10-Q - BRADY CORP (0000746598) (Filer)

Mon, Nov 18, 1:00 PM (243 days ago)

Brady Corporation (BRC) reported a solid financial performance for the quarter ended October 31, 2024, with net sales increasing 13.6% to $377.1 million, driven by organic growth (3.6%) and acquisitions (9.9%). However, gross margin declined to 50.3% from 51.7% due to acquisition-related costs and lower-margin product sales. Operating income slightly decreased to $58.9 million, reflecting increased expenses from research and development and selling, general and administrative costs, which rose 20.5% and 16.2%, respectively. Net income was $46.8 million, down from $47.2 million, with a stable income tax rate of approximately 20.4%. Cash flow from operating activities fell to $23.4 million, primarily due to higher vendor payments and timing of payroll. The company maintained a strong liquidity position, ending the quarter with $145.7 million in cash and a credit facility of $181.5 million available for future borrowings. Brady's recent acquisitions of Gravotech and AB&R are expected to enhance its market position and product offerings. The company remains focused on integrating these acquisitions and managing inflationary pressures while pursuing growth strategies in innovation and digital capabilities.