Brady Corporation is a global manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company is organized and managed on a geographic basis with two reportable segments: Americas & Asia and Europe & Australia. The Americas & Asia segment is comprised of operations in North America, South America and Asia, while the Europe & Australia segment is comprised of operations in Europe, the Middle East, Africa and Australia. The Company’s primary objective is to build upon its market position and increase shareholder value by focusing on key competencies including innovative products, customer experience, global leadership position in niche markets, digital capabilities, compliance expertise, and operational excellence. Competition is highly fragmented, ranging from smaller companies offering minimal product variety, to some of the world’s largest adhesive and electrical product companies offering competing products as part of their overall product lines. Products serve customers in many industries including industrial manufacturing, electronic manufacturing, healthcare, chemical, oil, gas, alternative energy, automotive, aerospace, governments, mass transit, mechanical contractors, construction, utilities, education, leisure and entertainment, retail and telecommunications.

Brady has made itself a leader in many of its markets through a broad range of proprietary, customized and diverse products, a commitment to quality and service. Competition is based upon several factors, including product innovation, customer service, breadth of product offering, product quality, price, expertise, production capabilities, and for multinational customers, global footprint. The Company markets its products under a variety of brand names including Brady, Seton, Emedco, Signals, Safety Signs Service, Pervaco, PDC, PDC Healthcare, MAGiCARD, Promovision, Gravotech, SPC, Code, Securimed, Accidental Health and Safety, Trafalgar, Electromark, Nordic ID, and Carroll. The Company has long-standing relationships with a broad range of electrical, safety, industrial and other domestic and international distributors and channel partners. The Company’s business is not dependent on any single patent or group of patents, and patents applicable to specific products extend for up to 20 years according to the date of patent application filing or patent grant.

The Company generates revenue by marketing, selling and distributing a broad range of identification and safety products and solutions across primary product categories including safety and facility identification and protection, product identification, wire identification, healthcare identification, and people identification. The Company markets and sells its products through multiple channels, including distributors, value-added resellers, a direct sales force, and digital channels. The Company manufactures differentiated, proprietary products, most of which have been internally developed, including materials, printing and identification systems, tracking systems, and software. The Company’s manufacturing processes include compounding, coating, converting, printing, melt-blown operations, software development and printer design and assembly. The Company has a broad customer base, and no individual customer represents 10% or more of total net sales.

Safety and facility identification and protection includes safety signs, traffic signs and control products, floor-marking tape, pipe markers, labeling systems, spill control products, lockout/tagout devices, personal protection equipment, first aid products, and software and services for safety compliance auditing, procedures writing and training. Product identification includes materials, printing systems, radio frequency identification and barcode scanners for product identification, direct part marking, engraving equipment, brand protection labeling, work in process labeling, finished product identification, asset tracking labels, asset tags and industrial track and trace applications. Wire identification includes handheld printers, wire markers, sleeves, and tags. Healthcare identification includes wristbands, labels, printing systems, and other products used in hospital, laboratory, and other healthcare settings for tracking and improving the safety of patients. People identification includes name tags, badges, lanyards, rigid card printing systems, and access control software.

During fiscal 2026, the Company acquired MECCO Partners LLC on August 4, 2025 for $17.4 million ¹. Subsequent to the end of fiscal year 2026, on August 3, 2026, the Company acquired Honeywell’s Productivity Solutions and Services business for a cash purchase price of $1.4 billion ², subject to customary post-closing adjustments. The purchase price, related transaction fees and expenses were funded through a combination of cash on hand, $800 million ³ of borrowings under the Company’s $1.0 billion ⁴ aggregate credit agreement entered into on June 12, 2026, and proceeds from the private placement of $800 million ⁵ aggregate principal amount of senior notes completed on August 3, 2026. The Company also increased its share repurchase program on September 4, 2024, authorizing the repurchase of an additional $100.0 million ⁶ of Class A Nonvoting Common Stock, with no expiration date. As of July 31, 2026, there were $44.7 million ⁷ worth of shares authorized to purchase remaining pursuant to this share repurchase program.

