Brady to Acquire Honeywell's PSS Business, Sees Double-Digit EPS Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 26 2026
0mins
Should l Buy BRC?
Source: Yahoo Finance
- Acquisition Announcement: Brady has announced plans to acquire Honeywell's Productivity Solutions and Services (PSS) business, which is expected to contribute double-digit accretion to adjusted diluted EPS within the first year post-close, marking a strategic shift into data capture and workforce solutions.
- Financial Expectations: PSS generated approximately $1.1 billion in revenue for the 12 months ending December 31, 2025, and Brady anticipates at least $25 million in annual run-rate cost synergies within three years of closing, primarily through improved operational efficiencies.
- Market Expansion: This acquisition positions Brady to enter the $9 billion technology-enabled data capture and workflow solutions market, enhancing its customer base in verticals such as retail, logistics, and warehousing, thereby driving long-term growth.
- R&D Integration: Brady plans to integrate PSS's R&D team with its own, resulting in an expected combined R&D spend of around $200 million, which will further enhance product innovation capabilities and strengthen market competitiveness.
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Analyst Views on BRC
Wall Street analysts forecast BRC stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 70.960
Low
96.00
Averages
96.00
High
96.00
Current: 70.960
Low
96.00
Averages
96.00
High
96.00
No data
About BRC
Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. Its product categories include Safety and facility identification and protection, which include safety signs, traffic signs and control products, floor-marking tape, pipe markers, labeling systems, spill control products, lockout/tagout devices, first aid products, and software and services for safety compliance auditing, procedures writing and training; Wire identification, which includes handheld printers, wire markers, sleeves, and tags. Healthcare identification, which includes wristbands, labels, printing systems, and other products used in hospital, laboratory, and other healthcare settings; People identification, which includes name tags, badges, lanyards, rigid card printing systems, and access control software; and Product identification. It also provides direct part marking solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Brady Corporation Shares Surge 17% Following Strong Q3 2026 Earnings Report
- Guidance Upgrade: Following the release of its Q3 2026 earnings report, Brady Corporation raised its full-year adjusted diluted EPS guidance from $4.95-$5.15 to $5.20-$5.30, reflecting strong profitability and market confidence.
- Core Business Growth: Wire and identification products account for 20% of Brady's revenue in the Americas and Asia, with a 19% sales increase in this segment driving overall organic sales growth of 10.4%, indicating robust market demand.
- Acquisition Plans: Brady has agreed to acquire Honeywell's Productivity Solutions and Services business for $1.4 billion, which will enhance its strength in labeling and printing while leveraging PSS's expertise in mobile computing and barcode scanners, expected to generate $25 million in annual cost synergies.
- Strong Market Performance: Brady's stock surged 17.30% today, reaching $83.23 per share with a market cap of $3.4 billion, demonstrating strong investor confidence in the company's future growth potential.
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Brady Corporation Soars 17% on Stellar Q3 Earnings Report
- Guidance Upgrade: Brady Corporation raised its fiscal 2026 adjusted diluted EPS guidance from $4.95-$5.15 to $5.20-$5.30, reflecting strong profitability and market confidence, which is likely to drive further stock price appreciation.
- Data Center Growth: The company's labeling, printing, and identification products saw a 19% sales increase in the Americas and Asia, largely driven by demand from data centers, contributing to an overall organic sales growth of 10.4%, highlighting Brady's critical role in infrastructure.
- Acquisition Plans for Expansion: Brady is set to acquire Honeywell's Productivity Solutions and Services business for $1.4 billion, which will enhance its capabilities in labeling and printing while generating $25 million in annual cost synergies, thereby expanding its customer base.
- Optimistic Market Outlook: Although the analyst team did not include Brady in their current top investment stocks, the company's strong performance in core business and the implementation of its acquisition strategy suggest potential growth opportunities that may attract investor interest.
See More
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- Strong Cash Flow: The company generated nearly $80 million in cash this quarter, with operating cash flow at $78.2 million and free cash flow at $67.2 million, demonstrating effective financial management and capital allocation.
