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What changed in BRADY CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of BRADY CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+137 added−127 removedSource: 10-K (2025-09-04) vs 10-K (2024-09-06)

Top changes in BRADY CORP's 2025 10-K

137 paragraphs added · 127 removed · 108 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

23 edited+6 added−5 removed17 unchanged
Biggest changeThe Company’s primary objective is to build upon its market position and increase shareholder value by enabling a highly competent and experienced organization to focus on the following key competencies: • Innovative products — Technologically-advanced, internally-developed proprietary products that drive revenue growth and sustain gross profit margins 3 Table of Contents • Customer service — Understanding customer needs and providing a high level of customer service • Global leadership position in niche markets • Digital capabilities • Compliance expertise • Operational excellence — Continuous productivity improvement, automation, and product customization capabilities Brady's long-term sales growth and profitability will depend not only on the overall economic environment and our ability to successfully navigate changes in the macro environment, but also on our ability to develop and market innovative products, deliver a high level of customer service, advance our digital capabilities, and continuously improve the efficiency of our global operations.
Biggest changeThe Company’s primary objective is to build upon its market position and increase shareholder value by enabling a highly competent and experienced organization to focus on the following key competencies: 3 Table of Contents • Innovative products — Technologically-advanced, proprietary products that drive revenue growth and sustain gross profit margins through continuous research and development (“R&D”) investment and close collaboration with customers on application-specific needs • Customer experience — Understanding customer needs and providing a high level of service through dedicated account support, localized technical expertise, and integrated tools that enhance responsiveness and ease of doing business • Global leadership position in niche markets — Leveraging strong distribution networks, application knowledge, and long-standing relationships to maintain leadership in specialized identification and safety markets, while expanding scale and reach through targeted investments and acquisitions • Digital capabilities — Enhancing transactional websites, product content, and customer portals to provide easy-to-find solutions and seamless transactions, supported by digital tools that improve execution and reach • Compliance expertise — Leveraging regulatory knowledge to provide innovative solutions that support customer compliance, enabling confidence and growth in regulated industries • Operational excellence — Driving productivity through lean manufacturing, automation, and supply chain optimization, while expanding customization capabilities to deliver tailored solutions efficiently and at scale The Company's strategy is to apply these core competencies to drive long-term growth, improve profitability, and strengthen its competitive position.
These internally developed products include materials; printing, identification and tracking systems; and software. Materials manufactured by the Company generally require a high degree of precision and the application of adhesives with chemical and physical properties suited for specific uses. The Company’s manufacturing processes include compounding, coating, converting, printing, melt-blown operations, software development and printer design and assembly.
These internally developed products include materials, printing and identification systems, tracking systems, and software. Materials manufactured by the Company generally require a high degree of precision and the application of adhesives with chemical and physical properties suited for specific uses. The Company’s manufacturing processes include compounding, coating, converting, printing, melt-blown operations, software development and printer design and assembly.
The design of our identification and printing systems integrates materials, embedded software, a variety of printing technologies and product scanning and identification technologies to form a complete solution for customer applications. In addition, the R&D team supports production and marketing efforts by providing application and technical expertise.
The design of our identification and printing systems integrates materials, embedded software, a variety of printing technologies and product scanning and identification technologies to form a complete solution for customer applications. In addition, R&D supports production and marketing efforts by providing application and technical expertise.
However, we have chosen in certain situations to sole source, or limit the sources of materials, components, or finished items for design or cost reasons. As a result, disruptions in supply could have an impact on results for a period of time, but we believe any disruptions would simply require qualification of new suppliers and the disruption would be modest.
However, we have chosen in certain situations to sole source, or limit the sources of materials, components, or finished items for design or cost reasons. As a result, disruptions in supply could have an impact on results for a period of time, but we believe most disruptions would simply require qualification of new suppliers and the disruption would be modest.
The Company operates coating facilities that manufacture bulk rolls of label stock for internal and external customers. In addition, the Company purchases finished products for resale. 5 Table of Contents The Company purchases raw materials, components and finished products from many suppliers. Overall, we are not dependent upon any single supplier for our most critical base materials or components.
The Company operates coating facilities that manufacture bulk rolls of label stock for internal and external customers. In addition, the Company purchases finished products for resale. The Company purchases raw materials, components and finished products from many suppliers. Overall, we are not dependent upon any single supplier for our most critical base materials or components.
These products serve customers in many industries within each reportable segment, which industries include industrial manufacturing, electronic manufacturing, healthcare, chemical, oil, gas, alternative energy, automotive, aerospace, governments, mass transit, mechanical contractors, construction, utilities, education, leisure and entertainment and telecommunications, among others.
These products serve customers in many industries within each reportable segment, of which those industries include industrial manufacturing, electronic manufacturing, healthcare, chemical, oil, gas, alternative energy, automotive, aerospace, governments, mass transit, mechanical contractors, construction, utilities, education, leisure and entertainment, retail and telecommunications, among others.
The Company's business is not dependent on any single patent or group of patents. Patents applicable to specific products extend for up to 20 years according to the date of patent application filing or patent grant, depending upon the legal term of patents in the various countries where patent protection is obtained.
The Company's business is not dependent on any single patent or group of patents. Patents applicable to specific products extend for up to 20 years according to the date of patent application filing or patent grant, depending upon the legal term of patents in the various countries where 5 Table of Contents patent protection is obtained.
The Company markets its products under a variety of brand names: • Brady: product identification labels, wire identification products, printers, software, safety and facility identification products, lock-out/tag-out products, brand protection labels, people identification products, and specialty materials • Seton, Emedco, Signals, Safety Signs Service, and Pervaco: Safety and facility identification products • PDC, PDC Healthcare, MAGiCARD, and Promovision: People and healthcare identification products • Code: Barcode scanners • Nordic ID: RFID products • SPC: Spill control products • Electromark: Identification products for the utility industry • Securimed, Accidental Health and Safety and Trafalgar: First aid products • Carroll: Wire identification products The Company manufactures differentiated, proprietary products, most of which have been internally developed.
The Company markets its products under a variety of brand names: • Brady: product identification labels, wire identification products, printers, software, safety and facility identification products, lock-out/tag-out products, brand protection labels, people identification products, microfluidic solutions products, and specialty materials • Seton, Emedco, Signals, Safety Signs Service, and Pervaco: Safety and facility identification products • PDC, PDC Healthcare, MAGiCARD, and Promovision: People and healthcare identification products • Gravotech: Laser and mechanical engraving machines • SPC: Spill control products • Code: Barcode scanners • Securimed, Accidental Health and Safety and Trafalgar: First aid products • Electromark: Identification products for the utility industry • Nordic ID: RFID products • Carroll: Wire identification products The Company manufactures differentiated, proprietary products, most of which have been internally developed.
Below is a summary of sales by reportable segment during the years ended July 31: 2024 2023 2022 Americas & Asia 66.1 % 66.7 % 66.1 % Europe & Australia 33.9 % 33.3 % 33.9 % Total 100.0 % 100.0 % 100.0 % Within each of the reportable segments, the Company markets, sells and distributes a broad range of identification and safety products and solutions across the following primary product categories: • Safety and facility identification and protection, which includes safety signs, traffic signs and control products, floor-marking tape, pipe markers, labeling systems, spill control products, lockout/tagout devices, personal protection equipment, first aid products, and software and services for safety compliance auditing, procedures writing and training. • Product identification, which includes materials, printing systems, radio frequency identification (“RFID”) and barcode scanners for product identification, brand protection labeling, work in process labeling, finished product identification, asset tracking labels, asset tags and industrial track and trace applications. • Wire identification, which includes handheld printers, wire markers, sleeves, and tags. • Healthcare identification, which includes wristbands, labels, printing systems, and other products used in hospital, laboratory, and other healthcare settings for tracking and improving the safety of patients. • People identification, which includes name tags, badges, lanyards, rigid card printing systems, and access control software. 4 Table of Contents The Company markets and sells its products through multiple channels, including distributors, a direct sales force, and digital channels.
Below is a summary of sales by reportable segment during the years ended July 31: 2025 2024 2023 Americas & Asia 65.7 % 66.1 % 66.7 % Europe & Australia 34.3 % 33.9 % 33.3 % Total 100.0 % 100.0 % 100.0 % Within each of the reportable segments, the Company markets, sells and distributes a broad range of identification and safety products and solutions across the following primary product categories: • Safety and facility identification and protection, which includes safety signs, traffic signs and control products, floor-marking tape, pipe markers, labeling systems, spill control products, lockout/tagout devices, personal protection equipment, first aid products, and software and services for safety compliance auditing, procedures writing and training. • Product identification, which includes materials, printing systems, radio frequency identification (“RFID”) and barcode scanners for product identification, direct part marking, engraving equipment, brand protection labeling, work 4 Table of Contents in process labeling, finished product identification, asset tracking labels, asset tags and industrial track and trace applications. • Wire identification, which includes handheld printers, wire markers, sleeves, and tags. • Healthcare identification, which includes wristbands, labels, printing systems, and other products used in hospital, laboratory, and other healthcare settings for tracking and improving the safety of patients. • People identification, which includes name tags, badges, lanyards, rigid card printing systems, and access control software.
The Company makes available, free of charge, on or through its website, copies of its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to all such reports as soon as reasonably practicable after such reports are electronically filed with or furnished to the Securities and Exchange Commission (“SEC”).
The Company makes available, free of charge, on or through its website, copies of its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to all such reports as soon as reasonably practicable after such reports are electronically filed with or furnished to the SEC.
As of July 31, 2024, 40% of the members of the Company’s Board of Directors were women and 60% of Board committee chairs were women. 6 Table of Contents Training and Talent Development : The Company is committed to the continued development of its people. Strategic talent reviews and succession planning occur on a planned cadence annually.
As of July 31, 2025, 45% of the members of the Company’s Board of Directors were women and 60% of Board committee chairs were women. Training and Talent Development : The Company is committed to the continued development of its people. Strategic talent reviews and succession planning occur on a planned cadence annually.
Research and Development The Company focuses its research and development ("R&D") efforts on track and trace applications, pressure sensitive materials, identification and printing systems, software, and the development of other workplace safety-related products. The Company spent $67.7 million, $61.4 million, and $58.5 million on its R&D activities during the years ended July 31, 2024, 2023, and 2022, respectively.
