Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 18, 2024

BRADY CORPORATION

(Exact name of registrant as specified in its charter)

Commission File Number 1-14959


Wisconsin						39-0178960
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)

6555 West Good Hope Road

Milwaukee, Wisconsin 53223

(Address of principal executive offices and Zip Code)

(414) 358-6600

(Registrant’s Telephone Number)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Nonvoting Common Stock, par value $0.01 per share	BRC	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02			RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On November 18, 2024, Brady Corporation (the “Company”) issued a press release announcing its fiscal 2025 first quarter financial results. A copy of the press release is being furnished to the Securities and Exchange Commission as Exhibit 99.1 attached hereto and is incorporated herein by reference.


Item 7.01			REGULATION FD DISCLOSURE

On November 18, 2024, the Company hosted a conference call related to its fiscal 2025 first quarter financial results. A copy of the slides referenced in the conference call, which is also posted on the Corporation’s website, is being furnished to the Securities and Exchange Commission as Exhibit 99.2 attached hereto and is incorporated herein by reference.


Item 9.01			FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits


EXHIBIT NUMBER			DESCRIPTION
99.1			Press Release of Brady Corporation, dated November 18, 2024, relating to first quarter fiscal 2025 financial results.
99.2			Informational slides provided by Brady Corporation, dated November 18, 2024, relating to first quarter fiscal 2025 financial results.

104			Cover Page Interactive Data File (embedded within Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


						BRADY CORPORATION

Date: November 18, 2024

						/s/ ANN E. THORNTON
						Ann E. Thornton
						Chief Financial Officer, Chief Accounting Officer and Treasurer

EXHIBIT 99.1

For More Information:

Investor contact: Ann Thornton 414-438-6887

Media contact: Kate Venne 414-358-5176

Brady Corporation Reports Fiscal 2025 First Quarter Results

•Sales for the quarter increased 13.6 percent. Organic sales increased 3.6 percent, acquisitions net of divestitures increased sales 8.8 percent, and foreign currency increased sales 1.2 percent.

•Income before income taxes was $58.8 million in the first quarter of fiscal 2025 compared to $59.4 million in the first quarter of fiscal 2024. Adjusted Income Before Income Taxes* in the first quarter of fiscal 2025 was $68.6 million compared to $61.8 million in the first quarter of fiscal 2024.

•Diluted EPS was $0.97 in the first quarter of both fiscal 2025 and 2024. Adjusted Diluted EPS* increased 12.0 percent to $1.12 in the first quarter of fiscal 2025 compared to $1.00 in the same quarter of the prior year.

MILWAUKEE (November 18, 2024) -- Brady Corporation (NYSE: BRC) (“Brady” or “Company”), a world leader in identification solutions, today reported its financial results for its fiscal 2025 first quarter ended October 31, 2024.

Quarter Ended October 31, 2024 Financial Results:

Sales for the quarter ended October 31, 2024 increased 13.6 percent, which consisted of an organic sales increase of 3.6 percent, an increase of 9.9 percent from acquisitions, an increase of 1.2 percent from foreign currency translation and a decrease of 1.1 percent from divestitures. Sales for the quarter ended October 31, 2024 were $377.1 million compared to $332.0 million in the same quarter last year. By region, sales increased 10.7 percent in the Americas & Asia and increased 19.3 percent in Europe & Australia, which included an organic sales increase of 5.1 percent in the Americas & Asia and an organic sales increase of 0.7 percent in Europe & Australia.

Income before income taxes decreased 1.0 percent to $58.8 million in the quarter ended October 31, 2024 compared to $59.4 million in the same quarter last year. Adjusted Income Before Income Taxes* in the quarter ended October 31, 2024, which was adjusted for amortization expense and other acquisition-related charges of $9.8 million, was $68.6 million, an increase of 11.0 percent compared to the first quarter of last year. Adjusted Income Before Income Taxes* in the quarter ended October 31, 2023, which was adjusted for amortization expense of $2.4 million, was $61.8 million.

Net income in the quarter ended October 31, 2024 was $46.8 million compared to $47.2 million in the same quarter last year. Earnings per diluted Class A Nonvoting Common Share were $0.97 in both the first quarter of fiscal 2025 and 2024. Adjusted Net Income* in the quarter ended October 31, 2024 was $54.2 million compared to $49.1 million in the same quarter last year. Adjusted Diluted EPS* in the quarter ended October 31, 2024 was $1.12.

