Brady’s latest quarter reflected continued momentum in engineered identification products, with management highlighting robust performance in the Americas and Asia, particularly in wire identification solutions for data centers and industrial clients. CEO Russell Shaller noted that “engineered products have more than compensated” for softness in commoditized offerings, supporting margin resilience despite sluggish manufacturing activity in key regions. The company’s improved gross profit margin was attributed to a shift in sales mix and benefits from last year’s cost reduction actions. Management also emphasized strong cash generation and disciplined operating expense control, helping offset pockets of weaker organic growth, especially in the Americas and Europe.
Is now the time to buy BRC? Find out in our full research report (it’s free for active Edge members).
Brady (BRC) Q4 CY2025 Highlights:
- Revenue: $384.1 million vs analyst estimates of $378.6 million (7.7% year-on-year growth, 1.5% beat)
- Adjusted EPS: $1.09 vs analyst estimates of $1.09 (in line)
- Adjusted EBITDA: $68.22 million vs analyst estimates of $76.4 million (17.8% margin, 10.7% miss)
- Management slightly raised its full-year Adjusted EPS guidance to $5.05 at the midpoint
- Operating Margin: 16.2%, in line with the same quarter last year
- Market Capitalization: $4.33 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Brady’s Q4 Earnings Call
- Steve Ferazani (Sidoti): pressed on the slowdown in organic growth in the Americas, asking if this was a temporary dip. CFO Ann Thornton clarified that while momentum dipped, trends improved late in the quarter, and CEO Russell Shaller attributed growth to engineered product strength rather than price increases.
- Steve Ferazani (Sidoti): also inquired about the mix between price and volume in the Americas. Shaller responded, “Virtually no price,” indicating growth was almost entirely volume-driven in engineered products.
- Keith Housum (Northcoast Research): questioned confidence in a European and Australian recovery. Shaller described hopes for a bottoming out and pointed to modest growth potential, but noted ongoing headwinds from energy costs and Chinese competition in heavy manufacturing.
- Keith Housum (Northcoast Research): asked for updates on acquisitions like Gravotech and Mecco. Shaller said these had delivered on technology goals, especially in direct part marking and luxury personalization, but acknowledged weakness in European automotive customers.
- Keith Housum (Northcoast Research): addressed the disconnect between rising R&D spend and slower organic growth. Shaller highlighted that returns on engineering are longer-term and that “engineering is a multiyear journey” for Brady.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will monitor (1) adoption and revenue contribution from new product launches like the i4311 printer and direct part marking solutions, (2) the pace of recovery or further contraction in manufacturing activity across Europe and the Americas, and (3) the impact of regulatory changes such as new GS1 and EU labeling standards. Shifts in the competitive landscape and ongoing integration of recent acquisitions will also be critical signposts.
Brady currently trades at $91.84, down from $95.26 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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