Brady Corporation (NYSE: BRC) is an international manufacturer specializing in identification solutions, providing products such as high-performance labels and signs. The company reported earnings for the third quarter of fiscal 2025, revealing a rise in financial performance metrics. Sales increased 11.4%, reaching $382.6 million compared to $343.4 million in the same quarter of the previous year. Organic sales grew 1.6%, while acquisition growth contributed to a boost of 10.5%.

The company’s Americas and Asia region experienced organic sales growth of 5.4%, mainly driven by strong customer demand. Meanwhile, the Europe and Australia region faced an organic sales decline of 5.4%, influenced by unfavorable economic conditions. Adjusted diluted earnings per share rose 11.9% to a record high of $1.22, up from $1.09 in the prior year’s third quarter. This increase reflects ongoing operational efficiency and successful cost management strategies.

Brady’s gross profit margin for the quarter was 51.0%, slightly down from 51.6% in the same period last year. This decline was impacted by $3.9 million in reorganization costs. Selling, general and administrative (SG&A) expenses were $108.7 million, compared to $95.8 million in the previous year’s third quarter, and as a percentage of sales, SG&A came in at 28.4%. However, when excluding certain costs, SG&A was 26.4%, down from 27.2% in the prior year.

Operating cash flow was recorded at $59.9 million, a decrease from $72.7 million in the same quarter last year, while free cash flow amounted to $55.6 million versus $64.4 million in the previous year. As of April 30, 2025, Brady held a net cash position of $49.3 million. The company returned $44.5 million to shareholders during the quarter through dividends and share repurchases.

Brady tightened its Adjusted diluted EPS guidance for the fiscal year ending July 31, 2025, now forecasted in the range of $4.48 to $4.63, a slight adjustment from the previous range of $4.45 to $4.70.

Looking ahead for the remainder of fiscal 2025, the company anticipates organic sales growth to remain in the low single-digit percentage range.