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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 19, 2026
BRADY CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number 1-14959
Wisconsin   39-0178960
(State or other jurisdiction of incorporation or organization)   (IRS 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)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 19, 2026, Brady Corporation (the “Company”) issued a press release announcing its fiscal 2026 second quarter financial results. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99.1 attached hereto and is incorporated herein by reference.

Item 7.01 REGULATION FD DISCLOSURE

On February 19, 2026, the Company hosted a conference call related to its fiscal 2026 second quarter financial results. A copy of the slides referenced in the conference call, which is also posted on the Company’s website, is being furnished to the Securities and Exchange Commission as Exhibit 99.2 attached hereto and is incorporated herein by reference.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits
EXHIBIT NUMBER DESCRIPTION
99.1
99.2
104 Cover Page Interactive Data File (embedded within Inline XBRL document).

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
    BRADY CORPORATION
Date: February 19, 2026
  
  /s/ ANN E. THORNTON
  Ann E. Thornton
  Chief Financial Officer, Chief Accounting Officer and Treasurer


EX-99.1 2 exhibit991pressrelease0131.htm SECOND QUARTER FISCAL 2026 PRESS RELEASE Document

EXHIBIT 99.1


For More Information:
Investor contact: Ann Thornton 414-438-6887
Media contact: Kate Venne 414-358-5176


Brady Corporation Reports Fiscal 2026 Second Quarter Results and Raises the Low End of its Fiscal 2026 EPS Guidance

•Sales for the quarter increased 7.7 percent. Organic sales increased 1.6 percent, acquisitions increased sales 2.3 percent and foreign currency translation increased sales 3.8 percent.
•Diluted EPS increased 21.7 percent to $1.01 in the second quarter of fiscal 2026 compared to $0.83 in the same quarter of the prior year. Adjusted Diluted EPS* increased 9.0 percent to $1.09 in the second quarter of fiscal 2026 compared to $1.00 in the same quarter of the prior year.
•Net cash provided by operating activities increased to $53.3 million in the second quarter of fiscal 2026 compared to $39.6 million in the second quarter of last year.
•The low end of Adjusted Diluted EPS* Guidance was raised for the full year ending July 31, 2026 from the previous range of $4.90 to $5.15 per share to the new range of $4.95 to $5.15 per share. GAAP earnings per diluted Class A Nonvoting Common share guidance for the year ending July 31, 2026 was raised from the previous range of $4.57 to $4.82 per share to $4.62 to $4.82 per share.

MILWAUKEE (February 19, 2026) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2026 second quarter ended January 31, 2026.

Quarter Ended January 31, 2026 Financial Results:
Sales for the quarter ended January 31, 2026 increased 7.7 percent, which consisted of organic sales growth of 1.6 percent, growth of 2.3 percent from acquisitions and an increase of 3.8 percent from foreign currency translation. Sales for the quarter ended January 31, 2026 were $384.1 million compared to $356.7 million in the same quarter last year. By region, sales increased 7.6 percent in the Americas & Asia and sales increased 7.9 percent in Europe & Australia, which consisted of organic sales growth of 3.1 percent in the Americas & Asia and an organic sales decline of 1.1 percent in Europe & Australia.
Income before income taxes increased 19.1 percent to $62.0 million in the quarter ended January 31, 2026, compared to $52.0 million in the same quarter last year. Adjusted Income Before Income Taxes* in the quarter ended January 31, 2026, which was adjusted for amortization expense of $5.2 million, was $67.2 million, an increase of 7.7 percent compared to the second quarter of last year. Adjusted Income Before Income Taxes* in the quarter ended January 31, 2025, which was adjusted for amortization expense and facility closure and other reorganization costs of $10.3 million, was $62.4 million.
Net income for the quarter ended January 31, 2026 was $48.1 million compared to $40.3 million in the same quarter last year. Adjusted Net Income* in the quarter ended January 31, 2026 was $52.0 million compared to $48.1 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share was $1.01 compared to $0.83 in the same quarter last year.


