Financial Analysis

Acquisitions On August 1, 2024, the Company acquired all of the outstanding shares of Gravotech. Headquartered in Lyon, France, Gravotech is a leader in the design, manufacture and distribution of innovative solutions for specialized engraving, marking and cutting, offering laser, mechanical engraving, scribing and dot peen capabilities across multiple industries. The acquisition of Gravotech expands the Companys identification product offerings and research and development capabilities to include specialized direct part marking and engraving expertise. The acquisition was funded through cash on hand and borrowings under the Companys existing credit agreement. Net sales and net loss attributable to Gravotech from the acquisition date through July 31, 2025 were $113,919 and $15,375, respectively. The net loss attributable to Gravotech is due to a non-recurring increase in cost of goods sold related to the fair value adjustment to inventory upon acquisition and amortization expense for intangible assets. The purchase price allocation was finalized in the fourth quarter of the year ended July 31, 2025. Measurement period adjustments did not have a material impact on the Company's consolidated statement of income. The purchase price allocation included goodwill of $66,178 of which $46,951 was assigned to the Americas & Asia segment and $19,227 was assigned to the Europe & Australia segment. The goodwill for this acquisition is not deductible for tax purposes. The followin …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

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.

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Debt On August 1, 2019, the Company and certain of its subsidiaries entered into an unsecured $200 million multi-currency credit agreement with a group of five banks. On November 14, 2022, the Company and certain of its subsidiaries entered into a Second Amendment to the Credit Agreement (Amendment No. 2) to, among other items, (a) increase the lending commitments by $100 million for total lending commitments of $300 million, (b) extend the final maturity date to November 14, 2027, (c) increase the interest rate on certain borrowings by 0.125%, and (d) increase the available amount under the credit agreement, at the Company's option and subject to certain conditions, from $300 million up to (i) an amount equal to the incremental borrowing necessary to bring the Company's consolidated net debt-to-EBITDA ratio as defined in the credit agreement to 2.5 to 1.0 plus (ii) $200 million. On October 10, 2024, the Company and certain of its subsidiaries entered into a Third Amendment to the Credit Agreement (Amendment No. 3) with a group of six banks, which amended the original credit agreement dated August 1, 2019. Amendment No. 3 amended the original credit agreement to, among other things, change the applicable benchmark under the credit agreement for borrowings denominated in Canadian Dollars from the Canadian Dollar Offered Rate (CDOR) to the adjusted Term Canadian Overnight Repo Rate Average Rate (CORRA). Borrowings under Amendment No. 3 are unsecured and are guaranteed by certai …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following is a summary of the Company's revenue by geographic region within the reportable segments. See Note 10 Segment Information for information on the Company's reportable segments. 2025 2024 2023 Net sales: Americas & Asia: Americas $ 862,703 $ 784,576 $ 787,426 Asia 131,012 101,952 101,431 Total $ 993,715 $ 886,528 $ 888,857 Europe & Australia: Europe 463,582 399,462 387,743 Australia 56,308 55,403 55,263 Total $ 519,890 $ 454,865 $ 443,006 Total Company $ 1,513,605 $ 1,341,393 $ 1,331,863 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

