Brady Corp (BRC) Stock Slumps—Even After Beating Earnings and Boosting Buybacks

Wall Street shrugs at an 11.9% EPS jump—because why reward fundamentals when you can chase meme stocks instead?

The Numbers Don’t Lie (But the Market Does)

Brady Corporation posted solid YoY growth, yet shares dipped. Buybacks got a raise, but traders were too busy YOLOing into whatever Cathie Wood tweeted about.

The Cynical Take:
Another case of ‘good news = sell signal’—because modern markets run on vibes, not math.

TLDR

• BRC stock trades at $71.38, down 6.37% after Q1 earnings

• Q1 revenue rose 11.4% YoY to $382.6M but missed estimates

• Adjusted EPS hit a record $1.22, up 11.9% YoY

• Full-year EPS guidance narrowed to $4.48–$4.63

• $44.5M returned to shareholders via dividends and buybacks

 Brady Corporation (NYSE:BRC) shares declined 6.37% to $71.38 following its fiscal Q3 2025 (calendar Q1) earnings report.

Brady Corporation (BRC)

The company posted revenue of $382.6 million, representing an 11.4% increase year over year, though it missed analysts’ forecast of $386.6 million. Organic sales ROSE 1.6%, while acquisitions contributed 10.5%. A 0.7% currency headwind slightly offset gains.

🚨EARNINGS ALERT🚨

Notable earnings released for today:

Brady Corporation $BRC: $1.22 EPS vs $1.23 est. / $382.6M Revenue vs $386.61M est.

Flowers Foods Inc $FLO: $0.35 EPS vs $0.38 est. / $1.55B Revenue vs $1.6B est.

— The Tokenist (@thetokenist) May 16, 2025

Regionally, revenue in the Americas & Asia grew 12.9% while Europe & Australia saw an 8.7% increase. However, organic growth in Europe & Australia declined by 5.4%, signaling potential challenges outside North America.

Record Adjusted EPS and Tightened Outlook

Despite the revenue shortfall, Brady achieved a record adjusted diluted EPS of $1.22, a jump from $1.09 in the same quarter last year, aligning with Wall Street expectations. GAAP diluted EPS rose 3.8% to $1.09. Management cited strong organic sales in the Americas & Asia and continued investment in R&D and product development as key drivers.

The company updated its fiscal 2025 earnings guidance, narrowing its adjusted EPS range from $4.45–$4.70 to $4.48–$4.63. GAAP EPS guidance was lowered to $3.95–$4.10, down from $3.99–$4.24, factoring in restructuring and facility closure costs. The earnings date was May 16, 2025.

Profit Margins and Cash Flow Trends

Operating margin held steady at 17.6%, while free cash FLOW margin declined to 14.5% from 18.8% a year earlier. Income before taxes was $65.7 million, a 2.1% increase. On an adjusted basis, it climbed 11.5% to $74.4 million. Net income totaled $52.3 million, slightly higher than the $50.9 million recorded last year.

Strong Capital Return Program

Brady continued to reward shareholders by returning $44.5 million through share repurchases and dividends during the quarter. This included repurchasing 476,000 shares for $33.2 million and distributing $11.3 million in dividends. The company’s share count has declined 9.3% over the past five years, enhancing EPS growth.

Steady Long-Term Performance

Over the last five years, Brady’s annualized revenue growth stands at 5.4%, with EPS growing at a stronger 12.9% CAGR. These trends suggest improved profitability and operational efficiency. Analysts project 6.3% revenue growth over the next 12 months, in line with recent results and above sector averages.

Despite posting record EPS and a solid long-term growth profile, the stock fell as investors reacted to the revenue miss and cautious earnings outlook.