Brady Corporation Reports 9.8% Revenue Growth to $1.66 Billion for Fiscal Year Ending July 31, 2026

Brady Corporation reported a significant increase in its financial performance for the fiscal year ending July 31, 2026, with net sales reaching $1.66 billion, a 9.8% increase from $1.51 billion in the previous year. The growth was attributed to a combination of organic sales growth of 5.3%, foreign currency translation effects contributing 2.3%, and acquisitions adding 2.2%. The company's gross margin also improved, rising to 51.7% from 50.3% in the prior year, driven by higher sales in more profitable product lines and the absence of prior-year non-recurring costs.

The company’s operating income increased by 11.3% to $263.5 million, representing 15.9% of net sales, compared to 15.6% in the previous year. This growth was supported by improved efficiencies in selling, general, and administrative expenses, which rose to $502.3 million, primarily due to costs associated with the recent acquisition of Honeywell's Productivity Solutions and Services (PSS) business. The acquisition, completed on August 3, 2026, for $1.4 billion, is expected to enhance Brady's product offerings and market reach, particularly in the retail and logistics sectors.

Brady's operational metrics showed positive trends, with the Americas & Asia segment generating $1.11 billion in sales, a 11.4% increase, while the Europe & Australia segment saw a 6.7% rise to $554.9 million. The company employed approximately 6,325 individuals globally as of July 31, 2026, with a focus on enhancing its workforce through strategic talent management initiatives. The company also reported a commitment to research and development, with R&D expenses increasing to $94 million, reflecting a 17.7% rise from the previous year, as it aims to innovate and meet customer demands.

Looking ahead, Brady Corporation anticipates continued growth driven by the integration of the PSS business and ongoing investments in product development and customer engagement. However, the company acknowledged potential risks, including supply chain disruptions, inflationary pressures, and geopolitical uncertainties that could impact future performance. The company remains focused on maintaining its competitive position through operational excellence and strategic acquisitions, while also navigating the complexities of the global market environment.