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Jan 31, 2025
Brady Q2 2025 Earnings Report
Brady reported strong revenue growth, but net income and GAAP EPS declined.
Key Takeaways
Brady Corporation reported a 10.6% increase in sales, driven by acquisitions and organic growth. However, GAAP EPS declined by 7.8% while adjusted EPS increased by 7.5%. Net income also saw a year-over-year decline. The company raised the lower end of its adjusted EPS guidance for fiscal 2025.
Sales increased by 10.6% to $356.7 million, with 2.6% organic growth.
GAAP EPS decreased 7.8% to $0.83, while adjusted EPS increased 7.5% to $1.00.
Net income declined to $40.3 million from $43.6 million last year.
Adjusted net income increased to $48.1 million from $45.4 million in the prior year.
Forward Guidance
Brady raised the lower end of its adjusted EPS guidance for fiscal 2025, reflecting confidence in operational performance and sales growth.
Positive Outlook
- Raised the low end of fiscal 2025 adjusted EPS guidance to $4.45 - $4.70 per share.
- Strong organic sales growth in the Americas & Asia region.
- Continued investment in research and development for product innovation.
- Improved operational efficiency contributing to profitability.
- Healthy balance sheet with increased net cash position.
Challenges Ahead
- GAAP earnings guidance lowered due to facility closure and reorganization costs.
- Foreign currency fluctuations impacting revenue growth.
- Net income declined despite increased adjusted net income.
- Operating margin slightly compressed due to cost increases.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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