Brady Corporation 剛提交了截至 2026 年 4 月 30 日的 10-Q 季度報告（2026 財年第三季度），業績表現亮眼 。

brc-20260430false2026Q30000746598July 31xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesutr:Ratexbrli:pure00007465982025-08-012026-04-300000746598us-gaap:NonvotingCommonStockMember2026-05-140000746598us-gaap:CommonClassBMember2026-05-1400007465982026-04-3000007465982025-07-310000746598us-gaap:NonvotingCommonStockMember2025-07-310000746598us-gaap:NonvotingCommonStockMember2026-04-300000746598us-gaap:CommonClassBMember2026-04-300000746598us-gaap:CommonClassBMember2025-07-3100007465982026-02-012026-04-3000007465982025-02-012025-04-3000007465982024-08-012025-04-300000746598us-gaap:RetainedEarningsMember2025-02-012025-04-300000746598us-gaap:NonvotingCommonStockMember2026-02-012026-04-300000746598us-gaap:NonvotingCommonStockMember2025-02-012025-04-300000746598us-gaap:NonvotingCommonStockMember2025-08-012026-04-300000746598us-gaap:NonvotingCommonStockMember2024-08-012025-04-300000746598us-gaap:CommonClassBMember2026-02-012026-04-300000746598us-gaap:CommonClassBMember2025-02-012025-04-300000746598us-gaap:CommonClassBMember2025-08-012026-04-300000746598us-gaap:CommonClassBMember2024-08-012025-04-300000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-02-012026-04-300000746598us-gaap:CommonStockMember2026-01-310000746598us-gaap:AdditionalPaidInCapitalMember2026-01-310000746598us-gaap:RetainedEarningsMember2026-01-310000746598us-gaap:TreasuryStockCommonMember2026-01-310000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-01-3100007465982026-01-310000746598us-gaap:AdditionalPaidInCapitalMember2026-02-012026-04-300000746598us-gaap:TreasuryStockCommonMember2026-02-012026-04-300000746598us-gaap:NonvotingCommonStockMemberus-gaap:RetainedEarningsMember2026-02-012026-04-300000746598us-gaap:CommonClassBMemberus-gaap:RetainedEarningsMember2026-02-012026-04-300000746598us-gaap:CommonStockMember2026-04-300000746598us-gaap:AdditionalPaidInCapitalMember2026-04-300000746598us-gaap:RetainedEarningsMember2026-04-300000746598us-gaap:TreasuryStockCommonMember2026-04-300000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-04-300000746598us-gaap:CommonStockMember2025-07-310000746598us-gaap:AdditionalPaidInCapitalMember2025-07-310000746598us-gaap:RetainedEarningsMember2025-07-310000746598us-gaap:TreasuryStockCommonMember2025-07-310000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-07-310000746598us-gaap:RetainedEarningsMember2025-08-012026-04-300000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-08-012026-04-300000746598us-gaap:AdditionalPaidInCapitalMember2025-08-012026-04-300000746598us-gaap:TreasuryStockCommonMember2025-08-012026-04-300000746598us-gaap:NonvotingCommonStockMemberus-gaap:RetainedEarningsMember2025-08-012026-04-300000746598us-gaap:CommonClassBMemberus-gaap:RetainedEarningsMember2025-08-012026-04-300000746598us-gaap:CommonStockMember2025-01-310000746598us-gaap:AdditionalPaidInCapitalMember2025-01-310000746598us-gaap:RetainedEarningsMember2025-01-310000746598us-gaap:TreasuryStockCommonMember2025-01-310000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-3100007465982025-01-310000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-02-012025-04-300000746598us-gaap:AdditionalPaidInCapitalMember2025-02-012025-04-300000746598us-gaap:TreasuryStockCommonMember2025-02-012025-04-300000746598us-gaap:NonvotingCommonStockMemberus-gaap:RetainedEarningsMember2025-02-012025-04-300000746598us-gaap:CommonClassBMemberus-gaap:RetainedEarningsMember2025-02-012025-04-300000746598us-gaap:CommonStockMember2025-04-300000746598us-gaap:AdditionalPaidInCapitalMember2025-04-300000746598us-gaap:RetainedEarningsMember2025-04-300000746598us-gaap:TreasuryStockCommonMember2025-04-300000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-04-3000007465982025-04-300000746598us-gaap:CommonStockMember2024-07-310000746598us-gaap:AdditionalPaidInCapitalMember2024-07-310000746598us-gaap:RetainedEarningsMember2024-07-310000746598us-gaap:TreasuryStockCommonMember2024-07-310000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-3100007465982024-07-310000746598us-gaap:RetainedEarningsMember2024-08-012025-04-300000746598us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-08-012025-04-300000746598us-gaap:AdditionalPaidInCapitalMember2024-08-012025-04-300000746598us-gaap:TreasuryStockCommonMember2024-08-012025-04-300000746598us-gaap:NonvotingCommonStockMemberus-gaap:RetainedEarningsMember2024-08-012025-04-300000746598us-gaap:CommonClassBMemberus-gaap:RetainedEarningsMember2024-08-012025-04-300000746598us-gaap:TradeNamesMember2026-04-300000746598us-gaap:TradeNamesMember2025-07-310000746598us-gaap:CustomerRelationshipsMember2026-04-300000746598us-gaap:CustomerRelationshipsMember2025-07-310000746598us-gaap:TechnologyBasedIntangibleAssetsMember2026-04-300000746598us-gaap:TechnologyBasedIntangibleAssetsMember2025-07-310000746598us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-07-310000746598us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2025-07-310000746598us-gaap:AccumulatedTranslationAdjustmentMember2025-07-310000746598us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-08-012026-04-300000746598us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2025-08-012026-04-300000746598us-gaap:AccumulatedTranslationAdjustmentMember2025-08-012026-04-300000746598us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2026-04-300000746598us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2026-04-300000746598us-gaap:AccumulatedTranslationAdjustmentMember2026-04-300000746598us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-07-310000746598us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2024-07-310000746598us-gaap:AccumulatedTranslationAdjustmentMember2024-07-310000746598us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-08-012025-04-300000746598us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2024-08-012025-04-300000746598us-gaap:AccumulatedTranslationAdjustmentMember2024-08-012025-04-300000746598us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-04-300000746598us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2025-04-300000746598us-gaap:AccumulatedTranslationAdjustmentMember2025-04-300000746598srt:AmericasMemberbrc:AmericasAsiaMember2026-02-012026-04-300000746598srt:AmericasMemberbrc:AmericasAsiaMember2025-02-012025-04-300000746598srt:AmericasMemberbrc:AmericasAsiaMember2025-08-012026-04-300000746598srt:AmericasMemberbrc:AmericasAsiaMember2024-08-012025-04-300000746598srt:AsiaPacificMemberbrc:AmericasAsiaMember2026-02-012026-04-300000746598srt:AsiaPacificMemberbrc:AmericasAsiaMember2025-02-012025-04-300000746598srt:AsiaPacificMemberbrc:AmericasAsiaMember2025-08-012026-04-300000746598srt:AsiaPacificMemberbrc:AmericasAsiaMember2024-08-012025-04-300000746598brc:AmericasAsiaMember2026-02-012026-04-300000746598brc:AmericasAsiaMember2025-02-012025-04-300000746598brc:AmericasAsiaMember2025-08-012026-04-300000746598brc:AmericasAsiaMember2024-08-012025-04-300000746598srt:EuropeMemberbrc:EuropeAustraliaMember2026-02-012026-04-300000746598srt:EuropeMemberbrc:EuropeAustraliaMember2025-02-012025-04-300000746598srt:EuropeMemberbrc:EuropeAustraliaMember2025-08-012026-04-300000746598srt:EuropeMemberbrc:EuropeAustraliaMember2024-08-012025-04-300000746598country:AUbrc:EuropeAustraliaMember2026-02-012026-04-300000746598country:AUbrc:EuropeAustraliaMember2025-02-012025-04-300000746598country:AUbrc:EuropeAustraliaMember2025-08-012026-04-300000746598country:AUbrc:EuropeAustraliaMember2024-08-012025-04-300000746598brc:EuropeAustraliaMember2026-02-012026-04-300000746598brc:EuropeAustraliaMember2025-02-012025-04-300000746598brc:EuropeAustraliaMember2025-08-012026-04-300000746598brc:EuropeAustraliaMember2024-08-012025-04-300000746598us-gaap:OperatingSegmentsMemberbrc:AmericasAsiaMember2026-02-012026-04-300000746598us-gaap:OperatingSegmentsMemberbrc:AmericasAsiaMember2025-02-012025-04-300000746598us-gaap:OperatingSegmentsMemberbrc:AmericasAsiaMember2025-08-012026-04-300000746598us-gaap:OperatingSegmentsMemberbrc:AmericasAsiaMember2024-08-012025-04-300000746598us-gaap:OperatingSegmentsMemberbrc:EuropeAustraliaMember2026-02-012026-04-300000746598us-gaap:OperatingSegmentsMemberbrc:EuropeAustraliaMember2025-02-012025-04-300000746598us-gaap:OperatingSegmentsMemberbrc:EuropeAustraliaMember2025-08-012026-04-300000746598us-gaap:OperatingSegmentsMemberbrc:EuropeAustraliaMember2024-08-012025-04-300000746598us-gaap:OperatingSegmentsMember2026-02-012026-04-300000746598us-gaap:OperatingSegmentsMember2025-02-012025-04-300000746598us-gaap:OperatingSegmentsMember2025-08-012026-04-300000746598us-gaap:OperatingSegmentsMember2024-08-012025-04-300000746598us-gaap:CorporateNonSegmentMember2026-02-012026-04-300000746598us-gaap:CorporateNonSegmentMember2025-02-012025-04-300000746598us-gaap:CorporateNonSegmentMember2025-08-012026-04-300000746598us-gaap:CorporateNonSegmentMember2024-08-012025-04-300000746598us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel1Member2026-04-300000746598us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel1Member2025-07-310000746598us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2026-04-300000746598us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2025-07-310000746598us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2026-04-300000746598us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2025-07-310000746598us-gaap:DesignatedAsHedgingInstrumentMember2026-04-300000746598us-gaap:DesignatedAsHedgingInstrumentMember2025-07-310000746598us-gaap:NondesignatedMember2026-04-300000746598us-gaap:NondesignatedMember2025-07-310000746598us-gaap:NetInvestmentHedgingMember2026-04-300000746598us-gaap:NetInvestmentHedgingMember2025-07-310000746598us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2026-04-300000746598us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2026-04-300000746598us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-07-310000746598us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2025-07-310000746598us-gaap:LongTermDebtMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2025-07-310000746598us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:NondesignatedMember2026-04-300000746598us-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMember2026-04-300000746598us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:NondesignatedMember2025-07-310000746598us-gaap:OtherCurrentLiabilitiesMemberus-gaap:NondesignatedMember2025-07-310000746598us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2026-04-300000746598us-gaap:OtherCurrentLiabilitiesMember2026-04-300000746598us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2025-07-310000746598us-gaap:OtherCurrentLiabilitiesMember2025-07-310000746598us-gaap:LongTermDebtMember2025-07-310000746598brc:MeccoAcquisitionMember2025-08-042025-08-040000746598brc:MeccoAcquisitionMember2025-08-040000746598brc:PSSAcquisitionMember2026-04-202026-04-200000746598brc:PSSAcquisitionMember2026-02-012026-04-30

