate are central items for the coming year.
Management, verbatim
The results of the fourth quarter and full year 2026 are a clear indication of the momentum we are achieving at Brady Corporation.
Vineet Nargolwala, President and Chief Executive Officer
As we enter 2027, continued growth in our Identification Solutions business (IDS), complemented by the addition of the newly named Intelligent Productivity Solutions business (IPS), is expected to drive 23% growth in adjusted diluted earnings per share* at the midpoint of our guidance range.
Vineet Nargolwala, President and Chief Executive Officer
We continued our strong momentum and achieved another annual adjusted earnings per share record, increased our cash flow from operating activities nearly 35% to $244.1 million in fiscal 2026 compared to $181.2 million in fiscal 2025, and returned $88.3 million to our shareholders in the form of dividends and share buybacks.
Ann Thornton, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook and prior-guidance comparison
- Free cash flow
- Quarterly operating cash flow
- Quarterly capital expenditures
- Actual GAAP income tax rate
- Actual gross-margin percentage
- Fiscal 2027 consolidated revenue guidance
- Fiscal 2027 gross-margin guidance
- Fiscal 2027 operating-expense guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
BRADY CORP (NYSE:BRC) released its FY 2026 fourth‑quarter and full‑year results via an SEC Form 8‑K, highlighting organic growth, a recent acquisition, and FY 2027 guidance.
Ticker impact
BRADY CORP filed an 8‑K reporting Q4 2026 results and FY 2027 guidance, including 10% sales growth and 23% EPS outlook.
Potential upside of 5‑10% in the near term as investors price in higher earnings and growth.
First‑report earnings release with record revenue and EPS, plus a clear growth narrative from the acquisition.
Market effects
Industrial technology sector may benefit from Brady's acquisition and growth outlook.
Positive impact on U.S. industrial stocks and related supply‑chain partners.
Global industrial and safety‑solution markets see expanded addressable size.
Counterpoint
If integration costs exceed expectations, the guidance could be overly optimistic.
Key entities
- ExecutiveVineet Nargolwala
President and CEO of Brady Corp, provided commentary on results and outlook.
- Acquired BusinessHoneywell Technologies’ Productivity Solutions and Services Business
Recent acquisition forming the Intelligent Productivity Solutions segment.
