Brady Corporation reported fiscal 2026 second‑quarter revenue of $384.1 million, a 7.7 % increase from the $356.7 million earned in the same period a year earlier. Adjusted diluted earnings per share were $1.09, slightly below analyst consensus of $1.10, while adjusted net income rose to $48.1 million, up 7.7 % from $40.3 million in Q2 2025. The company also increased its low‑end full‑year adjusted diluted EPS guidance to a range of $4.95–$5.15 per share, up from the previous $4.90–$5.15 range.
The revenue growth was driven by a 1.6 % organic increase, 2.3 % contribution from acquisitions such as Mecco and Gravotech, and a 3.8 % gain from foreign‑currency translation. Brady highlighted a shift toward higher‑margin engineered products, which helped lift gross margin to 50.6 % from 49.3 % year‑over‑year. The company’s 20th consecutive quarter of organic sales growth was noted as a key driver of its continued momentum.
Adjusted EPS fell short of expectations by $0.01, largely because the company’s earnings were offset by a modest increase in operating expenses and the absence of the prior‑year facility‑closure charge. The corrected adjusted net income figure of $48.1 million reflects a 7.7 % rise, matching the revenue growth pace and supporting the margin expansion. The 19.1 % rise in income before taxes to $62.0 million underscores the company’s ability to convert sales growth into profitability.
Management emphasized the sustained organic growth and the positive impact of the engineered‑product mix. "This quarter marks Brady’s 20th consecutive quarter of organic sales growth, alongside a significant improvement in segment profit within both our Americas & Asia and Europe & Australia regions," said President and CEO Russell R. Shaller. "Engineering is a multiyear journey. The investments we’re making today are things that pay back in three years," he added. CFO Ann Thornton highlighted the company’s strong balance sheet as a foundation for continued investment in organic growth and strategic acquisitions.
Brady’s revenue beat the consensus estimate of $376.1 million, while EPS fell slightly short of the $1.10 consensus. The raised full‑year EPS guidance signals management’s confidence in sustaining growth momentum and improving profitability, reflecting the company’s focus on higher‑margin products and successful integration of recent acquisitions.
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