Brady Corporation Reports 11.4% Revenue Growth, Expands Through Acquisitions

Brady Corporation reported a significant increase in financial performance for the three and nine months ended April 30, 2025, with net sales reaching $382.6 million and $1.116 billion, respectively, marking increases of 11.4% and 11.9% compared to the same periods in the previous fiscal year. The growth was driven by a combination of organic sales growth of 1.6% and contributions from acquisitions, which accounted for 10.5% of the sales increase. The company’s gross margin for the three months was $195.1 million, a 10.2% increase from the prior year, although the gross margin percentage decreased slightly to 51.0% from 51.6%. For the nine-month period, gross margin also increased to $560.6 million, but the percentage of net sales decreased to 50.2% from 51.2%.

In terms of profitability, Brady's operating income rose to $67.2 million for the three months and remained relatively stable at $177.3 million for the nine months, reflecting increases of 5.7% and 0.1%, respectively. The net income for the three months was $52.3 million, up from $50.9 million in the prior year, while the nine-month net income decreased slightly to $139.4 million from $141.8 million. The company attributed these changes to organic sales growth in higher-margin product lines, although this was offset by non-recurring acquisition-related costs and increased amortization expenses.

Strategically, Brady Corporation has been active in expanding its portfolio through acquisitions, including Gravotech, AB&R, and Microfluidic Solutions, which collectively contributed to the company's growth. The acquisition of Gravotech, completed on August 1, 2024, added $85.5 million in net sales but also incurred a net loss of $10.4 million due to increased costs associated with the acquisition. The company has also focused on enhancing its research and development capabilities, with R&D expenses increasing to $19.2 million for the three months and $56.8 million for the nine months, reflecting a commitment to innovation and product development.

Operationally, Brady's customer base and engagement metrics have shown positive trends, particularly in the Americas & Asia segment, which reported a 12.9% increase in net sales for the three months ended April 30, 2025. This growth was driven by organic sales increases in wire identification and safety products. However, the Europe & Australia segment experienced a decline in organic sales, which was offset by strong acquisition contributions. The company’s total employee headcount has also increased, reflecting the integration of acquired businesses and the expansion of operational capabilities.

Looking ahead, Brady Corporation remains focused on leveraging its acquisitions to drive long-term growth while navigating macroeconomic challenges such as inflation and supply chain disruptions. The company has indicated that it will continue to invest in organic growth initiatives, enhance customer service, and streamline operations to maintain profitability. With a strong liquidity position, including $152.2 million in cash and a credit agreement providing additional borrowing capacity, Brady is well-positioned to support its growth strategy and manage potential economic impacts.