Twin Disc, Inc. posted essentially flat second-quarter net sales of $90.2M, compared with $89.9M a year earlier, but reported a sharp jump in profitability driven by a large tax benefit.
Net income attributable to shareholders rose to $22.4M, or $1.58 basic EPS, versus $0.9M, or $0.07, in the prior-year quarter. The company released a $23.9M U.S. deferred tax valuation allowance, recognizing about $22.8M of tax benefit as a discrete item after returning to a cumulative three-year income position and implementing tax planning.
For the first two quarters, net sales increased to $170.2M from $162.8M, and net income attributable to shareholders improved to $21.9M from a loss of $1.8M. Operating performance reflected growth in industrial and European marine products, contributions from the Kobelt acquisition, and continued strength in Veth and Katsa offerings, partially offset by softer commercial marine and oil and gas transmission demand, particularly in China.
Cash from operating activities turned to an outflow of $3.0M for the first two quarters, while higher capital spending and greater use of the revolving credit facility increased debt to $44.5M. Total assets reached $384.0M and equity $185.2M as of December 26, 2025.
Twin Disc, Incorporated furnished an investor presentation under a Regulation FD 8-K to support meetings with investors and analysts on or after February 4, 2026. The slides are filed as Exhibit 99.1 and will also be posted on the company’s website.
The company notes that the information in the presentation is being furnished, not filed, so it is not subject to certain Exchange Act liabilities or automatically incorporated into other SEC filings. The materials include non-GAAP financial measures that management uses to analyze performance and that are intended to supplement, not replace, GAAP results.
The presentation also contains forward-looking statements identified by terms such as “believes,” “expects,” and “plans,” and Twin Disc highlights that actual results may differ due to various risks discussed in its SEC reports, including its Annual Report on Form 10-K for the year ended June 30, 2025.
Twin Disc, Inc. (TWIN) has furnished an 8-K to share its second quarter 2026 financial results. The company directs readers to a press release dated February 4, 2026, which is attached as Exhibit 99.1 and incorporated by reference for the full details.
The results information is furnished under Items 2.02 and 7.01, meaning it is not deemed filed for liability purposes under the Exchange Act unless specifically incorporated into another filing. The report also reiterates that any forward-looking statements are subject to significant risks and uncertainties described in Twin Disc’s Form 10-K for the year ended June 30, 2025.
Twin Disc, Inc. director Michael Doar received a grant of 935 shares of common stock on 02/02/2026 at a reference price of $17.381 per share. This stock was issued as restricted shares in lieu of his quarterly cash retainer under the company’s 2021 Omnibus Incentive Plan.
Following this grant, Doar beneficially owns 129,531 shares of Twin Disc common stock in direct form. The restricted shares will vest on the first anniversary of the issuance date, aligning his compensation more closely with the company’s long-term performance.
Twin Disc director David W. Johnson received 234 shares of common stock as equity compensation. The shares were granted on 02/02/2026 at a value of $17.381 per share under the company’s Amended and Restated 2021 Omnibus Incentive Plan.
The award represents restricted stock issued in lieu of Johnson’s quarterly cash retainer for board service and will vest on the first anniversary of the grant date. Following this transaction, Johnson directly beneficially owns 74,864 shares of Twin Disc common stock.
Twin Disc, Inc. insider John H. Batten, who serves as President and CEO, director, and a 10% owner, reported an equity transaction dated 12/09/2025. The filing shows activity in 107 shares of common stock at a price of $15.9 per share, after which he directly beneficially owns 495,434 shares of Twin Disc common stock.
In addition to his direct holdings, the report lists indirect ownership, including 2,457.2354 shares through a 401(k) plan and substantial positions held as trustee of several Batten family trusts, with individual trust holdings ranging from just over 100,000 shares to more than 220,000 shares. This filing updates the market on the scope of Batten’s direct and indirect ownership in the company.
Twin Disc, Inc. (TWIN) reported an insider share acquisition by its President, CEO, Director, and 10% owner, John H. Batten. On 11/12/2025, he acquired 9,102 shares of common stock at a price of $16.1374 per share. Following this transaction, he directly beneficially owns 498,513 shares. He also reports indirect ownership through various accounts and trusts, including 2,457.2354 shares in a 401(k) plan and additional shares held as trustee for several family-related trusts.
Twin Disc, Inc. (TWIN) reported an insider transaction on Form 4. VP Finance, CFO, Secretary & Treasurer Jeffrey S. Knutson acquired 2,853 shares of common stock on 11/10/2025 at $16.555 per share (Transaction Code: A).
After this transaction, his directly held beneficial ownership stands at 179,435 shares.
Twin Disc (TWIN) insider activity: President & CEO John H. Batten, also a Director and 10% Owner, reported open‑market purchases of common stock.
He acquired 10,000 shares on 11/10/2025 at $16.4431 and 10,000 at $16.5541, and 10,000 shares on 11/11/2025 at $16.3262 and 10,000 at $16.2833. Following these transactions, he directly owned 507,615 shares.
He also reported indirect beneficial holdings, including 2,457.2354 shares via a 401(k), and trustee positions such as 221,156 shares and 195,019 shares, as noted in the footnotes.
Twin Disc (TWIN) reported Q1 FY2026 results. Net sales rose to $79,996 from $72,897 as gross profit improved to $22,934. Operating income reached $2,235, but after interest and taxes the company posted a net loss attributable to Twin Disc of $518, or $(0.04) per share, compared with a $(0.20) loss a year ago.
Manufacturing led performance, and marine and propulsion systems generated $48,226 of sales. Operating cash flow was $(7,524), driven by working capital, while investing cash flow was $(3,439). Financing provided $9,868, reflecting revolving borrowings of $40,375 and repayments of $27,971. Cash ended at $14,241. Inventories increased to $158,272. Long‑term debt was $40,719, including revolving loans of $30,194 and a $13,500 term loan. Total equity was $160,888. The company reported a quarterly dividend of $0.04 per share.
Under its credit agreement, borrowing capacity on the revolver was $46,337 with approximately $16,143 available. The effective tax rate was 172.2%, influenced by valuation allowances and a $147 discrete tax expense tied to planned repatriation from China.