Adjusted Diluted EPS* in the quarter ended January 31, 2026 was $1.09 compared to $1.00 in the same quarter last year.

Six-Month Period Ended January 31, 2026 Financial Results:
Sales for the six-month period ended January 31, 2026 increased 7.6 percent, which consisted of organic sales growth of 2.2 percent, growth of 2.8 percent from acquisitions and an increase of 2.6 percent from foreign currency translation. Sales for the six months ended January 31, 2026 were $789.4 million compared to $733.7 million in the same period last year. By region, sales increased 8.6 percent in the Americas & Asia and sales increased 5.7 percent in Europe & Australia, which consisted of organic sales growth of 3.9 percent in the Americas & Asia and an organic sales decline of 0.9 percent in Europe & Australia.
Income before income taxes increased 17.7 percent to $130.5 million in the six-month period ended January 31, 2026, compared to $110.8 million in the same period last year. Adjusted Income Before Income Taxes* in the six-month period ended January 31, 2026, which was adjusted for amortization expense of $10.5 million, was $141.0 million, an increase of 7.7 percent compared to the same period last year. Adjusted Income Before Income Taxes* in the six-month period ended January 31, 2025, which was adjusted for amortization expense, facility closure and other reorganization costs and acquisition-related charges of $20.1 million, was $130.9 million.
Net income in the six-month period ended January 31, 2026 was $102.0 million compared to $87.1 million in the same period last year. Adjusted Net Income* in the six-month period ended January 31, 2026 was $110.0 million compared to $102.3 million in the same period last year. Earnings per diluted Class A Nonvoting Common Share was $2.14 compared to $1.81 in the same period last year. Adjusted Diluted EPS* in the six-month period ended January 31, 2026 was $2.30 compared to $2.12 in the same period last year.

Commentary:
“This quarter marks Brady’s 20th consecutive quarter of organic sales growth, alongside a significant improvement in segment profit within both our Americas & Asia and Europe & Australia regions,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “We continue to increase our investment in research and development for innovative new products, which most recently included the i4311 industrial label printer launched last week. This printer is equipped with exciting new features unlike any other printer offering, including our LabelSenseTM technology, which simplifies adhesive material changeover while resulting in zero waste. We have more innovative new products in our roadmap, which we will deliver while continuing to improve our operational efficiency.”
“In addition to our improved profitability, we increased our cash flow from operating activities by nearly 38 percent through the first half of this fiscal year, and we were in a net cash position of $97.8 million at January 31, 2026,” said Brady’s Chief Financial Officer, Ann Thornton. “Our strong balance sheet provides us with opportunities to continue to invest in both organic growth and strategic acquisitions to increase shareholder value over the long-term.”

Fiscal 2026 Guidance:
The Company raised the low end of its GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2026 from $4.57 to $4.82 per share, to $4.62 to $4.82 per share. The Company raised the low end of its Adjusted Diluted EPS* guidance for the year ending July 31, 2026 from $4.90 to $5.15 per share to $4.95 to $5.15 per share.


The assumptions included in fiscal 2026 guidance include a full-year income tax rate of approximately 21 percent, depreciation and amortization expense of approximately $44 million, and capital expenditures of approximately $45 million. Fiscal 2026 guidance is based on foreign currency exchange rates as of January 31, 2026 and assumes continued economic growth.

A webcast regarding Brady’s fiscal 2026 second quarter financial results will be available at www.bradycorp.com/investors beginning at 9:30 a.m. central time today.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2025, employed approximately 6,400 people in its worldwide businesses. Brady’s fiscal 2025 sales were approximately $1.51 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradyid.com.

* Adjusted Income Before Income Taxes, Adjusted Net Income, and Adjusted Diluted EPS are non-GAAP measures. See appendix for more information on these measures, including reconciliations to the most directly comparable GAAP measures.

###

In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations.

