Twin Disc 10-K: Full-Year Profit Turnaround, LIFO-to-FIFO Change, and $23.9M Valuation Allowance Release
TWIN sits 86% above its 52-week low of $12.79.
Summary
Twin Disc's 10-K confirms a full-year profit turnaround with $27.1M net income, driven by strong marine and defense demand. The results include a one-time $16.4M tax benefit from releasing a valuation allowance and a LIFO-to-FIFO accounting change.
Key Events · Earnings and Guidance · TWIN
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Full-Year Profit Turnaround
Net income attributable to Twin Disc was $27.1M ($1.92 diluted EPS) versus a $0.7M loss last year, on sales up 11.9% to $381.3M.
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Valuation Allowance Release
Released $23.9M of domestic deferred tax valuation allowance; $16.4M recognized as income tax benefit, driving the -102.8% effective tax rate.
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LIFO-to-FIFO Accounting Change
Retrospectively changed U.S. inventory costing from LIFO to FIFO, increasing July 1, 2024 inventory and retained earnings by $30.9M net of tax.
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Credit Facility Refinancing
On June 30, 2026, entered new credit agreement with $30M term loan and $60M revolving commitment, maturing June 2031.
Analysis · TWIN · Technology
Twin Disc's fiscal 2026 annual report confirms the operational turnaround previewed in August, with net income of $27.1M versus a $0.7M loss last year. The filing adds two material accounting items: a retrospective LIFO-to-FIFO inventory change that boosted retained earnings by $30.9M, and the release of a $23.9M domestic tax valuation allowance — $16.4M of which flowed through the income statement as a tax benefit. The effective tax rate of -102.8% means reported EPS of $1.92 is heavily inflated by this one-time non-cash benefit; core operating income was $18.0M. The company also refinanced its credit facility with a $30M term loan and $60M revolver, extending maturity to 2031.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 30.2% of the 2009 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.11%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, TWIN was trading at $23.85 on NASDAQ in the Technology sector, with a market capitalization of approximately $344M. The 52-week trading range was $12.79 to $25.50. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.