Brady (BRC) risk factors, FY2025 10-K

Brady's FY2025 10-K, filed Sep 04, 2025, lists 16 risk factors in 2 groups. Against the prior year's 15: 1 new, 6 substantially reworded.

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Risk factors listed
162 groups
New this year
1vs 15 last year
Dropped
0since the prior 10-K
Substantially reworded
6of those kept
Section length
4k wordsItem 1A

What the changes say

  • Brady Corp added specific disclosures around business divestitures and indemnity liabilities.
  • Tax disclosures were updated to reflect the U.S. enactment of the One Big Beautiful Bill Act.
  • Goodwill increased to $676.9 million and intangible assets to $105.4 million.

What changed since the prior 10-K

New

  • NewBusiness Risks

    or operational success. Our sales, results of operations, cash flow, and liquidity could be adversely affected if we do not successfully integrate acquired businesses, including realizing synergies, or if our other businesses suffer due to the increased focus on the acquired businesses

    Divestitures of underperforming businesses may fail to close on satisfactory terms, disrupt management, or leave us with indemnification liabilities.

Reworded

  • 74% rewrittenBusiness Risks

    The failure to properly identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses could adversely affect our business and financial results

    Removed the reference to achieving desired sales growth from the discussion of acquisition integration risks.

  • 66% rewrittenBusiness Risks

    We depend on key employees and the loss of these individuals could have an adverse effect on our business and financial results

    The text for employee recruitment and retention risks remains substantially unchanged despite formatting shifts.

  • 55% rewrittenFinancial and Security Ownership Risks

    Changes in tax legislation or tax rates could adversely affect results of operations and financial statements. Additionally, audits by taxing authorities could result in tax payments for prior periods

    Added a specific reference to the U.S. enactment of the One Big Beautiful Bill Act on July 4, 2025.

  • 46% rewrittenBusiness Risks

    Our failure or the failure of third-party service providers to protect our sites, networks and systems against security breaches, to protect our confidential information, or to facilitate our digital strategy, could adversely affect our business and financial results

    The cybersecurity and third-party data protection risk wording remained identical to the prior year.

  • 26% rewrittenBusiness Risks

    Additionally, throughout our global business, distributors and customers may not accept our price increases or may seek lower cost sourcing opportunities, which could result in a loss of business that may adversely impact our business and financial results

    Updated terminology from catalogs and internet to online and e-commerce regarding digital channel strategies.

  • 22% rewrittenFinancial and Security Ownership Risks

    Failure to execute our strategies could result in impairment of goodwill or other intangible assets, which may negatively impact income and profitability

    Updated goodwill figures to $676.9 million and intangible assets to $105.4 million as of July 31, 2025.

All 16 risk factors

Headings as the filing states them, in filing order.

Business Risks

  1. 01Raw material and other cost inflation as well as product shortages could adversely affect our business and financial results
  2. 02Demand for our products may be adversely affected by numerous factors, some of which we cannot predict or control. This could adversely affect our business and financial results
  3. 03Failure to compete effectively or to successfully execute our strategy may have a negative impact on our business and financial results
  4. 04Additionally, throughout our global business, distributors and customers may not accept our price increases or may seek lower cost sourcing opportunities, which could result in a loss of business that may adversely impact our business and financial results26% rewritten
  5. 05Failure to develop or acquire technologically advanced products that meet customer demands, including price expectations, could adversely impact our business and financial results
  6. 06The failure to properly identify, integrate and grow acquired companies, and to manage contingent liabilities from divested businesses could adversely affect our business and financial results74% rewritten
  7. 07or operational success. Our sales, results of operations, cash flow, and liquidity could be adversely affected if we do not successfully integrate acquired businesses, including realizing synergies, or if our other businesses suffer due to the increased focus on the acquired businessesNew
  8. 08Our failure or the failure of third-party service providers to protect our sites, networks and systems against security breaches, to protect our confidential information, or to facilitate our digital strategy, could adversely affect our business and financial results46% rewritten
  9. 09Further, these laws and regulations are constantly evolving and it is difficult to accurately predict the effect they may have upon our business and financial results
  10. 10We depend on key employees and the loss of these individuals could have an adverse effect on our business and financial results66% rewritten
  11. 11We are subject to litigation that could adversely impact our business, financial results, and reputation
  12. 12Global climate change and related emphasis on environmental matters by various stakeholders could negatively affect our business and financial results

Financial and Security Ownership Risks

  1. 13The global nature of our business exposes us to foreign currency fluctuations that could adversely affect our business and financial results
  2. 14Changes in tax legislation or tax rates could adversely affect results of operations and financial statements. Additionally, audits by taxing authorities could result in tax payments for prior periods55% rewritten
  3. 15Failure to execute our strategies could result in impairment of goodwill or other intangible assets, which may negatively impact income and profitability22% rewritten
  4. 16Substantially all of our voting stock is controlled by two shareholders, while our public investors hold non-voting stock. The interests of the voting and non-voting shareholders could differ, potentially resulting in decisions that affect the value of the non-voting shares

Other Brady 10-Ks

  • FY2026 10-K risk factors
    20 risks6 new2 dropped6 reworded

    PSS acquisition dominates: integration complexity, $1.6 billion of new debt, higher goodwill and semiconductor exposure.

    Filed Sep 03, 2026
  • FY2024 10-K risk factors
    15 risks

    Brady Corp faces risks primarily driven by raw material inflation, digital channel shifts, and global currency exposure. The company relies heavily on acquisitions and digital transformation while facing concentrated voting control by founder descendants.

    Filed Sep 06, 2024

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.