Brady (BRV) Q4 2026 Earnings Report

The call was strongly positive, supported by record fiscal 2026 revenue and adjusted EPS, broad-based organic growth, expanding margins, strong cash generation, increased shareholder returns, and optimistic fiscal 2027 EPS guidance. The main challenges were Europe’s softer macro environment, rising input and memory costs, early-stage IPS integration, and the need to deleverage after the acquisition. Highlights significantly outweighed the lowlights.

For fiscal 27, Brady expects revenue from IDS to grow approximately 5% organically and IPS to contribute revenue of approximately $1.15 billion, reflecting very low single digit growth and some low single digit type growth; on a combined basis, adjusted diluted EPS is expected to be $6.25 to $6.75, including approximately $0.80 of accretion from IPS, with the majority of the $0.80 of accretion from IPS weighted toward the second half of the fiscal year, representing growth of between 18.1% to 27.6% compared to 2026. The company expects IPS’s reported segment profit to be in the low double digits as a percentage of sales, IDS’s reported segment profit to be approximately 20% of sales, depreciation expense of approximately $45 million, capital expenditures of approximately $40 million, and a full year income tax rate of approximately 21%; it will exclude any onetime integration related costs and amortization expense from adjusted EPS results, expects adjusted EBITDA of approximately $175 million for IPS, has outlined about $25 million of synergies in year 3, and intends to deleverage to below 2 times net leverage within the first 2 years of post ownership of the business.