Brady Corporation delivered solid organic top-line growth in Q2 2025, supported by a resequenced cost structure and selective capital investments. Organic sales rose 2.6% year over year while acquisitions contributed 10.2%, and currency translation dampened results by 2.2%, yielding total quarterly sales growth of 10.6%. The quarter featured a robust push in R&D and a high-profile product launch, the I7500 industrial label printer, which Brady positions as a transformational tool for high-volume, high-mix labeling. Despite softer Europe and Australia (organic -0.8%), the Americas and Asia posted a strong 4.3% organic gain, with Asia expanding 11.3% ex-China. Management reaffirmed disciplined cost actions, including Beijing and Buffalo plant closures and European overhead restructuring, which together added incremental costs of $5.7 million but are expected to improve long-run efficiency and margin profile.
Guidance for fiscal 2025 was nudged higher on the low end: adjusted diluted EPS now expected between $4.45 and $4.70 (up from $4.40–$4.70 previously), with organic sales in the low single digits and non-cash charges largely behind. Brady continues to emphasize a balanced capital-allocation framework—funding organic growth and R&D, maintaining dividend growth for 39 consecutive years, and pursuing M&A and buybacks when synergistic. The company remains in a strong balance-sheet position with a net cash balance and substantial operating cash flow that supports ongoing investments and shareholder returns. The near-term risks include FX headwinds, US-dollar strength, tariff dynamics, and macro industrial activity, which Brady acknowledges could influence the pace of capital investment in the sector. The blend of product innovation, cross-sell opportunities (printers and readers via Gravitech), and regional diversification underpins a constructive long‑term outlook, albeit with execution risk around integration and cost controls in Europe and evolving global demand.