BRC BRADY CORP

Overview and Growth

Fiscal 2026 results for BRADY CORP combined $1.66B of revenue with net income of $205.38M and an operating cash inflow of $244.13M. Revenue of $1.66B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $1.51B in fiscal 2025, revenue recorded a 9.8% year-over-year increase. Asset turnover was 0.9x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $859.83M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 51.7% of revenue, showing how much of the top line remained after direct costs. Operations produced $263.49M of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 15.9% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $205.38M for the fiscal year. Net margin was 12.4%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $259.42M of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 15.6% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $54.04M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 20.8%, without assuming a statutory-rate comparison. Return on period-end equity was 15.1%, relating annual net income to the equity capital on the balance sheet.

Liquidity and Capital Structure

At period end, the $1.85B asset base was financed through $494.39M of liabilities and $1.36B of equity. The near-term balance sheet paired $688.53M of current assets with $355.50M of current liabilities at the reporting date. The current ratio was 1.94x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $187.15M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 52.6% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $14.98M, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.01x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 0.8%, showing how much of the asset base was matched by borrowing. Liabilities represented 26.7% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 10.1%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $1.73B in fiscal 2025, the current asset base moved 6.8% and finished higher.

Cash Flow and Earnings Quality

Cash flow from operations was $244.13M, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 1.19x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $51.47M, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 21.1%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $192.65M of positive free cash flow for the period. Free cash flow represented 11.6% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 10.4%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Jul 31, 2026. Analysis generated Oct 21, 2026.