Overview

• Identification solutions maker's fiscal Q3 sales rose 13.8% yr/yr, driven by organic growth and acquisitions

• Fiscal Q3 adjusted diluted EPS increased 23% yr/yr

• Company raised full-year adjusted EPS guidance and agreed to acquire Honeywell's Productivity Solutions and Services business

Outlook

• Brady raised fiscal 2026 adjusted diluted EPS guidance to $5.20-$5.30 from $4.95-$5.15

• Brady now sees fiscal 2026 GAAP EPS at $4.66-$4.76, up from $4.62-$4.82

• Fiscal 2026 guidance assumes continued economic growth and current foreign exchange rates

Result Drivers

• ORGANIC SALES GROWTH - Co attributed strong Q3 sales to organic growth, supported by new product launches and demand from data center construction, per CEO Russell R. Shaller

• ACQUISITIONS AND CURRENCY - Acquisitions and favorable foreign currency translation contributed to Q3 sales growth

• REGIONAL GROWTH - Americas & Asia saw higher organic sales growth than Europe & Australia in Q3

Company press release: ID:nGNX3LFSTf

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Sales	Beat	$435.24 mln	$406.07 mln (2 Analysts)
Q3 Adjusted EPS	Beat	$1.50	$1.35 (2 Analysts)
Q3 Net Income		$57.80 mln
Q3 Operating Income	Miss	$73.21 mln	$75.80 mln (1 Analyst)
Q3 Pretax Profit	Miss	$73.37 mln	$77.20 mln (1 Analyst)
Q3 Operating Expenses		$152.26 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support supplies peer group is "buy"

• Wall Street's median 12-month price target for Brady Corp is $98.00, about 38.1% above its May 15 closing price of $70.96

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

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