Twin Disc (NASDAQ:TWIN) reported a substantial jump in fiscal second-quarter net income, though the headline figure was primarily inflated by a one-time tax benefit that masked underlying pressure from tariff-related shipping delays.
The Milwaukee-based manufacturer of marine and heavy-duty power transmission equipment posted net income of $22.4 million, or $1.55 per share, for the quarter ended Dec. 26, 2025.
This compares to just $919,000 in the same period a year ago.
However, the surge was almost entirely due to a $21.8 million income tax benefit from the reversal of a valuation allowance.
When adjusted for pretax gains and one-time items, earnings stood at 4 cents per share, missing the $0.21 analyst consensus.
Revenue for the period was essentially flat at $90.2 million, up 0.3% year-over-year but below the $93 million expected by Wall Street.
The company faced a 7.9% decline in organic sales as customer concerns over tariff timing led to deferred shipments, particularly in the land-based transmission segment.
Despite these timing issues, Twin Disc’s backlog climbed to a record $175.3 million, signaling robust future demand in its marine and defense units.