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended April 30, 2026 
OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from                     to                     
Commission File Number 1-14959

BRADY CORPORATION 
(Exact name of registrant as specified in its charter)

Wisconsin 39-0178960
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

6555 West Good Hope Road
Milwaukee, Wisconsin 53223
(Address of principal executive offices and zip code)
(414) 358-6600
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading SymbolName of each exchange on which registered
Class A Nonvoting Common Stock, par value $0.01 per shareBRCNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  ☑   No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☑  No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑Accelerated filer ☐Emerging growth company☐
Non-accelerated filer ☐Smaller reporting company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐ No  ☑ 
As of May 14, 2026, there were 43,574,162 outstanding shares of Class A Nonvoting Common Stock and 3,538,628 shares of Class B Voting Common Stock. The Class B Voting Common Stock, all of which is held by affiliates of the Registrant, is the only voting stock.

Table of Contents

INDEX
 

 Page
PART I. Financial Information
3

Item 1. Financial Statements (Unaudited)
3

Condensed Consolidated Balance Sheets
3

Condensed Consolidated Statements of Income
4

Condensed Consolidated Statements of Comprehensive Income
5

Condensed Consolidated Statements of Stockholders’ Equity
6

Condensed Consolidated Statements of Cash Flows
8

Notes to Condensed Consolidated Financial Statements
9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
18

Item 3. Quantitative and Qualitative Disclosures About Market Risk
26

Item 4. Controls and Procedures
26

PART II. Other Information
27

Item 1. Legal Proceedings
27

Item 1A. Risk Factors
27

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
27

Item 5. Other Information
28

Item 6. Exhibits
29

Signatures
30

2

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)

April 30, 2026July 31, 2025
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$175,491 $174,349 
Accounts receivable, net of allowance for credit losses of $7,274 and $7,876, respectively
266,354 231,944 
Inventories220,252 200,881 
Prepaid expenses and other current assets16,832 14,661 
Total current assets678,929 621,835 
Property, plant and equipment—net243,720 225,572 
Goodwill689,415 676,945 
Other intangible assets103,425 105,374 
Deferred income taxes18,503 20,862 
Operating lease assets61,154 58,422 
Other assets36,805 25,243 
Total$1,831,951 $1,734,253 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$108,454 $105,028 
Accrued compensation and benefits92,253 92,657 
Taxes, other than income taxes22,308 21,537 
Accrued income taxes4,787 5,547 
Current operating lease liabilities16,382 15,234 
Other current liabilities93,620 90,329 
Total current liabilities337,804 330,332 
Long-term debt26,857 99,766 
Long-term operating lease liabilities45,270 43,565 
Other liabilities78,035 68,379 
Total liabilities487,966 542,042 
Stockholders’ equity:
Class A nonvoting common stock—Issued 51,261,487 shares, and outstanding 43,650,910 and 43,530,012 shares, respectively
513 513 
Class B voting common stock—Issued and outstanding, 3,538,628 shares
35 35 
Additional paid-in capital363,578 359,269 
Retained earnings1,442,868 1,317,739 
Treasury stock—7,610,577 and 7,731,475 shares, respectively, of Class A nonvoting common stock, at cost
(393,992)(393,186)
Accumulated other comprehensive loss(69,017)(92,159)
Total stockholders’ equity1,343,985 1,192,211 
Total$1,831,951 $1,734,253 

See Notes to Condensed Consolidated Financial Statements.
3

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, Except Per Share Amounts, Unaudited)

Three months ended April 30,Nine months ended April 30,
 2026202520262025
Net sales$435,237 $382,590 $1,224,661 $1,116,330 
Cost of goods sold209,768 187,531 595,966 555,739 
Gross margin225,469 195,059 628,695 560,591 
Operating expenses:
Research and development23,531 19,191 71,132 56,835 
Selling, general and administrative128,732 108,678 354,195 326,410 
Total operating expenses152,263 127,869 425,327 383,245 
Operating income 73,206 67,190 203,368 177,346 
Other income (expense):
Investment and other income (expense)1,431 (509)3,948 2,850 
Interest expense(1,269)(936)(3,467)(3,604)
Income before income taxes73,368 65,745 203,849 176,592 
Income tax expense15,568 13,482 44,062 37,212 
Net income$57,800 $52,263 $159,787 $139,380 
Net income per Class A Nonvoting Common Share:
Basic$1.22 $1.10 $3.38 $2.92 
Diluted$1.21 $1.09 $3.35 $2.89 
Net income per Class B Voting Common Share:
Basic$1.22 $1.10 $3.36 $2.90 
Diluted$1.21 $1.09 $3.33 $2.88 
Weighted average common shares outstanding:
Basic47,357 47,644 47,313 47,743 
Diluted47,814 48,066 47,761 48,196 