Net sales increased 9.8% to $1,661.6 million ⁸ in fiscal 2026 compared to $1,513.6 million ⁹ in fiscal 2025. Gross margin increased 13.0% to $859.8 million ¹⁰ in fiscal 2026 compared to $760.8 million ¹¹ in fiscal 2025. As a percentage of net sales, gross margin increased to 51.7% ¹² in fiscal 2026 from 50.3% ¹³ in fiscal 2025. Operating income increased 11.3% to $263.5 million ¹⁴ in fiscal 2026 compared to $236.6 million ¹⁵ in fiscal 2025. Net income was $205.4 million ¹⁶ in fiscal 2026 compared to $189.3 million ¹⁷ in fiscal 2025. The Company’s income tax rate was 20.8% ¹⁸ in fiscal 2026 compared to 20.2% ¹⁹ in fiscal 2025.

The acquisition of Honeywell’s PSS business is expected to significantly expand the Company’s product portfolio and capabilities within product identification and track-and-trace applications. The acquisition is also expected to substantially increase the Company’s scale, expand its addressable market within the retail, transportation, warehousing, and logistics verticals, and complement its existing specialty identification offerings. The financial results of the PSS business will be integrated into the Company’s consolidated financial statements starting from August 3, 2026 and will be included in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2026. The Company expects to incur additional costs related to incremental tariffs and related countermeasures, and while it has received some refunds for tariffs previously paid, it expects to continue to incur ongoing tariff costs while actively pursuing additional refunds.

The Company’s strategy is to expand into higher-growth adjacent product categories and markets with technologically advanced new products, as well as to grow sales generated through the digital channel. The Company is investing in organic growth by enhancing its R&D process and utilizing customer feedback and observations to develop innovative new products that solve customer needs and improve environmental sustainability. The Company is also expanding and enhancing sales capabilities through an improved digital presence and the use of data-driven marketing automation tools. The Company has made investments in developing and implementing AI to streamline internal workflows and enhance operational decision-making, and is working to incorporate AI capabilities across its internal infrastructure. The Company’s R&D into these technologies is ongoing.

The Company remains committed to investing in new innovative product development to drive long-term organic sales growth. Investments in new printing systems, pressure sensitive materials, engraving systems, microfluidic technologies, scanners and software are the primary focus of R&D expenditures in fiscal 2027. The Company has taken and will continue to take action to mitigate inflationary and supply chain pressures through a combination of targeted price increases, strategic sourcing adjustments, product portfolio optimization, as well as ongoing efforts to drive sustainable efficiency gains in operations and administrative structures. The Company is advancing operational excellence by executing sustainable efficiency gains within its selling, general and administrative structures and within its global operations, including cost reduction initiatives, insourcing of critical products and manufacturing activities, and reducing the Company’s environmental footprint.

The Company believes that its cash flow from operating activities and its borrowing capacity are sufficient to fund its anticipated requirements for working capital, capital expenditures, R&D, common stock repurchases, dividend payments, and strategic acquisitions for the next 12 months and beyond. The Company’s material cash requirements for known contractual obligations include capital expenditures, borrowings on its new credit agreement and lease obligations. The Company believes that net cash provided by operating activities will continue to be adequate to meet its liquidity and capital needs for these items over the next 12 months and in the long-term beyond the next 12 months.

The Company has historically paid quarterly dividends on outstanding common stock. During the first quarter of fiscal 2027, the Company declared a dividend of $0.2500 ²⁰ per share on Class A Common Stock and $0.2334 ²¹ per share on Class B Common Stock. In fiscal 2026, the Company declared dividends of $0.2450 ²² per share on Class A Common Stock for each quarter and $0.2284 ²³ per share on Class B Common Stock for the first quarter and $0.2450 ²⁴ per share for the second, third, and fourth quarters. The Company maintains a share repurchase program for the Company’s Class A Nonvoting Common Stock, with $44.7 million ²⁵ worth of shares authorized to purchase remaining as of July 31, 2026.

The Company faces headwinds from increased indebtedness related to the PSS acquisition, which could reduce financial flexibility and require dedicating a greater portion of operating cash flows to principal and interest payments. The Company also faces risks from raw material, component and other cost inflation, as well as supply shortages, which could increase costs, disrupt production, and limit the ability to meet customer demand. The Company’s global operations are subject to the impact of regional conflict and geopolitical developments, including disruptions within certain global shipping and distribution channels, extended lead times, and reductions in global freight capacity. The Company has incurred tariff costs that have remained above historical levels since the second half of fiscal 2025, and expects to continue to incur additional costs related to incremental tariffs and related countermeasures.