Research and Development The Company focuses its R&D efforts on identification and printing systems, track and trace applications, pressure sensitive materials, software, and the development of other innovative workplace safety-related products. The Company incurred $79.9 million, $67.7 million, and $61.4 million of expense on its R&D activities during the years ended July 31, 2025, 2024, and 2023, respectively.
Human Capital Management As of July 31, 2024, the Company employed approximately 5,700 individuals worldwide, of which approximately 1,600 were employed in the United States and approximately 4,100 were employed outside the United States.
Human Capital Management As of July 31, 2025, the Company employed approximately 6,400 individuals worldwide, of which approximately 1,700 were employed in the United States and approximately 4,700 were employed outside the United States.
Brady has long-standing relationships with a broad range of electrical, safety, industrial and other domestic and international distributors. The direct sales force within each region partners with end-users and distributors by providing technical application and product expertise. The Company provides access to its products through brand-specific websites and catalogs.
The Company markets and sells its products through multiple channels, including distributors, a direct sales force, and digital channels. Brady has long-standing relationships with a broad range of electrical, safety, industrial and other domestic and international distributors. The direct sales force within each region partners with end-users and distributors by providing technical application and product expertise.
The Vice President of Human Resources is also responsible for developing the Company’s diversity, equity, and inclusion framework for the organization. The Company’s Board of Directors and its committees receive regular updates on the operation and status of these initiatives and human capital trends and activities from the Vice President of Human Resources, the CEO and others within senior management.
The Company’s Board of Directors and its committees receive regular updates on the operation and status of these initiatives and human capital trends and activities from the Vice President of Human Resources, the CEO and others within senior management.
The following were key initiatives supporting the strategy in fiscal 2024: • Investing in organic growth by enhancing our research and development process and utilizing customer feedback and observations to develop innovative new products that solve customer needs and improve environmental sustainability. • Providing with the highest level of customer service by aligning with customers' preferred communication channels and leveraging technology to enhance the customer experience. • Expanding and enhancing our sales capabilities through an improved digital presence and the use of data-driven marketing automation tools. • Maintaining profitability through pricing mechanisms to mitigate the impacts of supply chain disruptions and inflationary pressures while ensuring prices are market competitive. • Executing our reorganization to a regional operating structure to support continued growth in key geographies, facilitating new product development in our recent acquisitions, and simplifying and further integrating our businesses. • Integrating recent acquisitions to further enhance our strategic position and accelerate long-term sales growth. • Driving operational excellence and executing sustainable efficiency gains within our selling, general and administrative structures and within our global operations including insourcing of critical products and manufacturing activities while reducing our environmental footprint. • Building on our culture of diversity, equity and inclusion to increase employee engagement and enhance recruitment and retention practices in order to drive differentiated performance and execute our strategy.
Key initiatives in fiscal 2025 included: • Investing in organic growth by enhancing our R&D process and utilizing customer feedback and observations to develop innovative new products that solve customer needs and improve environmental sustainability. • Delivering a high-quality customer experience by aligning with customers' preferred communications channels and leveraging technology to strengthen engagement. • Expanding and enhancing sales capabilities through an improved digital presence and the use of data-driven marketing automation tools. • Maintaining profitability through pricing mechanisms to mitigate the impacts of ongoing supply chain disruptions and inflationary pressures while ensuring prices remain competitive. • Integrating recent acquisitions to enhance our strategic position and accelerate long-term sales growth. • Advancing operational excellence by executing sustainable efficiency gains within our selling, general and administrative structures and within our global operations, including cost reduction initiatives, insourcing of critical products and manufacturing activities, and reducing the Company's environmental footprint. • Continuing to build a high-performance culture, which rewards execution, fosters inclusion, and strengthens employee engagement, recruitment, and retention.
The Company provides subsidized health and welfare benefits, as well as postretirement, incentive and equity-based compensation plans and programs to eligible employees. Refer to the Compensation Discussion & Analysis for additional information regarding the Company’s compensation and benefits programs. Information Available on the Internet The Company’s Corporate Internet address is www.bradyid.com.
Refer to the Compensation Discussion & Analysis for additional information regarding the Company’s compensation and benefits programs. Information Available on the Internet The Company’s Corporate Internet address is www.bradyid.com.
The Company is organized and managed on a geographic basis with two reportable segments: Americas & Asia and Europe & Australia.
The Company is organized and managed on a geographic basis with two reportable segments: Americas & Asia and Europe & Australia. The Americas & Asia segment is comprised of our operations in North America, South America and Asia, while the Europe & Australia segment is comprised of our operations in Europe, the Middle East, Africa and Australia.
The CEO and the Vice President of Human Resources convene meetings with senior Company leadership and the Board of Directors to review top enterprise talent and discuss succession planning for key leadership roles. The Company provides technical training to employees, customers and suppliers who work for or with the Company’s products.
The CEO and the Vice President of Human Resources convene meetings with senior Company leadership and the Board of Directors to review top enterprise talent and discuss succession planning for key leadership roles. The Company also emphasizes career development planning to support employee growth and progression across a wide range of roles and functions.
The Company also strives to build a diverse talent pipeline by partnering with its business units in their workforce planning to develop initiatives and goals to recruit diverse talent across defined organizational levels and skill areas. The Company trains its recruiting workforce in diversity sourcing strategies and partners with external organizations that develop and supply diverse talent.
Senior leaders throughout the organization sponsor and support each employee resource group. 6 Table of Contents The Company also strives to build a robust talent pipeline by partnering with its business units in their workforce planning to develop initiatives and goals to recruit talent from all backgrounds across defined organizational levels and skill areas.
Training is provided in a variety of formats to accommodate the respective learner’s style, pace, location, technical knowledge and access. Compensation and Benefits: The Company values its people and strives to deliver compensation and benefit programs and plans that are competitive with the external market.
The Company provides technical training to employees, customers and suppliers who work for or with the Company’s products. Training is provided in a variety of formats to accommodate the respective learner’s style, pace, location, technical knowledge and access.
During the year ended July 31, 2024, the Company had a TRIR of 0.52, a LTCR of 0.23 and no work-related fatalities. Diversity, Equity, and Inclusion : Fostering a culture of diversity, equity and inclusion in the workplace means employees are and believe that they are valued and listened to, and the Company has made this a top priority.
During the year ended July 31, 2025, the Company had a TRIR of 0.43, a LTCR of 0.23 and no work-related fatalities. Inclusive Workplace : The Company prioritizes fostering an inclusive workplace where employees feel valued and heard.
To this end, the Company engages employees through various employee resource groups staffed by employees with diverse backgrounds, experiences and characteristics who share a common interest in professional development, improving corporate culture and delivering improved business results. Each employee resource group is sponsored and supported by senior leaders throughout the organization.
This commitment is central to our ability to leverage the full strengths of our workforce, aiming to exceed customer expectations and achieve growth objectives. To support this, the Company engages employees through various employee resource groups. These groups bring together employees to share common interests in personal and professional development, while improving corporate culture and delivering business results.
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This regional operating structure allows the Company to further integrate its businesses, support continued growth through the application of the best go-to-market strategies in key geographies, facilitate new product development within recent acquisitions and further simplify and scale the global business.
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This regional operating structure provides a framework to align local execution with global scale and supports consistent integration of acquired businesses.
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Our strategy for growth includes an increased focus on certain industries and products, streamlining our product offerings, expanding into higher growth end-markets, improving the overall customer experience, developing technologically advanced, innovative and proprietary products, and improving our digital capabilities.
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During the year ended July 31, 2025, Brady completed the acquisitions of three companies: Gravotech Holding (“Gravotech”), American Barcode and RFID Incorporated (“AB&R”), and the Microfluidic Solutions business unit of Funai Electric Co., Ltd. (“Microfluidic Solutions”). The acquired companies strengthen Brady's position in faster-growing markets, enabling us to accelerate growth while expanding our product offerings and research and development capabilities.
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The Company believes that its culture of diversity, equity and inclusion enables it to create, develop and fully leverage the strengths of its workforce to exceed customer expectations and successfully pursue its growth objectives.
Added
The Company provides access to its products through brand-specific websites and catalogs.
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The Company has implemented several steps to drive accountability for increasing diversity, equity and inclusion throughout the global organization. The CEO and other senior leaders have diversity, equity and inclusion objectives embedded in their annual performance goals.
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The Vice President of Human Resources is also responsible for enhancing the Company’s high-performance culture, which rewards execution and fosters inclusion, to drive differential performance and execute our strategy for the organization.
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The Company has also expanded its university outreach programs to access diverse organizations, has implemented interview guides to mitigate bias in interviewing, has implemented mentoring programs and employee resource groups to increase employee engagement and retention and has implemented required training for all managers on diversity, equity and inclusion compliance and unconscious bias.
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The Company trains its recruiting workforce in sourcing strategies aimed at broadening its talent pool and partners with external organizations that develop and supply a wide range of talent. As a commitment to an inclusive workplace, the Company supports the unique input of individuals at all levels within the organization.
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Compensation and Benefits: The Company values its people and strives to deliver compensation and benefit programs and plans that are competitive with the external market. The Company provides subsidized health and welfare benefits, as well as postretirement, incentive and equity-based compensation plans and programs to eligible employees.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

20 edited+3 added−3 removed53 unchanged
Biggest changeOur operations are subject to the risks of doing business domestically and globally, including the following: • Delays or disruptions in product deliveries and payments in connection with international manufacturing and sales. • Regulations resulting from political and economic instability and disruptions. • Imposition of new or changes in existing duties, tariffs and trade agreements, which could have a direct or indirect impact on our ability to manufacture products, on our customers' demand for our products, or on our suppliers' ability to deliver raw materials. • Import, export and economic sanction laws. • Current and changing governmental policies, regulatory, and business environments. • Disadvantages from competing against companies from countries that are not subject to U.S. laws and regulations including the Foreign Corrupt Practices Act. • Local labor regulations. 9 Table of Contents • Regulations relating to climate change, air emissions, wastewater discharges, handling and disposal of hazardous materials and wastes. • Regulations relating to product content, health, safety and the protection of the environment. • Imposition of trade or travel restrictions as a result of any effects of pandemics or global health crises. • Specific country regulations where our products are manufactured or sold. • Regulations relating to compliance with data protection and privacy laws throughout our global business. • Laws and regulations that apply to companies doing business with the government, including audit requirements of government contracts related to procurement integrity, export control, employment practices, and the accuracy of records and recording of costs.
