Brady Corporation reported first‑quarter fiscal 2026 revenue of $405.3 million, up 7.5 % year‑over‑year, and adjusted diluted earnings per share of $1.21, a 7.6 % increase from the $1.12 reported in Q1 FY2025. The company’s adjusted net income rose to $58.0 million, and the earnings beat analyst consensus of $1.18, a $0.03 or 2.5 % outperformance. Revenue growth was driven by a 2.8 % organic increase and a 3.2 % contribution from acquisitions, reflecting the successful integration of Mecco and Gravotech.
Segment analysis shows the Americas & Asia region led the performance with a 9.6 % sales rise, including a 4.7 % organic lift, while the Europe & Australia segment grew 3.6 % on a 2.9 % organic basis. The stronger performance in the Americas & Asia was supported by robust demand for Brady’s industrial labeling and safety solutions, whereas the Europe & Australia region faced headwinds from weaker macro conditions but benefited from cost‑control initiatives that improved segment profitability.
Brady completed the acquisition of Mecco for $20 million at the start of the quarter, adding an expected $20 million of revenue in FY2026 and expanding its laser‑marking portfolio. The earlier Gravotech acquisition, closed on August 1, 2024 for approximately $133 million, continues to contribute to direct part‑marking revenue and provides complementary technology that enhances Brady’s product differentiation.
Gross profit margin expanded to 28.4 % from 27.8 % in the prior year, driven by higher‑margin direct part‑marking sales and improved pricing power. Operating income increased to $45.2 million, up 12 % from $40.3 million in Q1 FY2025, reflecting disciplined cost management and the positive impact of the acquisitions. Net income growth was supported by a $2.5 million reduction in one‑time restructuring charges compared with the previous quarter.
Management raised the low end of its FY2026 adjusted diluted EPS guidance to $4.90, up from the $4.80 previously cited. The guidance lift signals confidence in sustained organic growth and the continued integration of Mecco and Gravotech. The company reiterated its focus on R&D investment, expansion of integrated printer‑scanner bundles, and a strong balance sheet that will fund future growth and shareholder returns.
CEO Russell R. Shaller emphasized that “the quarter demonstrates the strength of our integrated identification and workplace safety solutions portfolio, and the Mecco acquisition is a natural complement to Gravotech, positioning us for continued growth in high‑margin direct part‑marking markets.” CFO Ann Thornton noted that the company’s net cash position of $66.8 million as of October 31 2025 provides flexibility for strategic investments and shareholder returns.
Analysts reacted positively to the earnings beat and guidance raise, with pre‑market trading showing a 4.7 % lift. The market highlighted the company’s ability to deliver a 7.6 % EPS growth and a 7.5 % revenue increase, underscoring confidence in Brady’s execution and the resilience of its core business segments.
Brady’s continued investment in R&D, exemplified by the launch of the i7500 industrial label printer and the BradyScan app, supports organic growth. The company’s history of dividend increases and share buybacks further signals a commitment to returning value to shareholders while pursuing strategic acquisitions that broaden its product offering and market reach.
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