The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: increased cost of materials, labor, material shortages and supply chain disruptions, including as a result of tariffs or other impacts of the global trade environment; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; Brady’s ability to identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks, and systems against security breaches; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; risks associated with the loss of key employees; litigation, including product liability claims; global climate change and environmental regulations; foreign currency fluctuations; changes in tax legislation and tax rates; potential write-offs of goodwill and other intangible assets; differing interests of voting and non-voting shareholders and changes in the regulatory and business environment around dual-class voting structures; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2025.

These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements except as required by law.


BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars in thousands, except per share data)

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 



BRADY CORPORATION AND SUBSIDIARIES
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:
Common stock:
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 



BRADY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in thousands)

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 



BRADY CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited; Dollars in thousands)

Three months ended January 31, Six months ended January 31,
2026 2025 2026 2025
NET SALES
Americas & Asia $ 251,604  $ 233,846  $ 520,497  $ 479,274 
Europe & Australia 132,533  122,829  268,927  254,466 
Total $ 384,137  $ 356,675  $ 789,424  $ 733,740 
SALES INFORMATION
Americas & Asia
Organic 3.1  % 4.3  % 3.9  % 4.7  %
Acquisitions 3.5  % 7.6  % 4.2  % 7.5  %
Currency 1.0  % (1.4) % 0.5  % (0.8) %
Divestiture —  % —  % —  % (0.8) %
Total 7.6  % 10.5  % 8.6  % 10.6  %
Europe & Australia
Organic (1.1) % (0.8) % (0.9) % —  %
Acquisitions —  % 15.1  % —  % 15.1  %
Currency 9.0  % (3.6) % 6.6  % (0.1) %
Total 7.9  % 10.7  % 5.7  % 15  %
Total Company
Organic 1.6  % 2.6  % 2.2  % 3.1  %
Acquisitions 2.3  % 10.2  % 2.8  % 10.0  %
Currency 3.8  % (2.2) % 2.6  % (0.5) %
Divestiture —  % —  % —  % (0.5) %
Total 7.7  % 10.6  % 7.6  % 12.1  %
SEGMENT PROFIT
Americas & Asia $ 53,751  $ 45,986  $ 113,614  $ 100,886 
Europe & Australia 15,422  11,378  34,154  24,492 
Total segment profit $ 69,173  $ 57,364  $ 147,768  $ 125,378 
SEGMENT PROFIT AS A PERCENT OF NET SALES
Americas & Asia 21.4  % 19.7  % 21.8  % 21.0  %
Europe & Australia 11.6  % 9.3  % 12.7  % 9.6  %
Total 18.0  % 16.1  % 18.7  % 17.1  %
Three months ended January 31, Six months ended January 31,
2026 2025 2026 2025
Total segment profit $ 69,173  $ 57,364  $ 147,768  $ 125,378 
Unallocated amounts:
Administrative costs (6,983) (6,130) (17,606) (15,222)
Investment and other (expense) 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 



GAAP to NON-GAAP MEASURES
(Unaudited; Dollars in Thousands, Except Per Share Amounts)
In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure.
Adjusted Income Before Income Taxes:
Brady is presenting the non-GAAP measure, “Adjusted Income Before Income Taxes.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes to the non-GAAP measure of Adjusted Income Before Income Taxes:
Three months ended January 31, Six months ended January 31,
2026 2025 2026 2025
Income before income taxes (GAAP measure) $ 62,005  $ 52,047  $ 130,481  $ 110,847 
Amortization expense 5,172  4,671  10,513  9,384 
Facility closure and other reorganization costs —  5,654  —  5,654 
Non-recurring acquisition-related costs and other expenses —  —  —  5,059 
Adjusted Income Before Income Taxes (non-GAAP measure) $ 67,177  $ 62,372  $ 140,994  $ 130,944 


