Brady (BRC) Q3 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 18, 2026 astatine 10:44 AM CDT 30 min read

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DATE

Monday, May 18, 2026 astatine 10:30 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Russell R. Shaller

• Chief Financial Officer — Ann E. Thornton

• Operator

Full Conference Call Transcript

Russell R. Shaller. Russell?

Russell R. Shaller: Thanks, Ann, and convey you each for joining today. I americium pleased to denote a fantastic quarter. We reported a caller grounds precocious adjusted net per stock of $1.5, an summation of 23% versus the 3rd 4th of past year. Organic income grew 8.2% and gross nett borderline was astir 52% portion some regions reported important maturation successful operating income and profitability. We are increasing successful our cardinal merchandise lines successful some of our regions and we proceed to spot affirmative effect to the caller products we person introduced implicit the past respective years. Launched successful February, our I4.31 1000 is simply a 4-inch portable printer, which is tailored for works information and manufacturing professionals. it is selling good supra expectations.

Our improvement squad worked with a wide assortment of users to make this merchandise and lawsuit feedback has been fantastic. We are seeing continued maturation successful ligament and recognition this quarter. Particularly successful information centers, which is simply a cardinal extremity marketplace for this highly captious recognition solution. Our apical priorities are profitable income maturation and a changeless absorption connected currency generation, and this 4th perfectly delivered both. In summation to 23% adjusted net per stock growth, successful the quarter, our currency procreation was astir $80 million. Operating currency travel is up 35% truthful acold this fiscal year. Last period we announced that we entered into an statement to get Honeywell's productivity solutions and services business.

This marked an breathtaking infinitesimal successful Brady's past and we are looking guardant to combining our highly engineered durable labels, printers, bundle with the information and devices powering the full proviso chain. This is an breathtaking infinitesimal successful our company's history. Over the past respective years, Brady has cautiously evaluated the competitory scenery portion identifying caller maturation opportunities that grow our addressable market. With this acquisition, the PSS much than doubles the markets Brady tin serve. At the aforesaid time, we judge emerging marking and recognition standards including GS1 and Europe's integer merchandise passport initiatives on with caller applications for RFID based merchandise identification, enactment a agelong runway for aboriginal growth.

Additionally, our aboriginal enactment with AI augmented products points the mode to breathtaking caller usage cases to amended our lawsuit information and efficiency. We spot PSS arsenic a unsocial accidental to grow our-- into leading-edge mobility, and scanning solutions trusted by immoderate of the world's largest transportation, warehousing, and logistics companies. By combining Brady's precocious show printers, software, and specialty adhesive materials with PSS's afloat suite of mobility and scanning solutions, we volition beryllium capable to connection a azygous root solution to a broader acceptable of customers. The PSS concern has an unthinkable merchandise portfolio, a talented R&D squad with heavy method expertise, and captious income and enactment functions who cognize their concern highly well.