Commentary:

“Our investments in our sales force and in research and development are paying off as we grew sales organically in both of our regions this quarter, and we have more innovative new products planned for launch in 2025,” said Brady’s President and CEO, Russell R. Shaller. “This quarter we also completed our acquisition of Gravotech, adding an exciting new solution to our offerings. Gravotech designs and manufactures specialized laser and mechanical engravers, which enhances our identification product portfolio and allows us to provide precision direct part marking solutions. I’m looking forward to our collaborative new product development plans in 2025.”

“We generated adjusted EPS of $1.12 this quarter, which represented 12.0 percent growth compared to the first quarter of last year,” said Brady’s Chief Financial Officer, Ann Thornton. “This strong performance was driven by organic sales growth and continued gross margin expansion in our organic business. Even after investing $140.6 million in acquisitions in the first quarter, we remain in a net cash position of $29.0 million as of October 31, 2024. Our strong balance sheet, strategic investments in organic and inorganic opportunities, and continued cash generation position us to drive shareholder value into the future.”

Fiscal 2025 Guidance:

The Company’s Adjusted Diluted EPS* guidance for the year ending July 31, 2025 remains unchanged at $4.40 to $4.70 per share, and the Company’s GAAP earnings per diluted Class A Nonvoting Common Share guidance for the year ending July 31, 2025 was updated for amortization and other acquisition-related charges to $4.02 to $4.32 per share.

The other assumptions included in our fiscal 2025 guidance are effectively unchanged. We expect a full-year income tax rate of approximately 20 percent, depreciation and amortization expense of approximately $40 million, and capital expenditures of approximately $35 million. Our fiscal 2025 guidance is based on foreign currency exchange rates as of October 31, 2024 and assumes continued economic growth.

A webcast regarding Brady’s fiscal 2025 first quarter financial results will be available at www.bradycorp.com/investors beginning at 9:30 a.m. central time today.

Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security, productivity and performance and include high-performance labels, signs, safety devices, printing systems and software. Founded in 1914, the Company has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin and as of July 31, 2024, employed approximately 5,700 people in its worldwide businesses. Brady’s fiscal 2024 sales were approximately $1.34 billion. Brady stock trades on the New York Stock Exchange under the symbol BRC. More information is available on the Internet at www.bradyid.com.

* Adjusted Income Before Income Taxes, Adjusted Net Income, and Adjusted Diluted EPS are non-GAAP measures. See appendix for more information on these measures, including reconciliations to the most directly comparable GAAP measures.

###

In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations.

The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: increased cost of raw materials and labor as well as material shortages and supply chain disruptions; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; Brady’s ability to identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks, and systems against security breaches; risks associated with the loss of key employees; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; global climate change and environmental regulations; litigation, including product liability claims; foreign currency fluctuations; changes in tax legislation and tax rates; potential write-offs of goodwill and other intangible assets; differing interests of voting and non-voting shareholders and changes in the regulatory and business environment around dual-class voting structures; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2024.

These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward-looking statements. Brady does not undertake to update its forward-looking statements except as required by law.

BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited; Dollars in thousands, except per share data)


	Three months ended October 31,
	2024		2023
Net sales	$	377,065	$	331,983
Cost of goods sold	187,376		160,264
Gross margin	189,689		171,719
Operating expenses:
Research and development	18,921		15,702
Selling, general and administrative	111,846		96,287
Total operating expenses	130,767		111,989

Operating income	58,922		59,730

Other income (expense):
Investment and other income (expense)	1,234		438
Interest expense	(1,356)		(766)

Income before income taxes	58,800		59,402

Income tax expense	12,017		12,161

Net income	$	46,783	$	47,241

Net income per Class A Nonvoting Common Share:
Basic	$	0.98	$	0.97
Diluted	$	0.97	$	0.97

Net income per Class B Voting Common Share:
Basic	$	0.96	$	0.96
Diluted	$	0.95	$	0.95

Weighted average common shares outstanding:
Basic	47,732		48,505
Diluted	48,217		48,811

BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)