Adjusted Income Tax Expense:
Brady is presenting the non-GAAP measure, “Adjusted Income Tax Expense.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Adjusted Income Tax Expense:
Three months ended January 31, Six months ended January 31,
2026 2025 2026 2025
Income tax expense (GAAP measure) $ 13,954  $ 11,713  $ 28,494  $ 23,730 
Amortization expense 1,247  1,125  2,536  2,258 
Facility closure and other reorganization costs —  1,413  —  1,413 
Non-recurring acquisition-related costs and other expenses —  —  —  1,265 
Adjusted Income Tax Expense (non-GAAP measure) $ 15,201  $ 14,251  $ 31,030  $ 28,666 




Adjusted Net Income:
Brady is presenting the non-GAAP measure, “Adjusted Net Income.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Adjusted Net Income:
Three months ended January 31, Six months ended January 31,
2026 2025 2026 2025
Net income (GAAP measure) $ 48,051  $ 40,334  $ 101,987  $ 87,117 
Amortization expense 3,925  3,546  7,977  7,126 
Facility closure and other reorganization costs —  4,241  —  4,241 
Non-recurring acquisition-related costs and other expenses —  —  —  3,794 
Adjusted Net Income (non-GAAP measure) $ 51,976  $ 48,121  $ 109,964  $ 102,278 


Adjusted Diluted EPS:
Brady is presenting the non-GAAP measure, “Adjusted Diluted EPS.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Adjusted Diluted EPS (Note that certain amounts will not foot due to rounding):
Three months ended January 31, Six months ended January 31,
2026 2025 2026 2025
Net income per Class A Nonvoting Common Share (GAAP measure) $ 1.01  $ 0.83  $ 2.14  $ 1.81 
Amortization expense 0.08  0.07  0.17  0.15 
Facility closure and other reorganization costs —  0.09  —  0.09 
Non-recurring acquisition-related costs and other expenses —  —  —  0.08 
Adjusted Diluted EPS (non-GAAP measure) $ 1.09  $ 1.00  $ 2.30  $ 2.12 


Adjusted Diluted EPS Guidance:
Fiscal 2026 Expectations
Low High
Earnings per Class A Nonvoting Common Share (GAAP measure) $ 4.62  $ 4.82 
Amortization expense 0.33  0.33 
Adjusted Diluted EPS (non-GAAP measure) $ 4.95  $ 5.15 

EX-99.2 3 f26q2conferencecallprese.htm SECOND QUARTER FISCAL 2026 INFORMATIONAL SLIDES f26q2conferencecallprese
F’26 Q2 Financial Results Brady Corporation February 19, 2026

 
Forward-Looking Statements In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, income, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations. The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: increased cost of materials, labor, material shortages and supply chain disruptions, including as a result of tariffs or other impacts of the global trade environment; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; Brady’s ability to identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks and systems against security breaches; extensive regulations by U.S. and non-U.S. governmental and self- regulatory entities; risks associated with the loss of key employees; litigation, including product liability claims; global climate change and environmental regulations; foreign currency fluctuations; changes in tax legislation and tax rates; potential write- offs of goodwill and other intangible assets; differing interests of voting and non-voting shareholders and changes in the regulatory and business environment around dual-class voting structures; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2025. These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward- looking statements. Brady does not undertake to update its forward-looking statements except as required by law. 2

 
Q2 F’26 Highlights 3 * Adjusted Diluted Earnings per Share is a non-GAAP measure. See appendix. Organic sales growth of 1.6%. Americas & Asia organic sales growth of 3.1%. Europe & Australia organic sales decline of 1.1%. Acquisition growth of 2.3%. Sales Growth GPM of 50.6% compared to 49.3% in Q2 of F’25. Gross profit in Q2 last year included facility closure and other reorganization costs. Gross Profit Margin GAAP EPS of $1.01 in Q2 of F’26 vs. $0.83 in Q2 of F’25. Adjusted Diluted Earnings per Share* increased 9.0% to $1.09 in Q2 of F’26 compared to $1.00 in Q2 of F’25. Growth in Adjusted Diluted Earnings per Share* Paid dividends of $11.6M. Purchased 65,747 shares in Q2 of F’26 for $4.9M. In a net cash position of $97.8M at January 31, 2026. Returning Capital to our Shareholders