Biggest changeOur operations are subject to the risks of doing business domestically and globally, including the following: • Imposition of new or changes in existing duties, tariffs and trade agreements, which could have a direct or indirect impact on our ability to manufacture products, on our customers' demand for our products, or on our suppliers' ability to deliver raw materials. • Delays or disruptions in product deliveries and payments in connection with international manufacturing and sales. • Regulations resulting from political and economic instability and disruptions. • Import, export and economic sanction laws. • Current and changing governmental policies, regulatory, and business environments. • Disadvantages from competing against companies from countries that are not subject to U.S. laws and regulations including the Foreign Corrupt Practices Act. • Local labor regulations. • Regulations relating to climate change, air emissions, wastewater discharges, handling and disposal of hazardous materials and wastes. 9 Table of Contents • Regulations relating to product content, health, safety and the protection of the environment. • Imposition of trade or travel restrictions as a result of any effects of pandemics or global health crises. • Specific country regulations where our products are manufactured or sold. • Regulations relating to compliance with data protection and privacy laws throughout our global business. • Laws and regulations that apply to companies doing business with the government, including audit requirements of government contracts related to procurement integrity, export control, employment practices, and the accuracy of records and recording of costs.
Numerous factors may affect the demand for our products, including: • Deterioration of economic conditions in major markets served • Catastrophic events, including epidemics, major health concerns, or natural disasters • Economic and operational impact of the war between Russia and Ukraine or other wars • Consolidation in the marketplace allowing competitors to be more efficient and more price competitive • Competitors entering the marketplace 7 Table of Contents • Decreasing product life cycles • Changes in customer preferences • Ability to achieve strong operational performance, including the manufacture and sale of high-quality products and the ability to meet customer delivery expectations If any of these factors occur, the demand for our products could suffer, and this could adversely impact our business and financial results.
Numerous factors may affect the demand for our products, including: • Deterioration of economic conditions in major markets served • Catastrophic events, including epidemics, major health concerns, or natural disasters • Economic and operational impact of the war between Russia and Ukraine or other wars • Consolidation in the marketplace allowing competitors to be more efficient and more price competitive • Competitors entering the marketplace • Decreasing product life cycles • Changes in customer preferences • Ability to achieve strong operational performance, including the manufacture and sale of high-quality products and the ability to meet customer delivery expectations If any of these factors occur, the demand for our products could suffer, and this could adversely impact our business and financial results.
If the estimated fair value of our goodwill or other intangible assets change in future periods, we may be required to record an impairment charge, which would reduce net income in such period. Substantially all of our voting stock is controlled by two shareholders, while our public investors hold non-voting stock.
If the estimated fair value of our goodwill or other intangible assets change in future periods, we may be required to record an impairment charge, which would reduce net income in such period. 11 Table of Contents Substantially all of our voting stock is controlled by two shareholders, while our public investors hold non-voting stock.
Our strategy is to expand into higher-growth adjacent product categories and markets with technologically advanced new products, as well as to grow our sales generated through the digital channel. While traditional direct marketing channels such as catalogs are an important means of advertising and selling our products, an increasing number of customers are purchasing products on the internet.
Our strategy is to expand into higher-growth adjacent product categories and markets with technologically advanced new products, as well as to grow our sales generated through the digital channel. While traditional direct marketing channels such as catalogs are an important means of advertising and selling our products, an increasing number of customers are purchasing products online.
In addition, the impact of the divestiture on our revenue and net income may be larger than projected, which could distract management, and disputes may arise with buyers. 8 Table of Contents We have retained responsibility for and have agreed to indemnify buyers against certain contingent liabilities related to several businesses that we have sold.
In addition, the impact of the divestiture on our revenue and net income may be larger than projected, which could distract management, and disputes may arise with buyers. We have retained responsibility for and have agreed to indemnify buyers against certain contingent liabilities related to several businesses that we have sold.
Our strategy to increase sales through the digital channel is an investment in our internet sales capabilities. There is a risk that we may not continue to successfully implement this strategy, or if successfully implemented, we may not realize its expected benefits due to increased competition and pricing pressure brought about by the internet.
Our strategy to increase sales through the digital channel is an investment in our e-commerce sales capabilities. There is a risk that we may not continue to successfully implement this strategy, or if successfully implemented, we may not realize its expected benefits due to increased competition and pricing pressure brought about by other e-commerce businesses.
We are subject to extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities at various levels of the governing bodies. Failure to comply with laws and regulations could adversely affect our business and financial results. Approximately 50% of our sales are derived outside of the United States.
We are a global company headquartered in the United States. We are subject to extensive regulations by U.S. and non-U.S. governmental and self-regulatory entities at various levels of the governing bodies. Failure to comply with laws and regulations could adversely affect our business and financial results. Approximately 50% of our sales are derived outside of the United States.
Additionally, certain private investors, mutual funds and index sponsors have implemented rules restricting ownership, or excluding from indices, companies with non-voting publicly traded shares. For example, the Company was removed from the Russell 2000 Index in the fourth quarter of fiscal year 2023 for not meeting the minimum voting rights hurdle.
Additionally, certain private investors, mutual funds and index sponsors have implemented rules restricting ownership, or excluding from indices, companies with non-voting publicly traded shares. For example, the Company was removed from the Russell 2000 Index in the fourth quarter of fiscal year 2023 for not meeting the minimum voting rights hurdle. Item 1B. Unresolved Staff Comments None.
We cannot assure that we will be able to successfully integrate acquisitions, that these acquisitions will operate profitably, or that we will be able to achieve the desired sales growth or operational success.
We cannot assure that we will be able to successfully integrate acquisitions, that these acquisitions will operate profitably, or that we will be able to achieve the desired sales growth 8 Table of Contents or operational success.
Accordingly, the final adoption, interpretation and implementation of Pillar Two across all jurisdictions where we conduct business could adversely affect our business and financial results. While it is impossible for us to predict whether other tax proposals will be enacted, many will likely have an impact on our business and financial results.
Final adoption and implementation of Pillar Two in the jurisdictions where we operate could adversely affect our business and financial results. While it is impossible to predict whether other tax proposals will be enacted, many could have an impact on our business and financial results.
While we have implemented certain cost containment measures and selective price increases, as well as taken other actions to offset recent inflationary pressures in our supply chain, we may not be able to offset all of the increases in our operational costs, which could adversely impact our business and financial results.
While we have implemented certain cost containment measures and selective price increases, as well as taken other actions to offset recent inflationary pressures in our supply chain, we may not be able to offset all of the increases in our operational costs, which could adversely impact our business and financial results. 7 Table of Contents Demand for our products may be adversely affected by numerous factors, some of which we cannot predict or control.
Failure to execute our strategies could result in impairment of goodwill or other intangible assets, which may negatively impact income and profitability . We have goodwill of $589.6 million and other intangible assets of $51.8 million as of July 31, 2024, which represent 42.3% of our total assets, and we have recognized impairment charges in the past.
Failure to execute our strategies could result in impairment of goodwill or other intangible assets, which may negatively impact income and profitability . We have goodwill of $676.9 million and other intangible assets of $105.4 million as of July 31, 2025, which represent 45.1% of our total assets, and we have recognized impairment charges in the past.
If we are unable to attract and retain qualified individuals, or if our costs to do so increase significantly, or if internal realignment of responsibilities are not executed properly, our business and financial results could be adversely affected. We are a global company headquartered in the United States.
If we are unable to attract and retain qualified individuals, or if our costs to do so increase significantly, or if internal realignment of responsibilities are not executed properly, our business and financial results could be adversely affected. We are subject to litigation that could adversely impact our business, financial results, and reputation.
For example, many countries have enacted, or plan to enact, legislation and other guidance to align with the Organisation for Economic Co-operation and Development’s (“OECD”) Inclusive Framework on Base Erosion and Profit Shifting Pillar Two (“Pillar Two”) model rules.
Globally, many countries have enacted, or plan to enact, legislation and other guidance to align with the Organisation for Economic Co-operation and Development’s (“OECD”) Inclusive Framework on Base Erosion and Profit Shifting Pillar Two (“Pillar Two”) model rules, which aim to establish a global minimum tax rate of 15 percent for large multinational enterprise groups.
A failure to adequately meet stakeholder expectations may result in the loss of business, diluted market valuation, an inability to attract customers or an inability to attract and retain top talent. We are subject to litigation that could adversely impact our business, financial results, and reputation.
A failure to adequately meet stakeholder expectations may result in the loss of business, diluted market valuation, an inability to attract customers or an inability to attract and retain top talent. 10 Table of Contents Financial and Security Ownership Risks The global nature of our business exposes us to foreign currency fluctuations that could adversely affect our business and financial results.
We review the probability of the realization of our deferred tax assets quarterly based on forecasts of taxable income in both the U.S. and foreign jurisdictions. As part of this review, we utilize historical results, projected future operating results, eligible carry-forward periods, tax planning opportunities, and other relevant considerations.
As part of this review, we utilize historical results, projected future operating results, eligible carry-forward periods, tax planning opportunities, and other relevant considerations. Changes in profitability and financial outlook in both the U.S. and/or foreign jurisdictions, or changes in our geographic footprint may require modifications in the valuation allowance for deferred tax assets.
Sales and purchases in currencies other than the U.S. dollar expos e us to fluctuations in foreign currencies relative to the U.S. dollar, and may adversely affect our financial results. Increased strength of the U.S. dollar could increase the effective price of our products sold in currencies other than U.S. dollars into other countries.
Increased strength of the U.S. dollar could increase the effective price of our products sold in currencies other than U.S. dollars into other countries. Decreased strength of the U.S. dollar could adversely affect the cost of materials, products, and services purchased overseas.
Decreased strength of the U.S. dollar could adversely affect the cost of materials, products, and services purchased overseas. Our sales and expenses are translated into U.S. dollars for reporting purposes, and further strengthening of the U.S. dollar could result in unfavorable translation effects, which occurred during fiscal year 2023 and 10 Table of Contents 2022.