See Notes to Condensed Consolidated Financial Statements.
4

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in Thousands, Unaudited)

Three months ended April 30,Nine months ended April 30,
 2026202520262025
Net income$57,800 $52,263 $159,787 $139,380 
Other comprehensive income (loss):
Foreign currency translation adjustments(12,891)38,161 22,169 16,902 

Cash flow hedges:
Net gain (loss) recognized in other comprehensive income (loss)81 (423)1,404 (826)
Reclassification adjustment for (gains) losses included in net income(202)210 105 209 
(121)(213)1,509 (617)

Pension and other post-retirement benefits actuarial gain amortization(152)(152)(454)(454)

Other comprehensive income (loss), before tax(13,164)37,796 23,224 15,831 
Income tax (expense) benefit related to items of other comprehensive (loss) income(104)297 (82)57 
Other comprehensive (loss) income, net of tax(13,268)38,093 23,142 15,888 
Comprehensive income$44,532 $90,356 $182,929 $155,268 

See Notes to Condensed Consolidated Financial Statements.
5

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Dollars in Thousands, Unaudited)

Three months ended April 30, 2026
Common StockAdditional
 Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal Stockholders’ Equity
Balances at January 31, 2026$548 $361,567 $1,396,642 $(389,988)$(55,749)$1,313,020 
Net income— — 57,800 — — 57,800 
Other comprehensive income, net of tax— — — — (13,268)(13,268)
Issuance of shares of Class A Common Stock under stock plan— (335)— 1,162 — 827 
Stock-based compensation expense— 2,346 — — — 2,346 
Repurchase of shares of Class A Common Stock, including excise taxes— — — (5,166)— (5,166)
Cash dividends on Common Stock:
Class A — $0.2450 per share
— — (10,707)— — (10,707)
Class B — $0.2450 per share
— — (867)— — (867)
Balances at April 30, 2026$548 $363,578 $1,442,868 $(393,992)$(69,017)$1,343,985 

Nine months ended April 30, 2026
Common StockAdditional
 Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal Stockholders’ Equity
Balances at July 31, 2025$548 $359,269 $1,317,739 $(393,186)$(92,159)$1,192,211 
Net income— — 159,787 — — 159,787 
Other comprehensive income, net of tax— — — — 23,142 23,142 
Issuance of shares of Class A Common Stock under stock plan— (7,562)— 13,324 — 5,762 
Tax benefit and withholdings from deferred compensation distributions— 266 — — — 266 
Stock-based compensation expense— 11,605 — — — 11,605 
Repurchase of shares of Class A Common Stock, including excise taxes— — — (14,130)— (14,130)
Cash dividends on Common Stock:
Class A — $0.7350 per share
— — (32,116)— — (32,116)
Class B — $0.7184 per share
— — (2,542)— — (2,542)
Balances at April 30, 2026$548 $363,578 $1,442,868 $(393,992)$(69,017)$1,343,985 

See Notes to Condensed Consolidated Financial Statements.
6

Table of Contents

Three months ended April 30, 2025
Common StockAdditional
 Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal Stockholders’ Equity
Balances at January 31, 2025$548 $356,531 $1,238,275 $(343,059)$(131,827)$1,120,468 
Net income— — 52,263 — — 52,263 
Other comprehensive loss, net of tax— — — — 38,093 38,093 
Issuance of shares of Class A Common Stock under stock plan— (755)— 415 — (340)
Stock-based compensation expense— 1,769 — — — 1,769 
Repurchase of shares of Class A Common Stock, including excise taxes— — — (33,330)— (33,330)
Cash dividends on Common Stock:
Class A — $0.2400 per share
— — (10,521)— — (10,521)
Class B — $0.2400 per share
— — (849)— — (849)
Balances at April 30, 2025$548 $357,545 $1,279,168 $(375,974)$(93,734)$1,167,553 

Nine months ended April 30, 2025
Common StockAdditional
 Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal Stockholders’ Equity
Balances at July 31, 2024$548 $353,654 $1,174,025 $(351,947)$(109,622)$1,066,658 
Net income— — 139,380 — — 139,380 
Other comprehensive loss, net of tax— — — — 15,888 15,888 
Issuance of shares of Class A Common Stock under stock plan— (6,061)— 9,303 — 3,242 
Tax benefit and withholdings from deferred compensation distributions— 190 — — — 190 
Stock-based compensation expense— 9,762 — — — 9,762 
Repurchase of shares of Class A Common Stock, including excise taxes— — — (33,330)— (33,330)
Cash dividends on Common Stock:
Class A — $0.7200 per share
— — (31,749)— — (31,749)
Class B — $0.7034 per share
— — (2,488)— — (2,488)
Balances at April 30, 2025$548 $357,545 $1,279,168 $(375,974)$(93,734)$1,167,553 

See Notes to Condensed Consolidated Financial Statements.

