The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how safety & security services stocks fared in Q2, starting with Brady (NYSE:BRC).
Rising concerns over physical security, cybersecurity threats, and workplace safety regulations will present opportunities for companies in this sector. AI and digitization will enhance surveillance, access control, and threat detection, which could benefit key players in Safety & Security Services. These trends could also introduce ethical and regulatory concerns over data privacy and automated decision-making in security operations, giving rise to headline risks. Finally, increasing scrutiny on private security practices and evolving criminal justice policies again mean that companies in the space need to operate with the utmost care or risk being the poster child of abuse of power.
The 5 safety & security services stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.3% while next quarter’s revenue guidance was 0.9% below.
In light of this news, share prices of the companies have held steady as they are up 1.9% on average since the latest earnings results.
Brady (NYSE:BRC)
Founded in 1914 and evolving through more than a century of industrial innovation, Brady (NYSE:BRC) manufactures and supplies identification solutions and workplace safety products that help companies identify and protect their premises, products, and people.
Brady reported revenues of $397.3 million, up 15.7% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with a decent beat of analysts’ full-year EPS guidance estimates.
Commentary:“Our investments in new products once again led to strong results in the Americas & Asia region, with 4.3 percent organic sales growth in the fourth quarter and 4.8 percent organic sales growth in fiscal 2025. The result was a new all-time company record quarter and record year of adjusted earnings per share,” said Brady’s President and Chief Executive Officer, Russell R. Shaller.
Brady achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 3.4% since reporting and currently trades at $80.50.
Is now the time to buy Brady? Access our full analysis of the earnings results here, it’s free.
Best Q2: CoreCivic (NYSE:CXW)
Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE:CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.
CoreCivic reported revenues of $538.2 million, up 9.8% year on year, outperforming analysts’ expectations by 8.6%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
CoreCivic pulled off the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $19.62.
Is now the time to buy CoreCivic? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: GEO Group (NYSE:GEO)
With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE:GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa.
GEO Group reported revenues of $636.2 million, up 4.8% year on year, exceeding analysts’ expectations by 2%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and revenue guidance for next quarter missing analysts’ expectations.
GEO Group delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19.7% since the results and currently trades at $20.75.
Read our full analysis of GEO Group’s results here.
Brink's (NYSE:BCO)
Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE:BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.
Brink's reported revenues of $1.30 billion, up 3.8% year on year. This result beat analysts’ expectations by 2.1%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates and a decent beat of analysts’ EPS guidance for next quarter estimates.
The stock is up 29.5% since reporting and currently trades at $114.90.
Read our full, actionable report on Brink's here, it’s free.
MSA Safety (NYSE:MSA)
Founded in 1914 as Mine Safety Appliances to protect coal miners from dangerous gases, MSA Safety (NYSE:MSA) designs and manufactures advanced safety products that protect workers and facilities across industries including fire service, energy, construction, and manufacturing.
MSA Safety reported revenues of $474.1 million, up 2.5% year on year. This print topped analysts’ expectations by 5.9%. Overall, it was a stunning quarter as it also put up a beat of analysts’ EPS estimates.
MSA Safety had the slowest revenue growth among its peers. The stock is down 4% since reporting and currently trades at $170.30.
Read our full, actionable report on MSA Safety here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.