Factor Model (net -0.1)
Factor Model
net -0.1 1.0 / 10$22M profit driven by one-time tax benefit
Watch: Watch second-half fiscal 2026 shipments as management tries to work down the backlog. If organic sales stay negative as supply chains normalize, the industrial growth story unravels.
Twin Disc posted fiscal Q2 2026 revenue of $90.2 million, up just 0.3% year-over-year. Net income surged to $22.4 million, but nearly all of that came from a non-recurring $21.8 million tax benefit. Strip out the tax windfall and the underlying business looks shaky — organic sales dropped 7.9% excluding acquisitions and currency effects. The industrial product group grew 22%, while marine and propulsion sales held steady.
The headline profit is almost entirely accounting noise. The real story is shrinking organic sales despite a $175.3 million backlog — the company's ability to convert orders into revenue will determine whether this is a temporary supply chain bottleneck or a demand problem.
Evidence
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