	October 31, 2024		July 31, 2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	145,661	$	250,118
Accounts receivable, net of allowance for credit losses of $10,295 and $6,749, respectively	218,258		185,486
Inventories	178,688		152,729
Prepaid expenses and other current assets	13,462		11,382
Total current assets	556,069		599,715
Property, plant and equipment—net	201,374		195,758
Goodwill	671,705		589,611
Other intangible assets	116,369		51,839
Deferred income taxes	16,841		15,596
Operating lease assets	42,157		38,504
Other assets	23,361		24,546
Total	$	1,627,876	$	1,515,569
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	98,179	$	84,691
Accrued compensation and benefits	65,004		77,954
Taxes, other than income taxes	22,901		14,061
Accrued income taxes	11,994		7,424
Current operating lease liabilities	13,120		13,382
Other current liabilities	90,272		67,170
Total current liabilities	301,470		264,682
Long-term debt	116,645		90,935
Long-term operating lease liabilities	29,201		25,342
Other liabilities	71,628		67,952
Total liabilities	518,944		448,911
Stockholders’ equity:
Common stock:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 44,223,664 and 44,042,462 shares, respectively	513		513
Class B voting common stock—Issued and outstanding, 3,538,628 shares	35		35
Additional paid-in capital	354,592		353,654
Retained earnings	1,209,406		1,174,025
Treasury stock—7,037,823 and 7,219,025 shares, respectively, of Class A nonvoting common stock, at cost	(344,012)		(351,947)
Accumulated other comprehensive loss	(111,602)		(109,622)
Total stockholders’ equity	1,108,932		1,066,658
Total	$	1,627,876	$	1,515,569

BRADY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; Dollars in thousands)


	Three months ended October 31,
	2024		2023
Operating activities:
Net income	$	46,783	$	47,241
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,164		7,466
Stock-based compensation expense	5,813		4,163
Deferred income taxes	(903)		(2,225)
Other	(880)		1,137
Changes in operating assets and liabilities:
Accounts receivable	(4,385)		(2,205)
Inventories	(2,107)		6,152
Prepaid expenses and other assets	(1,136)		(1,488)
Accounts payable and accrued liabilities	(33,960)		(3,725)
Income taxes	4,017		5,757
Net cash provided by operating activities	23,406		62,273

Investing activities:
Purchases of property, plant and equipment	(7,286)		(11,279)
Acquisition of businesses, net of cash acquired	(140,625)		—
Other	10		—
Net cash used in investing activities	(147,901)		(11,279)

Financing activities:
Payment of dividends	(11,402)		(11,338)
Proceeds from exercise of stock options	5,855		2,598
Payments for employee taxes withheld from stock-based awards	(2,090)		(2,333)
Purchase of treasury stock	—		(14,121)
Proceeds from borrowing on credit facilities	135,149		38,551
Repayment of borrowing on credit facilities	(109,439)		(36,000)
Other	190		1,149
Net cash used in financing activities	18,263		(21,494)

Effect of exchange rate changes on cash	1,775		(5,680)

Net (decrease) increase in cash and cash equivalents	(104,457)		23,820
Cash and cash equivalents, beginning of period	250,118		151,532

Cash and cash equivalents, end of period	$	145,661	$	175,352

BRADY CORPORATION AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited; Dollars in thousands)


	Three months ended October 31,
	2024			2023
NET SALES
Americas & Asia	$	245,428		$	221,626
Europe & Australia	131,637			110,357
Total	$	377,065		$	331,983

SALES INFORMATION
Americas & Asia
Organic	5.1		%	3.3		%
Acquisitions	7.4		%	—		%
Currency	(0.2)		%	—		%
Divestiture	(1.6)		%	(1.9)		%
Total	10.7		%	1.4		%
Europe & Australia
Organic	0.7		%	1.4		%
Acquisitions	15.0		%	—		%
Currency	3.6		%	4.6		%
Total	19.3		%	6.0		%
Total Company
Organic	3.6		%	2.7		%
Acquisitions	9.9		%	—		%
Currency	1.2		%	1.5		%
Divestiture	(1.1)		%	(1.3)		%
Total	13.6		%	2.9		%

SEGMENT PROFIT
Americas & Asia	$	54,900		$	49,897
Europe & Australia	13,114			16,744
Total segment profit	$	68,014		$	66,641
SEGMENT PROFIT AS A PERCENT OF NET SALES
Americas & Asia	22.4		%	22.5		%
Europe & Australia	10.0		%	15.2		%
Total	18.0		%	20.1		%


	Three months ended October 31,
	2024		2023
Total segment profit	$	68,014	$	66,641
Unallocated amounts:
Administrative costs	(9,092)		(6,911)
Investment and other income	1,234		438
Interest expense	(1,356)		(766)
Income before income taxes	$	58,800	$	59,402

GAAP to NON-GAAP MEASURES

(Unaudited; Dollars in Thousands, Except Per Share Amounts)

In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure.