- Strategic Acquisition: Brady signed an agreement to acquire Honeywell's Productivity Solutions and Services business, which will more than double the markets Brady can serve, enhancing its competitive position and business diversification.
- Optimistic Outlook: The company raised its full-year adjusted EPS guidance to $5.20-$5.30, expecting organic sales growth in the mid-single-digit percentages, reflecting management's confidence in future performance and sustained market demand.
See More
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- Solid Organic Growth: The company achieved organic sales growth of 8.2%, with acquisitions contributing an additional 2.1% growth and foreign currency translation adding 3.5%, showcasing Brady's success in diversifying its revenue streams.
- Robust Cash Flow: Net cash from operating activities increased over 30% to $78.2 million, further strengthening Brady's balance sheet with a net cash position of $148.6 million, providing ample funding for future investments.
- Optimistic Future Guidance: Brady raised its FY2026 adjusted EPS guidance to $5.20-$5.30, reflecting confidence in future growth, while planning to acquire Honeywell's Productivity Solutions business to further expand its market share.
See More
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- Significant Revenue Growth: The company achieved revenue of $435.24 million in Q3, representing a 13.8% year-over-year increase and exceeding market expectations by $29.17 million, showcasing successful sales and market expansion efforts.
- Sales Composition Analysis: Organic sales rose by 8.2%, acquisitions contributed 2.1%, and foreign currency translation added 3.5%, collectively driving overall sales growth and demonstrating the company's diversified growth strategy.
- Upward Guidance Adjustment: The company raised its adjusted diluted EPS guidance for the year ending July 31, 2026, from a previous range of $4.95-$5.15 to $5.20-$5.30, reflecting management's confidence in future performance and further bolstering investor sentiment.
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- Avnet's Stagnation: Avnet's GAAP operating margin is 2.8%, and its sales have stagnated over the past two years, with earnings per share declining by 17.7% annually, highlighting weakened profitability and an urgent need for new growth strategies to tackle market challenges.
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See More
Brady Corporation Shares Surge 17% Following Strong Q3 2026 Earnings Report
- Guidance Upgrade: Following the release of its Q3 2026 earnings report, Brady Corporation raised its full-year adjusted diluted EPS guidance from $4.95-$5.15 to $5.20-$5.30, reflecting strong profitability and market confidence.
- Core Business Growth: Wire and identification products account for 20% of Brady's revenue in the Americas and Asia, with a 19% sales increase in this segment driving overall organic sales growth of 10.4%, indicating robust market demand.
- Acquisition Plans: Brady has agreed to acquire Honeywell's Productivity Solutions and Services business for $1.4 billion, which will enhance its strength in labeling and printing while leveraging PSS's expertise in mobile computing and barcode scanners, expected to generate $25 million in annual cost synergies.
- Strong Market Performance: Brady's stock surged 17.30% today, reaching $83.23 per share with a market cap of $3.4 billion, demonstrating strong investor confidence in the company's future growth potential.
See More
Brady Corporation Soars 17% on Stellar Q3 Earnings Report
- Guidance Upgrade: Brady Corporation raised its fiscal 2026 adjusted diluted EPS guidance from $4.95-$5.15 to $5.20-$5.30, reflecting strong profitability and market confidence, which is likely to drive further stock price appreciation.
- Data Center Growth: The company's labeling, printing, and identification products saw a 19% sales increase in the Americas and Asia, largely driven by demand from data centers, contributing to an overall organic sales growth of 10.4%, highlighting Brady's critical role in infrastructure.
- Acquisition Plans for Expansion: Brady is set to acquire Honeywell's Productivity Solutions and Services business for $1.4 billion, which will enhance its capabilities in labeling and printing while generating $25 million in annual cost synergies, thereby expanding its customer base.
- Optimistic Market Outlook: Although the analyst team did not include Brady in their current top investment stocks, the company's strong performance in core business and the implementation of its acquisition strategy suggest potential growth opportunities that may attract investor interest.