 
Sales Overview 4 Q2 F’26 SALES: Total sales increased 7.7%. Organic sales increased 1.6%. • Americas & Asia – Organic sales increased 3.1%. • Europe & Australia – Organic sales declined 1.1%. Foreign currency translation increased sales 3.8%. Acquisitions increased sales 2.3%. $323 $326 $337 $346 $332 $323 $343 $343 $377 $357 $383 $397 $405 $384 $225 $250 $275 $300 $325 $350 $375 $400 $425 Q1 F'23 6.9% Q2 F'23 6.3% Q3 F'23 1.9% Q4 F'23 6.9% Q1 F'24 2.7% Q2 F'24 1.6% Q3 F'24 4.5% Q4 F'24 1.6% Q1 F'25 3.6% Q2 F'25 2.6% Q3 F'25 1.6% Q4 F'25 2.4% Q1 F'26 2.8% Q2 F'26 1.6%Organic Growth SALES (millions of USD) Q2 F’26 SALES COMMENTARY: Organic sales grew 1.4% in the Americas with growth in wire ID and product ID. Asia organic sales grew 14.2% with growth throughout the region. Organic sales declined 1.1% in Europe and declined 1.7% in Australia.

 
Gross Profit Margin 5 $155 $156 $170 $176 $172 $162 $177 $177 $190 $176 $195 $200 $209 $194 48.1% 48.0% 50.3% 50.8% 51.7% 50.2% 51.6% 51.6% 50.3% 49.3% 51.0% 50.4% 51.5% 50.6% 40% 42% 44% 46% 48% 50% 52% $100 $125 $150 $175 $200 $225 $250 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 Q1 F'26 Q2 F'26 GROSS PROFIT & GPM% (millions of USD) Q2 F’26 – GROSS PROFIT MARGIN: Gross profit margin of 50.6% compared to 49.3% in Q2 of F’25. The impact of facility closures and other reorganization costs reduced gross profit margin by $1.9M in Q2 of F’25.

 
SG&A Expense 6 Q2 F’26 – SG&A EXPENSE: SG&A expense decreased as a percent of sales when compared to Q2 last year primarily due to cost reduction actions taken in fiscal year 2025. We continue to focus on identifying and executing sustainable efficiency gains in order to offset cost increases, while making the necessary investments to drive sales growth. $90 $92 $91 $97 $96 $91 $96 $93 $112 $106 $109 $118 $118 $108 27.9% 28.3% 27.0% 28.2% 29.0% 28.3% 27.9% 27.2% 29.7% 29.7% 28.4% 29.7% 29.0% 28.1% 22% 24% 26% 28% 30% 32% $75 $90 $105 $120 $135 $150 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 Q1 F'26 Q2 F'26 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD)

 
R&D Expense 7 Q2 F’26 – R&D EXPENSE: Investments in R&D continue to drive organic sales growth. F’25 acquisitions have a higher level of R&D as a percentage of sales. $13.9 $15.4 $15.7 $16.3 $15.7 $16.8 $17.7 $17.5 $18.9 $18.7 $19.2 $23.1 $23.3 $24.3 4.3% 4.7% 4.7% 4.7% 4.7% 5.2% 5.1% 5.1% 5.0% 5.2% 5.0% 5.8% 5.7% 6.3% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% $10.0 $14.0 $18.0 $22.0 $26.0 $30.0 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 Q1 F'26 Q2 F'26 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD)

