Overview
- An acquisition agreement announced Monday between Brady and Honeywell’s Productivity Solutions and Services unit is slated to close in the second half of 2026 and is projected to add about $0.80 to adjusted EPS in its first full year.
- Brady posted record adjusted EPS of $1.50 on revenue of $435.23 million, beat Wall Street forecasts, expanded gross margin to about 51.8%, and generated $78.2 million in operating cash flow with $148.6 million in net cash.
- Management raised fiscal 2026 adjusted EPS guidance to $5.20 to $5.30, citing strong demand from data-center projects and better sales of new printers like the i4311 portable model.
- To fund the PSS purchase, Brady plans a $500 million term loan and $800 million in private placement debt with expected interest below 6%, and it aims to lower net leverage from roughly 2.5 times to under 2.0 times within two years of closing.
- Leaders addressed recent board resignations and said the departures reflected the heavy time demands of the Honeywell transaction rather than disagreements over strategy.