brc-20251031

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended October 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to

Commission File Number 1-14959

BRADY CORPORATION

(Exact name of registrant as specified in its charter)


Wisconsin						39-0178960
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

6555 West Good Hope Road

Milwaukee, Wisconsin 53223

(Address of principal executive offices and zip code)

(414) 358-6600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Nonvoting Common Stock, par value $0.01 per share	BRC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Emerging growth company

☐

Non-accelerated filer

☐

Smaller reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of November 13, 2025, there were 43,638,096 outstanding shares of Class A Nonvoting Common Stock and 3,538,628 shares of Class B Voting Common Stock. The Class B Voting Common Stock, all of which is held by affiliates of the Registrant, is the only voting stock.



			Page
PART I. Financial Information			3
Item 1. Financial Statements (Unaudited)			3
Condensed Consolidated Balance Sheets			3
Condensed Consolidated Statements of Income			4
Condensed Consolidated Statements of Comprehensive Income			5
Condensed Consolidated Statements of Stockholders ’ Equity			6
Condensed Consolidated Statements of Cash Flows			7
Notes to Condensed Consolidated Financial Statements			8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			18
Item 3. Quantitative and Qualitative Disclosures About Market Risk			24
Item 4. Controls and Procedures			24
PART II. Other Information			25
Item 1. Legal Proceedings			25
Item 1A. Risk Factors			25
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			25
Item 5. Other Information			25
Item 6. Exhibits			26
Signatures			27


	October 31, 2025		July 31, 2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	182,684	$	174,349
Accounts receivable, net of allowance for credit losses of $7,253 and $7,876, respectively	248,551		231,944
Inventories	215,568		200,881
Prepaid expenses and other current assets	15,568		14,661
Total current assets	662,371		621,835
Property, plant and equipment—net	232,522		225,572
Goodwill	681,721		676,945
Other intangible assets	114,932		105,374
Deferred income taxes	18,495		20,862
Operating lease assets	60,350		58,422
Other assets	24,283		25,243
Total	$	1,794,674	$	1,734,253
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	103,804	$	105,028
Accrued compensation and benefits	69,886		92,657
Taxes, other than income taxes	22,933		21,537
Accrued income taxes	6,812		5,547
Current operating lease liabilities	16,590		15,234
Other current liabilities	100,683		90,329
Total current liabilities	320,708		330,332
Long-term debt	115,906		99,766
Long-term operating lease liabilities	44,288		43,565
Other liabilities	68,952		68,379
Total liabilities	549,854		542,042
Stockholders’ equity:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,666,121 and 43,530,012 shares, respectively	513		513
Class B voting common stock—Issued and outstanding, 3,538,628 shares	35		35
Additional paid-in capital	359,690		359,269
Retained earnings	1,360,156		1,317,739
Treasury stock—7,595,366 and 7,731,475 shares, respectively, of Class A nonvoting common stock, at cost	(388,847)		(393,186)
Accumulated other comprehensive loss	(86,727)		(92,159)
Total stockholders’ equity	1,244,820		1,192,211
Total	$	1,794,674	$	1,734,253


	Three months ended October 31,
	2025		2024
Net sales	$	405,287	$	377,065
Cost of goods sold	196,455		187,376
Gross margin	208,832		189,689
Operating expenses:
Research and development	23,292		18,921
Selling, general and administrative	117,568		111,846
Total operating expenses	140,860		130,767
Operating income	67,972		58,922
Other income (expense):
Investment and other income	1,712		1,234
Interest expense	(1,208)		(1,356)
Income before income taxes	68,476		58,800
Income tax expense	14,540		12,017
Net income	$	53,936	$	46,783
Net income per Class A Nonvoting Common Share:
Basic	$	1.14	$	0.98
Diluted	$	1.13	$	0.97
Net income per Class B Voting Common Share:
Basic	$	1.13	$	0.96
Diluted	$	1.11	$	0.95
Weighted average common shares outstanding:
Basic	47,273		47,732
Diluted	47,731		48,217


	Three months ended October 31, 2025
	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
Balances at July 31, 2025	$	548	$	359,269	$	1,317,739	$	(393,186)	$	(92,159)	$	1,192,211
Net income	—		—		53,936		—		—		53,936
Other comprehensive income, net of tax	—		—		—		—		5,432		5,432
Issuance of shares of Class A Common Stock under stock plan	—		(6,591)		—		8,393		—		1,802
Tax benefit and withholdings from deferred compensation distributions	—		266		—		—		—		266
Stock-based compensation expense	—		6,746		—		—		—		6,746
Repurchase of shares of Class A Common Stock, including excise taxes	—		—		—		(4,054)		—		(4,054)
Cash dividends on Common Stock:
Class A — $0.2450 per share	—		—		(10,711)		—		—		(10,711)
Class B — $0.2284 per share	—		—		(808)		—		—		(808)
Balances at October 31, 2025	$	548	$	359,690	$	1,360,156	$	(388,847)	$	(86,727)	$	1,244,820


	Three months ended October 31, 2024
	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
Balances at July 31, 2024	$	548	$	353,654	$	1,174,025	$	(351,947)	$	(109,622)	$	1,066,658
Net income	—		—		46,783		—		—		46,783
Other comprehensive loss, net of tax	—		—		—		—		(1,980)		(1,980)
Issuance of shares of Class A Common Stock under stock plan	—		(5,065)		—		7,935		—		2,870
Tax benefit and withholdings from deferred compensation distributions	—		190		—		—		—		190
Stock-based compensation expense	—		5,813		—		—		—		5,813