Our sales and expenses are translated into U.S. dollars for reporting purposes, and further strengthening of the U.S. dollar could result in unfavorable translation effects.
Financial and Security Ownership Risks The global nature of our business exposes us to foreign currency fluctuations that could adversely affect our business and financial results. Approximately 50% o f our sales are derived outside the United States.
Approximately 50% o f our sales are derived outside the United States. Sales and purchases in currencies other than the U.S. dollar expos e us to fluctuations in foreign currencies relative to the U.S. dollar, and may adversely affect our financial results.
While we continue to monitor legislative adoption by country of the Pillar Two model rules, including additional administrative guidance from the OECD, there is significant uncertainty that exists regarding the interpretation of the detailed Pillar Two model rules, whether such rules will be implemented consistently across taxing jurisdictions, how such rules interact with existing national tax laws and whether such rules are consistent with existing tax treaty obligations.
The OECD has continued to issue new administrative guidance on the Pillar Two model rules throughout 2025. Significant uncertainty remains regarding the interpretation and consistent implementation of the Pillar Two model rules across jurisdictions, their interaction with existing national tax laws, and their alignment with current tax treaty obligations.
Removed
Demand for our products may be adversely affected by numerous factors, some of which we cannot predict or control. This could adversely affect our business and financial results.
Added
This could adversely affect our business and financial results.
Removed
Changes in profitability and financial outlook in both the U.S. and/or foreign jurisdictions, or changes in our geographic footprint may require modifications in the valuation allowance for deferred tax assets. At any point in time, there are a number of tax proposals at various stages of legislation throughout the globe.
Added
On July 4, 2025, the U.S. government enacted tax legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). The OBBBA made permanent or extended several provisions from the Tax Cuts and Jobs Act of 2017, including restoration of 100% bonus depreciation, an EBITDA-based limitation on interest expense deductions, and immediate expensing of domestic research and development expenditures.
Removed
The OECD’s Pillar Two model rules aim to establish a global minimum tax rate of 15 percent for large multinational enterprise groups. The OECD has continued to issue new administrative guidance on the Pillar Two model rules throughout 2024.
Added
Future changes to these or other tax laws, as well as related regulations and interpretations, could materially affect our financial results. We review the probability of the realization of our deferred tax assets quarterly based on forecasts of taxable income in both the U.S. and foreign jurisdictions.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur information technology security team reports to our Chief Information Officer (the “CIO”) and is headed by our Vice President of Global IT (the “VP of IT”) . Our CIO is an experienced information technology professional with extensive cybersecurity and information technology risk management experience.
Biggest changeOur information technology security team reports to our Chief Information Officer (the “CIO”) and is headed by our Information Technology Director (the “IT Director”) . Our CIO is an experienced information technology professional with extensive cybersecurity and information technology risk management experience.
Item 1C. Cybersecurity Brady has strategically included cybersecurity risk management into an integrated Company-wide risk management framework, which consists of administrative, operational, physical, and technical processes that we believe are appropriate to the scope and nature of our business. We believe this integrated approach allows cybersecurity considerations to form an integral part of our corporate and strategic decision-making processes.
Item 1C. Cybersecurity Brady has strategically included cybersecurity risk management into our integrated Company-wide risk management framework, which consists of administrative, operational, physical, and technical processes that we believe are appropriate to the scope and nature of our business. We believe this integrated approach allows cybersecurity considerations to form an integral part of our corporate and strategic decision-making processes.
Cybersecurity awareness and training is provided to new employees and annually for current Brady employees, which is designed to educate employees on recognizing information security and cybersecurity concerns, how they can help protect the organization and how to inform the information technology security team of potential incidents.
Cybersecurity awareness training is provided to new employees and annually for current Brady employees, which is designed to educate employees on recognizing information security and cybersecurity concerns, how they can help protect the organization and how to inform the information technology security team of potential incidents.
The information technology security team, in conjunction with various departments, including finance, corporate communications, legal, regional presidents and the VP of IT, are charged with reviewing any incident under our materiality framework to assess whether further escalation and reporting is required and if an incident could constitute a material cybersecurity incident.
The information 12 Table of Contents technology security team, in conjunction with various departments, including finance, corporate communications, legal, regional presidents and the CIO, are charged with reviewing any incident under our materiality framework to assess whether further escalation and reporting is required and if an incident could constitute a material cybersecurity incident.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeFour facilities each are located in Belgium and the United Kingdom, three are located in France; two are located in Australia; and one each in Germany, Norway, South Africa, and Turkey. 12 Table of Contents The Company believes that its equipment and facilities are modern, well maintained, and adequate for present needs.
Biggest changeFour facilities each are located in France and the United Kingdom, two each in Belgium and Australia; and one each in Austria, Germany, Norway, South Africa, and Turkey. The Company believes that its equipment and facilities are modern, well maintained, and adequate for present needs.
Six facilities are located in the United States; four in China; two each in Brazil, India, and Mexico; and one each in Canada, Japan, Malaysia, Singapore, and Thailand. Europe & Australia: Seventeen manufacturing and distribution facilities are used for our Europe & Australia business.
Eight facilities are located in the United States; four in China; two each in Brazil, India, and Mexico; and one each in Canada, Japan, Malaysia, Philippines, Singapore, and Thailand. Europe & Australia: Seventeen manufacturing and distribution facilities are used for our Europe & Australia business.
Item 2. Properties The Company currently operates 38 manufacturing and distribution facilities across the globe and are split by reporting segment as follows: Americas & Asia: Twenty-one manufacturing and distribution facilities are used for our Americas & Asia business.
Item 2. Properties The Company currently operates 41 manufacturing and distribution facilities across the globe and are split by reporting segment as follows: Americas & Asia: Twenty-four manufacturing and distribution facilities are used for our Americas & Asia business.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table provides information with respect to the purchases by the Company of Class A Nonvoting Common Stock during the three months ended July 31, 2024: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan (Dollars in Thousands) May 1, 2024 - May 31, 2024 — $ — — $ 37,788 June 1, 2024 - June 30, 2024 — — — 37,788 July 1, 2024 - July 31, 2024 — — — 37,788 Total — $ — — $ 37,788 14 Table of Contents Common Stock Price Performance Graph The graph below shows a comparison of the cumulative return over the last five fiscal years had $100 been invested at the close of business on July 31, 2019, in each of Brady Corporation Class A Common Stock, the Standard & Poor’s ("S&P") 500 Index, the S&P SmallCap 600 Industrials Index, and the Russell 2000 Index. 2019 2020 2021 2022 2023 2024 Brady Corporation $ 100.00 $ 90.46 $ 109.49 $ 97.58 $ 107.24 $ 151.22 S&P 500 Index 100.00 111.96 152.76 145.67 164.63 201.10 S&P SmallCap 600 Industrials Index 100.00 92.42 139.59 139.32 165.17 208.03 Russell 2000 Index 100.00 95.41 144.99 124.27 134.10 153.21 Copyright (C) 2024, Standard & Poor’s, Inc. and Russell Investments.
Biggest changeThe following table provides information with respect to the purchases by the Company of Class A Nonvoting Common Stock during the three months ended July 31, 2025: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan (Dollars in Thousands) May 1, 2025 - May 31, 2025 29,740 $ 69.63 29,740 $ 102,562 June 1, 2025 - June 30, 2025 140,555 68.39 140,555 92,950 July 1, 2025 - July 31, 2025 86,987 68.97 86,987 86,951 Total 257,282 $ 68.73 257,282 $ 86,951 14 Table of Contents Common Stock Price Performance Graph The graph below shows a comparison of the cumulative return over the last five fiscal years had $100 been invested at the close of business on July 31, 2020, in each of Brady Corporation Class A Common Stock, the Standard & Poor’s (“S&P”) 500 Index, the S&P SmallCap 600 Industrials Index, and the Russell 2000 Index. 2020 2021 2022 2023 2024 2025 Brady Corporation $ 100.00 $ 121.03 $ 107.87 $ 118.55 $ 167.16 $ 166.97 S&P 500 Index 100.00 136.45 130.11 147.05 179.62 208.95 S&P SmallCap 600 Industrials Index 100.00 151.04 150.74 178.72 225.09 240.03 Russell 2000 Index 100.00 151.97 130.25 140.55 160.58 159.69 Copyright (C) 2025, Standard & Poor’s, Inc. and Russell Investments.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Brady Corporation Class A Nonvoting Common Stock trades on the New York Stock Exchange ("NYSE") under the symbol BRC. There is no trading market for the Company’s Class B Voting Common Stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Brady Corporation Class A Nonvoting Common Stock trades on the New York Stock Exchange (“NYSE”) under the symbol BRC. There is no trading market for the Company’s Class B Voting Common Stock.
Holders As of August 31, 2024, there were approximately 1,000 Class A Common Stock shareholders of record and approximately 12,000 beneficial shareholders. There are three Class B Common Stock shareholders. Dividends The Company has historically paid quarterly dividends on outstanding common stock.
Holders As of August 31, 2025, there were approximately 1,000 Class A Common Stock shareholders of record and approximately 17,000 beneficial shareholders. There are three Class B Common Stock shareholders. Dividends The Company has historically paid quarterly dividends on outstanding common stock.
During the two most recent years ended July 31 and for the first quarter of fiscal 2025, the Company declared the following dividends per share on its Class A and Class B Common Stock: 2025 2024 2023 1st Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Class A $ 0.2400 $ 0.2350 $ 0.2350 $ 0.2350 $ 0.2350 $ 0.2300 $ 0.2300 $ 0.2300 $ 0.2300 Class B 0.2234 0.2184 0.2350 0.2350 0.2350 0.2134 0.2300 0.2300 0.2300 Issuer Purchases of Equity Securities The Company has a share repurchase program for the Company’s Class A Nonvoting Common Stock.
During the two most recent years ended July 31 and for the first quarter of fiscal 2026, the Company declared the following dividends per share on its Class A and Class B Common Stock: 2026 2025 2024 1st Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Class A $ 0.2450 $ 0.2400 $ 0.2400 $ 0.2400 $ 0.2400 $ 0.2350 $ 0.2350 $ 0.2350 $ 0.2350 Class B 0.2284 0.2234 0.2400 0.2400 0.2400 0.2184 0.2350 0.2350 0.2350 Issuer Purchases of Equity Securities The Company maintains a share repurchase program for the Company’s Class A Nonvoting Common Stock.
