Earnings quality remains robust as evidenced by an OCF/NI ratio of 1.35 in 2026Q3, while free cash flow margins have recovered to 15.4% following disciplined capital expenditure management.
Brady Corporation (BRC) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | Jul'26 | Jul'25 | Jul'24 | Jul'23 | Jul'22 | Jul'21 | Jul'20 | Jul'19 | Jul'18 | Jul'17 | Jul'16 | Jul'15 | Jul'14 | Jul'13 | Jul'12 | Jul'11 | Jul'10 | Jul'09 | Jul'08 | Jul'07 | Jul'06 | Jul'05 | Jul'04 | Jul'03 | Jul'02 | Jul'01 | Jul'00 | Jul'99 | Jul'98 | Jul'97 |
|---|
| Cash from Operations | 244.13M | 181.2M | 255.07M | 209.15M | 118.45M | 205.66M | 140.98M | 162.21M | 143.04M | 144.03M | 138.98M | 93.35M | 93.42M | 143.5M | 144.71M | 167.35M | 165.24M | 126.64M | 225.55M | 136.02M | 114.9M | 119.1M | 84.77M | 55.25M | 54.25M | 53.23M | 48.41M | 61.4M | 47.2M | 39.9M |
| Operating CF Margin % | 14.69% | 11.97% | 19.02% | 15.7% | 9.1% | 17.97% | 13.04% | 13.98% | 12.19% | 12.94% | 12.4% | 7.97% | 7.63% | 12.46% | 10.93% | 12.49% | 13.12% | 10.48% | 14.81% | 9.98% | 11.28% | 14.59% | 12.63% | 9.96% | 10.49% | 9.75% | 8.95% | 13.04% | 10.37% | 9.36% |
| Operating CF Growth % | 34.73% | -28.96% | 21.96% | 76.57% | -42.41% | 45.89% | -13.09% | 13.4% | -0.69% | 3.64% | 48.88% | -0.08% | -34.9% | -0.83% | -13.53% | 1.28% | 30.47% | -43.85% | 65.83% | 18.38% | -3.53% | 40.5% | 53.43% | 1.84% | 1.92% | 9.96% | -21.16% | 30.08% | 18.3% | 15.32% |
| Net Income | 205.38M | 189.26M | 197.22M | 174.86M | 149.98M | 129.66M | 112.37M | 131.26M | 91.06M | 95.64M | 80.11M | 2.99M | -45.97M | -154.53M | -17.91M | 108.65M | 81.96M | 70.12M | 132.19M | 109.39M | 104.17M | 81.95M | 50.87M | 21.42M | 28.25M | 27.55M | 47.2M | 39.6M | 28M | 31.7M |
| Depreciation & Amortization | 44.87M | 40.64M | 29.87M | 32.37M | 34.18M | 25.48M | 23.44M | 23.8M | 25.44M | 27.3M | 32.43M | 39.46M | 44.6M | 48.73M | 43.99M | 48.83M | 53.02M | 54.85M | 60.59M | 53.86M | 35.14M | 26.82M | 20.19M | 18.06M | 16.63M | 22.65M | 17.83M | 15.2M | 13.3M | 14.2M |
| Stock-Based Compensation | 22.86M | 11.88M | 7.36M | 7.51M | 10.5M | 10.1M | 8.84M | 12.09M | 9.98M | 9.49M | 8.15M | 4.47M | 5.21M | 1.74M | 9.73M | 9.83M | 9.72M | 7.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 2.36M | -7.62M | -9.4M | -12.47M | -1.65M | -8.96M | -764K | 7.83M | 33.66M | -8.62M | 2.08M | -7.23M | -30.42M | 21.63M | -9.68M | -8.16M | -6.83M | -8.64M | -1.5M | 70K | -1.84M | -2.65M | 0 | -1.92M | 449K | -1.98M | -763K | -1.1M | -4.5M | -1.1M |
| Other Non-Cash Items | -1.68M | -2.54M | 1.4M | -4.08M | 1.2M | 4.92M | 16.68M | 2.35M | -4.67M | 46.77M | 56.1M | 51.46M | 150.35M | 226.94M | 116.35M | -2.24M | 2.28M | 2.85M | 10.23M | 10.19M | 6.72M | 12.92M | 6.27M | 8.5M | 694K | 10.55M | -1.94M | 100K | 6.9M | 800K |
| Working Capital Changes | -29.66M | -50.42M | 28.62M | 10.96M | -75.77M | 44.47M | -19.59M | -15.11M | -12.43M | 20.21M | 16.2M | 2.21M | -30.36M | -996K | 2.22M | 10.44M | 25.09M | -271K | 22.38M | -37.5M | -27.91M | 64K | 7.44M | 9.18M | 2.35M | -5.53M | -13.92M | 6.4M | 3.5M | -5.7M |
