Brady (BRC) Delivers Strong Q1 Results and Boosts EPS Forecast

Brady Corporation (NYSE: BRC) has reported its financial results for the first quarter of fiscal 2026, showcasing significant growth in both earnings per share (EPS) and revenue. The company has also made adjustments to its full-year EPS guidance, reflecting its optimistic outlook for the remainder of the fiscal year.

Q1 Sales Hit $405M With Double-Digit EPS Growth and Americas Strength

Brady Corporation’s performance in the first quarter of fiscal 2026 has been notably strong, with the company reporting sales of $405.3 million, a 7.5% increase from the same quarter last year. This growth was driven by a combination of organic sales, acquisitions, and favorable foreign currency translations. The company’s adjusted diluted EPS for the quarter was $1.21, surpassing the expected EPS of $1.18. Similarly, revenue exceeded expectations of $393.65 million, marking a positive start to the fiscal year.

Compared to the previous year’s first quarter, Brady’s diluted EPS saw a significant increase of 16.5%, rising from $0.97 to $1.13. The adjusted diluted EPS experienced an 8.0% growth, from $1.12 to $1.21. This performance was bolstered by strong organic sales growth, particularly in the Americas and Asia regions, where sales increased by 9.6%. In contrast, the Europe and Australia regions saw a more modest sales increase of 3.6%.

Brady’s net income for the quarter was $53.9 million, up from $46.8 million in the same period last year. The company’s strategic focus on research and development, along with its recent acquisitions, has contributed to its robust financial results. The acquisition of Mecco, a laser marking system company, complements Brady’s existing product line and is expected to drive further growth in future quarters.

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Revised EPS Targets Signal Optimism for the Year Ahead

Looking ahead, Brady Corporation has adjusted its full-year EPS guidance, raising the low end of its adjusted diluted EPS range from $4.85 to $4.90 per share, while maintaining the high end at $5.15. This adjustment reflects the company’s confidence in its continued ability to deliver strong financial performance throughout fiscal 2026. The guidance for GAAP earnings per diluted Class A Nonvoting Common Share has also been updated, with a range of $4.57 to $4.82 per share, accounting for acquisition-related amortization.

The company’s fiscal 2026 guidance is based on several key assumptions, including a full-year income tax rate of approximately 21%, depreciation and amortization expenses of around $44 million, and capital expenditures of about $40 million. Brady has also considered current foreign currency exchange rates and anticipates continued economic growth, which will support its financial targets.

Brady’s management remains committed to driving shareholder value through strategic investments and operational excellence. The company’s strong cash position, with net cash of $66.8 million as of October 31, 2025, allows it to pursue both organic and inorganic growth opportunities. As Brady continues to execute its strategy, it aims to enhance its market position and deliver sustainable value to its shareholders.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.