Adjusted Income Before Income Taxes:

Brady is presenting the non-GAAP measure, "Adjusted Income Before Income Taxes." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes to the non-GAAP measure of Adjusted Income Before Income Taxes:


	Three months ended October 31,
	2024		2023
Income before income taxes (GAAP measure)	$	58,800	$	59,402
Amortization expense	4,713		2,355
Non-recurring acquisition-related costs and other expenses	5,059		—
Adjusted Income Before Income Taxes (non-GAAP measure)	$	68,572	$	61,757

Adjusted Income Tax Expense:

Brady is presenting the non-GAAP measure, "Adjusted Income Tax Expense." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Adjusted Income Tax Expense:


	Three months ended October 31,
	2024		2023
Income tax expense (GAAP measure)	$	12,017	$	12,161
Amortization expense	1,133		546
Non-recurring acquisition-related costs and other expenses	1,265		—
Adjusted Income Tax Expense (non-GAAP measure)	$	14,415	$	12,707

Adjusted Net Income:

Brady is presenting the non-GAAP measure, "Adjusted Net Income." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Adjusted Net Income:


	Three months ended October 31,
	2024		2023
Net income (GAAP measure)	$	46,783	$	47,241
Amortization expense	3,580		1,809
Non-recurring acquisition-related costs and other expenses	3,794		—
Adjusted Net Income (non-GAAP measure)	$	54,157	$	49,050

Adjusted Diluted EPS:

Brady is presenting the non-GAAP measure, "Adjusted Diluted EPS." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Adjusted Diluted EPS (Note that certain amounts will not foot due to rounding):


	Three months ended October 31,
	2024		2023
Net income per Class A Nonvoting Common Share (GAAP measure)	$	0.97	$	0.97
Amortization expense	0.07		0.04
Non-recurring acquisition-related costs and other expenses	0.08		—
Adjusted Diluted EPS (non-GAAP measure)	$	1.12	$	1.00

Adjusted Diluted EPS Guidance:


	Fiscal 2025 Expectations
	Low		High
Earnings per Class A Nonvoting Common Share (GAAP measure)	$	4.02	$	4.32
Amortization expense	0.30		0.30
Non-recurring acquisition-related costs and other expenses	0.08		0.08
Adjusted Diluted EPS (non-GAAP measure)	$	4.40	$	4.70

F’25 Q1 Financial Results Brady Corporation November 18, 2024

Forward-Looking Statements In this news release, statements that are not reported financial results or other historic information are “forward-looking statements.” These forward-looking statements relate to, among other things, the Company's future financial position, business strategy, targets, projected sales, costs, income, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations. The use of words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project,” “plan” or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements by their nature address matters that are, to different degrees, uncertain and are subject to risks, assumptions, and other factors, some of which are beyond Brady’s control, that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For Brady, uncertainties arise from: increased cost of raw materials and labor as well as raw material shortages and supply chain disruptions; decreased demand for our products; our ability to compete effectively or to successfully execute our strategy; our ability to develop technologically advanced products that meet customer demands; Brady’s ability to identify, integrate, and grow acquired companies, and to manage contingent liabilities from divested businesses; difficulties in protecting our websites, networks and systems against security breaches; risks associated with the loss of key employees; extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities; global climate change and environmental regulations; litigation, including product liability claims; foreign currency fluctuations; potential write-offs of goodwill and other intangible assets; differing interests of voting and non-voting shareholders and changes in the regulatory and business environment around dual-class voting structures; changes in tax legislation and tax rates; numerous other matters of national, regional and global scale, including major public health crises and government responses thereto and those of a political, economic, business, competitive, and regulatory nature contained from time to time in Brady’s U.S. Securities and Exchange Commission filings, including, but not limited to, those factors listed in the “Risk Factors” section within Item 1A of Part I of Brady’s Form 10-K for the year ended July 31, 2024. These uncertainties may cause Brady's actual future results to be materially different than those expressed in its forward- looking statements. Brady does not undertake to update its forward-looking statements except as required by law. 2

