Brady Corporation reported fiscal 2026 first‑quarter revenue of $405.3 million, a 7.5 % year‑over‑year increase that surpassed the consensus estimate of $393.65 million by $11.65 million. Adjusted earnings per share rose to $1.21, beating the $1.18 consensus by $0.03 (2.5 %). The revenue lift was driven by a 2.8 % organic sales rise, a 3.2 % contribution from acquisitions—including the recently closed Mecco deal—and a 1.5 % gain from foreign‑currency translation. For context, the prior quarter’s adjusted EPS was $1.12 and revenue was approximately $356.7 million, indicating a clear acceleration in both top‑line and bottom‑line growth.
Gross profit margin expanded to 51.5 % from 50.3 % in the same quarter last year. The improvement reflects pricing power in Brady’s core product lines and a favorable shift toward higher‑margin specialty identification solutions, while cost control initiatives kept variable expenses in check. Operating income grew in line with revenue, underscoring efficient scaling of the business.
Segment performance varied across regions. Sales in the Americas & Asia grew 9.6 % (4.7 % organic), driven by robust demand for direct part marking and specialty identification products. Europe & Australia saw a 3.6 % sales increase despite a 0.8 % organic decline; however, profit in that region improved thanks to disciplined cost management and the integration of Mecco’s distribution network.
Management raised the low end of its fiscal 2026 adjusted diluted EPS guidance from $4.85 to $4.90, while the high end remained at $5.15. The adjustment signals confidence that the company’s acquisition strategy—particularly the Mecco integration—will continue to generate incremental earnings. The guidance update follows a strong quarter that exceeded expectations in both revenue and earnings, reinforcing the outlook for sustained growth momentum.
CFO Ann Thornton noted that the quarter’s $1.21 EPS represented an 8 % increase over the prior year, attributing the gain to organic sales growth and continued gross profit margin expansion. CEO Russell Shaller highlighted the Mecco acquisition as a strategic fit that enhances Brady’s direct part marking capabilities and anticipates future growth from the combined product portfolio.
Investors responded positively to the results, with market participants citing the earnings beat, margin expansion, and guidance raise as key drivers of the favorable reception. Analysts emphasized the company’s ability to execute on its acquisition strategy and maintain pricing power in a competitive environment.
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