Oct 31, 2024

Brady Q1 2025 Earnings Report

Brady's Q1 2025 financial results were reported, showcasing sales growth and strategic investments.

Key Takeaways

Brady Corporation reported a 13.6% increase in sales for the quarter, driven by organic growth and acquisitions. Adjusted EPS increased by 12.0% to $1.12, and the company maintains a strong balance sheet with a net cash position.

Sales increased by 13.6% with organic sales up by 3.6%.

Adjusted EPS grew by 12.0% to $1.12 compared to the same quarter last year.

The acquisition of Gravotech was completed, enhancing the identification product portfolio.

The company remains in a net cash position of $29.0 million despite investments in acquisitions.

Total Revenue
$377M
Previous year: $332M
+13.6%
EPS
$1.12
Previous year: $1
+12.0%
Organic Sales Growth
3.6%
Previous year: 2.7%
+33.3%
Foreign Currency Impact
1.2%
Previous year: 1.5%
-20.0%
Income before income taxes
$68.6M
Previous year: $61.8M
+11.1%

Brady

Brady

Forward Guidance

The Company’s Adjusted Diluted EPS* guidance for the year ending July 31, 2025 remains unchanged at $4.40 to $4.70 per share, and the Company’s GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2025 was updated for amortization and other acquisition-related charges to $4.02 to $4.32 per share.

Positive Outlook

  • Adjusted Diluted EPS guidance remains unchanged at $4.40 to $4.70 per share.
  • Full-year income tax rate is expected to be approximately 20 percent.
  • Depreciation and amortization expense is projected to be approximately $40 million.
  • Capital expenditures are estimated to be approximately $35 million.
  • Fiscal 2025 guidance assumes continued economic growth.

Challenges Ahead

  • Guidance is based on foreign currency exchange rates as of October 31, 2024.
  • Increased cost of raw materials and labor as well as material shortages and supply chain disruptions
  • Decreased demand for our products
  • Our ability to compete effectively or to successfully execute our strategy
  • Our ability to develop technologically advanced products that meet customer demands