Brady Corporation Falls Short of Expectations with Q3 2025 Results

Brady Corporation (NYSE: BRC), a leader in identification solutions, has released its financial results for the third quarter of fiscal 2025. The company achieved record adjusted earnings per share (EPS) and tightened its EPS guidance for the full fiscal year.

Despite Positive Developments, Brady Corporation Falls Short of Q3 Expectations

Brady Corporation reported robust financial results for the third quarter of fiscal 2025, ending April 30, 2025. Sales for the quarter increased by 11.4% to $382.6 million, compared to $343.4 million in the same quarter last year. This growth was driven by a 1.6% increase in organic sales and a 10.5% boost from acquisitions, partially offset by a 0.7% decline due to foreign currency translation. The company’s performance across regions was varied, with sales in the Americas & Asia rising by 12.9%, while Europe & Australia saw an 8.7% increase.

In terms of profitability, Brady Corporation’s income before income taxes rose by 2.1% to $65.7 million, up from $64.4 million in the previous year. Adjusted income before income taxes, accounting for amortization and reorganization costs, increased by 11.5% to $74.4 million. Net income for the quarter was $52.3 million, a slight improvement from $50.9 million in the prior year. The diluted EPS was $1.09, compared to $1.05 last year, while the adjusted diluted EPS reached a record high of $1.22, up from $1.09.

Despite the positive results, the company’s actual performance fell slightly short of analyst expectations. The anticipated EPS for the quarter was $1.23, and revenue was projected at $386.61 million. Nevertheless, the growth in adjusted EPS highlights Brady’s operational efficiency and strategic acquisitions, which have bolstered its financial standing despite external challenges such as currency fluctuations and market conditions.

Join our Telegram group and never miss a breaking digital asset story.

Brady Corporation Tightens Guidance for Full Fiscal Year

Looking ahead, Brady Corporation has tightened its guidance for the full fiscal year ending July 31, 2025. The company now expects its adjusted diluted EPS to range between $4.48 and $4.63, narrowing from the previous range of $4.45 to $4.70. The GAAP earnings per diluted Class A Nonvoting Common Share guidance has also been updated to $3.95 to $4.10, reflecting the impact of facility closures and reorganization costs.

Brady’s strategic focus remains on leveraging its global manufacturing capabilities and executing its initiatives to navigate the complexities of the current trade environment. The company has projected a full-year income tax rate of approximately 20%, with depreciation and amortization expenses expected to total around $40 million. Capital expenditures are estimated at $25 million, based on the assumption of steady economic growth and stable foreign currency exchange rates.

Brady Corporation’s leadership, as articulated by CEO Russell R. Shaller and CFO Ann Thornton, emphasizes the company’s commitment to enhancing shareholder value through strategic investments and returning capital via share repurchases and dividends. With a solid balance sheet and cash flow, Brady is well-positioned to pursue organic growth opportunities and strategic acquisitions, ensuring its continued success in the evolving global market landscape.

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.