See More
Brady Corporation Reports Strong Q3 2026 Earnings with Strategic Acquisition
- Record Earnings: Brady Corporation reported a record adjusted EPS of $1.50 for Q3 2026, driven by an 8.2% organic sales growth and a gross profit margin nearing 52%, indicating strong market performance and enhanced profitability.
- Strong Cash Flow: The company generated nearly $80 million in cash this quarter, with operating cash flow at $78.2 million and free cash flow at $67.2 million, demonstrating effective financial management and capital allocation.
- Strategic Acquisition: Brady signed an agreement to acquire Honeywell's Productivity Solutions and Services business, which will more than double the markets Brady can serve, enhancing its competitive position and business diversification.
- Optimistic Outlook: The company raised its full-year adjusted EPS guidance to $5.20-$5.30, expecting organic sales growth in the mid-single-digit percentages, reflecting management's confidence in future performance and sustained market demand.
See More
Brady (BRC) Stock Soars 12% After Strong Q3 Results Driven by AI Demand
- Strong Earnings Beat: Brady reported Q3 adjusted EPS of $1.50, exceeding estimates by $0.16, with revenue jumping 13.8% year-over-year to $435.2 million, surpassing expectations by nearly $29.2 million, indicating robust market performance and profitability.
- Solid Organic Growth: The company achieved organic sales growth of 8.2%, with acquisitions contributing an additional 2.1% growth and foreign currency translation adding 3.5%, showcasing Brady's success in diversifying its revenue streams.
- Robust Cash Flow: Net cash from operating activities increased over 30% to $78.2 million, further strengthening Brady's balance sheet with a net cash position of $148.6 million, providing ample funding for future investments.
- Optimistic Future Guidance: Brady raised its FY2026 adjusted EPS guidance to $5.20-$5.30, reflecting confidence in future growth, while planning to acquire Honeywell's Productivity Solutions business to further expand its market share.
See More
Bradypress Reports Q3 Earnings with Strong Revenue Growth
- Strong Earnings Report: Bradypress reported a Q3 Non-GAAP EPS of $1.50, beating expectations by $0.16, indicating a sustained enhancement in profitability and reflecting the company's competitive position in the market.
- Significant Revenue Growth: The company achieved revenue of $435.24 million in Q3, representing a 13.8% year-over-year increase and exceeding market expectations by $29.17 million, showcasing successful sales and market expansion efforts.
- Sales Composition Analysis: Organic sales rose by 8.2%, acquisitions contributed 2.1%, and foreign currency translation added 3.5%, collectively driving overall sales growth and demonstrating the company's diversified growth strategy.
- Upward Guidance Adjustment: The company raised its adjusted diluted EPS guidance for the year ending July 31, 2026, from a previous range of $4.95-$5.15 to $5.20-$5.30, reflecting management's confidence in future performance and further bolstering investor sentiment.
See More
Profitable Companies Aren't Always Built to Last
- Fiverr's Challenges: Fiverr's GAAP operating margin stands at 2.9%, with active buyers declining by an average of 12.3%, leading to difficulties in new customer acquisition, and projected sales are expected to drop by 7.2% over the next 12 months, indicating significant pressure on its business model.
- Avnet's Stagnation: Avnet's GAAP operating margin is 2.8%, and its sales have stagnated over the past two years, with earnings per share declining by 17.7% annually, highlighting weakened profitability and an urgent need for new growth strategies to tackle market challenges.
- Brady's Strong Performance: Brady boasts a GAAP operating margin of 17.4%, with an 8.3% annual revenue growth over the past two years, and projected revenue growth of 12.7% for the next 12 months indicates strong demand for its products, while share buybacks have propelled earnings per share growth to 16.5%.
- Market Dynamics Analysis: While Fiverr and Avnet face significant challenges, Brady demonstrates robust growth potential, suggesting that investors should exercise caution and focus on companies with sustainable growth capabilities in the current market environment.
See More