| Change in Receivables | -24.07M | -14.36M | -6.58M | 2.38M | -25.33M | -12.61M | 13.9M | 3.5M | -16.61M | 766K | 8.16M | 1.32M | -3.6M | 1.53M | 18.09M | 7.68M | -29.48M | 53.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -19.18M | -18.89M | 21.7M | 14.97M | -62.91M | 7.3M | -13.92M | -9.92M | -7.56M | -5.69M | 4.83M | -763K | -12.61M | 2.44M | -7.67M | -2.89M | 426K | 34.75M | 16.22M | -12.32M | -16.96M | -11.85M | -6.79M | 4.14M | 4.89M | 2.25M | -1.36M | 5.5M | 5.7M | -4.8M |
| Change in Payables | 13.21M | -9.86M | 0 | -10.48M | 6.83M | 53.78M | -26.13M | -11.9M | 13.09M | 22.25M | 3.93M | -8.52M | -20.51M | -2.29M | -29.37M | 0 | 53.02M | -90.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -59.02M | -171.25M | -81.05M | -11.21M | -43.07M | -268.59M | -36.12M | -34.46M | -2.9M | -15.25M | -15.42M | -14.37M | 10.21M | -325.77M | -64.6M | -22.63M | -48.68M | -19.04M | -39.21M | -237.04M | -395.28M | -105.09M | -244.91M | -38.82M | -24.53M | -26.48M | -55.05M | -40.9M | -35.8M | -14.3M |
| Capital Expenditures | -51.47M | -27.58M | -79.89M | -19.23M | -43.14M | -27.19M | -27.28M | -32.83M | -21.78M | -15.17M | -17.14M | -26.67M | -43.4M | -35.69M | -24.15M | -20.53M | -26.3M | -24.03M | -26.41M | -51.94M | -39.41M | -21.92M | -14.89M | -14.44M | -13.1M | -20.77M | -22.62M | -41M | -36.5M | -8.8M |
| CapEx % of Revenue | 3.1% | 1.82% | 5.96% | 1.44% | 3.31% | 2.38% | 2.52% | 2.83% | 1.86% | 1.36% | 1.53% | 2.28% | 3.54% | 3.1% | 1.82% | 1.53% | 2.09% | 1.99% | 1.73% | 3.81% | 3.87% | 2.68% | 2.22% | 2.6% | 2.53% | 3.8% | 4.18% | 8.71% | 8.02% | 2.07% |
| Acquisitions | -17.42M | -144.54M | 0 | 8M | 0 | -243.98M | -6M | 0 | 19.14M | 0 | 0 | 6.11M | 54.24M | -290.98M | -36.79M | -7.97M | -30.43M | 0 | -29.35M | -159.47M | -351.33M | -79.93M | -228.93M | -23.91M | -12.75M | -6.7M | -37.91M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 9.87M | 864K | -1.16M | 12K | 67K | 2.58M | -2.84M | -1.64M | -269K | -86K | 1.72M | 6.2M | -637K | 900K | -3.66M | 5.87M | 1.8M | 4.98M | -2.65M | -17.92M | -141K | -1.3M | -1.08M | -466K | 1.31M | -356K | 1.07M | 100K | 700K | -5.5M |
| Cash from Financing | -177.37M | -83.87M | -70.53M | -163.57M | -102.09M | -12.32M | -163.52M | -27.63M | -90.68M | -136.24M | -99.58M | -32.15M | -115.39M | -33.06M | -147.82M | -91.57M | 15.28M | -160.31M | -76.94M | 129.42M | 318.96M | -9.71M | 147.47M | -16.83M | -13.38M | -22.68M | -6.61M | -12.5M | -12.1M | -9.2M |
| Debt Issued (Net) | -84.78M | 8.83M | 41.22M | -45.28M | 57M | 38M | -49.83M | 69K | -55.2M | -113.25M | -38.8M | 8.55M | -50.33M | -10.65M | -62.69M | -61.26M | 50.02M | -87.22M | -21.44M | 148.43M | 198.13M | -2.6M | 148.42M | -327K | -1.75M | -8.94M | 5.45M | -468K | 300K | 1.6M |
| Equity Issued (Net) | -30.89M | -44.67M | -72.22M | -75M | -109.23M | -3.59M | -64.51M | -3.18M | -1.46M | 0 | -23.55M | 0 | -18.47M | 15.2M | -46.07M | 8.19M | 1.18M | -38.58M | -27.68M | 6.83M | 141.98M | 14.18M | 18.86M | 1.43M | 5.72M | 4.22M | 3.2M | 2.25M | 900K | 800K |