7

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands, Unaudited)

Nine months ended April 30,
 20262025
Operating activities:
Net income$159,787 $139,380 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization33,549 30,279 
Stock-based compensation expense11,605 9,762 
Deferred income taxes9,506 (6,038)

Other(4,857)(181)
Changes in operating assets and liabilities:
Accounts receivable(28,102)(6,869)
Inventories(12,970)(8,209)
Prepaid expenses and other assets(1,098)(3,754)
Accounts payable and accrued liabilities(1,638)(26,415)
Income taxes(883)(5,081)
Net cash provided by operating activities164,899 122,874 

Investing activities:
Purchases of property, plant and equipment(32,994)(18,685)
Acquisition of businesses, net of cash acquired(17,416)(147,248)

Other6,848 854 
Net cash used in investing activities(43,562)(165,079)

Financing activities:
Payment of dividends(34,658)(34,237)
Proceeds from exercise of stock options9,168 5,759 
Payments for employee taxes withheld from stock-based awards(3,406)(2,518)
Purchase of treasury stock(14,130)(33,155)
Proceeds from borrowing on credit agreement73,500 206,249 
Repayment of borrowing on credit agreement(146,409)(194,365)

Other(9,534)190 
Net cash used in financing activities(125,469)(52,077)

Effect of exchange rate changes on cash and cash equivalents5,274 (3,682)

Net increase (decrease) in cash and cash equivalents1,142 (97,964)
Cash and cash equivalents, beginning of period174,349 250,118 

Cash and cash equivalents, end of period$175,491 $152,154 

See Notes to Condensed Consolidated Financial Statements.
8

Table of Contents

BRADY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Nine Months Ended April 30, 2026 
(Unaudited)
(In thousands, except share and per share amounts)

NOTE A — Basis of Presentation
The condensed consolidated financial statements included herein have been prepared by Brady Corporation and subsidiaries (the “Company,” “Brady,” “we,” or “our”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company, the foregoing statements contain all adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial position of the Company as of April 30, 2026 and July 31, 2025, its results of operations, comprehensive income and changes in stockholders’ equity for the three and nine months ended April 30, 2026 and 2025, and cash flows for the nine months ended April 30, 2026 and 2025. The condensed consolidated balance sheet as of July 31, 2025 has been derived from the audited consolidated financial statements as of that date. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts therein. Due to the inherent uncertainty involved in making estimates, actual results in future periods may differ from the estimates.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to rules and regulations of the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statement presentation. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended July 31, 2025.

NOTE B — New Accounting Pronouncements
Adopted Standards
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The guidance requires expanded interim and annual disclosures of segment information including the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss. The Company adopted ASU 2023-07 for the year ended July 31, 2025, with retrospective application of the expanded segment information for the years ended July 31, 2024 and 2023. Additional information regarding the Company’s reportable segments, including the application of the provisions of ASU 2023-07 for the three and nine months ended April 30, 2026 and 2025, is included in Note H to the condensed consolidated financial statements.
Standards not yet adopted
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The guidance requires expanded annual disclosures including the standardization and disaggregation of income tax rate reconciliation categories and the amount of income taxes paid by jurisdiction. The guidance is effective for the Company’s fiscal 2026 Form 10-K. The Company is currently assessing its income tax disclosures in connection with the adoption of ASU 2023-09.
In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The guidance requires expanded interim and annual disclosures of expense information including the amounts of inventory purchases, employee compensation, depreciation, amortization, and depletion within commonly presented expense captions during the period. The guidance is effective for the Company’s fiscal 2028 Form 10-K and interim periods thereafter. The Company is currently evaluating the ASU to determine the impact this guidance will have on the Company’s disclosures.
9

Table of Contents

NOTE C — Additional Balance Sheet Information
Inventories
Inventories consisted of the following as of April 30, 2026 and July 31, 2025:

 April 30, 2026July 31, 2025
Finished products$118,475 $109,726 
Work-in-process34,658 32,787 
Raw materials and supplies67,119 58,368 
Total inventories$220,252 $200,881 

Property, plant and equipment
Property, plant and equipment is presented net of accumulated depreciation of $322,884 and $313,778 as of April 30, 2026 and July 31, 2025, respectively. 

NOTE D — Other Intangible Assets
Other intangible assets as of April 30, 2026 and July 31, 2025 consisted of the following: 

 April 30, 2026July 31, 2025
Weighted Average Amortization Period (Years)Gross Carrying AmountAccumulated AmortizationNet Book ValueWeighted Average Amortization Period (Years)Gross Carrying AmountAccumulated AmortizationNet Book Value
Amortized other intangible assets:
Tradenames2$904 $(791)$113 2$912 $(456)$456 
Customer relationships8137,440 (51,289)86,151 8125,497 (38,427)87,070 
Technology518,622 (9,223)9,399 520,471 (10,275)10,196 
Unamortized other intangible assets:
TradenamesN/A7,762 — 7,762 N/A7,652 — 7,652 
Total$164,728 $(61,303)$103,425 $154,532 $(49,158)$105,374 

The change in the gross carrying amount of other intangible assets as of April 30, 2026 compared to July 31, 2025 was primarily due to the acquisition of MECCO Partners LLC (“Mecco”) completed during the nine months ended April 30, 2026, partially offset by the removal of a fully amortized technology asset. Refer to Note N, “Acquisitions,” for additional information on intangible assets acquired. 
Amortization expense on intangible assets was $5,255 and $4,754 for the three months ended April 30, 2026 and 2025, respectively, and $15,768 and $14,138 for the nine months ended April 30, 2026 and 2025, respectively.

