Brady Corporation, a manufacturer and supplier of identification solutions and workplace safety products, has recently released its 10-K report. The company operates in the Americas, Asia, Europe, and Australia, serving various industries through distributors, direct sales force, and digital channels. Brady Corporation's 10-K report provides a detailed overview of its financial condition and results of operations for the fiscal year ended July 31, 2025.
The report indicates that Brady Corporation's net sales increased by 12.8% to $1,513.6 million in fiscal 2025 compared to $1,341.4 million in fiscal 2024. This growth was driven by a 2.6% organic sales growth and a 10.5% sales growth from acquisitions, partially offset by a 0.3% decrease due to divestitures. The company's gross margin increased by 10.6% to $760.8 million, although as a percentage of net sales, it decreased to 50.3% in fiscal 2025 from 51.3% in fiscal 2024.
Brady Corporation's research and development (R&D) expenses increased by 17.9% to $79.9 million in fiscal 2025, while selling, general and administrative (SG&A) expenses increased by 17.9% to $444.3 million. Operating income decreased by 2.8% to $236.6 million in fiscal 2025 compared to $243.4 million in fiscal 2024. As a percentage of sales, operating income decreased to 15.6% in fiscal 2025 compared to 18.1% in fiscal 2024.
In terms of segment performance, the Americas & Asia segment achieved a 12.1% increase in net sales, driven by organic sales growth of 4.8% and sales growth from acquisitions of 8.3%. Segment profit for the Americas & Asia segment decreased to 21.1% in fiscal 2025 from 22.2% in fiscal 2024. The Europe & Australia segment saw a 14.3% increase in net sales, primarily due to sales growth from acquisitions. However, segment profit for this segment decreased to 11.0% in fiscal 2025 from 15.5% in fiscal 2024.
The company's financial condition and liquidity are noted in the report, with Brady Corporation holding cash of $174.3 million as of July 31, 2025, and a credit agreement with $198.1 million available for future borrowing. The report emphasizes the company's ability to continue investing in acquisitions and organic growth opportunities, as well as its focus on driving sustainable efficiency gains and returning capital to shareholders through dividends and share repurchases.
Following these announcements, the company's shares moved -0.12%, and are now trading at a price of $77.70. For more information, read the company's full 10-K submission here.
