Brady Q2 2025 Earnings Report
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.
Brady Revenue
Brady EPS
Brady Revenue by Geographic Location
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.
- Europe & Australia region reported an organic sales decline of 0.8%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income