Q1 F’25 Highlights 3 * Adjusted Diluted Earnings per Share is a non-GAAP measure. See appendix. Organic sales growth of 3.6%. Americas & Asia organic sales growth of 5.1%. Europe & Australia organic sales growth of 0.7%. Acquisition growth of 9.9%. Sales Growth GPM of 50.3% compared to 51.7% in Q1 of F’24. Gross profit includes purchase accounting adjustments related to the acquisition of Gravotech. Gross Profit Margin GAAP EPS of $0.97 was consistent with Q1 of last year. Adjusted Diluted Earnings per Share* increased 12.0% to $1.12 in Q1 of F’25 compared to $1.00 in Q1 of F’24. Growth in Adjusted Diluted Earnings per Share* Acquired businesses for $140.6M. Paid dividends of $11.4M. In a net cash position of $29.0M at October 31, 2024. Returning Capital to our Shareholders

Sales Overview 4 Q1 F’25 SALES: Total sales increased 13.6%. Organic sales increased 3.6%. • Americas & Asia – Organic sales increased 5.1%. • Europe & Australia – Organic sales increased 0.7%. Foreign currency translation increased sales 1.2%. Acquisitions net of divestitures increased sales 8.8%. $321 $318 $339 $324 $323 $326 $337 $346 $332 $323 $343 $343 $377 $225 $250 $275 $300 $325 $350 $375 Q1 F'22 7.0% Q2 F'22 13.1% Q3 F'22 9.0% Q4 F'22 9.0% Q1 F'23 6.9% Q2 F'23 6.3% Q3 F'23 1.9% Q4 F'23 6.9% Q1 F'24 2.7% Q2 F'24 1.6% Q3 F'24 4.5% Q4 F'24 1.6% Q1 F'25 3.6%Organic Growth SALES (millions of USD) Q1 F’25 SALES COMMENTARY: Organic sales grew 5.0% in the Americas with growth in all major product lines. Asia organic sales grew 6.3% with growth across the region offsetting a decline in organic sales in China. Organic sales grew 1.1% in Europe with growth in safety and facility identification and people identification. Australia organic sales declined 1.9%.

Gross Profit Margin 5 $155 $149 $164 $163 $155 $156 $170 $176 $172 $162 $177 $177 $190 48.2% 47.0% 48.4% 50.4% 48.1% 48.0% 50.3% 50.8% 51.7% 50.2% 51.6% 51.6% 50.3% 38% 40% 42% 44% 46% 48% 50% 52% $100 $125 $150 $175 $200 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 GROSS PROFIT & GPM% (millions of USD) Q1 F’25 – GROSS PROFIT MARGIN: Gross profit margin of 50.3% compared to 51.7% in Q1 of F’24. The non-recurring impact of purchase accounting charges related to our acquisition of Gravotech reduced our gross profit margin by approximately 110 basis points. Inflation continues, but we are experiencing a reduced rate of inflation in most geographies.

SG&A Expense 6 Q1 F’25 – SG&A EXPENSE: SG&A expense increased as a percent of sales when compared to Q1 last year primarily due to increased amortization and other acquisition-related expenses. Inflation continues in certain geographies. We continue to focus on identifying and executing sustainable efficiency gains in order to offset cost increases, while making the necessary investments to drive future sales growth. $97 $93 $96 $95 $90 $92 $91 $97 $96 $91 $96 $93 $112 30.1% 29.1% 28.4% 29.2% 27.9% 28.3% 27.0% 28.2% 29.0% 28.3% 27.9% 27.2% 29.7% 10% 15% 20% 25% 30% 35% $60 $70 $80 $90 $100 $110 $120 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 SG&A EXPENSE AND SG&A EXPENSE AS A % OF SALES (millions of USD)

R&D Expense 7 Q1 F’25 – R&D EXPENSE: We remain committed to our investments in R&D in order to drive profitable long-term sales growth. We are focused on ensuring that our R&D spend is both efficient and effective. $13.9 $14.0 $14.9 $15.8 $13.9 $15.4 $15.7 $16.3 $15.7 $16.8 $17.7 $17.5 $18.9 4.3% 4.4% 4.4% 4.9% 4.3% 4.7% 4.7% 4.7% 4.7% 5.2% 5.1% 5.1% 5.0% 1.5% 2.5% 3.5% 4.5% 5.5% $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 R&D EXPENSE AND R&D EXPENSE AS A % OF SALES (millions of USD)

Income Before Income Taxes 8 $44.7 $42.0 $51.3 $54.0 $50.3 $48.5 $63.0 $63.8 $59.4 $55.8 $64.4 $68.2 $58.8 $10 $20 $30 $40 $50 $60 $70 Q1 F'22 5.8% Q2 F'22 6.7% Q3 F'22 7.3% Q4 F'22 29.7% Q1 F'23 12.6% Q2 F'23 15.4% Q3 F'23 23.0% Q4 F'23 18.2% Q1 F'24 18.0% Q2 F'24 15.1% Q3 F'24 2.2% Q4 F'24 6.9% Q1 F'25 (1.0%) * Adjusted Income Before Income Taxes is a non-GAAP measure. See appendix. (millions of USD)INCOME BEFORE INCOME TAXES (GAAP) Q1 F’25 – INCOME BEFORE INCOME TAXES: GAAP Income before income taxes was down 1.0% to $58.8M in Q1 of F’25 compared to $59.4M in Q1 of F’24. Excluding adjusted* items from both periods, income before income taxes was up 11.0% to $68.6M in Q1 of F’25 compared to $61.8M in Q1 of F’24. Year-on-Year Growth (Decline)

Net Income & Diluted EPS 9 Q1 F’25 – NET INCOME & DILUTED EPS: GAAP Net Income was $46.8M in Q1 of F’25 compared to $47.2M in Q1 of F’24 (a decrease of 1.0%). • Adjusted Net Income* was $54.2M in Q1 of F’25 compared to $49.1M in Q1 of F’24 (an increase of 10.4%). GAAP Diluted EPS was $0.97 in Q1 of F’25 and in Q1 of F’24. • Adjusted Diluted EPS* was $1.12 in Q1 of F’25 compared to $1.00 in Q1 of F’24 (an increase of 12.0%). * Adjusted Net Income and Adjusted Diluted EPS are non-GAAP measures. See appendix. $35.0 $33.8 $40.1 $41.1 $39.4 $38.0 $48.1 $49.4 $47.2 $43.6 $50.9 $55.5 $46.8 $20 $30 $40 $50 $60 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 NET INCOME (GAAP) (millions of USD) $0.67 $0.65 $0.78 $0.81 $0.79 $0.76 $0.96 $1.00 $0.97 $0.90 $1.05 $1.15 $0.97 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 DILUTED EPS (GAAP)

Cash Generation 10 CASH FLOW FROM OPERATING ACTIVITIES $27.5 ($3.2) $40.9 $53.2 $28.0 $29.4 $72.5 $79.3 $62.3 $36.1 $72.7 $84.0 $23.4 -$5 $20 $45 $70 $95 Q1 F'22 78% Q2 F'22 (9%) Q3 F'22 102% Q4 F'22 130% Q1 F'23 71% Q2 F'23 77% Q3 F'23 151% Q4 F'23 161% Q1 F'24 132% Q2 F'24 83% Q3 F'24 143% Q4 F'24 151% Q1 F'25 50%% of Net Income CASH FLOWS IN Q1 OF F’25: Overview: Cash flow from operating activities was $23.4M in Q1 of F’25 vs. $62.3M in Q1 of F’24. Free cash flow* was $16.1M in Q1 of F’25 compared to $51.0M in Q1 of F’24. We invested $140.6M in acquisitions in Q1 of F’25. We returned $11.4M to our shareholders in the form of dividends. * Free cash flow is calculated as Net Cash Provided by Operating Activities less Capital Expenditures. (millions of USD) (millions of USD) 3 Mos. Ended Oct. 31, 2024 3 Mos. Ended Oct. 31, 2023 Cash Balance - Beginning of Period 250.1$ 151.5$ Cash Flow from Operating Activities 23.4 62.3 Capital Expenditures (7.3) (11.3) Dividends (11.4) (11.3) Share Repurchases - (14.1) Business Acquisitions (140.6) - Debt Borrowings / (Repayments) 25.7 2.6 Effect of Exchange Rates on Cash 1.8 (5.7) Other 4.0 1.5 Cash Balance - End of Period 145.7$ 175.4$

Net Cash 11 STRONG BALANCE SHEET: October 31, 2024 cash = $145.7M. October 31, 2024 debt = $116.6M. Balance sheet provides flexibility for future organic and inorganic investments. $91 $64 $26 $19 $15 $31 $84 $102 $123 $96 $97 $159 $29 $0 $50 $100 $150 $200 $250 $300 $350 Q1 F'22 Q2 F'22 Q3 F'22 Q4 F'22 Q1 F'23 Q2 F'23 Q3 F'23 Q4 F'23 Q1 F'24 Q2 F'24 Q3 F'24 Q4 F'24 Q1 F'25 NET CASH (millions of USD)

F’25 Diluted EPS Guidance GAAP Diluted EPS $4.02 to $4.32 F’25 Adjusted Diluted EPS* $4.40 to $4.70 Guidance Assumptions: Organic sales growth in the low-single digit percentages. Full-year income tax rate of approximately 20%. Foreign currency exchange rates as of October 31, 2024. Depreciation and amortization expense of approximately $40M. Capital expenditures of approximately $35M. Adjusted Diluted EPS guidance represents a range of 4.3% growth to 11.4% growth vs. F’24. 12 * Adjusted Diluted EPS is a non-GAAP measure. See appendix.

Americas & Asia 13 • Revenues increased 10.7% in Q1 of F’25: • Organic growth = + 5.1%. • Fx decrease = (0.2%). • Acquisition = + 7.4% • Divestiture = (1.6%). • Organic sales grew 5.0% in the Americas with growth in all major product lines. • Organic sales grew 6.3% in Asia; growth throughout the region more than offset an organic sales decline in China. • Growth in segment profit due to organic sales growth in higher gross margin product lines, which was partially offset by certain acquisition-related costs and purchase accounting adjustments. Q1 F’25 SUMMARY:Q1 F’25 vs. Q1 F’24 (millions of USD) $218 $220 $223 $227 $222 $212 $225 $228 $245 19% 18% 22% 22% 23% 21% 22% 23% 22% 0% 5% 10% 15% 20% 25% $100 $150 $200 $250 $300 Q1 F'23 4.0% (1.4%) - Q2 F'23 6.9% (1.0%) - Q3 F'23 1.2% (0.8%) (0.3%) Q4 F'23 5.6% (0.2%) (1.0%) Q1 F'24 3.3% - (1.9%) Q2 F'24 1.2% 0.1% (5.1%) Q3 F'24 4.5% (0.1%) (3.5%) Q4 F'24 3.4% (0.8%) (2.2%) Q1 F'25 5.1% (0.2%) 5.8% SALES & SEGMENT PROFIT % (millions of USD) Q1 F’25 Q1 F’24 Change Sales $ 245.4 $ 221.6 10.7% Segment Profit 54.9 49.9 + 10.0% Segment Profit % 22.4% 22.5% - 10 bps • Organic sales growth in the low-single digit percentages in F’25. • Continued growth in segment profit. OUTLOOK: Organic For. Curr. Acq. & Div.

Europe & Australia 14 • Revenues increased 19.3% in Q1 of F’25: • Organic growth = 0.7%. • Fx increase = 3.6%. • Acquisition = 15.0% • Organic sales grew 1.1% in Europe primarily due to growth in the safety and facility identification and people identification product lines. • Organic sales declined 1.9% in Australia primarily due to a decline in the wire identification product line. • Segment profit decreased primarily due to acquisition-related costs and purchase accounting adjustments. Q1 F’25 SUMMARY:Q1 F’25 vs. Q4 F’24 (millions of USD) $104 $106 $114 $118 $110 $111 $119 $115 $132 16% 13% 15% 16% 15% 14% 16% 17% 10% 0% 5% 10% 15% $50 $75 $100 $125 $150 Q1 F'23 12.8% (17.0%) - Q2 F'23 5.2% (8.9%) - Q3 F'23 3.4% (4.8%) - Q4 F'23 9.5% 2.0% - Q1 F'24 1.4% 4.6% - Q2 F'24 2.5% 2.0% - Q3 F'24 4.4% (0.6%) - Q4 F'24 (1.8%) (1.2%) - Q1 F'25 0.7% 3.6% 15.0% SALES & SEGMENT PROFIT % Q1 F’25 Q1 F’24 Change Sales $ 131.6 $ 110.4 19.3% Segment Profit 13.1 16.7 (21.7%) Segment Profit % 10.0% 15.2% - 520 bps Organic For. Curr. Acquisitions • Organic sales growth in the low-single digit percentages in F’25. • Growth in segment profit. OUTLOOK: (millions of USD)

Investor Relations Brady Contact: Ann Thornton Investor Relations 414-438-6887 Ann_Thornton@bradycorp.com See our website at www.bradycorp.com/investors 15

Appendix GAAP to Non-GAAP Reconciliations

Non-GAAP Reconciliations 17 2024 2023 58,800$ 59,402$ Amortization expense 4,713 2,355 Non-recurring acquisition-related costs and other expenses 5,059 - 68,572$ 61,757$ 2024 2023 12,017$ 12,161$ Amortization expense 1,133 546 Non-recurring acquisition-related costs and other expenses 1,265 - 14,415$ 12,707$ GAAP to NON-GAAP MEASURES Adjusted Income Before Income Taxes: (Unaudited; Dollars in Thousands, Except Per Share Amounts) Brady is presenting the non-GAAP measure, "Adjusted Income Before Income Taxes." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this profit measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income before income taxes to the non-GAAP measure of Adjusted Income Before Income Taxes: Three months ended October 31, Income before income taxes (GAAP measure) In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. Adjusted Income Tax Expense (non-GAAP measure) Adjusted Income Before Income Taxes (non-GAAP measure) Income tax expense (GAAP measure) Adjusted Income Tax Expense: Brady is presenting the non-GAAP measure, "Adjusted Income Tax Expense." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Income tax expense to the non-GAAP measure of Adjusted Income Tax Expense: Three months ended October 31,

Non-GAAP Reconciliations 18 2024 2023 46,783$ 47,241$ Amortization expense 3,580 1,809 Non-recurring acquisition-related costs and other expenses 3,794 - 54,157$ 49,050$ 2024 2023 $ 0.97 $ 0.97 Amortization expense 0.07 0.04 Non-recurring acquisition-related costs and other expenses 0.08 - 1.12$ 1.00$ Diluted EPS Excluding Certain Items Guidance: Low High Earnings per diluted Class A Common Share (GAAP measure) $ 4.02 $ 4.32 Amortization expense 0.30 0.30 Non-recurring acquisition-related costs and other expenses 0.08 0.08 Adjusted Diluted EPS (non-GAAP measure) 4.40$ 4.70$ Fiscal 2025 Expectations Adjusted Diluted EPS (non-GAAP measure) Adjusted Net Income (non-GAAP measure) Brady is presenting the non-GAAP measure, "Adjusted Net Income." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements and supporting footnote disclosures. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income to the non-GAAP measure of Adjusted Net Income: Net income (GAAP measure) Adjusted Diluted EPS: Three months ended October 31, Net income per Class A Nonvoting Common Share (GAAP measure) Three months ended October 31, Brady is presenting the non-GAAP measure, "Adjusted Diluted EPS." This is not a calculation based upon GAAP. The amounts included in this non-GAAP measure are derived from amounts included in the Consolidated Financial Statements. We do not view these items to be part of our ongoing results. We believe this measure provides an important perspective of underlying business trends and results and provides a more comparable measure from year to year. The table below provides a reconciliation of the GAAP measure of Net income per Class A Nonvoting Common Share to the non-GAAP measure of Adjusted Diluted EPS (Note that certain amounts will not foot due to rounding): GAAP to NON-GAAP MEASURES (Unaudited; Dollars in Thousands, Except Per Share Amounts) Adjusted Net Income: In accordance with the U.S. Securities and Exchange Commission’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure.

Document and Entity Information Document	Nov. 18, 2024
Document and Entity Information [Abstract]
Entity Central Index Key	0000746598
Title of 12(b) Security	Class A Nonvoting Common Stock, par value $0.01 per share
Pre-commencement Issuer Tender Offer	false
Pre-commencement Tender Offer	false
Soliciting Material	false
Written Communications	false
City Area Code	414
Entity Address, Address Line One	6555 West Good Hope Road
Entity Incorporation, State or Country Code	WI
Document Type	8-K
Document Period End Date	Nov. 18, 2024
Entity Registrant Name	BRADY CORP
Entity File Number	1-14959
Entity Tax Identification Number	39-0178960
Entity Address, City or Town	Milwaukee
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53223
Local Phone Number	358-6600
Trading Symbol	BRC
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false