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 at July 31, 2025 and July 31, 2024, according to the valuation techniques the Company used to determine their fair values. July 31, 2025 July 31, 2024 Fair Value Hierarchy Assets: Deferred compensation plan assets $ 19,998 $ 20,029 Level 1 Foreign exchange contracts 137 Level 2 Liabilities: Foreign exchange contracts $ 198 $ 730 Level 2 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Deferred compensation plan assets : The Companys deferred compensation investments consist of investments in mutual funds, which are included in Other assets on the accompanying consolidated balance sheets. These investments were classified a …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill Changes in the carrying amount of goodwill by reportable segment for the years ended July 31, 2025 and 2024, were as follows: Americas & Asia Europe & Australia Total Balance as of July 31, 2023 $ 441,415 $ 151,231 $ 592,646 Translation adjustments (2,236) (799) (3,035) Balance as of July 31, 2024 $ 439,179 $ 150,432 $ 589,611 Current year acquisitions 57,030 19,227 76,257 Translation adjustments 1,440 9,637 11,077 Balance as of July 31, 2025 $ 497,649 $ 179,296 $ 676,945 Goodwill increased $87,334 during the year ended July 31, 2025. Of the $87,334 increase, $66,178 was due to the acquisition of Gravotech, $10,079 was due to the acquisition of AB&R and $11,077 was due to the positive effects of foreign currency translation. Goodwill decreased $3,035 during the year ended July 31, 2024 due to the negative effects of foreign currency translation. The qualitative assessment performed on May 1, 2025, in accordance with ASC 350, Intangibles - Goodwill and Other indicated that it is more likely than not that the fair value exceeds the carrying value for each of the three reporting units with goodwill (North America, Europe and Latin America). …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Income before income taxes consists of the following: Years Ended July 31, 2025 2024 2023 United States $ 120,323 $ 111,647 $ 92,053 Other Nations 116,774 136,194 133,643 Total $ 237,097 $ 247,841 $ 225,696 Income tax expense consists of the following: Years Ended July 31, 2025 2024 2023 Current income tax expense: United States $ 21,573 $ 22,637 $ 26,324 Other Nations 29,576 32,121 31,093 States (U.S.) 4,315 5,267 5,894 $ 55,464 $ 60,025 $ 63,311 Deferred income tax (benefit) expense: United States $ (2,667) $ (7,999) $ (10,577) Other Nations (3,640) (133) 251 States (U.S.) (1,316) (1,267) (2,146) $ (7,623) $ (9,399) $ (12,472) Total income tax expense $ 47,841 $ 50,626 $ 50,839 The tax effects of temporary differences are as follows as of July 31, 2025 and 2024: July 31, 2025 Assets Liabilities Total Inventories $ 9,147 $ (59) $ 9,088 Employee compensation and benefits 8,982 8,982 Accounts receivable 1,772 1,772 Fixed assets 8,610 (8,085) 525 Intangible assets 722 (63,886) (63,164) Capitalized R&D expenditures 30,525 30,525 Deferred and equity-based compensation 9,413 9,413 Postretirement benefits 3,336 (252) 3,084 Tax credit and net operating loss carry-forwards 84,160 84,160 Valuation allowances (82,180) (82,180) Other, net 26,959 (14,067) 12,892 Total $ 101,446 $ (86,349) $ 15,097 July 31, 2024 Assets Liabilities Total Inventories $ 7,462 $ (59) $ 7,403 Employee compensation and benefits 9,248 9,248 Accounts receivable 1,828 1,828 Fixed assets 3,507 (8,1 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company leases certain manufacturing facilities, warehouses and office space, computer equipment, and vehicles accounted for as operating leases. Lease terms typically range from one year to ten years. As of July 31, 2025 and 2024, the Company did not have any finance leases. Short-term lease expense, variable lease expenses, and sublease income were immaterial to the consolidated statements of income for the year ended July 31, 2025. The following table summarizes lease expense recognized during the years ended July 31, 2025, 2024 and 2023: Consolidated Statements of Income Location July 31, 2025 July 31, 2024 July 31, 2023 Operating lease cost Cost of goods sold $ 7,856 $ 6,257 $ 6,589 Operating lease cost Selling, general, and administrative expenses 11,289 9,220 9,424 The following table summarizes the maturity of the Company's lease liabilities as of July 31, 2025: Years ending July 31, Operating Leases 2026 $ 17,854 2027 13,935 2028 8,161 2029 6,187 2030 4,195 Thereafter 19,061 Total lease payments $ 69,393 Less: interest (10,594) Present value of lease liabilities $ 58,799 The weighted average remaining lease terms and discount rates for the Company's operating leases as of July 31, 2025 and 2024 were as follows: July 31, 2025 July 31, 2024 Weighted average remaining lease term (in years) 6.2 3.8 Weighted average discount rate 5.0 % 5.1 % Supplemental cash flow information related to the Company's operating leases during the years ended July 31, 2025 and 202 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Standards 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 is included in Note 10 to the 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 Companys fiscal year 2026 Form 10-K. The adoption of this guidance is not anticipated to have a material impact on the consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Incom …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans The Company provides postretirement medical benefits (the Plan) for eligible regular full and part-time domestic employees (including spouses) who retired prior to January 1, 2016, as outlined by the Plan. The Plan is unfunded, and the liability, unrecognized gain , and associated income statement impact are immaterial. The current portion and non-current portion of the liabilities for postretirement medical benefits are included in Other current liabilities and Other liabilities, respectively, on the accompanying consolidated balance sheets as of July 31, 2025 and 2024. The unrecognized gain is reported as a component of AOCI. The Company also has two deferred compensation plans, the Executive Deferred Compensation Plan and the Director Deferred Compensation Plan which allow for compensation to be deferred into either the Company's Class A Nonvoting Common Stock or in other investment funds. Neither plan allows funds to be transferred between the Company's Class A Nonvoting Common Stock and the other investment funds. The Company has an additional non-qualified deferred compensation plan, the Brady Restoration Plan, which allows an equivalent benefit to the Matched 401(k) Plan and the Funded Retirement Plan for executives' income exceeding the IRS limits for participation in a qualified 401(k) plan. Deferred compensation of $19,998 and $20,029 was included in Other liabilities in the accompanying consolidated balance sheets as of July 31, 2025 and 2024 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

