Brady Corp Reports 23% EPS Surge, Acquires Honeywell Unit and Boosts Printer Sales
Brady Corp reported Q3 adjusted EPS of $1.50, a 23% increase year-over-year, alongside an 8.2% organic sales rise and a 51.8% gross profit margin following cost-reduction measures. The Honeywell Productivity Solutions and Services acquisition will double its addressable markets, and the i4311 portable printer exceeded sales expectations by 50%.
1. Record Q3 Financial Performance
Brady Corp posted Q3 adjusted earnings per share of $1.50, up 23% year-over-year, on organic sales growth of 8.2% and a 51.8% gross profit margin. Strong demand in data center infrastructure, now representing 20% of revenue, drove outperformance in both the Americas and Asia.
2. Honeywell PSS Acquisition
The acquisition of Honeywell's Productivity Solutions and Services business will double Brady’s addressable markets and is expected to contribute $0.80 to adjusted EPS in the first year before synergies. Integration planning is underway to align cost structures and support long-term growth.
3. i4311 Portable Printer Success
Launched in February, the i4311 portable printer delivered sales 50% above management’s forecast, creating a halo effect that boosted sales of complementary safety and facility products. The new device, with no direct market equivalent, is positioned for significant future growth.
4. Expense and Integration Challenges
Selling, general and administrative expenses rose to $128.7 million from $108.7 million a year ago, reflecting investments in growth initiatives and integration efforts. The company also faces currency and inflationary pressures, while board member turnover coincided with a slight PSS sales decline in 2025.