brc-20260430

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 April 30, 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 May 14, 2026, there were 43,574,162 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			18
Item 3. Quantitative and Qualitative Disclosures About Market Risk			26
Item 4. Controls and Procedures			26
PART II. Other Information			27
Item 1. Legal Proceedings			27
Item 1A. Risk Factors			27
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			27
Item 5. Other Information			28
Item 6. Exhibits			29
Signatures			30

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BRADY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)


	April 30, 2026		July 31, 2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	175,491	$	174,349
Accounts receivable, net of allowance for credit losses of $7,274 and $7,876, respectively	266,354		231,944
Inventories	220,252		200,881
Prepaid expenses and other current assets	16,832		14,661
Total current assets	678,929		621,835
Property, plant and equipment—net	243,720		225,572
Goodwill	689,415		676,945
Other intangible assets	103,425		105,374
Deferred income taxes	18,503		20,862
Operating lease assets	61,154		58,422
Other assets	36,805		25,243
Total	$	1,831,951	$	1,734,253
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	108,454	$	105,028
Accrued compensation and benefits	92,253		92,657
Taxes, other than income taxes	22,308		21,537
Accrued income taxes	4,787		5,547
Current operating lease liabilities	16,382		15,234
Other current liabilities	93,620		90,329
Total current liabilities	337,804		330,332
Long-term debt	26,857		99,766
Long-term operating lease liabilities	45,270		43,565
Other liabilities	78,035		68,379
Total liabilities	487,966		542,042
Stockholders’ equity:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,650,910 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	363,578		359,269
Retained earnings	1,442,868		1,317,739
Treasury stock—7,610,577 and 7,731,475 shares, respectively, of Class A nonvoting common stock, at cost	(393,992)		(393,186)
Accumulated other comprehensive loss	(69,017)		(92,159)
Total stockholders’ equity	1,343,985		1,192,211
Total	$	1,831,951	$	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 April 30,				Nine months ended April 30,
	2026		2025		2026		2025
Net sales	$	435,237	$	382,590	$	1,224,661	$	1,116,330
Cost of goods sold	209,768		187,531		595,966		555,739
Gross margin	225,469		195,059		628,695		560,591
Operating expenses:
Research and development	23,531		19,191		71,132		56,835
Selling, general and administrative	128,732		108,678		354,195		326,410
Total operating expenses	152,263		127,869		425,327		383,245
Operating income	73,206		67,190		203,368		177,346
Other income (expense):
Investment and other income (expense)	1,431		(509)		3,948		2,850
Interest expense	(1,269)		(936)		(3,467)		(3,604)
Income before income taxes	73,368		65,745		203,849		176,592
Income tax expense	15,568		13,482		44,062		37,212
Net income	$	57,800	$	52,263	$	159,787	$	139,380
Net income per Class A Nonvoting Common Share:
Basic	$	1.22	$	1.10	$	3.38	$	2.92
Diluted	$	1.21	$	1.09	$	3.35	$	2.89
Net income per Class B Voting Common Share:
Basic	$	1.22	$	1.10	$	3.36	$	2.90
Diluted	$	1.21	$	1.09	$	3.33	$	2.88
Weighted average common shares outstanding:
Basic	47,357		47,644		47,313		47,743
Diluted	47,814		48,066		47,761		48,196

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 April 30,				Nine months ended April 30,
	2026		2025		2026		2025
Net income	$	57,800	$	52,263	$	159,787	$	139,380
Other comprehensive income (loss):
Foreign currency translation adjustments	(12,891)		38,161		22,169		16,902

Cash flow hedges:
Net gain (loss) recognized in other comprehensive income (loss)	81		(423)		1,404		(826)
Reclassification adjustment for (gains) losses included in net income	(202)		210		105		209
	(121)		(213)		1,509		(617)

Pension and other post-retirement benefits actuarial gain amortization	(152)		(152)		(454)		(454)

Other comprehensive income (loss), before tax	(13,164)		37,796		23,224		15,831
Income tax (expense) benefit related to items of other comprehensive (loss) income	(104)		297		(82)		57
Other comprehensive (loss) income, net of tax	(13,268)		38,093		23,142		15,888
Comprehensive income	$	44,532	$	90,356	$	182,929	$	155,268

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 April 30, 2026
	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
Balances at January 31, 2026	$	548	$	361,567	$	1,396,642	$	(389,988)	$	(55,749)	$	1,313,020
Net income	—		—		57,800		—		—		57,800
Other comprehensive income, net of tax	—		—		—		—		(13,268)		(13,268)
Issuance of shares of Class A Common Stock under stock plan	—		(335)		—		1,162		—		827
Stock-based compensation expense	—		2,346		—		—		—		2,346
Repurchase of shares of Class A Common Stock, including excise taxes	—		—		—		(5,166)		—		(5,166)
Cash dividends on Common Stock:
Class A — $0.2450 per share	—		—		(10,707)		—		—		(10,707)
Class B — $0.2450 per share	—		—		(867)		—		—		(867)
Balances at April 30, 2026	$	548	$	363,578	$	1,442,868	$	(393,992)	$	(69,017)	$	1,343,985


	Nine months ended April 30, 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	—		—		159,787		—		—		159,787
Other comprehensive income, net of tax	—		—		—		—		23,142		23,142
Issuance of shares of Class A Common Stock under stock plan	—		(7,562)		—		13,324		—		5,762
Tax benefit and withholdings from deferred compensation distributions	—		266		—		—		—		266
Stock-based compensation expense	—		11,605		—		—		—		11,605
Repurchase of shares of Class A Common Stock, including excise taxes	—		—		—		(14,130)		—		(14,130)
Cash dividends on Common Stock:
Class A — $0.7350 per share	—		—		(32,116)		—		—		(32,116)
Class B — $0.7184 per share	—		—		(2,542)		—		—		(2,542)
Balances at April 30, 2026	$	548	$	363,578	$	1,442,868	$	(393,992)	$	(69,017)	$	1,343,985

See Notes to Condensed Consolidated Financial Statements.

Table of Contents


	Three months ended April 30, 2025
	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
Balances at January 31, 2025	$	548	$	356,531	$	1,238,275	$	(343,059)	$	(131,827)	$	1,120,468
Net income	—		—		52,263		—		—		52,263
Other comprehensive loss, net of tax	—		—		—		—		38,093		38,093
Issuance of shares of Class A Common Stock under stock plan	—		(755)		—		415		—		(340)
Stock-based compensation expense	—		1,769		—		—		—		1,769
Repurchase of shares of Class A Common Stock, including excise taxes	—		—		—		(33,330)		—		(33,330)
Cash dividends on Common Stock:
Class A — $0.2400 per share	—		—		(10,521)		—		—		(10,521)
Class B — $0.2400 per share	—		—		(849)		—		—		(849)
Balances at April 30, 2025	$	548	$	357,545	$	1,279,168	$	(375,974)	$	(93,734)	$	1,167,553


	Nine months ended April 30, 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	—		—		139,380		—		—		139,380
Other comprehensive loss, net of tax	—		—		—		—		15,888		15,888
Issuance of shares of Class A Common Stock under stock plan	—		(6,061)		—		9,303		—		3,242
Tax benefit and withholdings from deferred compensation distributions	—		190		—		—		—		190
Stock-based compensation expense	—		9,762		—		—		—		9,762
Repurchase of shares of Class A Common Stock, including excise taxes	—		—		—		(33,330)		—		(33,330)
Cash dividends on Common Stock:
Class A — $0.7200 per share	—		—		(31,749)