Brady Corporation
BRC
$77.84 -0.14%
Exchange: NYSE | Sector: Industrials | Industry: Security Protection Services
Q1 2025
Published: Nov 18, 2024

Earnings Highlights

  • Revenue of $377.07M up 13.6% year-over-year
  • EPS of $0.97 increased by 1% from previous year
  • Gross margin of 50.3%
  • Net income of 46.78M
  • "This morning, we released our fiscal 2025 first quarter financial results, and I'm pleased to report another strong quarter and a great start to 2025. We grew organic sales 3.6%. We grew adjusted pretax earnings 11%, and we grew adjusted earnings per share 12%. Our Americas and Asia region did an excellent job with organic sales growth of 5.1%, and our Europe and Australia region returned to growth in this quarter." - Russell Shaller
BRC
Company BRC

Executive Summary

Brady Corporation delivered a solid QQ1 2025, anchored by 3.6% organic sales growth and a favorable regional mix. The Americas and Asia drove momentum (organic growth of 5.1%), while Europe returned to growth, albeit modestly (0.7%). Total reported revenue rose 13.6% in the quarter, aided by acquisitions ( Acquisitions net of divestitures +8.8% and FX +1.2%). The Gravotech acquisition introduced a meaningful margin dynamic: gross margin declined approximately 110 basis points due to inventory step-ups from purchase accounting; excluding the Gravotech nonrecurring effect, gross margin would have been around 51.4%, in line with the prior year. On a GAAP basis, net income was $46.8 million with EPS of $0.97 (diluted $0.97), while adjusted metrics showed stronger performance: adjusted net income of $54.2 million and adjusted diluted EPS of $1.12, up roughly 10-12% year over year. Operating cash flow was $23.4 million and free cash flow was $16.1 million, reflecting working capital timing items and the annual cadence of inorganic activity. Brady entered fiscal 2025 with a net cash position of about $29 million at quarter-end, supported by disciplined capital allocation (organic investment, dividends, and select acquisitions). Management reaffirmed FY2025 guidance: adjusted diluted EPS of $4.40–$4.70 (GAAP $4.02–$4.32) and organic sales growth in the low single digits, with Depreciation & Amortization around $40 million and capex near $35 million. Looking ahead, the company sees growth opportunities from its Gravotech and AB&R acquisitions, continued product innovation (notably bundled print-and-scan solutions and direct part marking), and a push to expand in high-growth regions such as India and Southeast Asia, while remaining mindful of macro risks (USD strength, inflation, and potential economic slowdown).

Key Performance Indicators

Revenue
Increasing
377.07M
QoQ: 9.80% | YoY: 13.58%
Gross Profit
Increasing
189.69M
50.31% margin
QoQ: 7.14% | YoY: 10.46%
Operating Income
Decreasing
58.92M
QoQ: -11.01% | YoY: -1.35%
Net Income
Decreasing
46.78M
QoQ: -15.64% | YoY: -0.97%
EPS
Increasing
0.98
QoQ: -15.52% | YoY: 1.03%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 405.29 1.11 +18.0% View
Q3 2025 382.59 1.09 +11.4% View
Q2 2025 356.68 0.83 +10.6% View
Q1 2025 377.07 0.97 +13.6% View
Q4 2024 343.40 1.15 -0.7% View