| Dividends Paid | -46.14M | -45.54M | -45.06M | -45.4M | -45.93M | -45.75M | -45.76M | -44.73M | -42.87M | -41.88M | -40.81M | -40.98M | -40.49M | -39.24M | -38.9M | -38.06M | -36.79M | -35.84M | -32.46M | -30.14M | -26.06M | -21.29M | -19.8M | -17.94M | -17.36M | -16.23M | -15.26M | -14.3M | -13.4M | -11.6M |
| Share Repurchases | -42.2M | -50.84M | -72.22M | -75M | -109.23M | -3.59M | -64.51M | -3.18M | -1.46M | 0 | -23.55M | 83.38M | -30.58M | -5.12M | -49.93M | 0 | -2.54M | -40.27M | -42.17M | 0 | -24.68M | -1.55M | -564K | -3.23M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -15.56M | -2.49M | 5.54M | 2.12M | -3.93M | -985K | -3.42M | 20.22M | 8.85M | 18.89M | 3.58M | 270K | -6.1M | 1.63M | -169K | -439K | 859K | 1.34M | 4.64M | 4.3M | 4.91M | 0 | -1.37M | 0 | 0 | -1.73M | 0 | -17K | 100K | 0 |
| Net Change in Cash | 12.8M | -75.77M | 98.59M | 37.46M | -33.27M | -70.31M | -61.43M | 97.64M | 47.48M | -7.28M | 26.74M | 32.66M | -9.22M | -214.84M | -84.07M | 75.13M | 126.68M | -70.2M | 115.51M | 29.84M | 40.04M | 4.18M | -5.72M | 119K | 13.16M | 2.03M | -14.68M | 9.9M | 300K | 16M |
| Free Cash Flow | 192.65M | 153.62M | 175.18M | 189.92M | 75.31M | 178.48M | 113.7M | 129.39M | 121.27M | 128.87M | 121.84M | 66.67M | 50.02M | 107.82M | 120.56M | 146.82M | 138.94M | 102.62M | 199.15M | 84.08M | 75.49M | 97.18M | 69.88M | 40.81M | 41.16M | 32.46M | 25.78M | 20.4M | 10.7M | 31.1M |
| FCF Margin % | 11.59% | 10.15% | 13.06% | 14.26% | 5.78% | 15.59% | 10.52% | 11.15% | 10.33% | 11.57% | 10.87% | 5.69% | 4.08% | 9.36% | 9.1% | 10.96% | 11.04% | 8.49% | 13.08% | 6.17% | 7.41% | 11.9% | 10.41% | 7.36% | 7.96% | 5.95% | 4.77% | 4.33% | 2.35% | 7.3% |
| FCF Growth % | 25.41% | -12.31% | -7.76% | 152.18% | -57.8% | 56.97% | -12.12% | 6.7% | -5.9% | 5.77% | 82.73% | 33.29% | -53.6% | -10.57% | -17.89% | 5.67% | 35.4% | -48.47% | 136.86% | 11.38% | -22.33% | 39.07% | 71.23% | -0.84% | 26.8% | 25.88% | 26.39% | 90.65% | -65.59% | 29.05% |
| FCF per Share | 4.03 | 3.19 | 3.61 | 3.81 | 1.46 | 3.41 | 2.14 | 2.43 | 2.31 | 2.48 | 2.40 | 1.30 | 0.96 | 2.10 | 2.30 | 2.76 | 2.62 | 1.94 | 3.63 | 1.54 | 1.50 | 1.95 | 1.46 | 0.87 | 0.88 | 0.70 | 0.56 | 0.45 | 0.24 | 0.71 |
| FCF Conversion (FCF/Net Income) | 1.19x | 0.96x | 1.29x | 1.20x | 0.79x | 1.59x | 1.25x | 1.24x | 1.57x | 1.51x | 1.73x | 31.25x | -2.03x | -0.93x | -8.08x | 1.54x | 2.02x | 1.81x | 1.71x | 1.24x | 1.10x | 1.45x | 1.67x | 2.58x | 1.92x | 1.93x | 1.03x | 1.55x | 1.69x | 1.26x |
| Interest Paid | 2.86M | 4.66M | 2.93M | 3.41M | 1.08M | 373K | 2.4M | 2.65M | 2.98M | 5.77M | 8.53M | 11.16M | 14.59M | 17.16M | 19.19M | 21.3M | 21.63M | 26.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 71.08M | 62.07M | 58.83M | 33.83M | 46.85M | 29.6M | 24.34M | 33.27M | 31.89M | 28.5M | 25.02M | 33.04M | 34.03M | 35.29M | 35.85M | 30.87M | 48.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying BRC stock.
