Twin Disc Posts Record Q4 Revenue and Swings to Full-Year Profit
TWIN has more than doubled off its 52-week low of $8.5.
Summary
Twin Disc delivered record fourth-quarter revenue and a full-year profit turnaround, with sales up 11.9% and net income of $27.1 million, supported by strong marine and defense demand and a tax benefit.
Key Events · Earnings and Guidance · TWIN
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Record Q4 Revenue
Fourth-quarter sales rose 18.3% year-over-year to $114.4 million, beating the $100.35 million consensus, driven by marine, defense, and oil & gas strength.
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Full-Year Profit Turnaround
Fiscal 2026 net income attributable to Twin Disc was $27.1 million ($1.86 per diluted share), compared to a net loss of $0.7 million in fiscal 2025, aided by a $14.0 million tax benefit from reversing a domestic valuation allowance.
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Inventory Accounting Change
The company switched from LIFO to FIFO inventory accounting, increasing fiscal 2025 inventory by $32.1 million and recasting historical financials for comparability.
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Strong Cash Flow and Debt Reduction
Operating cash flow was $22.9 million for the year, free cash flow $9.2 million, and net debt decreased to $13.8 million, supported by a new $90 million credit facility.
Analysis · TWIN · Technology
Fiscal 2026 marked a decisive turnaround for Twin Disc, with sales climbing 11.9% to $381.3 million and net income reaching $27.1 million, reversing a prior-year loss. The fourth quarter was particularly strong, as revenue grew 18.3% to $114.4 million and beat the consensus estimate, fueled by demand across marine, defense, and oil & gas markets. A $14 million tax benefit from reversing a valuation allowance provided an additional lift to earnings. Meanwhile, the shift from LIFO to FIFO inventory accounting recast historical results and added $32.1 million to inventory. The company also generated $22.9 million in operating cash flow and cut net debt to $13.8 million, further strengthening its balance sheet. Management pointed to a $178.3 million six-month backlog and a new $90 million credit facility as signs of continued momentum and financial flexibility.
At the time of this filing, TWIN was trading at $24.99 on NASDAQ in the Technology sector, with a market capitalization of approximately $341.5M. The 52-week trading range was $8.50 to $25.50. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.