Brady Corp Forecasts $6.25 to $6.75 Adjusted EPS for Fiscal 2027
Brady Corporation (NYSE:BRC) reported fiscal 2026 sales of $1.66 billion, a 9.8% increase driven by 5.3% organic growth and the recent acquisition of Intelligent Productivity Solutions (IPS). Operating cash flow rose sharply to $244.1 million from $181.2 million. The company forecasts fiscal 2027 adjusted diluted earnings per share between $6.25 and $6.75, with approximately $0.80 expected from IPS after acquisition-financing costs. IPS is projected to contribute about $1.15 billion in revenue for fiscal 2027 but operates at lower margins than Brady’s existing segments. This raises concerns over potential margin dilution despite the anticipated earnings boost. The company aims for at least $25 million of annual cost synergies within three years and has taken on significant debt to fund the acquisition, including about $1.6 billion in new financing. The forecast assumes successful integration and execution against synergy targets. However, delays or challenges with product rationalization, systems separation, customer retention, or employee integration could reduce fiscal 2027 accretion.
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