 
Income Before Income Taxes 8 $50.3 $48.5 $63.0 $63.8 $59.4 $55.8 $64.4 $68.2 $58.8 $52.0 $65.7 $60.5 $68.5 $62.0 $10 $20 $30 $40 $50 $60 $70 $80 Q1 F'23 12.6% Q2 F'23 15.4% Q3 F'23 23.0% Q4 F'23 18.2% Q1 F'24 18.0% Q2 F'24 15.1% Q3 F'24 2.2% Q4 F'24 6.9% Q1 F'25 (1.0%) Q2 F'25 (6.8%) Q3 F'25 2.1% Q4 F'25 (11.3%) Q1 F'26 16.5% Q2 F'26 19.1% * Adjusted Income Before Income Taxes is a non-GAAP measure. See appendix. (millions of USD)INCOME BEFORE INCOME TAXES (GAAP) Q2 F’26 – INCOME BEFORE INCOME TAXES: GAAP Income before income taxes increased 19.1% to $62.0M in Q2 of F’26 compared to $52.0M in Q2 of F’25. Adjusted Income Before Income Taxes* increased 7.7% to $67.2M in Q2 of F’26 compared to $62.4M in Q2 of F’25. Year-on-Year Growth (Decline)

 
Net Income & Diluted EPS 9 Q2 F’26 – NET INCOME & DILUTED EPS: GAAP Net Income was $48.1M in Q2 of F’26 compared to $40.3M in Q2 of F’25. • Adjusted Net Income* was $52.0M in Q2 of F’26 compared to $48.1M in Q2 of F’25 (increased 8.0%). GAAP Diluted EPS was $1.01 in Q2 of F’26 compared to $0.83 in Q2 of F’25. • Adjusted Diluted EPS* was $1.09 in Q2 of F’26 compared to $1.00 in Q2 of F’25 (increased 9.0%). * Adjusted Net Income and Adjusted Diluted EPS are non-GAAP measures. See appendix. $39.4 $38.0 $48.1 $49.4 $47.2 $43.6 $50.9 $55.5 $46.8 $40.3 $52.3 $49.9 $53.9 $48.1 $20 $30 $40 $50 $60 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 Q1 F'26 Q2 F'26 NET INCOME (GAAP) (millions of USD) $0.79 $0.76 $0.96 $1.00 $0.97 $0.90 $1.05 $1.15 $0.97 $0.83 $1.09 $1.04 $1.13 $1.01 $0.40 $0.60 $0.80 $1.00 $1.20 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 Q1 F'26 Q2 F'26 DILUTED EPS (GAAP)

 
Cash Generation 10 CASH FLOW FROM OPERATING ACTIVITIES $28.0 $29.4 $72.5 $79.3 $62.3 $36.1 $72.7 $84.0 $23.4 $39.6 $59.9 $58.3 $33.4 $53.3 $0 $20 $40 $60 $80 Q1 F'23 71% Q2 F'23 77% Q3 F'23 151% Q4 F'23 161% Q1 F'24 132% Q2 F'24 83% Q3 F'24 143% Q4 F'24 151% Q1 F'25 50% Q2 F'25 98% Q3 F'25 115% Q4 F'25 117% Q1 F'26 62% Q2 F'26 111%% of Net Income CASH FLOWS IN Q2 OF F’26: Overview: Cash flow from operating activities was $53.3M in Q2 of F’26 vs. $39.6M in Q2 of F’25. Free cash flow* was $42.3M in Q2 of F’26 compared to $32.5M in Q2 of F’25. Returning Funds to our Shareholders: In Q2 of F’26, we returned a total of $16.5M to our shareholders in the form of dividends and share buybacks. Dividends – Returned $11.6M to our shareholders in dividends. Share Buybacks – Repurchased 66k shares in Q2 of F’26 for $4.9M (average price of $74.68/share). * Free cash flow is calculated as Net Cash Provided by Operating Activities less Capital Expenditures. (millions of USD) (millions of USD) 3 Mos. Ended Jan. 31, 2026 3 Mos. Ended Jan. 31, 2025 6 Mos. Ended Jan. 31, 2026 6 Mos. Ended Jan. 31, 2025 Cash Balance - Beginning of Period 182.7$ 145.7$ 174.3$ 250.1$ Cash Flow from Operating Activities 53.3 39.6 86.7 63.0 Capital Expenditures (11.0) (7.1) (21.9) (14.4) Dividends (11.6) (11.5) (23.1) (22.9) Share Repurchases (4.9) - (9.0) - Business Acquisitions - - (17.4) (137.3) Debt Repayments (37.2) (29.0) (21.1) (3.2) Effect of Exchange Rates on Cash 4.0 (2.4) 4.7 (0.6) Other 1.2 3.2 3.3 3.8 Cash Balance - End of Period 176.5$ 138.5$ 176.5$ 138.5$