On August 30, 2023, the Company's Board of Directors authorized an increase in the Company's share repurchase program, authorizing the repurchase of an additional $100.0 million of the Company's Class A Nonvoting Common Stock, with no expiration date associated with the authorization.
On September 4, 2024, the Company's Board of Directors authorized an increase in the Company's share repurchase program, authorizing the repurchase of an additional $100.0 million of the Company's Class A Nonvoting Common Stock, with no expiration date associated with the authorization.
As of July 31, 2024, there were $37.8 million worth of shares authorized to purchase remaining pursuant to this share repurchase program. On September 4, 2024, the Company's Board of Directors authorized an increase in the Company's share repurchase program, authorizing the repurchase of an additional $100.0 million of the Company's Class A Nonvoting Common Stock.
As of July 31, 2025, there were $87.0 million worth of shares authorized to purchase remaining pursuant to this share repurchase program.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeInterest expense, investment and other income, income tax expense, and certain corporate administrative expenses are excluded when evaluating segment performance. 18 Table of Contents The following is a summary of segment information for the years ended July 31: 2024 2023 2022 SALES GROWTH INFORMATION Americas & Asia Organic 3.1 % 4.4 % 10.3 % Currency (0.2) % (0.9) % (0.1) % Divestiture (3.2) % (0.3) % — % Acquisition — % — % 6.9 % Total (0.3) % 3.2 % 17.1 % Europe & Australia Organic 1.6 % 7.6 % 7.9 % Currency 1.1 % (7.1) % (7.0) % Acquisition — % — % 6.9 % Total 2.7 % 0.5 % 7.8 % Total Company Organic 2.6 % 5.5 % 9.4 % Currency 0.2 % (3.0) % (2.6) % Divestiture (2.1) % (0.2) % — % Acquisition — % — % 6.9 % Total 0.7 % 2.3 % 13.7 % SEGMENT PROFIT AS A PERCENT OF NET SALES Americas & Asia 22.2 % 20.3 % 18.3 % Europe & Australia 15.5 % 14.8 % 14.3 % Total 19.9 % 18.5 % 16.9 % Americas & Asia Americas & Asia net sales decreased 0.3% to $886.5 million in fiscal 2024 compared to $888.9 million in fiscal 2023.
Biggest changeThe following is a summary of segment information for the years ended July 31: 2025 2024 2023 SALES GROWTH INFORMATION Americas & Asia Organic 4.8 % 3.1 % 4.4 % Acquisitions 8.3 % — % — % Currency (0.6) % (0.2) % (0.9) % Divestiture (0.4) % (3.2) % (0.3) % Total 12.1 % (0.3) % 3.2 % Europe & Australia Organic (1.8) % 1.6 % 7.6 % Acquisitions 14.7 % — % — % Currency 1.4 % 1.1 % (7.1) % Total 14.3 % 2.7 % 0.5 % Total Company Organic 2.6 % 2.6 % 5.5 % Acquisitions 10.5 % — % — % Currency — % 0.2 % (3.0) % Divestiture (0.3) % (2.1) % (0.2) % Total 12.8 % 0.7 % 2.3 % SEGMENT PROFIT AS A PERCENT OF NET SALES Americas & Asia 21.1 % 22.2 % 20.3 % Europe & Australia 11.0 % 15.5 % 14.8 % Total 17.6 % 19.9 % 18.5 % Americas & Asia Americas & Asia net sales increased 12.1% to $993.7 million in fiscal 2025 compared to $886.5 million in fiscal 2024, which consisted of organic sales growth of 4.8% and sales growth from acquisitions of 8.3%, which were partially offset by a decrease from foreign currency translation of 0.6% and a decrease due to a divestiture of 0.4%.
Goodwill The allocation of purchase price for business combinations requires management estimates and judgment as to expectations for future cash flows of the acquired business and the allocation of those cash flows to identifiable intangible assets in determining the estimated fair value.
Goodwill and Other Intangible Assets The allocation of purchase price for business combinations requires management estimates and judgment as to expectations for future cash flows of the acquired business and the allocation of those cash flows to identifiable intangible assets in determining the estimated fair value.
The Company completes its annual goodwill impairment analysis on May 1 of each fiscal year and evaluates its reporting units for potential triggering events on a quarterly basis in accordance with ASC 350, "Intangibles - Goodwill and Other." In addition to the metrics listed above, the Company considers multiple internal and external factors when evaluating its reporting units for potential impairment, including (i) GDP growth for the respective geography, (ii) industry and market factors such as competition and changes in the market for the reporting unit's products, (iii) new product development, (iv) competing technologies, (v) overall financial performance such as cash flows, actual and planned revenue and profitability, and (vi) changes in the strategy of the reporting unit.
The Company completes its annual goodwill impairment analysis on May 1 of each fiscal year and evaluates its reporting units for potential triggering events on a quarterly basis in accordance with ASC 350, “Intangibles - Goodwill and Other.” In addition to the metrics listed above, the Company considers multiple internal and external factors when evaluating its reporting units for potential impairment, including (i) GDP growth for the respective geography, (ii) industry and market factors such as competition and changes in the market for the reporting unit's products, (iii) new product development, (iv) competing technologies, (v) overall financial performance such as cash flows, actual and planned revenue and profitability, and (vi) changes in the strategy of the reporting unit.
The Company has the option to first assess qualitative factors in order to determine if it is more likely than not that the fair value of the reporting unit is greater than its respective carrying value.
The Company has the option to first assess qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is greater than its respective carrying value.
Credit Facilities and Covenant Compliance Refer to Item 8, Note 6, "Debt" for information regarding the Company's credit facilities and covenant compliance. Inflation and Changing Prices Essentially all of the Company’s revenue is derived from the sale of its products and services in competitive markets.
Credit Agreement and Covenant Compliance Refer to Item 8, Note 6, “Debt” for information regarding the Company's credit agreement and covenant compliance. Inflation and Changing Prices Essentially all of the Company’s revenue is derived from the sale of its products and services in competitive markets.
At July 31, 2024, approximately 98% of the Company's cash and cash equivalents were held outside the United States. The Company's organic and inorganic growth has historically been funded by a combination of cash provided by operating activities and debt financing.
At July 31, 2025, approximately 97% of the Company's cash and cash equivalents were held outside the United States. The Company's organic and inorganic growth has historically been funded by a combination of cash provided by operating activities and debt financing.
Accrued interest and penalties related to unrecognized tax benefits were $6.1 million and $5.3 million as of July 31, 2024 and 2023, respectively. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense on the Consolidated Statements of Income.
Accrued interest and penalties related to unrecognized tax benefits were $6.6 million and $6.1 million as of July 31, 2025 and 2024, respectively. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense on the consolidated statements of income.
The Company recognized valuation allowances for its deferred tax assets of $47.2 million and $52.8 million as of July 31, 2024 and 2023, respectively, which were primarily related to foreign tax credit carryforwards and net operating loss carryforwards in its various tax jurisdictions.
The Company recognized valuation allowances for its deferred tax assets of $82.2 million and $47.2 million as of July 31, 2025 and 2024, respectively, which were primarily related to foreign tax credit carryforwards and net operating loss carryforwards in its various tax jurisdictions.
We remain focused on driving sustainable efficiency gains and automation across our operations and selling, general and administrative ("SG&A") functions, while also returning capital to our shareholders through dividends and share repurchases.
We remain focused on driving sustainable efficiency gains and automation across our operations and selling, general and administrative (“SG&A”) functions, while also returning capital to our shareholders through dividends and share repurchases.
We believe that our financial resources and liquidity levels, including the undrawn portion of our credit agreement and our ability to increase that credit line if necessary, are sufficient to manage the continuing impact of economic or geopolitical events that could potentially reduce sales, net income, or cash provided by operating activities.
We believe that our financial resources and liquidity levels, including the undrawn portion of our credit agreement and our ability to increase that credit line as necessary, are sufficient to support the execution of our growth strategy and to manage the impact of economic or geopolitical events that could potentially reduce sales, net income, or cash provided by operating activities.
The Company has identified six reporting units within its two reportable segments, Americas & Asia and Europe & Australia, with the following goodwill balances as of July 31, 2024: North America, $436.3 million; Europe, $150.4 million; and Latin America, $2.9 million. The other three identified reporting units each have a goodwill balance of zero.
The Company has identified six reporting units within its two reportable segments, Americas & Asia and Europe & Australia, with the following goodwill balances as of July 31, 2025: North America, $494.8 million; Europe, $179.3 million; and Latin America, $2.9 million. The other three identified reporting units each have a goodwill balance of zero.
At July 31, 2024 , we had cash of $250.1 million, as well as a credit agreement with $207.3 million available for future borrowing, which can be increased up to $1,042.3 million at the Company's option and subject to certain conditions, for total available liquidity of $1,292.4 million.
At July 31, 2025 , we had cash of $174.3 million, as well as a credit agreement with $198.1 million available for future borrowing, which can be increased up to $1,093.1 million at the Company's option and subject to certain conditions, for total available liquidity of $1,267.4 million.
The increase in organic sales was primarily due to growth in the wire identification, product identification and safety and facility identification product lines, which was partially offset by a decline in the people identification product line. Organic sales in Asia increased in the low-single digits in fiscal 2024.
The increase in organic sales was primarily due to growth in the wire identification, safety and facility identification and product identification product lines, which was partially offset by a decline in the people identification and healthcare identification product lines. Organic sales in Asia increased approximately 13% in fiscal 2025.
The income approach requires the use of significant estimates and assumptions, including forecasted sales growth, operating income projections, and discount rates and changes in these assumptions may adversely impact the fair value assessments.
The income approach requires the use of significant estimates and assumptions, including forecasted sales growth, operating income projections, and discount rates and changes in these assumptions may adversely impact the fair value assessments. The market approach requires significant assumptions related to the selection of comparable publicly traded companies and the market multiples.
Although the Company believes these sources of cash are currently sufficient to fund domestic operations, annual cash needs could require repatriation of cash to the U.S. from foreign jurisdictions, which may result in additional tax payments. Cash Flows Cash and cash equivalents were $250.1 million at July 31, 2024, an increase of $98.6 million from July 31, 2023.
