TWIN TWIN DISC INC

Overview and Growth

In fiscal 2026, TWIN DISC INC recorded $381.27M of revenue, net income of $27.08M, and an operating cash inflow of $22.90M. Revenue of $381.27M sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 11.9% from $340.74M in fiscal 2025, increasing the company’s operating scale. The company reported diluted EPS of $1.86, adding a shareholder-level measure to the absolute income figures considered below. Total assets stood at $401.25M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 0.95x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $102.56M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 26.9% of revenue, showing how much of the top line remained after direct costs. Operating income was $17.96M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 4.7%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $27.08M, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 7.1%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $13.60M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 3.6% of revenue, placing earnings before tax in the context of the company’s operating scale. An income-tax benefit of $13.97M improved the final result relative to pretax income or loss. The tax benefit equaled 102.8% of positive pretax income, lifting the after-tax result. Net income equaled 12.3% of period-end equity, showing the earnings generated on shareholders’ book capital. Return on period-end assets was 6.7%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

Total assets were $401.25M, supported by $181.31M of liabilities and $219.94M of shareholder equity. At period end, current assets of $278.21M compared with current liabilities of $118.58M, defining the company’s short-term resource position. At 2.35x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company carried $29.81M of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 0.14x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 7.4%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 45.2%, placing reported obligations against the full positive asset balance. Compared with $387.70M in fiscal 2025, the current asset base moved 3.5% and finished higher. Book equity was 11.9% higher than fiscal 2025 equity of $196.53M, showing how shareholder capital changed year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $22.90M, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 0.85x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $13.71M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 59.9% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $9.19M of positive free cash flow for the period. Free cash flow represented 2.4% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 2.3%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Jun 30, 2026. Analysis generated Oct 21, 2026.