Cash dividends on Common Stock:
Class A — $0.2400 per share	—		—		(10,612)		—		—		(10,612)
Class B — $0.2234 per share	—		—		(790)		—		—		(790)
Balances at October 31, 2024	$	548	$	354,592	$	1,209,406	$	(344,012)	$	(111,602)	$	1,108,932


	October 31, 2025		July 31, 2025
Finished products	$	114,828	$	109,726
Work-in-process	38,189		32,787
Raw materials and supplies	62,551		58,368
Total inventories	$	215,568	$	200,881


	October 31, 2025							July 31, 2025
	Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Weighted Average Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Amortized other intangible assets:
Tradenames	2	$	925	$	(578)	$	347	2	$	912	$	(456)	$	456
Customer relationships	8	138,275		(42,759)		95,516		8	125,497		(38,427)		87,070
Technology	5	18,808		(7,413)		11,395		5	20,471		(10,275)		10,196
Unamortized other intangible assets:
Tradenames	N/A	7,674		—		7,674		N/A	7,652		—		7,652
Total		$	165,682	$	(50,750)	$	114,932		$	154,532	$	(49,158)	$	105,374


	Unrealized (loss) gain on cash flow hedges		Unamortized gain (loss) on post-retirement plans		Foreign currency translation adjustments		Accumulated other comprehensive loss
Beginning balance, July 31, 2025	$	(394)	$	5	$	(91,770)	$	(92,159)
Other comprehensive income before reclassification	618		—		4,743		5,361
Amounts reclassified from accumulated other comprehensive loss	222		(151)		—		71
Ending balance, October 31, 2025	$	446	$	(146)	$	(87,027)	$	(86,727)


	Unrealized loss on cash flow hedges		Unamortized gain on post-retirement plans		Foreign currency translation adjustments		Accumulated other comprehensive loss
Beginning balance, July 31, 2024	$	(149)	$	462	$	(109,935)	$	(109,622)
Other comprehensive loss before reclassification	(1,402)		—		(79)		(1,481)
Amounts reclassified from accumulated other comprehensive loss	(348)		(151)		—		(499)
Ending balance, October 31, 2024	$	(1,899)	$	311	$	(110,014)	$	(111,602)


Time-Based Options	Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at July 31, 2025	1,052,314	$	45.17
Granted	—	—
Exercised	(122,610)	41.22
Forfeited	(712)	54.80
Outstanding at October 31, 2025	928,992	$	45.68	4.6	$	28,192
Exercisable at October 31, 2025	915,638	$	45.56	4.6	$	27,895


	Three months ended October 31,
	2025		2024
Net sales:
Americas & Asia
Americas	$	234,049	$	214,033
Asia	34,844		31,395
Total	$	268,893	$	245,428
Europe & Australia
Europe	121,248		116,153
Australia	15,146		15,484
Total	$	136,394	$	131,637

Total Company	$	405,287	$	377,065


	Three months ended October 31,
	2025		2024
Americas & Asia
Net sales	$	268,893	$	245,428
Cost of goods sold	131,106		119,178
Gross margin	137,787		126,250
Segment expenses:
Research and development	16,715		13,216
Selling, general and administrative	61,209		58,134
Total segment expenses	77,924		71,350
Segment profit	$	59,863	$	54,900

Europe & Australia
Net sales	$	136,394	$	131,637
Cost of goods sold	65,349		68,198
Gross margin	71,045		63,439
Segment expenses:
Research and development	6,577		5,705
Selling, general and administrative	45,736		44,620
Total segment expenses	52,313		50,325
Segment profit	$	18,732	$	13,114
Total profit from reportable segments	$	78,595	$	68,014

Reconciliation to income before income taxes
Total profit from reportable segments	$	78,595	$	68,014
Unallocated costs:
Administrative costs	(10,623)		(9,092)

Investment and other income	1,712		1,234
Interest expense	(1,208)		(1,356)
Income before income taxes	$	68,476	$	58,800

Other Segment Information
Depreciation & amortization:
Americas & Asia	$	7,280	$	6,612
Europe & Australia	3,728		3,552
Total Company	$	11,008	$	10,164
Expenditures for property, plant & equipment:
Americas & Asia	$	8,217	$	4,005


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested RSUs as of July 31, 2025	162,667	$	65.19
Granted	97,750	78.19
Vested	(67,719)	61.32
Forfeited	(1,587)	68.21
Non-vested RSUs as of October 31, 2025	191,111	$	73.19


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested PRSUs as of July 31, 2025	152,266	$	59.92
Granted	73,123	70.14
Vested	(25,074)	60.79
Forfeited	(11,105)	48.62
Non-vested PRSUs as of October 31, 2025	189,210	$	64.19


	October 31, 2025		July 31, 2025		Fair Value Hierarchy
Assets:
Deferred compensation plan assets	$	19,332	$	19,998	Level 1
Foreign exchange contracts	534		—		Level 2
Liabilities:
Foreign exchange contracts	97		198		Level 2


	October 31, 2025		July 31, 2025
Designated as cash flow hedges	$	40,212	$	53,542
Non-designated hedges	4,469		4,380
Total foreign exchange contracts	$	44,681	$	57,922


	Three months ended October 31,
(Dollars in thousands)	2025		% Sales		2024		% Sales
Net sales	$	405,287			$	377,065
Gross margin	208,832		51.5	%	189,689		50.3	%
Operating expenses:
Research and development	23,292		5.7	%	18,921		5.0	%
Selling, general and administrative	117,568		29.0	%	111,846		29.7	%
Total operating expenses	140,860		34.8	%	130,767		34.7	%
Operating income	$	67,972	16.8	%	$	58,922	15.6	%

SEC Form 10-Q filed by Brady Corporation