Although the Company believes these sources of cash are currently sufficient to fund domestic operations, annual cash needs could require repatriation of cash to the U.S. from foreign jurisdictions, which may result in additional tax payments. Cash Flows Cash and cash equivalents were $174.3 million at July 31, 2025, a decrease of $75.8 million from July 31, 2024.
The liability for unrecognized tax benefits, excluding interest and penalties, was $22.6 million and $20.9 million as of July 31, 2024 and 2023, respectively. If recognized, $19.4 million of unrecognized tax benefits would reduce the Company's income tax rate as of both July 31, 2024 and 2023.
The liability for unrecognized tax benefits, excluding interest and penalties, was $21.8 million and $22.6 million as of July 31, 2025 and 2024, respectively. If recognized, $18.3 million of unrecognized tax benefits would reduce the Company's income tax rate as of both July 31, 2025 and 2024.
The following summarizes the cash flow statement for the years ended July 31: (Dollars in thousands) 2024 2023 2022 Net cash flow provided by (used in): Operating activities $ 255,074 $ 209,149 $ 118,449 Investing activities (81,047) (11,214) (43,071) Financing activities (70,528) (163,568) (102,089) Effect of exchange rate changes on cash (4,913) 3,096 (6,555) Net increase (decrease) in cash and cash equivalents $ 98,586 $ 37,463 $ (33,266) Net cash provided by operating activities was $255.1 million during fiscal 2024 compared to $209.1 million in fiscal 2023.
The following summarizes the cash flow statement for the years ended July 31: (Dollars in thousands) 2025 2024 2023 Net cash flow provided by (used in): Operating activities $ 181,196 $ 255,074 $ 209,149 Investing activities (171,254) (81,047) (11,214) Financing activities (83,871) (70,528) (163,568) Effect of exchange rate changes on cash (1,840) (4,913) 3,096 Net (decrease) increase in cash and cash equivalents $ (75,769) $ 98,586 $ 37,463 Net cash provided by operating activities was $181.2 million during fiscal 2025 compared to $255.1 million in fiscal 2024.
We believe that net cash provided by operating activities will continue to be adequate to meet our liquidity and capital needs for these items over the next 12 months and in the long-term beyond the next 12 months.
Material Cash Requirements Our material cash requirements for known contractual obligations include capital expenditures, borrowings on our credit agreement and lease obligations. We believe that net cash provided by operating activities will continue to be adequate to meet our liquidity and capital needs for these items over the next 12 months and in the long-term beyond the next 12 months.
Organic sales grew 3.1% in the Americas & Asia segment and 1.6% in the Europe & Australia segment. Gross margin increased 4.7% to $687.9 million in fiscal 2024 compared to $657.3 million in fiscal 2023. As a percentage of net sales, gross margin increased to 51.3% in fiscal 2024 from 49.4% in fiscal 2023.
Organic sales grew 4.8% in the Americas & Asia segment, while organic sales declined 1.8% in the Europe & Australia segment. Gross margin increased 10.6% to $760.8 million in fiscal 2025 compared to $687.9 million in fiscal 2024. As a percentage of net sales, gross margin decreased to 50.3% in fiscal 2025 from 51.3% in fiscal 2024.
A comparison of results of operating income for the years ended July 31, 2024, 2023, and 2022 is as follows: (Dollars in thousands) 2024 % Sales 2023 % Sales 2022 % Sales Net sales $ 1,341,393 $ 1,331,863 $ 1,302,062 Gross margin 687,884 51.3 % 657,275 49.4 % 631,552 48.5 % Operating expenses: Research and development 67,748 5.1 % 61,365 4.6 % 58,548 4.5 % Selling, general and administrative 376,722 28.1 % 370,697 27.8 % 379,992 29.2 % Total operating expenses 444,470 33.1 % 432,062 32.4 % 438,540 33.7 % Operating income $ 243,414 18.1 % $ 225,213 16.9 % $ 193,012 14.8 % Net sales increased 0.7% to $1,341.4 million in fiscal 2024 compared to $1,331.9 million in fiscal 2023, which consisted of organic sales growth of 2.6% and an increase from foreign currency translation of 0.2%, partially offset by a decrease of 2.1% due to divestitures.
A comparison of results of operating income for the years ended July 31, 2025, 2024, and 2023 is as follows: (Dollars in thousands) 2025 % Sales 2024 % Sales 2023 % Sales Net sales $ 1,513,605 $ 1,341,393 $ 1,331,863 Gross margin 760,822 50.3 % 687,884 51.3 % 657,275 49.4 % Operating expenses: Research and development 79,889 5.3 % 67,748 5.1 % 61,365 4.6 % Selling, general and administrative 444,295 29.4 % 376,722 28.1 % 370,697 27.8 % Total operating expenses 524,184 34.6 % 444,470 33.1 % 432,062 32.4 % Operating income $ 236,638 15.6 % $ 243,414 18.1 % $ 225,213 16.9 % Net sales increased 12.8% to $1,513.6 million in fiscal 2025 compared to $1,341.4 million in fiscal 2024, which consisted of organic sales growth of 2.6% and sales growth from acquisitions of 10.5%, which was partially offset by a decrease of 0.3% due to divestitures.
Operating income increased 8.1% to $243.4 million in fiscal 2024 compared to $225.2 million in fiscal 2023. As a percentage of sales, operating income increased to 18.1% in fiscal 2024 compared to 16.9% in fiscal 2023.
Operating income decreased 2.8% to $236.6 million in fiscal 2025 compared to $243.4 million in fiscal 2024. As a percentage of sales, operating income decreased to 15.6% in fiscal 2025 compared to 18.1% in fiscal 2024.
The Company believes it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to $4.2 million in the next 12 months as a result of the resolution of worldwide tax matters, tax audit settlements, amended tax filings, and/or statute expirations, which would be the maximum amount that would be recognized as an income tax benefit in the Consolidated Statements of Income. 21 Table of Contents The Company recognizes deferred tax assets and liabilities for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.
The Company believes it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to $3.1 million in 21 Table of Contents the next 12 months as a result of the resolution of worldwide tax matters, tax audit settlements, amended tax filings, and/or statute expirations, which would be the maximum amount that would be recognized as an income tax benefit in the consolidated statements of income.
Organic sales grew in the safety and facility identification, product identification and wire identification product lines, which was partially offset by a decline in the people identification product line.
Organic sales in Europe declined in the low-single digits in fiscal 2025. The decline was driven by the safety and facility identification and people identification product lines, which was partially offset by growth in the wire identification product line.
Refer to Risk Factors, included in Part I, Item 1A of this Annual Report on Form 10-K for the year ended July 31, 2024 , for further discussion of the possible impact of global economic or geopolitical events on our business. 16 Table of Contents Results of Operations The comparability of the operating results for the year ended July 31, 2024 to the year ended July 31, 2023 has been impacted by the divestiture of two non-core businesses, one in March 2023 and another in October 2023.
Refer to Risk Factors, included in Part I, Item 1A of this Annual Report on Form 10-K for the year ended July 31, 2025 , for further discussion of the possible impact of global economic or geopolitical events on our business. 16 Table of Contents Results of Operations The comparability of the operating results for the year ended July 31, 2025 to the year ended July 31, 2024 has been impacted by the acquisitions of Gravotech Holding (“Gravotech”) on August 1, 2024, American Barcode and RFID Incorporated (“AB&R”) on October 1, 2024 and the Microfluidic Solutions business unit of Funai Electric Co., Ltd.
GAAP, excluding the impact of foreign currency translation, sales recorded from divested companies up to the first anniversary of their divestiture and sales recorded from acquired companies prior to the first anniversary date of their acquisition.
References in this Annual Report on Form 10-K to “organic sales” refer to sales calculated in accordance with U.S. GAAP, excluding the impact of foreign currency translation, sales recorded from divested companies up to the first anniversary of their divestiture and sales recorded from acquired companies prior to the first anniversary date of their acquisition.
Interest expense decreased to $3.1 million in fiscal 2024 compared to $3.5 million in fiscal 2023. The decrease in interest expense in fiscal 2024 was primarily due to a decrease in outstanding borrowings on the Company's credit agreement, which was partially offset by an increase in interest rates on the Company's credit agreement compared to fiscal 2023.
The increase in interest expense in fiscal 2025 was primarily due to an increase in outstanding borrowings on the Company's credit agreement to fund acquisitions, which was partially offset by a decrease in the weighted average interest rate compared to fiscal 2024. The Company's income tax rate was 20.2% in fiscal 2025 compared to 20.4% in fiscal 2024.
The increase in operating income in fiscal 2024 was primarily due to the increase in segment profit in the Americas & Asia segment as a result of organic sales growth, improved gross profit margin primarily due to growth in higher gross profit margin product lines and operational efficiencies throughout the region. 17 Table of Contents OPERATING INCOME TO NET INCOME The following is a reconciliation of operating income to net income for the years ended July 31: (Dollars in thousands) 2024 % Sales 2023 % Sales 2022 % Sales Operating income $ 243,414 18.1 % $ 225,213 16.9 % $ 193,012 14.8 % Other income (expense): Investment and other income 7,553 0.6 % 4,022 0.3 % 244 0.0 % Interest expense (3,126) (0.2) % (3,539) (0.3) % (1,276) (0.1) % Income before income taxes 247,841 18.5 % 225,696 16.9 % 191,980 14.7 % Income tax expense 50,626 3.8 % 50,839 3.8 % 42,001 3.2 % Net income $ 197,215 14.7 % $ 174,857 13.1 % $ 149,979 11.5 % Investment and other income was $7.6 million in fiscal 2024 compared to $4.0 million in fiscal 2023.
The decrease in operating income in fiscal 2025 was primarily due to facility closure and other reorganization costs, incremental amortization expense related to acquired businesses, and the fair value adjustment to inventory from acquisitions. 17 Table of Contents OPERATING INCOME TO NET INCOME The following is a reconciliation of operating income to net income for the years ended July 31: (Dollars in thousands) 2025 % Sales 2024 % Sales 2023 % Sales Operating income $ 236,638 15.6 % $ 243,414 18.1 % $ 225,213 16.9 % Other income (expense): Investment and other income 5,206 0.3 % 7,553 0.6 % 4,022 0.3 % Interest expense (4,747) (0.3) % (3,126) (0.2) % (3,539) (0.3) % Income before income taxes 237,097 15.7 % 247,841 18.5 % 225,696 16.9 % Income tax expense 47,841 3.2 % 50,626 3.8 % 50,839 3.8 % Net income $ 189,256 12.5 % $ 197,215 14.7 % $ 174,857 13.1 % Investment and other income was $5.2 million in fiscal 2025 compared to $7.6 million in fiscal 2024.