 
Net Cash 11 STRONG BALANCE SHEET: January 31, 2026 cash = $176.5M. January 31, 2026 debt = $78.7M. Balance sheet provides flexibility for future organic investments and strategic M&A. $15 $31 $84 $102 $123 $96 $97 $159 $29 $51 $49 $75 $67 $98 $0 $50 $100 $150 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 Q2 F'25 Q3 F'25 Q4 F'25 Q1 F'26 Q2 F'26 NET CASH (millions of USD)

 
F’26 Updated Diluted EPS Guidance GAAP Diluted EPS $4.62 to $4.82 (+17.3% to +22.3% vs. F’25) F’26 Adjusted Diluted EPS* $4.95 to $5.15 (+7.6% to +12.0% vs. F’25) Guidance Assumptions: Organic sales growth in the low-single digit percentages. Full-year income tax rate of approximately 21%. Foreign currency exchange rates as of January 31, 2026. Depreciation and amortization expense of approximately $44M. Capital expenditures of approximately $45M. 12 * Adjusted Diluted EPS is a non-GAAP measure. See appendix.

 
Americas & Asia 13 • Revenues increased 7.6% in Q2 of F’26: • Organic growth = + 3.1%. • Acquisition = + 3.5%. • Fx increase = +1.0%. • Organic sales grew 1.4% in the Americas with growth in wire ID and product ID. • Organic sales grew 14.2% in Asia with growth throughout the region. • Growth in segment profit due to organic sales growth in higher gross margin product lines. Q2 of F’25 segment profit included certain facility closure and other reorganization costs. Q2 F’26 SUMMARY:Q2 F’26 vs. Q2 F’25 (millions of USD) $222 $212 $225 $228 $245 $234 $254 $261 $269 $252 23% 21% 22% 23% 22% 20% 23% 20% 22% 21% 0% 5% 10% 15% 20% 25% $100 $150 $200 $250 $300 $350 Q1 F'24 3.3% - (1.9%) Q2 F'24 1.2% 0.1% (5.1%) Q3 F'24 4.5% (0.1%) (3.5%) Q4 F'24 3.4% (0.8%) (2.2%) Q1 F'25 5.1% (0.2%) 5.8% Q2 F'25 4.3% (1.4%) 7.6% Q3 F'25 5.4% (1.1%) 8.6% Q4 F'25 4.3% - 9.8% Q1 F'26 4.7% - 4.9% Q2 F'26 3.1% 1.0% 3.5% SALES & SEGMENT PROFIT % (millions of USD) Q2 F’26 Q2 F’25 Change Sales $ 251.6 $ 233.8 + 7.6% Segment Profit 53.8 46.0 + 16.9% Segment Profit % 21.4% 19.7% + 170 bps • Approximately 3%-4% organic sales growth in F’26. • Growth in segment profit excluding amortization. OUTLOOK: Organic For. Curr. Acq. & Div.

 
Europe & Australia 14 • Revenues increased 7.9% in Q2 of F’26: • Organic decline = (1.1%). • Fx increase = + 9.0%. • Organic sales declined 1.1% in Europe and declined 1.7% in Australia. • Segment profit increased due to cost reduction actions from fiscal year 2025. Q2 of F’25 segment profit included facility closure and other reorganization costs. Q2 F’26 SUMMARY:Q2 F’26 vs. Q2 F’25 (millions of USD) $110 $111 $119 $115 $132 $123 $129 $136 $136 $133 15% 14% 16% 17% 10% 9% 14% 11% 14% 12% 0% 5% 10% 15% 20% $50 $100 $150 $200 $250 Q1 F'24 1.4% 4.6% - Q2 F'24 2.5% 2.0% - Q3 F'24 4.4% (0.6%) - Q4 F'24 (1.8%) (1.2%) - Q1 F'25 0.7% 3.6% 15.0% Q2 F'25 (0.8%) (3.6%) 15.1% Q3 F'25 (5.4%) (0.1%) 14.2% Q4 F'25 (1.3%) 5.7% 14.4% Q1 F'26 (0.8%) 4.4% - Q2 F'26 (1.1%) 9.0% - SALES & SEGMENT PROFIT % Q2 F’26 Q2 F’25 Change Sales $ 132.5 $ 122.8 + 7.9% Segment Profit 15.4 11.4 + 35.5% Segment Profit % 11.6% 9.3% + 230 bps Organic For. Curr. Acquisitions • Return to organic sales growth in the second half of F’26. • Growth in segment profit excluding amortization. OUTLOOK: (millions of USD)

 
Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors 15

 
Appendix GAAP to Non-GAAP Reconciliations

 
Non-GAAP Reconciliations 17 2026 2025 2026 2025 62,005$ 52,047$ 130,481$ 110,847$ Amortization expense 5,172 4,671 10,513 9,384 Facility closure and other reorganization costs - 5,654 - 5,654 Non-recurring acquisition-related costs and other expenses - - - 5,059 67,177$ 62,372$ 140,994$ 130,944$ 2026 2025 2026 2025 13,954$ 11,713$ 28,494$ 23,730$ Amortization expense 1,247 1,125 2,536 2,258 Facility closure and other reorganization costs - 1,413 - 1,413 Non-recurring acquisition-related costs and other expenses - - - 1,265 15,201$ 14,251$ 31,030$ 28,666$ GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. Three months ended January 31, Three months ended January 31, Adjusted Income Tax Expense (non-GAAP measure) Income before income taxes Adjusted Income Before Income Taxes (non-GAAP measure) Brady is presenting the non-GAAP measure, “Adjusted Income Tax Expense.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Adjusted Income Tax Expense: Six months ended January 31, Adjusted Income Before Income Taxes: Brady is presenting the non-GAAP measure, “Adjusted Income Before Income Taxes.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes to the non-GAAP measure of Adjusted Income Before Income Taxes: Adjusted Income Tax Expense: Six months ended January 31, Income tax expense (GAAP measure)

 
Non-GAAP Reconciliations 18 2026 2025 2026 2025 48,051$ 40,334$ 101,987$ 87,117$ Amortization expense 3,925 3,546 7,977 7,126 Facility closure and other reorganization costs - 4,241 - 4,241 Non-recurring acquisition-related costs and other expenses - - - 3,794 51,976$ 48,121$ 109,964$ 102,278$ 2026 2025 2026 2025 $ 1.01 $ 0.83 $ 2.14 $ 1.81 Amortization expense 0.08 0.07 0.17 0.15 Facility closure and other reorganization costs - 0.09 - 0.09 Non-recurring acquisition-related costs and other expenses - - - 0.08 1.09$ 1.00$ 2.30$ 2.12$ Diluted EPS Excluding Certain Items Guidance: Low High Earnings per diluted Class A Common Share (GAAP measure) $ 4.62 $ 4.82 Amortization expense 0.33 0.33 Adjusted Diluted EPS (non-GAAP measure) 4.95$ 5.15$ GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. Adjusted Diluted EPS (non-GAAP measure) Three months ended January 31, Brady is presenting the non-GAAP measure, “Adjusted Net Income.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Adjusted Net Income: Six months ended January 31, Net income (GAAP measure) Adjusted Net Income (non-GAAP measure) Adjusted Net Income: Fiscal 2026 Expectations Three months ended January 31, Brady is presenting the non-GAAP measure, “Adjusted Diluted EPS.” This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Adjusted Diluted EPS (Note that certain amounts will not foot due to rounding): Six months ended January 31, Net income per Class A Nonvoting Common Share (GAAP measure) Adjusted Diluted EPS: