Brady (BRC) Q2 2026 earnings summary

Executive summary

• Sales for the quarter ended January 31, 2026, increased 7.7% year-over-year to $384.1 million, with organic growth of 1.6%, acquisitions contributing 2.3%, and foreign currency translation 3.8%.

• Achieved 20th consecutive quarter of organic sales growth, marking five years of quarterly increases.

• Operating income rose 21.4% to $62.2 million, with net income up 19.1% to $48.1 million compared to the prior year quarter.

• Gross profit margin improved to 50.6% from 49.3% year-over-year, reflecting higher-margin product mix and absence of prior-year reorganization costs.

• Launched the i4311 Transportable Industrial Desktop Label Printer, expanding product capabilities.

Financial highlights

• Net sales for the six months ended January 31, 2026, increased 7.6% to $789.4 million year-over-year.

• Gross margin for the six months rose to 51.1% from 49.8% in the prior year.

• Operating cash flow rose 34.7% to $53.3 million for the quarter; free cash flow up 30.5% to $42.3 million.

• Net income for the six months was $102.0 million, up from $87.1 million a year earlier.

• Diluted EPS for the quarter was $1.01, up from $0.83 year-over-year; adjusted diluted EPS increased 9.0% to $1.09.

Outlook and guidance

• Raised the low end of fiscal 2026 adjusted diluted EPS guidance to $4.95–$5.15 per share, representing 7.6%–12% growth.

• GAAP EPS guidance for fiscal 2026 raised to $4.62–$4.82 per share.

• Guidance assumes a full-year tax rate of ~21%, depreciation and amortization of ~$44 million, and capital expenditures of ~$45 million.

• Organic sales growth expected in low single digits for FY26.

• Sufficient liquidity and borrowing capacity are anticipated to support growth initiatives and capital needs.