Record High Adjusted EPS Driven by Cost Reductions and R&D Investment
Brady achieved a new quarterly record high adjusted EPS of $1.26, up 5.9% year-over-year, driven by strategic cost reductions and increased R&D investment.
The company grew organic sales by 2.4% in Q4, with acquisitions contributing an additional 11.3%, highlighting a balanced growth approach.
Management emphasized that significant cost outlays, including restructuring and facility closures, contributed to margin expansion despite challenging macro conditions.
R&D spending increased by 31% in Q4, reaching nearly $80 million for the year, underpinning a focus on high-margin engineered products.
Adjusted EBITDA rose 23.2% to $103.3 million, exceeding analyst estimates by $21 million, supported by employee retention credits and operational improvements.
CoreCivic reported a 9.8% increase in total revenue for Q2 2025 compared to Q2 2024, driven by higher federal and state detention populations and increased per diem rates.
GAAP EPS was $0.35, with adjusted EPS at $0.36, up 80% year-over-year, and normalized FFO per share increased 40.5% to $0.59.
Operating margin improved to 26.2% from 23.7% in the prior year quarter, with a 90 basis point increase excluding employee retention credits.
The company repurchased 2 million shares in Q2 at a cost of $43.2 million, totaling 3.9 million shares repurchased year-to-date for $81 million.
Adjusted EBITDA was $37 million, down 9% year-over-year, with margin declining 40 basis points to 3.4%.
Education segment revenue grew 5.6% year-over-year (5.3% organically), driven by strong fill rates in K-12 staffing.
ETM segment revenue declined 3.9% reported and 5.1% organically, impacted by large customer demand reductions and federal contractor declines.
Gross profit was $225.5 million with a 20.5% gross profit rate, improving 30 basis points year-over-year, aided by MRP acquisition but offset by organic declines.
Operating cash flow was strong, enabling a $130 million net debt paydown, ending the quarter with $74 million total borrowing and 0.6 adjusted EBITDA leverage ratio.
Reported EPS was $0.52 versus $0.12 in Q2 2024; adjusted EPS was $0.54 versus $0.71 prior year, reflecting lower earnings from operations and higher interest expense.
Revenue for Q2 2025 was $1.1 billion, up 4.2% year-over-year on a reported basis but down 3.3% organically due to macroeconomic pressures and reduced demand from federal contractors and large customers.
SET segment revenue increased 19% reported, driven by MRP acquisition, but organic revenue declined 8.5%, with a 3.2% decline excluding federal contractor impacts.
Dafinchi