The Company faces risks related to the integration of the PSS acquisition, including difficulties in integrating systems, processes, internal controls, product portfolios, operations, sales channels and go-to-market activities, as well as retaining employees and maintaining relationships with customers, distributors, other channel partners and suppliers. The Company may not realize the anticipated benefits of the acquisition, including expected growth opportunities and cost synergies, within the anticipated time periods or at all. The Company also faces risks from potential write-offs of goodwill and other intangible assets, which could be heightened by the substantial increase in intangible assets from the PSS acquisition. The Company’s increased leverage could limit its ability to pursue strategic opportunities and could require it to dedicate a greater portion of its operating cash flows to debt service.

Management’s message emphasizes the Company’s strategy to build upon its market position and increase shareholder value by focusing on key competencies including innovative products, customer experience, global leadership position in niche markets, digital capabilities, compliance expertise, and operational excellence. Key initiatives in fiscal 2026 included investing in organic growth, delivering a high-quality customer experience, expanding and enhancing sales capabilities, maintaining profitability through pricing mechanisms, integrating recent acquisitions including the PSS business, advancing operational excellence, and continuing to build a high-performance culture. Management highlights the acquisition of Honeywell’s PSS business as a central component of the strategy to create a comprehensive technology portfolio, complementing Brady’s leading position in printers and specialty adhesive materials portfolio. The Company expects to continue to incur additional costs related to incremental tariffs and related countermeasures, and while it has received some refunds for tariffs previously paid, it expects to continue to incur ongoing tariff costs while actively pursuing additional refunds.

Net sales increased 9.8% to $1,661.6 million ³¹ in fiscal 2026 compared to $1,513.6 million ³² in fiscal 2025. Net income was $205.4 million ³³ in fiscal 2026 compared to $189.3 million ³⁴ in fiscal 2025. Diluted earnings per share was $3.99 ³⁵ in fiscal 2026 compared to $3.66 ³⁶ in fiscal 2025. Operating income increased 11.3% to $263.5 million ³⁷ in fiscal 2026 compared to $236.6 million ³⁸ in fiscal 2025. Gross margin as a percentage of net sales increased to 51.7% ³⁹ in fiscal 2026 from 50.3% ⁴⁰ in fiscal 2025. Net cash provided by operating activities was $244.1 million ⁴¹ in fiscal 2026 compared to $181.2 million ⁴² in fiscal 2025. Cash and cash equivalents were $187.1 million ⁴³ at July 31, 2026, an increase of $12.8 million ⁴⁴ from July 31, 2025. The Company incurred PSS transaction-related costs of $35.7 million ⁴⁵ in fiscal 2026, which reduced operating income. The Company’s income tax rate was 20.8% ⁴⁶ in fiscal 2026 compared to 20.2% ⁴⁷ in fiscal 2025. Americas & Asia segment profit increased 22.3% to $256.6 million ⁴⁸ in fiscal 2026 from $209.8 million ⁴⁹ in fiscal 2025. Europe & Australia segment profit increased 30.5% to $74.3 million ⁵⁰ in fiscal 2026 compared to $56.9 million ⁵¹ in fiscal 2025.

The acquisition of Honeywell’s PSS business exposes the Company to significant integration risks, including difficulties in integrating systems, processes, internal controls, product portfolios, operations, sales channels and go-to-market activities, as well as retaining employees and maintaining relationships with customers, distributors, other channel partners and suppliers. The Company may not realize the anticipated benefits of the acquisition, including expected growth opportunities and cost synergies, within the anticipated time periods or at all. The increased indebtedness from the acquisition, including $800 million ²⁶ of borrowings under the new credit agreement and $800 million ²⁷ of senior notes, could limit financial flexibility and require dedicating a greater portion of operating cash flows to principal and interest payments. The Company faces risks from raw material, component and other cost inflation, as well as supply shortages, which could increase costs, disrupt production, and limit the ability to meet customer demand. The Company has incurred tariff costs that have remained above historical levels since the second half of fiscal 2025, and expects to continue to incur additional costs related to incremental tariffs and related countermeasures. The Company’s global operations are subject to the impact of regional conflict and geopolitical developments, including disruptions within certain global shipping and distribution channels, extended lead times, and reductions in global freight capacity. The Company has goodwill of $686.0 million ²⁸ and other intangible assets of $97.8 million ²⁹ as of July 31, 2026, which represent 42.3% ³⁰ of total assets, and expects these balances to increase substantially as a result of the PSS acquisition, heightening the risk of future impairment.