TLDR
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BRC stock trades at $71.38, down 6.37% after Q1 earnings
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Q1 revenue rose 11.4% YoY to $382.6M but missed estimates
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Adjusted EPS hit a record $1.22, up 11.9% YoY
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Full-year EPS guidance narrowed to $4.48–$4.63
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$44.5M returned to shareholders via dividends and buybacks
Brady Corporation (NYSE:BRC) shares declined 6.37% to $71.38 following its fiscal Q3 2025 (calendar Q1) earnings report.
The company posted revenue of $382.6 million, representing an 11.4% increase year over year, though it missed analysts’ forecast of $386.6 million. Organic sales rose 1.6%, while acquisitions contributed 10.5%. A 0.7% currency headwind slightly offset gains.
🚨EARNINGS ALERT🚨
Notable earnings released for today:
Brady Corporation $BRC: $1.22 EPS vs $1.23 est. / $382.6M Revenue vs $386.61M est.
Flowers Foods Inc $FLO: $0.35 EPS vs $0.38 est. / $1.55B Revenue vs $1.6B est.
— The Tokenist (@thetokenist) May 16, 2025
Regionally, revenue in the Americas & Asia grew 12.9% while Europe & Australia saw an 8.7% increase. However, organic growth in Europe & Australia declined by 5.4%, signaling potential challenges outside North America.
Record Adjusted EPS and Tightened Outlook
Despite the revenue shortfall, Brady achieved a record adjusted diluted EPS of $1.22, a jump from $1.09 in the same quarter last year, aligning with Wall Street expectations. GAAP diluted EPS rose 3.8% to $1.09. Management cited strong organic sales in the Americas & Asia and continued investment in R&D and product development as key drivers.
The company updated its fiscal 2025 earnings guidance, narrowing its adjusted EPS range from $4.45–$4.70 to $4.48–$4.63. GAAP EPS guidance was lowered to $3.95–$4.10, down from $3.99–$4.24, factoring in restructuring and facility closure costs. The earnings date was May 16, 2025.
Profit Margins and Cash Flow Trends
Operating margin held steady at 17.6%, while free cash flow margin declined to 14.5% from 18.8% a year earlier. Income before taxes was $65.7 million, a 2.1% increase. On an adjusted basis, it climbed 11.5% to $74.4 million. Net income totaled $52.3 million, slightly higher than the $50.9 million recorded last year.
Strong Capital Return Program
Brady continued to reward shareholders by returning $44.5 million through share repurchases and dividends during the quarter. This included repurchasing 476,000 shares for $33.2 million and distributing $11.3 million in dividends. The company’s share count has declined 9.3% over the past five years, enhancing EPS growth.
Steady Long-Term Performance
Over the last five years, Brady’s annualized revenue growth stands at 5.4%, with EPS growing at a stronger 12.9% CAGR. These trends suggest improved profitability and operational efficiency. Analysts project 6.3% revenue growth over the next 12 months, in line with recent results and above sector averages.
Despite posting record EPS and a solid long-term growth profile, the stock fell as investors reacted to the revenue miss and cautious earnings outlook.