The following discussion is intended to help the reader understand the results of operations and financial condition of the Company for the year ended July 31, 2024 compared to the year ended July 31, 2023. References in this Annual Report on Form 10-K to “organic sales” refer to sales calculated in accordance with U.S.
The following discussion is intended to help the reader understand the results of operations and financial condition of the Company for the year ended July 31, 2025 compared to the year ended July 31, 2024.
SG&A expenses include selling and administrative costs directly attributed to the Americas & Asia and Europe & Australia segments, as well as certain other corporate administrative expenses including finance, information technology, human resources and other administrative expenses. SG&A expenses increased 1.6% to $376.7 million in fiscal 2024 compared to $370.7 million in fiscal 2023.
Investments in new printing systems, pressure sensitive materials, scanners and software are the primary focus of R&D expenditures in fiscal 2026. SG&A expenses include selling and administrative costs directly attributed to the Americas & Asia and Europe & Australia segments, as well as certain other corporate administrative expenses including finance, information technology, human resources and other administrative expenses.
On May 1, 2024, the Company performed the qualitative assessment for all three reporting units and determined that it is more likely than not that the fair value exceeds the carrying value for each reporting unit, and as such, goodwill was not considered impaired.
On May 1, 2025, the Company performed the qualitative assessment for all three reporting units with goodwill balances and determined that it was more likely than not that the fair value exceeds the carrying value for each reporting unit, and as such, goodwill was not considered impaired. 22 Table of Contents Business Combinations The Company uses the acquisition method of accounting to allocate the purchase price of an acquired business to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition.
As a percentage of net sales, segment profit increased to 15.5% in fiscal 2024 compared to 14.8% in fiscal 2023.
Segment profit decreased 19.4% to $56.9 million in fiscal 2025 compared to $70.6 million in fiscal 2024. As a percentage of net sales, segment profit decreased to 11.0% in fiscal 2025 compared to 15.5% in fiscal 2024.
Capital expenditures were elevated in fiscal 2024 due to the purchase of a facility that was previously leased as well as other facility construction costs to support continued growth in the Americas and Europe. Net cash used in financing activities was $70.5 million during fiscal 2024 compared to $163.6 million in fiscal 2023.
Net cash used in investing activities was $81.0 million in fiscal 2024, which primarily consisted of capital expenditures, which included the purchase of a previously leased facility in Mexico and facility construction costs in Belgium. Net cash used in financing activities was $83.9 million during fiscal 2025 compared to $70.5 million in fiscal 2024.
The Company's income tax rate was 20.4% in fiscal 2024. Refer to Note 11, "Income Taxes" for additional information on the Company's income tax rates. Business Segment Operating Results The Company evaluates short-term segment performance based on segment profit and customer sales.
Refer to Item 8, Note 11, “Income Taxes” for additional information on the Company's income tax rates. 18 Table of Contents Business Segment Operating Results The Company evaluates short-term segment performance based on segment profit and customer sales. Interest expense, investment and other income, income tax expense, and certain corporate administrative expenses are excluded when evaluating segment performance.
The increase in organic sales in Europe was primarily driven by growth in Western Europe and the Nordic region, partially offset by a decline in the United Kingdom. 19 Table of Contents Organic sales in Australia increased in the low-single digits in fiscal 2024.
The decline was driven by the United Kingdom and Western Europe Regions, which was partially offset by growth in the Middle East and Nordic Regions. Organic sales in Australia declined in the mid-single digits in fiscal 2025. The organic sales decline was primarily driven by a decrease in volume in the safety and facility and wire identification product lines.
The organic sales increase was primarily driven by growth in Singapore, India and Japan, which was partially offset by a decline in volume in China. Segment profit increased 9.1% to $196.8 million in fiscal 2024 from $180.5 million in fiscal 2023. As a percent of net sales, segment profit increased to 22.2% in fiscal 2024 from 20.3% in fiscal 2023.
As a percent of net sales, segment profit decreased to 21.1% in fiscal 2025 from 22.2% in fiscal 2024. The increase in segment profit was primarily due to increased profit from organic sales growth, which was partially offset by facility closure and other reorganization costs and incremental amortization expense related to acquired businesses.
The Company has taken and will continue to take actions to mitigate inflationary pressures through targeted pricing actions and a commitment to driving long-term efficiency improvements. We believe our financial strength positions us well to continue investing in acquisitions and organic growth opportunities, such as expanded sales channels, marketing programs, and R&D.
Notwithstanding the uncertain situation relating to tariffs, we believe our financial strength positions us well to continue investing in acquisitions and organic growth opportunities, such as expanded sales channels, marketing programs, and research and development (“R&D”).
As a percentage of net sales, R&D expenses increased to 5.1% in fiscal 2024 compared to 4.6% in fiscal 2023. The increase in R&D spending in fiscal 2024 was primarily due to increased headcount. The Company remains committed to investing in new product development to increase sales within our businesses.
The increase in R&D spending in fiscal 2025 was primarily due to the acquisition of Gravotech, and, to a lesser extent, an increase in R&D headcount within the Company's organic business. The Company remains committed to investing in new innovative product development to drive long-term organic sales growth.
As a percentage of net sales, SG&A expense increased to 28.1% in fiscal 2024 compared to 27.8% in fiscal 2023.
R&D expenses increased 17.9% to $79.9 million in fiscal 2025 compared to $67.7 million in fiscal 2024. As a percentage of net sales, R&D expenses increased to 5.3% in fiscal 2025 compared to 5.1% in fiscal 2024.
As a result of the analysis performed on May 1, 2024, all indefinite-lived tradenames had fair value in excess of their carrying value. 22 Table of Contents New Accounting Standards The information required by this Item is provided in Note 1 of the Notes to Consolidated Financial Statements contained in Item 8 — Financial Statements and Supplementary Data. 23 Table of Contents
While we believe expectations and assumptions utilized for historical business combinations have been reasonable, they are inherently uncertain and include significant management judgment. New Accounting Standards The information required by this Item is provided in Note 1 of the notes to consolidated financial statements contained in Item 8 — Financial Statements and Supplementary Data. 23 Table of Contents
Organic sales growth of 3.1% was offset by a decline from divestitures of 3.2% and a decrease from foreign currency translation of 0.2%. Organic sales in the Americas increased in the low-single digits in fiscal 2024.
The increase consisted of sales growth from acquisitions of 14.7% and an increase from foreign currency translation of 1.4%, which was partially offset by an organic sales decline of 1.8%.
The increase in segment profit was primarily due to organic sales growth in higher margin product lines, reductions in freight expenses and improvements in inventory management, which was partially offset by increased headcount in sales and technology-related roles Financial Condition Liquidity & Capital Resources The Company's cash balances are generated and held in numerous locations throughout the world.
The decrease in segment profit and segment profit as a percentage of sales was primarily due to incremental amortization from acquired businesses, purchase accounting adjustments and reorganization costs in order to streamline our operating structure. Financial Condition Liquidity & Capital Resources The Company's cash balances are generated and held in numerous locations throughout the world.
The increase in cash provided by operating activities was primarily due to an increase in profit, as well as continued reductions in inventory levels in fiscal 2024. Net cash used in investing activities was $81.0 million during fiscal 2024, which primarily consisted of capital expenditures of $79.9 million.
Net cash used in investing activities was $171.3 million during fiscal 2025, which primarily consisted of the acquisition of businesses of $144.5 million and capital expenditures of $27.6 million.
The increase in segment profit was primarily due to organic sales growth in higher gross margin product lines, particularly in the Americas, and a decrease in selling expenses from divested businesses, which was partially offset by increased headcount in sales, technology and R&D-related roles.
The decrease in gross margin as a percentage of net sales was primarily due to a non-recurring increase in cost of goods sold of $4.1 million related to the fair value adjustment to inventory from acquisitions, facility closure and other reorganization costs of $4.9 million, as well as the impact of incremental tariffs, which were partially offset by organic sales growth in higher gross margin product lines.
The decrease in cash used in financing activities was primarily due to increased net borrowings to fund elevated capital expenditures in fiscal 2024, as well as year-end borrowings to fund the acquisition of Gravotech Holding, which was completed on August 1, 2024. 20 Table of Contents Material Cash Requirements Our material cash requirements for known contractual obligations include capital expenditures, borrowings on credit facilities and lease obligations.
The 20 Table of Contents increase in cash used in financing activities was primarily due to increased net repayments on borrowings on our credit agreement following the funding of acquisitions in fiscal 2025, which was partially offset by a decline in share repurchases compared to the prior year.
The increase in investment and other income in fiscal 2024 was primarily due to an increase in interest income driven by a larger cash balance invested and higher interest rates throughout the year, and an increase in the market value of securities held in deferred compensation plans.
The decrease in investment and other income in fiscal 2025 was primarily due to a decrease in interest income resulting from a reduced cash balance and lower interest rates. Interest expense increased to $4.7 million in fiscal 2025 compared to $3.1 million in fiscal 2024.
Removed
Macroeconomic Conditions and Trends The Company continues to be impacted by inflationary pressures to raw material and labor costs, supply chain disruptions, and other global macroeconomic challenges.
Added
A discussion regarding our financial condition and results of operations for fiscal 2024 compared to fiscal 2023 can be found under Item 7 in our Annual Report on Form 10-K for the year ended July 31, 2024, filed with the SEC on September 6, 2024, which is available on the SEC's website at www.sec.gov and our corporate website at www.bradyid.com/corporate/investors and such information is incorporated by reference herein.
Removed
While we experienced material increases to raw material and labor costs and supply chain disruptions in previous years, fiscal 2024 showed signs of easing, with a moderation of raw material and labor cost inflation and improved supply chain stability, which we anticipate will persist into fiscal 2025.
