Twin Disc(US:TWIN)2025-11-05 13:30Financial Performance - Sales for the first quarter of fiscal 2026 increased 9.7% year-over-year to $80.0 million, driven by the addition of Kobelt and strength in Marine and Propulsion Systems [5] - Gross profit rose 18.7% to $22.9 million, with gross margin expanding approximately 220 basis points to 28.7% compared to the prior year [7] - The net loss attributable to Twin Disc was $518 thousand, or ($0.04) per diluted share, an improvement from a net loss of ($2.8) million, or ($0.20) per diluted share in the first quarter of fiscal 2025 [10] - EBITDA for the first quarter was $4.7 million, up 172.3% compared to the first quarter of fiscal 2025 [10] - Net income for the quarter was a loss of $412 thousand, an improvement from a loss of $2,772 thousand in the same quarter last year [32] Order Backlog and Demand - The six-month backlog of orders increased to $163.3 million, up from $150.5 million at the end of the previous quarter, indicating healthy ongoing demand [9] - Marine and Propulsion Systems sales increased 14.6% year-over-year to $48.2 million, reflecting record new-unit bookings and strong aftermarket demand [6] - Twin Disc experienced double-digit growth in North America, leading to a shift in sales distribution away from the Middle East and Asia Pacific [6] Expenses and Cash Flow - Marketing, engineering, and administrative expenses rose by $1.2 million, or 6.2%, to $20.7 million, primarily due to the Kobelt acquisition and inflationary impacts [8] - Net cash used by operating activities was $(7,524) thousand, compared to $(4,344) thousand in the prior year, indicating a decline in cash flow [32] - Cash at the end of the period was $14,241 thousand, down from $16,711 thousand year-over-year, a decrease of 14.77% [32] Debt and Liabilities - Cash decreased 14.8% to $14.2 million, while total debt increased 46.7% to $43.7 million, largely due to higher long-term debt from the Kobelt acquisition [11] - Long-term debt increased to $40,719 thousand from $28,446 thousand, a rise of 43.2% [30] - Total liabilities rose to $202,648 thousand from $191,171 thousand, an increase of 6.05% [30] Assets and Retained Earnings - Total assets increased to $363,536 thousand from $355,562 thousand, representing a growth of 2.74% [30] - Current liabilities decreased to $122,201 thousand from $125,793 thousand, a reduction of 2.27% [30] - The company’s retained earnings decreased slightly to $124,330 thousand from $125,414 thousand, a decline of 0.87% [30] Depreciation and Financing Activities - The company reported a depreciation and amortization expense of $3,464 thousand, up from $3,238 thousand, reflecting a 7.03% increase [32] - Net cash provided by financing activities was $9,868 thousand, a significant increase compared to $934 thousand in the previous year [32] Growth Strategy - The company is focused on executing its growth strategy through disciplined operations, innovation, and customer engagement, with a healthy backlog supporting future growth [4]