Brady Corporation (BRC) generated $244.1M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Brady Corporation (BRC) generated $192.7M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Brady Corporation (BRC) spent $51.5M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Brady Corporation (BRC) returned $46.1M to shareholders via cash dividends and spent $42.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Industrial cycle demand sensitivity
Metrics are mathematically derived from official filings.
Earnings Quality Driven by Cash
According to recent quarterly filings, Brady Corporation's OCF/NI ratio reached 1.35 in 2026Q3, indicating that operating cash flow consistently exceeds net income, a trend that suggests high-quality earnings and minimal reliance on non-cash accounting adjustments to bolster the company's reported bottom-line performance metrics.
The consistent ability to convert net income into cash at a ratio greater than 1.0 suggests that Brady's earnings are supported by tangible cash inflows rather than aggressive accrual accounting. Investors should monitor this relationship closely, as it underscores the company's operational efficiency in collecting receivables and managing its core business activities.
FCF Margin Recovery and Stability
As reported in financial statements, Brady Corporation's free cash flow margin rebounded to 15.4% in 2026Q3, reflecting a significant recovery from the negative territory observed in 2024Q2 and demonstrating the company's improved capacity to generate surplus cash after accounting for necessary capital expenditures.
The trajectory of free cash flow appears to be stabilizing at a healthy level, which supports the company's ability to fund dividends and share repurchases without external financing. This improvement suggests that the business model is successfully scaling, provided that the company maintains its current discipline regarding capital intensity.
Disciplined Capital Intensity and Maintenance
Based on BRC's reported figures, capital expenditures as a percentage of revenue have remained modest, averaging approximately 2.5% in recent quarters, which indicates that the company's industrial operations do not require excessive reinvestment to maintain their competitive position in the specialized labeling and safety market.
The relatively low capital intensity suggests that Brady's moat is protected by intellectual property and material science rather than heavy, depreciating physical assets. This capital-light profile allows for higher free cash flow generation, which provides management with significant flexibility for capital allocation.
Working Capital Volatility and Efficiency
Analysis of quarterly data reveals that working capital changes have been a significant source of cash flow volatility, with a notable $42.5 million outflow in 2026Q1, suggesting that inventory and receivable cycles remain sensitive to the timing of industrial demand and supply chain procurement strategies.
The sharp swings in working capital indicate that Brady's cash flow is susceptible to the timing of customer payments and inventory build-ups. While the company has shown an ability to recover from these outflows, investors should remain cautious about the impact of these fluctuations on short-term liquidity.
Conservative Capital Allocation Strategy
As evidenced by recent financial disclosures, Brady Corporation continues to prioritize shareholder returns through consistent dividend payments and opportunistic share repurchases, while maintaining a fortress balance sheet that remains largely unburdened by debt, reflecting a highly conservative approach to capital deployment and financial risk management.
The company's preference for returning cash to shareholders rather than pursuing aggressive M&A suggests a management team focused on stability and risk mitigation. While this approach is prudent, it may warrant further investigation into whether the company is missing growth opportunities in the rapidly evolving industrial automation sector.