Added
Macroeconomic Conditions and Trends The Company's operations and financial performance are subject to the risks and uncertainties inherent in the global economic environment, including inflationary pressures, supply chain disruptions, and other macroeconomic challenges. These pressures may impact the Company's business, financial condition and results of operations as the global economic outlook remains uncertain.
Removed
Both divestitures impacted the Americas & Asia reportable segment.
Added
In recent months, the U.S. government introduced incremental import tariffs on goods imported into the U.S. from numerous countries, triggering reciprocal tariffs and other actions from many countries on goods exported from the U.S. Trade policies of the U.S. and other countries, including China, are complex and rapidly evolving.
Removed
The increase in gross margin as a percentage of net sales was primarily due to organic sales growth in higher gross margin product lines, improvements in inventory management and reductions in freight expenses. R&D expenses increased 10.4% to $67.7 million in fiscal 2024 compared to $61.4 million in fiscal 2023.
Added
Our strategy of manufacturing products near the point of sale reduces our overall exposure to tariffs, though certain sourced inputs and manufactured items remain subject to incremental tariffs. Our business has incurred, and expects to continue to incur, additional costs as it relates to these incremental tariffs for the foreseeable future.
Removed
Investments in new printing systems, materials and the build out of industrial track and trace solutions continued to be the primary focus of R&D expenditures in fiscal 2024.
Added
The Company has taken and will continue to take action to mitigate inflationary pressures caused by the incremental tariffs through a combination of targeted price increases and surcharges, strategic sourcing adjustments, product portfolio optimization, as well as our ongoing efforts to drive sustainable efficiency gains in our operations and administrative structures.
Removed
The increase in SG&A expenses in fiscal 2024 was due to increased headcount in sales and technology-related roles and investments in digital advertising and broader omnichannel strategies, which was partially offset by a decrease in selling expenses from divested businesses and a decrease in amortization expense.
Added
(“Microfluidic Solutions”) on April 1, 2025. The operating results of Gravotech, AB&R and Microfluidic Solutions have been included since their acquisition dates. Gravotech has been included in both reportable segments, and AB&R and Microfluidic Solutions have been included in the Americas & Asia reportable segment.
Removed
Europe & Australia Europe & Australia sales increased 2.7% to $454.9 million in fiscal 2024 compared to $443.0 million in fiscal 2023. The net sales increase consisted of organic sales growth of 1.6% and an increase from foreign currency translation of 1.1%. Organic sales in Europe increased in the low-single digits in fiscal 2024.
Added
The comparability of the operating results for the Americas & Asia segment has also been impacted by the divestiture of two non-core businesses, one in March 2023 and another in October 2023.
Removed
Organic sales growth was primarily driven by the wire identification product line, which was partially offset by a decline in the safety and facility identification product line. Segment profit increased 7.4% to $70.6 million in fiscal 2024 compared to $65.7 million in fiscal 2023.
Added
SG&A expenses increased 17.9% to $444.3 million in fiscal 2025 compared to $376.7 million in fiscal 2024. As a percentage of net sales, SG&A expense increased to 29.4% in fiscal 2025 compared to 28.1% in fiscal 2024 primarily due to incremental amortization expense from acquired intangible assets of $9.5 million and facility closure and other reorganization costs of $13.6 million.
Removed
Net cash used in investing activities was $11.2 million in fiscal 2023, which consisted of capital expenditures of $19.2 million partially offset by proceeds of $8.0 million from the divestiture of a business.
Added
Organic sales growth reflected strong execution of our commercial strategies, supported by steady industrial demand in North America, continued expansion in key end markets across Latin America, and resilient demand in Asia despite mixed economic conditions in certain countries. Organic sales in the Americas increased in the low-single digits in fiscal 2025.
Removed
Other Indefinite-Lived Intangible Assets Other indefinite-lived intangible assets, which consists of tradenames, are tested for impairment in accordance with the Company's policy outlined above using the income approach. Fair value is estimated using the income approach based upon current sales projections applying the relief from royalty method.
Added
The organic sales increase was primarily driven by higher demand from electronics manufacturing services providers, technology companies, and industrial suppliers across Japan, India, Malaysia and Singapore. This growth was partially offset by lower volumes in China. Segment profit increased 6.6% to $209.8 million in fiscal 2025 from $196.8 million in fiscal 2024.
Removed
If the carrying value of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.
Added
The decrease in segment profit as a percentage of sales was primarily due to costs associated with the closure of two facilities, incremental amortization from acquired businesses and purchase accounting adjustments, which was partially offset by increased profit from organic sales growth. 19 Table of Contents Europe & Australia Europe & Australia sales increased 14.3% to $519.9 million in fiscal 2025 compared to $454.9 million in fiscal 2024.
Added
Organic sales declined due to softer industrial demand, driven by lower manufacturing output and ongoing economic uncertainty in Europe, particularly the United Kingdom and Germany, and by a weaker growth outlook in Australia. Looking ahead, the Company remains focused on leveraging its capabilities and market presence to drive growth in key markets over the long term.
Added
The decrease in cash provided by operating activities was primarily due to changes in working capital, including inventory growth to maintain high service levels and align with customer needs, higher receivables from strong organic growth in the Americas & Asia segment, and lower payroll-related accruals and accounts payable due to the timing of payments.
Added
The Company recognizes deferred tax assets and liabilities for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.
Added
The excess of the purchase price over the estimated fair value of assets and liabilities is recorded as goodwill. If the fair value of net assets acquired exceeds the purchase price, the Company records the excess as a bargain purchase gain in earnings after reassessing the estimated values.
Added
Assigning fair market values to the assets acquired and liabilities assumed at the date of an acquisition requires knowledge of current market values and the values of assets in use and often requires the application of judgment regarding estimates and assumptions.
Added
While the ultimate responsibility resides with management, for material acquisitions, we retain the services of certified valuation specialists to assist with assigning estimated values to certain acquired assets, including intangible assets and significant tangible long-lived assets.
Added
The valuation methods used to determine the estimated fair value of intangible assets included the multi-period excess earnings method for customer relationships using customer inputs and contributory charges, and the relief from royalty method for tradenames and technological know-how.
Added
Several assumptions and estimates were involved in the application of these valuation methods, including forecasted sales growth, margin, and cash flows attributable to existing customers, obsolescence factor, royalty rate, contributory asset charges, customer attrition rate, tax rates, and discount rates. Tangible long-lived assets are valued using a combination of the income, cost and market value approaches.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+1 added−0 removed9 unchanged
Biggest changeCurrency exchange rates increased fiscal 2024 net sales by 0.2% compared to fiscal 2023 as the U.S. dollar depreciated, on average, against other major currencies throughout the year. Changes in foreign currency exchange rates for the Company’s foreign subsidiaries reporting in local currencies are generally reported as a component of stockholders’ equity.
Biggest changeChanges in foreign currency exchange rates for the Company’s foreign subsidiaries reporting in local currencies are generally reported as a component of stockholders’ equity.
The interest rate risk management program allows the Company to enter into approved interest rate derivatives if there is a desire to modify the Company’s exposure to interest rates. As of July 31, 2024, the Company had no interest rate derivatives and no fixed rate debt outstanding. 24 Table of Contents
The interest rate risk management program allows the Company to enter into approved interest rate derivatives if there is a desire to modify the Company’s exposure to interest rates. As of July 31, 2025, the Company had no interest rate derivatives and no fixed rate debt outstanding. 24 Table of Contents
The objective of the Company’s foreign currency exchange risk management is to minimize the impact of currency movements on non-functional currency transactions. To achieve this objective, the Company hedges a portion of known exposures using forward contracts. As of July 31, 2024, the notional amount of outstanding forward foreign exchange contracts designated as cash flow hedges was $59.2 million.
The objective of the Company’s foreign currency exchange risk management is to minimize the impact of currency movements on non-functional currency transactions. To achieve this objective, the Company hedges a portion of known exposures using forward contracts. As of July 31, 2025, the notional amount of outstanding forward foreign exchange contracts designated as cash flow hedges was $53.5 million.
The Company uses Euro-denominated debt of €48.7 million and British Pound-denominated debt of £10.3 million designated as hedge instruments to hedge portions of the Company’s net investment in its Euro-denominated and British Pound-denominated businesses. The Company's multi-currency revolving credit agreement allows it to borrow up to $200 million in currencies other than U.S. dollars.
The Company uses Euro-denominated debt of $50.2 million and British Pound-denominated debt of $10.6 million designated as hedge instruments to hedge portions of the Company’s net investment in its Euro-denominated and British Pound-denominated businesses. The Company's multi-currency revolving credit agreement allows it to borrow up to $200 million in currencies other than U.S. dollars.
The potential decrease in net current assets as of July 31, 2024, from a hypothetical 10 percent adverse change in quoted foreign currency exchange rates would be approximately $32.5 million. This sensitivity analysis assumes a parallel shift in all major foreign currency exchange rates versus the U.S. dollar.
The potential decrease in net current assets as of July 31, 2025, from a hypothetical 10 percent adverse change in quoted foreign currency exchange rates would be approximately $25.9 million. This sensitivity analysis assumes a parallel shift in all major foreign currency exchange rates versus the U.S. dollar.
The Company’s currency translation adjustments recorded during the years ended July 31, 2024, 2023, and 2022, as a separate component of stockholders’ equity, were unfavorable by $14.5 million, favorable by $16.0 million, and unfavorable by $53.4 million, respectively.
The Company’s currency translation adjustments recorded during the years ended July 31, 2025, 2024, and 2023, as a separate component of stockholders’ equity, were favorable by $18.2 million, unfavorable by $14.5 million, and favorable by $16.0 million, respectively.
As of July 31, 2024 and 2023, the Company’s foreign subsidiaries had net current assets (defined as current assets less current liabilities) subject to foreign currency translation risk of $324.5 million and $207.6 million, respectively.
As of July 31, 2025 and 2024, the Company’s foreign subsidiaries had net current assets (defined as current assets less current liabilities) subject to foreign currency translation risk of $259.2 million and $324.5 million, respectively.
Added
In fiscal 2025, the fluctuation in currency exchange rates had a negligible effect on sales; however, the effect was more pronounced in interim periods compared to fiscal 2024 as the U.S. dollar depreciated, on average, against other major currencies throughout the year.

Other BRC 10-K year-over-year comparisons