Brady Corporation (NYSE: BRC) posted adjusted diluted earnings per share of $1.48 for the fourth quarter of fiscal 2026, up 17.5% from $1.26 in the same period a year earlier, as the company extended its streak of record annual earnings.
For the full fiscal year, adjusted diluted EPS rose 15% to $5.29 from $4.60 in fiscal 2025. Total sales increased 10% to $437 million, driven by 8.4% organic growth, contributions from acquisitions, and favorable currency effects. Gross profit margin expanded to 52.9% from 50.4%, with the year-over-year improvement widening to 110 basis points after adjusting for prior-year closure costs and a tariff refund.
Printer unit sales surged 25% in the quarter and 10% for the full year, supported by demand for products such as the i4311 printer. Operating cash flow rose 35.8% to $79.2 million, while free cash flow increased 22.9% to $60.7 million. The company returned $88.3 million to shareholders in fiscal 2026, including $46.1 million in dividends and $42.2 million via share repurchases.
Brady’s Americas and Asia segments led performance, with revenue up 13.5% to $296.1 million and segment profit rising 43.9% to $74.3 million. Organic sales grew 10.3% in the Americas and 20.3% in Asia, while segment profit margin expanded by 530 basis points to 25.1%. Europe and Australia reported 3.2% revenue growth to $140.8 million, with segment profit up 23.9% and margin improving by 230 basis points to 13.3%.
The company provided fiscal 2027 guidance, projecting adjusted diluted EPS of $6.25 to $6.75, an increase of 18.1% to 27.6% over fiscal 2026. Brady expects contributions of roughly $0.80 per share from the recently acquired Honeywell productivity solutions business, which is projected to generate about $1.15 billion in revenue with low single-digit growth. Synergies of approximately $25 million are targeted by the third year after the acquisition, with net leverage expected to fall below 2 times within two years.
CEO Vineet Nargolwala described the company’s strategic shift as moving "from a classic industrial company to an industrial technology company," reflecting the integration of the Honeywell acquisition and ongoing operational improvements.