NOTE E — Leases
The Company leases certain manufacturing facilities, warehouse and office spaces, and vehicles accounted for as operating leases. Lease terms typically range from one year to ten years. As of April 30, 2026, the Company did not have any finance leases.
Operating lease expense was $5,327 and $4,714 for the three months ended April 30, 2026 and 2025, respectively, and $15,823 and $13,988 for the nine months ended April 30, 2026 and 2025, respectively, which was recognized in either “Cost of goods sold” or “Selling, general and administrative” expenses in the condensed consolidated statements of income, based on the nature of the lease. Short-term lease expense, variable lease expenses, and sublease income were immaterial to the condensed consolidated statements of income for the three and nine months ended April 30, 2026 and 2025.
10

Table of Contents

Supplemental cash flow information related to the Company’s operating leases for the nine months ended April 30, 2026 and 2025 was as follows:

Nine months ended April 30,
20262025
Operating cash outflows from operating leases$15,462 $13,780 
Operating lease assets obtained in exchange for new operating lease liabilities (1)
13,805 30,964 

(1) Includes new leases, acquired leases and remeasurements or modifications of existing leases.

NOTE F — Accumulated Other Comprehensive Loss
Other comprehensive loss consists of foreign currency translation adjustments, which includes net investment hedges and long-term intercompany loan translation adjustments, unrealized gains and losses from cash flow hedges, and the unamortized gain or loss on post-retirement plans, net of their related tax effects.
The following table illustrates the changes in the balances of each component of accumulated other comprehensive loss, net of tax, for the nine months ended April 30, 2026:

Unrealized (loss) gain on cash flow hedgesUnamortized gain (loss) on post-retirement plansForeign currency translation adjustmentsAccumulated other comprehensive loss
Beginning balance, July 31, 2025$(394)$5 $(91,770)$(92,159)
Other comprehensive income before reclassification1,348 — 22,169 23,517 
Amounts reclassified from accumulated other comprehensive loss79 (454)— (375)
Ending balance, April 30, 2026$1,033 $(449)$(69,601)$(69,017)

The decrease in accumulated other comprehensive loss as of April 30, 2026 compared to July 31, 2025 was primarily due to the depreciation of the U.S. dollar against certain other currencies during the nine-month period.
The changes in accumulated other comprehensive loss by component, net of tax, for the nine months ended April 30, 2025 were as follows:

Unrealized loss on cash flow hedgesUnamortized gain on post-retirement plansForeign currency translation adjustmentsAccumulated other comprehensive loss
Beginning balance, July 31, 2024$(149)$462 $(109,935)$(109,622)
Other comprehensive (loss) income before reclassification(716)— 16,902 16,186 
Amounts reclassified from accumulated other comprehensive loss156 (454)— (298)
Ending balance, April 30, 2025$(709)$8 $(93,033)$(93,734)

The decrease in accumulated other comprehensive loss as of April 30, 2025 compared to July 31, 2024 was primarily due to the depreciation of the U.S. dollar against certain other currencies during the nine-month period. 
Of the amounts reclassified from accumulated other comprehensive loss during the nine months ended April 30, 2026 and 2025, unrealized gains or losses on cash flow hedges were reclassified to “Cost of goods sold” and unamortized gains or losses on post-retirement plans were reclassified into “Investment and other income (expense)” on the condensed consolidated statements of income.
The following table illustrates the income tax (expense) benefit on the components of other comprehensive loss for the three and nine months ended April 30, 2026 and 2025:

Three months ended April 30,Nine months ended April 30,
2026202520262025
Income tax (expense) benefit related to items of other comprehensive loss:
Cash flow hedges$(104)$297 $(82)$57 

11

Table of Contents

NOTE G — Revenue Recognition
The Company recognizes revenue when control of the product or service transfers to the customer at an amount that represents the consideration expected to be received in exchange for those products and services. The Company’s revenues are primarily from the sale of identification and direct part marking solutions, high-performance materials and workplace safety products that are shipped and billed to customers. All revenue is from contracts with customers and is included in “Net sales” on the condensed consolidated statements of income. 
Disaggregation of Revenue
The following is a summary of net sales by segment and geographic region for the three and nine months ended April 30, 2026 and 2025:

Three months ended April 30,Nine months ended April 30,
2026202520262025
Net sales:
Americas & Asia
Americas$251,665 $219,913 $700,851 $636,493 
Asia38,390 33,739 109,701 96,433 
Total$290,055 $253,652 $810,552 $732,926 
Europe & Australia
Europe$130,060 $115,715 $371,228 $342,345 
Australia15,122 13,223 42,881 41,059 
Total$145,182 $128,938 $414,109 $383,404 

Total Company$435,237 $382,590 $1,224,661 $1,116,330 

Contract Balances
The Company offers extended warranty coverage that is included in the sales price of certain products, which it accounts for as service warranties. The Company accounts for the deferred revenue associated with extended service warranties as a contract liability. The balance of contract liabilities associated with service warranty performance obligations was $3,402 and $3,060 as of April 30, 2026 and July 31, 2025, respectively. The current portion and non-current portion of contract liabilities are included in “Other current liabilities” and “Other liabilities,” respectively, on the condensed consolidated balance sheets. The Company recognized revenue of $382 and $343 during the three months ended April 30, 2026 and 2025, respectively, and $1,137 and $1,021 during the nine months ended April 30, 2026 and 2025, respectively, that was included in the contract liability balance at the beginning of the respective period from the amortization of extended service warranties. Of the contract liability balance outstanding at April 30, 2026, the Company expects to recognize 12% by the end of fiscal 2026, an additional 38% by the end of fiscal 2027, and the remaining balance thereafter. 
The Company records deferred revenue for payments received in advance for certain software and services. These amounts are classified as contract liabilities and recognized as revenue over the service period. The balance of contract liabilities related to software and services was $11,423 and $9,246 as of April 30, 2026 and July 31, 2025, respectively. The Company recognized revenue of $1,714 and $1,204 during the three months ended April 30, 2026 and 2025, respectively, and $6,740 and $4,934 during the nine months ended April 30, 2026 and 2025, respectively, which was previously included in the beginning balance of deferred revenue as of July 31, 2025 and July 31, 2024.

