Brady Corporation reported Q3 2025 (fiscal year 2025) results with a strong headline: record high adjusted earnings per share (EPS) driven by a combination of steady organic growth, accretive acquisitions, and ongoing cost discipline. The quarter featured 1.6% organic sales growth, acquisitions adding 10.5% to sales, and adjusted EPS of $1.22, an 11.9% year-over-year increase. Regionally, the Americas and Asia posted solid demand (organic growth of 5.4% and a near-23% organic gain in Asia), while Europe and Australia faced a tougher macro environment with a 5.4% organic decline but benefited from restructuring actions that lifted adjusted operating income by 3.8%. Brady also advanced its product roadmap with two notable launches and continued to invest in R&D (up more than 8%) as it integrates Gravitec and expands the Funai microfluidics capabilities.
Financially, Brady generated $382.6 million in revenue in the quarter, gross margin at 51.0% (a slight year-over-year compression from 51.6%), and GAAP net income of $52.3 million (net margin 13.7%). Adjusted net income rose to $58.8 million with adjusted diluted EPS of $1.22. Cash flow remained strong, with operating cash flow of ~$59.9 million and free cash flow of ~$55.6 million; Brady ended the quarter with net cash around $49.3 million and continued to deploy capital toward acquisitions, dividends, and opportunistic share repurchases. Tariff headwinds were acknowledged, with incremental tariff expense of about $3 million in Q3 and an estimated $3–$5 million net impact in Q4 after mitigations, prompting a tightening of full-year adjusted EPS guidance to $4.48–$4.63.
Management remains constructive on the medium-term trajectory, underpinned by a diversified geographic footprint, a growing embedded solutions stack (printers, RFID, direct part marking), and a clearer path to profitability in Europe through ongoing efficiency actions. The key risk factors include tariff policy evolution, USD strength, inflationary pressures, and macroeconomic slowdown in key industrial markets. Investors should monitor tariff developments, integration progress with Gravitec and Funai, and the progression of Brady’s new product cycle (I6100 printer, HH86 RFID reader) as catalysts for revenue growth and margin expansion.