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. Nature of Products The Companys revenues are primarily from the sale of identification solutions 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 consolidated statements of income. Performance Obligations The Companys contracts with customers consist of purchase orders, which in some cases are governed by master supply or distributor agreements. For each contract, the Company considers the commitment to transfer tangible products, which are generally capable of being distinct, to be separate performance obligations. The majority of the Company's revenue is earned and recognized at a point in time through ship-and-bill performance obligations where the customer typically obtains control of the product upon shipment or delivery, depending on freight terms. The Company considers control to have transferred if legal title, physical possession, and the significant risks and rewards of ownership of the asset have transferred to the customer and the Company has a present right to payment. In almost all cases, control transfers once a product is shipped or delivered, as this is when the customer is able to direct and obtain substantially all of the remai …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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. The following is a summary of segment information as of and for the years ended July 31, 2025, 2024 and 2023: 2025 2024 2023 Americas & Asia Net sales $ 993,715 $ 886,528 $ 888,857 Cost of goods sold 490,670 430,265 449,784 Gross margin 503,045 456,263 439,073 Segment expenses: Research and development 55,862 48,715 45,172 Selling, general and administrative 237,417 210,706 213,398 Total segment expenses 293,279 259,421 258,570 Segment profit $ 209,766 $ 196,842 $ 180,503 Europe & Australia Net sales $ 519,890 $ 454,865 $ 443,006 Cost of goods sold 262,113 223,244 224,804 Gross margin 257,777 231,621 218,202 Segment expenses: Research and development 24,027 19,033 16,193 Selling, general and administrative 176,809 141,976 136, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Nature of Operations Brady Corporation is a global manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The ability to provide customers with a broad range of proprietary, customized, and diverse products for use in various applications, along with a commitment to quality and service, a global footprint, and multiple sales channels, have made Brady a world leader in many of its markets. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Brady Corporation and its wholly owned subsidiaries. All intercompany accounts and transactions between consolidated subsidiaries have been eliminated in consolidation. Use of Estimates The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Acquisitions The Company recognizes assets acquired, liabilities assumed, contractual contingencies and contingent consideration at their fair value on the acquisition date. The oper …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders' Equity Information as to the Companys capital stock as of July 31, 2025 and 2024 was as follows: July 31, 2025 July 31, 2024 Shares Authorized Shares Issued Amount (thousands) Shares Authorized Shares Issued Amount (thousands) Preferred Stock, $.01 par value 5,000,000 5,000,000 Cumulative Preferred Stock: 6% Cumulative 5,000 5,000 1972 Series 10,000 10,000 1979 Series 30,000 30,000 Common Stock, $.01 par value: Class A Nonvoting 100,000,000 51,261,487 $ 513 100,000,000 51,261,487 $ 513 Class B Voting 10,000,000 3,538,628 35 10,000,000 3,538,628 35 $ 548 $ 548 Before any dividend may be paid on the Class B Common Stock, holders of the Class A Common Stock are entitled to receive an annual, noncumulative cash dividend of $0.01665 per share. Thereafter, any further dividend in that fiscal year must be paid on each share of Class A Common Stock and Class B Common Stock on an equal basis. Other than as required by law, holders of the Class A Common Stock are not entitled to any vote on corporate matters, unless, in each of the three preceding fiscal years, the $0.01665 preferential dividend described above has not been paid in full. Holders of the Class A Common Stock are entitled to one vote per share for the entire fiscal year immediately following the third consecutive fiscal year in which the preferential dividend is not paid in full. Holders of Class B Common Stock are entitled to one vote per share for the election of directors and for all other purposes. Upon …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On August 4, 2025, the Company acquired MECCO Partners LLC, a company that specializes in automated laser engraving systems, headquartered in Pittsburgh, Pennsylvania, for a cash purchase price of approximately $20,000, subject to a working capital adjustment provision. The Company expects to allocate a significant portion of the purchase price to goodwill and intangible assets. The assignment of goodwill to the Companys existing reporting units is not complete as of the financial statements issuance date. On September 3, 2025, the Company announced an increase in the annual dividend to shareholders of the Company's Class A Common Stock, from $0.96 to $0.98 per share. A quarterly dividend of $0.245 will be paid on October 31, 2025, to shareholders of record at the close of business on October 10, 2025. This dividend represents an increase of 2.1% and is the 40th consecutive annual increase in dividends. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Acquisitions On August 4, 2025, the Company acquired all of the membership interest of Mecco for $19,166, net of cash acquired. The purchase price includes a cash payment of $17,416 and a holdback liability of $1,750. Based in Pittsburgh, Pennsylvania, Mecco specializes in industrial product marking and identification systems designed for a variety of applications and industries. The acquisition of Mecco complements the Companys existing offering of direct part marking solutions and advances the Companys strategy to provide customers with a variety of end-to-end direct part marking and specialty identification products. The acquisition was funded through cash on hand. The Company recorded its preliminary purchase price allocation based on its estimates of the fair value of the acquired assets and assumed liabilities as of the acquisition date. The preliminary purchase price allocation included goodwill of $3,412, intangible assets of $14,040, and net tangible assets of $1,714. The goodwill for this acquisition is assigned to the Americas & Asia segment and is deductible for tax purposes. The final purchase price allocation is subject to post-closing adjustments and the finalization of certain intangible asset valuations and deferred tax adjustments. The accompanying condensed consolidated financial statements include the results of Mecco from the date of acquisition through January 31, 2026. Pro forma and other financial information are not presented for the Mecco acquisi …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

