Brady Corporation has recently released its 10-Q report, detailing its performance in the recent quarter. The company is a global manufacturer and supplier of identification solutions and workplace safety products, serving various industries through distributors, direct sales force, and digital channels. Brady Corporation is organized and managed on a geographic basis with two reportable segments: Americas & Asia and Europe & Australia.
In the three months ended April 30, 2025, Brady Corporation reported a 11.4% increase in net sales to $382.6 million, with a gross margin of $195.1 million, representing 51.0% of net sales. The operating income for the same period was $67.2 million, accounting for 17.6% of sales. For the nine months ended April 30, 2025, the company's net sales increased by 11.9% to $1,116.3 million, with a gross margin of $560.6 million, representing 50.2% of net sales. The operating income for this period was $177.3 million, accounting for 15.9% of sales.
The company's organic sales growth was 1.6% for the three-month period and 2.6% for the nine-month period. The increase in net sales was driven by organic sales growth and sales from acquisitions, partially offset by a decrease from foreign currency translation and a divestiture.
Brady Corporation's investments in research and development (R&D) increased by 8.5% to $19.2 million in the three months ended April 30, 2025, and by 13.2% to $56.8 million in the nine months ended April 30, 2025. Selling, general and administrative (SG&A) expenses also increased by 13.4% to $108.7 million in the three months ended April 30, 2025, and by 15.2% to $326.4 million in the nine months ended April 30, 2025.
The company's net income for the three months ended April 30, 2025, was $52.3 million, representing 13.7% of sales, and for the nine months ended April 30, 2025, it was $139.4 million, accounting for 12.5% of sales.
Brady Corporation's financial performance has been impacted by acquisitions, including Gravotech, AB&R, and Microfluidic Solutions, as well as incremental tariffs on goods imported into the U.S. from numerous countries. The company has taken action to mitigate inflationary pressures caused by the incremental tariffs through targeted price increases, strategic sourcing adjustments, and product portfolio optimization.
The company believes that its financial resources and liquidity levels are sufficient to support the execution of its growth strategy and to manage the impact of economic or geopolitical events that could potentially reduce sales, net income, or cash provided by operating activities. Brady Corporation remains focused on driving sustainable efficiency gains and automation across its operations and SG&A functions, while also returning capital to its shareholders through dividends and share repurchases. As a result of these announcements, the company's shares have moved -6.34% on the market, and are now trading at a price of $71.405. If you want to know more, read the company's complete 10-Q report here.
