brc-20260131

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 January 31, 2026


☐			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 February 17, 2026, there were 43,689,411 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.

Table of Contents

INDEX



			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			8
Notes to Condensed Consolidated Financial Statements			9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			17
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

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)


	January 31, 2026		July 31, 2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	176,492	$	174,349
Accounts receivable, net of allowance for credit losses of $7,446 and $7,876, respectively	242,905		231,944
Inventories	225,821		200,881
Prepaid expenses and other current assets	17,105		14,661
Total current assets	662,323		621,835
Property, plant and equipment—net	244,048		225,572
Goodwill	696,996		676,945
Other intangible assets	109,702		105,374
Deferred income taxes	19,396		20,862
Operating lease assets	65,703		58,422
Other assets	27,032		25,243
Total	$	1,825,200	$	1,734,253
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	100,002	$	105,028
Accrued compensation and benefits	72,842		92,657
Taxes, other than income taxes	20,517		21,537
Accrued income taxes	5,631		5,547
Current operating lease liabilities	17,451		15,234
Other current liabilities	94,386		90,329
Total current liabilities	310,829		330,332
Long-term debt	78,706		99,766
Long-term operating lease liabilities	48,741		43,565
Other liabilities	73,904		68,379
Total liabilities	512,180		542,042
Stockholders’ equity:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,679,050 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	361,567		359,269
Retained earnings	1,396,642		1,317,739
Treasury stock—7,582,437 and 7,731,475 shares, respectively, of Class A nonvoting common stock, at cost	(389,988)		(393,186)
Accumulated other comprehensive loss	(55,749)		(92,159)
Total stockholders’ equity	1,313,020		1,192,211
Total	$	1,825,200	$	1,734,253

See Notes to Condensed Consolidated Financial Statements.

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in Thousands, Except Per Share Amounts, Unaudited)


	Three months ended January 31,				Six months ended January 31,
	2026		2025		2026		2025
Net sales	$	384,137	$	356,675	$	789,424	$	733,740
Cost of goods sold	189,743		180,832		386,198		368,208
Gross margin	194,394		175,843		403,226		365,532
Operating expenses:
Research and development	24,309		18,723		47,601		37,644
Selling, general and administrative	107,895		105,886		225,463		217,732
Total operating expenses	132,204		124,609		273,064		255,376
Operating income	62,190		51,234		130,162		110,156
Other income (expense):
Investment and other income	805		2,125		2,517		3,359
Interest expense	(990)		(1,312)		(2,198)		(2,668)
Income before income taxes	62,005		52,047		130,481		110,847
Income tax expense	13,954		11,713		28,494		23,730
Net income	$	48,051	$	40,334	$	101,987	$	87,117
Net income per Class A Nonvoting Common Share:
Basic	$	1.02	$	0.84	$	2.16	$	1.82
Diluted	$	1.01	$	0.83	$	2.14	$	1.81
Net income per Class B Voting Common Share:
Basic	$	1.02	$	0.84	$	2.14	$	1.81
Diluted	$	1.01	$	0.83	$	2.12	$	1.79
Weighted average common shares outstanding:
Basic	47,310		47,851		47,291		47,792
Diluted	47,738		48,306		47,734		48,261

See Notes to Condensed Consolidated Financial Statements.

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in Thousands, Unaudited)


	Three months ended January 31,				Six months ended January 31,
	2026		2025		2026		2025
Net income	$	48,051	$	40,334	$	101,987	$	87,117
Other comprehensive income (loss):
Foreign currency translation adjustments	30,317		(21,180)		35,060		(21,259)

Cash flow hedges:
Net gain (loss) recognized in other comprehensive income (loss)	702		935		1,323		(403)
Reclassification adjustment for losses (gains) included in net income	11		463		307		(1)
	713		1,398		1,630		(404)

Pension and other post-retirement benefits actuarial gain amortization	(151)		(151)		(302)		(302)

Other comprehensive income (loss), before tax	30,879		(19,933)		36,388		(21,965)
Income tax benefit (expense) related to items of other comprehensive income (loss)	99		(292)		22		(240)
Other comprehensive income (loss), net of tax	30,978		(20,225)		36,410		(22,205)
Comprehensive income	$	79,029	$	20,109	$	138,397	$	64,912

See Notes to Condensed Consolidated Financial Statements.

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Dollars in Thousands, Unaudited)


	Three months ended January 31, 2026
	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
Balances at October 31, 2025	$	548	$	359,690	$	1,360,156	$	(388,847)	$	(86,727)	$	1,244,820
Net income	—		—		48,051		—		—		48,051
Other comprehensive income, net of tax	—		—		—		—		30,978		30,978
Issuance of shares of Class A Common Stock under stock plan	—		(636)		—		3,769		—		3,133
Stock-based compensation expense	—		2,513		—		—		—		2,513
Repurchase of shares of Class A Common Stock, including excise taxes	—		—		—		(4,910)		—		(4,910)
Cash dividends on Common Stock:
Class A — $0.2450 per share	—		—		(10,698)		—		—		(10,698)
Class B — $0.2450 per share	—		—		(867)		—		—		(867)
Balances at January 31, 2026	$	548	$	361,567	$	1,396,642	$	(389,988)	$	(55,749)	$	1,313,020


	Six months ended January 31, 2026
	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	—		—		101,987		—		—		101,987
Other comprehensive income, net of tax	—		—		—		—		36,410		36,410
Issuance of shares of Class A Common Stock under stock plan	—		(7,227)		—		12,162		—		4,935
Tax benefit and withholdings from deferred compensation distributions	—		266		—		—		—		266
Stock-based compensation expense	—		9,259		—		—		—		9,259
Repurchase of shares of Class A Common Stock, including excise taxes	—		—		—		(8,964)		—		(8,964)
Cash dividends on Common Stock:
Class A — $0.4900 per share	—		—		(21,409)		—		—		(21,409)
Class B — $0.4734 per share	—		—		(1,675)		—		—		(1,675)
Balances at January 31, 2026	$	548	$	361,567	$	1,396,642	$	(389,988)	$	(55,749)	$	1,313,020


	Three months ended January 31, 2025
	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
Balances at October 31, 2024	$	548	$	354,592	$	1,209,406	$	(344,012)	$	(111,602)	$	1,108,932
Net income	—		—		40,334		—		—		40,334
Other comprehensive loss, net of tax	—		—		—		—		(20,225)		(20,225)
Issuance of shares of Class A Common Stock under stock plan	—		(241)		—		953		—		712
Stock-based compensation expense	—		2,180		—		—		—		2,180

Cash dividends on Common Stock:
Class A — $0.2400 per share	—		—		(10,616)		—		—		(10,616)
Class B — $0.2400 per share	—		—		(849)		—		—		(849)
Balances at January 31, 2025	$	548	$	356,531	$	1,238,275	$	(343,059)	$	(131,827)	$	1,120,468

Table of Contents


	Six months ended January 31, 2025
	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	—		—		87,117		—		—		87,117
Other comprehensive loss, net of tax	—		—		—		—		(22,205)		(22,205)
Issuance of shares of Class A Common Stock under stock plan	—		(5,306)		—		8,888		—		3,582
Tax benefit and withholdings from deferred compensation distributions	—		190		—		—		—		190
Stock-based compensation expense	—		7,993		—		—		—		7,993

Cash dividends on Common Stock:
Class A — $0.4800 per share	—		—		(21,228)		—		—		(21,228)
Class B — $0.4634 per share	—		—		(1,639)		—		—		(1,639)
Balances at January 31, 2025	$	548	$	356,531	$	1,238,275	$	(343,059)	$	(131,827)	$	1,120,468

See Notes to Condensed Consolidated Financial Statements.

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands, Unaudited)


	Six months ended January 31,
	2026		2025
Operating activities:
Net income	$	101,987	$	87,117
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	22,205		20,096
Stock-based compensation expense	9,259		7,993

Deferred income taxes	7,571		(3,076)
Other	410		231
Changes in operating assets and liabilities:
Accounts receivable	(1,924)		6,605
Inventories	(16,747)		(8,384)
Prepaid expenses and other assets	(1,280)		(2,571)
Accounts payable and accrued liabilities	(34,710)		(41,650)
Income taxes	(101)		(3,361)
Net cash provided by operating activities	86,670		63,000

Investing activities:
Purchases of property, plant and equipment	(21,947)		(14,423)
Acquisition of businesses, net of cash acquired	(17,416)		(137,348)

Other	(1,958)		53
Net cash used in investing activities	(41,321)		(151,718)

Financing activities:
Payment of dividends	(23,084)		(22,867)
Proceeds from exercise of stock options	8,255		5,712
Payments for employee taxes withheld from stock-based awards	(3,318)		(2,130)
Purchase of treasury stock	(8,964)		—
Proceeds from borrowing on credit agreement	72,500		159,373
Repayment of borrowing on credit agreement	(93,560)		(162,621)
Other	266		190
Net cash used in financing activities	(47,905)		(22,343)

Effect of exchange rate changes on cash and cash equivalents	4,699		(605)

Net increase (decrease) in cash and cash equivalents	2,143		(111,666)
Cash and cash equivalents, beginning of period	174,349		250,118

Cash and cash equivalents, end of period	$	176,492	$	138,452

See Notes to Condensed Consolidated Financial Statements.

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Six Months Ended January 31, 2026

(Unaudited)

(In thousands, except share and per share amounts)

NOTE A — Basis of Presentation

The condensed consolidated financial statements included herein have been prepared by Brady Corporation and subsidiaries (the “Company,” “Brady,” “we,” or “our”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company, the foregoing statements contain all adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial position of the Company as of January 31, 2026 and July 31, 2025, its results of operations, comprehensive income and changes in stockholders’ equity for the three and six months ended January 31, 2026 and 2025, and cash flows for the six months ended January 31, 2026 and 2025. The condensed consolidated balance sheet as of July 31, 2025 has been derived from the audited consolidated financial statements as of that date. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts therein. Due to the inherent uncertainty involved in making estimates, actual results in future periods may differ from the estimates.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to rules and regulations of the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statement presentation. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended July 31, 2025.

NOTE B — New Accounting Pronouncements

Adopted Standards

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The guidance requires expanded interim and annual disclosures of segment information including the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss. The Company adopted ASU 2023-07 for the year ended July 31, 2025, with retrospective application of the expanded segment information for the years ended July 31, 2024 and 2023. Additional information regarding the Company’s reportable segments, including the application of the provisions of ASU 2023-07 for the three and six months ended January 31, 2026 and 2025, is included in Note H to the condensed consolidated financial statements.

Standards not yet adopted

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The guidance requires expanded annual disclosures including the standardization and disaggregation of income tax rate reconciliation categories and the amount of income taxes paid by jurisdiction. The guidance is effective for the Company’s fiscal 2026 Form 10-K. The Company is currently assessing its income tax disclosures in connection with the adoption of ASU 2023-09.

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The guidance requires expanded interim and annual disclosures of expense information including the amounts of inventory purchases, employee compensation, depreciation, amortization, and depletion within commonly presented expense captions during the period. The guidance is effective for the Company’s fiscal 2028 Form 10-K and interim periods thereafter. The Company is currently evaluating the ASU to determine the impact this guidance will have on the Company’s disclosures.

Table of Contents

NOTE C — Additional Balance Sheet Information

Inventories

Inventories consisted of the following as of January 31, 2026 and July 31, 2025:


	January 31, 2026		July 31, 2025
Finished products	$	119,662	$	109,726
Work-in-process	38,166		32,787
Raw materials and supplies	67,993		58,368
Total inventories	$	225,821	$	200,881

Property, plant and equipment

Property, plant and equipment is presented net of accumulated depreciation of $325,321 and $313,778 as of January 31, 2026 and July 31, 2025, respectively.

NOTE D — Other Intangible Assets

Other intangible assets as of January 31, 2026 and July 31, 2025 consisted of the following:

January 31, 2026

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 Amortizati

SEC Form 10-Q filed by Brady Corporation