NOTE H — Segment Information
The Company is organized and managed within two regions: Americas & Asia and Europe & Australia, which are the reportable segments. The Company’s Chief Executive Officer (“CEO”), who is also the Company’s Chief Operating Decision Maker (“CODM”), uses segment profit in measuring segment performance, allocating resources, evaluating performance in periodic reviews, and during the development of the annual budget and the regular forecasting process. The CODM considers budget-to-actual variances on a quarterly basis, as well as segment-specific forecasting, when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses the segment’s net sales in measuring segment performance. 
12

Table of Contents

The following is a summary of segment information as of and for the three and nine months ended April 30, 2026 and 2025:

Three months ended April 30,Nine months ended April 30,
2026202520262025
Americas & Asia
Net sales$290,055 $253,652 $810,552 $732,926 
Cost of goods sold139,782 123,827 395,479 362,078 
Gross margin150,273 129,825 415,073 370,848 
Segment expenses:
Research and development16,954 13,318 51,168 39,445 
Selling, general and administrative64,589 59,343 181,561 173,255 
Total segment expenses81,543 72,661 232,729 212,700 
Segment profit$68,730 $57,164 $182,344 $158,148 

Europe & Australia
Net sales$145,182 $128,938 $414,109 $383,404 
Cost of goods sold69,986 63,704 200,487 193,661 
Gross margin75,196 65,234 213,622 189,743 
Segment expenses:
Research and development6,577 5,873 19,964 17,390 
Selling, general and administrative47,149 41,883 138,034 130,481 
Total segment expenses53,726 47,756 157,998 147,871 
Segment profit$21,470 $17,478 $55,624 $41,872 
Total profit from reportable segments$90,200 $74,642 $237,968 $200,020 

Reconciliation to income before income taxes
Total profit from reportable segments$90,200 $74,642 $237,968 $200,020 
Unallocated costs:
Administrative costs(16,994)(7,452)(34,600)(22,674)

Investment and other income (expense)1,431 (509)3,948 2,850 
Interest expense(1,269)(936)(3,467)(3,604)
Income before income taxes$73,368 $65,745 $203,849 $176,592 

Other Segment Information
Depreciation & amortization:
Americas & Asia$7,452 $6,573 $22,110 $19,670 
Europe & Australia3,892 3,609 11,439 10,609 
Total Company$11,344 $10,182 $33,549 $30,279 
Expenditures for property, plant & equipment:
Americas & Asia$9,907 $2,550 $27,259 $12,003 
Europe & Australia1,140 1,712 5,735 6,682 
Total Company$11,047 $4,262 $32,994 $18,685 

13

Table of Contents

NOTE I — Net Income per Common Share
Reconciliations of the numerator and denominator of the basic and diluted per share computations for the Company’s Class A and Class B common stock are summarized as follows:

Three months ended April 30,Nine months ended April 30,
 2026202520262025
Numerator (in thousands):
Net income (Numerator for basic and diluted income per Class A Nonvoting Common Share)$57,800 $52,263 $159,787 $139,380 
Less:
Preferential dividends— — (728)(736)
Preferential dividends on dilutive stock options— — (8)(8)
Numerator for basic and diluted income per Class B Voting Common Share$57,800 $52,263 $159,051 $138,636 
Denominator (in thousands):
Denominator for basic income per share for both Class A and Class B47,357 47,644 47,313 47,743 
Plus: Effect of dilutive equity awards457 422 448 453 
Denominator for diluted income per share for both Class A and Class B47,814 48,066 47,761 48,196 
Net income per Class A Nonvoting Common Share:
Basic$1.22 $1.10 $3.38 $2.92 
Diluted$1.21 $1.09 $3.35 $2.89 
Net income per Class B Voting Common Share:
Basic$1.22 $1.10 $3.36 $2.90 
Diluted$1.21 $1.09 $3.33 $2.88 

Potentially dilutive securities attributable to outstanding stock options and restricted stock units were excluded from the calculation of diluted earnings per share where the combined exercise price and average unamortized fair value were greater than the average market price of the Company’s Class A Nonvoting Common Stock because the effect would have been anti-dilutive. There were no anti-dilutive shares for the three months ended April 30, 2026 and 2025. The amount of anti-dilutive shares were 6,156 and 5,759 for the nine months ended April 30, 2026 and 2025, respectively.

NOTE J — Fair Value Measurements
In accordance with fair value accounting guidance, the Company determines fair value based on the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The inputs used to measure fair value are classified into the following hierarchy:
Level 1 — Unadjusted quoted prices in active markets for identical instruments that are accessible as of the reporting date.
Level 2 — Other significant pricing inputs that are either directly or indirectly observable.
Level 3 — Significant unobservable pricing inputs, which result in the use of management’s own assumptions.
The following table summarizes the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of April 30, 2026 and July 31, 2025:

 April 30, 2026July 31, 2025Fair Value Hierarchy
Assets:
Deferred compensation plan assets$21,273 $19,998 Level 1
Foreign exchange contracts636 — Level 2
Liabilities:
Foreign exchange contracts37 198 Level 2

14

Table of Contents

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Deferred compensation plan assets: The Company’s deferred compensation investments consist of investments in mutual funds, which are included in “Other assets” on the condensed consolidated balance sheets. These investments were classified as Level 1 as the shares of these investments trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. 
Foreign exchange contracts: The Company’s foreign exchange contracts were classified as Level 2 as the fair value was based on the present value of the future cash flows using external models that use observable inputs, such as interest rates, yield curves and foreign exchange rates. See Note K, “Derivatives and Hedging Activities,” for additional information.
The fair values of cash and cash equivalents, accounts receivable, accounts payable, and other liabilities approximated carrying values due to their short-term nature. 