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.

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The following is a summary of net sales by segment and geographic region for the three and six months ended January 31, 2026 and 2025: Three months ended January 31, Six months ended January 31, 2026 2025 2026 2025 Net sales: Americas & Asia Americas $ 215,137 $ 202,547 $ 449,186 $ 416,580 Asia 36,467 31,299 71,311 62,694 Total $ 251,604 $ 233,846 $ 520,497 $ 479,274 Europe & Australia Europe $ 119,920 $ 110,477 $ 241,168 $ 226,630 Australia 12,613 12,352 27,759 27,836 Total $ 132,533 $ 122,829 $ 268,927 $ 254,466 Total Company $ 384,137 $ 356,675 $ 789,424 $ 733,740

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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 managements own assumptions. The following table summarizes the Companys financial assets and liabilities that were accounted for at fair value on a recurring basis as of January 31, 2026 and July 31, 2025: January 31, 2026 July 31, 2025 Fair Value Hierarchy Assets: Deferred compensation plan assets $ 20,378 $ 19,998 Level 1 Foreign exchange contracts 1,377 Level 2 Liabilities: Foreign exchange contracts 433 198 Level 2 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Deferred compensation plan assets: The Companys 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 volum …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income TaxesThe income tax rate for both the three months ended January 31, 2026 and 2025 was 22.5%. The income tax rate for the six months ended January 31, 2026 and 2025, was 21.8% and 21.4%, respectively.

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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 January 31, 2026, the Company did not have any finance leases. Operating lease expense was $5,274 and $4,539 for the three months ended January 31, 2026 and 2025, respectively, and $10,496 and $9,274 for the six months ended January 31, 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 six months ended January 31, 2026 and 2025. Supplemental cash flow information related to the Companys operating leases for the six months ended January 31, 2026 and 2025 was as follows: Six months ended January 31, 2026 2025 Operating cash outflows from operating leases $ 10,271 $ 9,157 Operating lease assets obtained in exchange for new operating lease liabilities (1) 13,303 12,749 (1) Includes new leases, acquired leases and remeasurements or modifications of existing leases . …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

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 Companys reportable segments, including the application of the provisions of ASU 2023-07 for the three and six months ended January 31, 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 Companys 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 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

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 Companys 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 six months ended January 31, 2026 and 2025: Three months ended January 31, Six months ended January 31, 2026 2025 2026 2025 Net sales: Americas & Asia Americas $ 215,137 $ 202,547 $ 449,186 $ 416,580 Asia 36,467 31,299 71,311 62,694 Total $ 251,604 $ 233,846 $ 520,497 $ 479,274 Europe & Australia Europe $ 119,920 $ 110,477 $ 241,168 $ 226,630 Australia 12,613 12,352 27,759 27,836 Total $ 132,533 $ 122,829 $ 268,927 $ 254,466 Total Company $ 384,137 $ 356,675 $ 789,424 $ 733,740 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 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information The Company is organized and managed within two regions: Americas & Asia and Europe & Australia, which are the reportable segments. The Companys Chief Executive Officer (CEO), who is also the Companys 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 segments net sales in measuring segment performance. The following is a summary of segment information as of and for the three and six months ended January 31, 2026 and 2025: Three months ended January 31, Six months ended January 31, 2026 2025 2026 2025 Americas & Asia Net sales $ 251,604 $ 233,846 $ 520,497 $ 479,274 Cost of goods sold 124,591 119,073 255,697 238,251 Gross margin 127,013 114,773 264,800 241,023 Segment expenses: Research and development 17,499 12,911 34,214 26,127 Selling, general and administrative 55,763 55,876 116,972 114,010 Total segment expenses 73,262 68,787 151,186 140,137 Segment profit $ 53,751 $ 45,986 $ 113,614 $ 100,886 Europe & Australia Net sales $ 132,533 $ 122,829 $ 268,927 $ 254,466 Cost of goods sold 65,152 61,759 130,501 129,957 Gross margin 6 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing