Brady Corporation (BRC)
Pretax margin
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 237,097 | 247,841 | 225,696 | 191,980 | 171,023 |
| Revenue | US$ in thousands | 1,513,600 | 1,341,390 | 1,331,860 | 1,302,060 | 1,144,700 |
| Pretax margin | 15.66% | 18.48% | 16.95% | 14.74% | 14.94% |
July 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $237,097K ÷ $1,513,600K
= 15.66%
The pretax margin of Brady Corporation demonstrates notable fluctuations over the analyzed period from July 31, 2021, to July 31, 2025. Initially, the pretax margin was 14.94% as of July 31, 2021, experiencing a slight decline to 14.74% by July 31, 2022. This marginal decrease indicates a relatively stable profit before taxes in that year, with minor variations in earnings relative to revenues. Subsequently, by July 31, 2023, the pretax margin experienced an increase to 16.95%, reflecting an improvement in profitability before taxes, potentially due to better cost management or increased revenue efficiency.
The upward trend continues through July 31, 2024, when the pretax margin rises further to 18.48%, representing the highest level within the observed period. This suggests enhanced operational performance, improved pricing strategies, or favorable cost controls that contributed to a more significant portion of revenue translating into pre-tax income. However, by July 31, 2025, the pretax margin declines to 15.66%, indicating a reduction in profitability relative to previous years. This decrease may be attributable to increased expenses, competitive pressures, or changes in revenue composition that impacted pre-tax earnings.
Overall, the pretax margin reflects a trend of initial stability, followed by periods of improvement and subsequent contraction, pointing toward evolving operating conditions and profitability management within Brady Corporation over these years.