NOTE K — Derivatives and Hedging Activities
The Company utilizes forward foreign exchange currency contracts to reduce the exchange rate risk of specific foreign currency denominated transactions. These contracts typically require the exchange of a foreign currency for U.S. dollars at a fixed rate on a future date, with maturities of less than 18 months, which qualify as cash flow hedges or net investment hedges under the accounting guidance for derivative instruments and hedging activities. The primary objective of the Company’s foreign currency exchange risk management program is to minimize the impact of currency movements due to transactions in other than the respective subsidiaries’ functional currency and to minimize the impact of currency movements on the Company’s net investment denominated in a currency other than the U.S. dollar. To achieve this objective, the Company hedges a portion of known exposures using forward foreign exchange currency contracts. 
Main foreign currency exposures are related to transactions denominated in the British Pound, Euro, Canadian dollar, Australian dollar, Mexican Peso, Chinese Yuan, Malaysian Ringgit and Singapore dollar. Generally, these risk management transactions will involve the use of foreign currency derivatives to minimize the impact of currency movements on non-functional currency transactions.
The U.S. dollar equivalent notional amounts of outstanding forward exchange contracts were as follows:

April 30, 2026July 31, 2025
Designated as cash flow hedges$13,438 $53,542 
Non-designated hedges4,776 4,380 
Total foreign exchange contracts$18,214 $57,922 

Cash Flow Hedges
The Company has designated a portion of its forward foreign exchange contracts as cash flow hedges and recorded these contracts at fair value on the condensed consolidated balance sheets. For these instruments, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into income in the same period or periods during which the hedged transaction affects income. As of April 30, 2026 and July 31, 2025, unrealized gains of $1,015 and unrealized losses of $493 have been included in OCI, respectively.
Net Investment Hedges
The Company has designated certain third party foreign currency denominated debt borrowed under its credit agreement as net investment hedges. These debt obligations, denominated in Euros and British Pounds, were designated as net investment hedges to hedge portions of the Company’s net investment in its European operations. The Company’s foreign currency denominated debt obligations are valued under a market approach using publicized spot prices, and the net gains or losses attributable to the changes in spot prices are recorded as cumulative translation within AOCI and are included in the foreign currency translation adjustments section of the condensed consolidated statements of comprehensive income. During the three months ended April 30, 2026, the Company settled outstanding foreign currency denominated debt previously designated as a hedge of its net investment in foreign operations. As of April 30, 2026 and July 31, 2025, the cumulative balances recognized in accumulated other comprehensive income were losses of $3,105 and $2,753, respectively.
15

Table of Contents

The following table summarizes the amount of pre-tax gains and losses related to derivatives designated as hedging instruments:

Three months ended April 30,Nine months ended April 30,
  2026202520262025
Gains (losses) recognized in OCI:
Forward exchange contracts (cash flow hedges)$81 $(423)$1,404 $(826)
Foreign currency denominated debt (net investment hedges)1,289 (2,883)(352)(1,613)
Gains (losses) reclassified from OCI into cost of goods sold
Forward exchange contracts (cash flow hedges)202 (210)(105)(209)

Fair values of derivative instruments in the condensed consolidated balance sheets were as follows:

 April 30, 2026July 31, 2025
Prepaid expenses and other current assetsOther current liabilitiesLong-term obligationsPrepaid expenses and other current assetsOther current liabilitiesLong-term obligations
Derivatives designated as hedging instruments:
Foreign exchange contracts (cash flow hedges)$636 $36 $— $— $197 $— 
Foreign currency denominated debt (net investment hedges)— — — — — 34,536 
Derivatives not designated as hedging instruments:
Foreign exchange contracts (non-designated hedges)— 1 — — 1 — 
Total derivative instruments$636 $37 $— $— $198 $34,536 

NOTE L — Income Taxes
The income tax rate for the three months ended April 30, 2026 and 2025 was 21.2% and 20.5%, respectively. The income tax rate for the nine months ended April 30, 2026 and 2025, was 21.6% and 21.1%, respectively. 

NOTE M — Contingencies
In the normal course of business, the Company is subject to a variety of investigations, claims, suits, and other legal proceedings, including but not limited to, intellectual property, employment, unclaimed property, tort, and breach of contract matters. Any legal proceedings are subject to inherent uncertainties, and these matters and their potential effects may change in the future. The Company records a liability for contingencies when a loss is deemed to be probable and the loss can be reasonably estimated. The Company currently believes that the outcomes of such proceedings will not have a material adverse impact on its business, financial position, results of operations or cash flows.

NOTE N — Acquisitions
On August 4, 2025, the Company acquired all of the membership interest of Mecco for $18,918, net of cash acquired. The purchase price includes a cash payment of $17,416 and a holdback liability of $1,502. Based in Pittsburgh, Pennsylvania, Mecco speciali