What the changes say
- PSS acquisition dominates: integration complexity, $1.6 billion of new debt, higher goodwill and semiconductor exposure.
- Geopolitical conflict, shipping disruptions and tariffs threaten operations, customer demand and freight capacity; about 50% of sales are international.
- AI implementation becomes a stated risk to operating efficiency, costs and competitiveness.
- Acquisition risks remain, while divestiture and contingent-liability concerns disappear from the listed risks.
What changed since the prior 10-K
New
- NewBusiness Risks
The acquisition of Honeywell’s PSS business is subject to significant integration risks that may impact the combined company’s financial results
Integrating Honeywell’s global PSS business could create operational, financial, tax, legal, cultural and unexpected separation problems.
- NewBusiness Risks
Our increased indebtedness could limit our financial flexibility and adversely affect our business and financial results
The acquisition added $800 million of credit-agreement borrowings and $800 million of senior notes, increasing debt-service and funding constraints.
- NewBusiness Risks
Our global operations are subject to the impact of regional conflict and geopolitical developments, which could adversely affect our business and financial results
Regional conflicts and geopolitical instability could disrupt Brady’s global operations and markets, with approximately 50% of sales outside the United States.
- NewBusiness Risks
Current geopolitical conditions have resulted in disruptions within certain global shipping and distribution channels, including extended lead times and reductions in global freight capacity. These disruptions may increase our transportation costs, extend lead times and adversely affect our operational efficiency
Geopolitical shipping disruptions, reduced freight capacity, tariffs and weaker customer demand could raise costs, delay orders and increase sales volatility.
- NewBusiness Risks
The failure to effectively manage acquisitions, divestitures and other portfolio management activities could adversely affect our business and financial results
Acquisitions, including PSS, may consume management resources and fail to deliver integration, profitability, sales growth or expected synergies.
- NewBusiness Risks
The use of AI and the failure to effectively integrate AI and automation into our business processes could hinder our operational efficiency and adversely affect our business and financial results
AI and automation investments in supply chain, administration and data analysis may fail to improve efficiency or keep costs competitive.
Dropped
- DroppedBusiness 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
- DroppedBusiness 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
Reworded
- 94% rewrittenBusiness Risks
Raw material, component and other cost inflation, as well as supply shortages, could adversely affect our business and financial results
Adds finished goods and third-party suppliers, broader disruption factors, limited supplier alternatives, and increased exposure to electronic components and semiconductors after PSS.
Was: Raw material and other cost inflation as well as product shortages could adversely affect our business and financial results
- 57% 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
Shifts from specific OBBBA provisions to quarterly deferred-tax-asset realization reviews based on profitability forecasts and related assumptions.
- 53% 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
Now emphasizes distributors and customers rejecting price increases or switching to lower-cost sources, replacing the prior e-commerce execution emphasis.
- 44% 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
Goodwill increased to $686.0 million and intangibles declined to $97.8 million; their 42.3% asset share is expected to rise substantially after PSS.
- 27% rewrittenFinancial and Security Ownership Risks
The global nature of our business exposes us to foreign currency fluctuations that could adversely affect our business and financial results
Removes the approximately 50% sales figure and some currency examples while retaining U.S.-dollar translation and transaction exposure.
- 23% 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
No substantive change: it still covers breaches, confidential and credit-card information, third-party providers, and reliance on licensed encryption.
All 20 risk factors
Headings as the filing states them, in filing order.
Business Risks
- 01The acquisition of Honeywell’s PSS business is subject to significant integration risks that may impact the combined company’s financial resultsNew
- 02Our increased indebtedness could limit our financial flexibility and adversely affect our business and financial resultsNew
- 03Raw material, component and other cost inflation, as well as supply shortages, could adversely affect our business and financial results94% rewritten
- 04Demand 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
- 05Our global operations are subject to the impact of regional conflict and geopolitical developments, which could adversely affect our business and financial resultsNew
- 06Current geopolitical conditions have resulted in disruptions within certain global shipping and distribution channels, including extended lead times and reductions in global freight capacity. These disruptions may increase our transportation costs, extend lead times and adversely affect our operational efficiencyNew
- 07Failure to compete effectively or to successfully execute our strategy may have a negative impact on our business and financial results
- 08Additionally, 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 results53% rewritten
- 09Failure to develop or acquire technologically advanced products that meet customer demands, including price expectations, could adversely impact our business and financial results
- 10The failure to effectively manage acquisitions, divestitures and other portfolio management activities could adversely affect our business and financial resultsNew
- 11The use of AI and the failure to effectively integrate AI and automation into our business processes could hinder our operational efficiency and adversely affect our business and financial resultsNew
- 12Our 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 results23% rewritten
- 13Further, 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
- 14We depend on key employees and the loss of these individuals could have an adverse effect on our business and financial results
- 15We are subject to litigation that could adversely impact our business, financial results, and reputation
- 16Global climate change and related emphasis on environmental matters by various stakeholders could negatively affect our business and financial results
Financial and Security Ownership Risks
- 17The global nature of our business exposes us to foreign currency fluctuations that could adversely affect our business and financial results27% rewritten
- 18Changes 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 periods57% rewritten
- 19Failure to execute our strategies could result in impairment of goodwill or other intangible assets, which may negatively impact income and profitability44% rewritten
- 20Substantially 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
- FY2025 10-K risk factors16 risks1 new6 reworded
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.
Filed Sep 04, 2025 - FY2024 10-K risk factors15 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.