Brady Corp Reports 7.6% Revenue Increase to $789.4M in H1 FY2026

Brady Corporation, a manufacturer of identification solutions and workplace safety products, reported net revenue of $789.42 million for the six months ending January 31, 2026, an increase of 7.6% compared to $733.74 million in the same period a year earlier. Read more earnings reports.

Net income for the first half of fiscal 2026 reached $101.99 million, up 17.1% from $87.12 million in the prior-year period. On a per-share basis, diluted earnings rose to $2.14 from $1.81, marking an 18.2% increase.

For the three months ending January 31, 2026, revenue totaled $384.14 million, compared to $356.68 million in the same quarter last year. Net income for the quarter was $48.05 million, or $1.01 per diluted share, versus $40.33 million, or $0.83 per diluted share, in the prior-year quarter.

Operating Performance

Gross profit for the six-month period expanded to $403.23 million from $365.53 million, representing a gross margin of 51.1% compared to 49.8% a year earlier. Operating income climbed to $130.16 million from $110.16 million, with the operating margin improving to 16.5% from 15.0%.

Operating expenses increased to $273.06 million from $255.38 million, driven largely by higher research and development spending. R&D expenses rose to $47.60 million from $37.64 million, while selling, general and administrative expenses increased to $225.46 million from $217.73 million.

Interest expense declined to $2.20 million from $2.67 million. Income tax expense totaled $28.49 million, up from $23.73 million in the prior-year period.

Balance Sheet and Cash Flow

Total assets stood at $1.83 billion as of January 31, 2026, compared to $1.73 billion at the end of July 2025. Cash and cash equivalents were $176.49 million, up slightly from $174.35 million at fiscal year-end.

Stockholders' equity increased to $1.31 billion from $1.19 billion, driven by retained earnings growth. Long-term debt decreased to $78.71 million from $99.77 million.

Cash from operations for the six months totaled $86.67 million, compared to $63.00 million in the prior-year period. The company deployed $41.32 million in investing activities and $47.91 million in financing activities during the period.

Key Financial Metrics

Inventory levels rose to $225.82 million from $200.88 million at the prior fiscal year-end, while accounts receivable increased to $242.91 million from $231.94 million. Total liabilities declined to $512.18 million from $542.04 million.