3 unchanged sentences
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
−Removed: December 26, 2025
+Added: March 27, 2026
June 30, 2025
60 unchanged sentences
For the Quarter Ended
−Removed: For the Two Quarters Ended
−Removed: December 26, 2025
−Removed: December 27, 2024
−Removed: December 26, 2025
−Removed: December 27, 2024
+Added: For the Three Quarters Ended
+Added: March 27, 2026
+Added: March 28, 2025
+Added: March 27, 2026
+Added: March 28, 2025
$ 96,694 $ 81,242 $ 266,870 $ 244,060
3 unchanged sentences
27,131 21,706 72,432 62,708
−Removed: 22,367 21,680 45,301 41,002
Marketing, engineering and administrative expenses
21,255 19,759 62,607 58,166
−Removed: Other operating income
+Added: Other operating (income) expense
54 - ( 320 ) -
48 unchanged sentences
(IN THOUSANDS)
−Removed: For the Two Quarters Ended
−Removed: December 26, 2025
−Removed: December 27, 2024
+Added: For the Three Quarters Ended
+Added: March 27, 2026
+Added: March 28, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
10 unchanged sentences
Acquisition of property, plant, and equipment
+Added: Acquisition of Kobelt, less cash acquired
Proceeds from sale of property, plant, and equipment
1 unchanged sentence
CASH FLOWS FROM FINANCING ACTIVITIES:
+Added: Borrowings under long-term debt agreement
Borrowings under revolving loan arrangements
Repayments of revolving loan arrangements
−Removed: Repayments of long-term debt
+Added: Repayments of long-term borrowings
Dividends paid to shareholders
24 unchanged sentences
Based in Surrey, British Columbia, Canada, Kobelt is a manufacturer of controls, propulsion, steering, and braking systems to the marine, oil and gas, and industrial markets.
−Removed: The provisional fair value estimates of Kobelt's deferred income taxes, property, plant and equipment, net and intangible assets, net, are pending final review by the Company, and Kobelt is included in the Company's manufacturing segment.
+Added: Kobelt is included in the Company's manufacturing segment.
Recently Issued Not Yet Adopted Accounting Standards
17 unchanged sentences
The Company will continue to determine whether to provide additional scaled disclosures of financial or non-financial information in future quarterly reports, annual reports and/or proxy statements if it remains a smaller reporting company under SEC rules.
+Added: Contract Assets and Contract Liabilitites
The Company reported the following contract assets and liabilities, which are presented within trade accounts receivable, net, other current assets, and accrued liabilities on the condensed consolidated balance sheets.
2 unchanged sentences
Contract Liabilities
−Removed: Costs in Excess
−Removed: of Billings, Net
−Removed: Trade Accounts
−Removed: Receivable, Net
−Removed: Total Contract
−Removed: Total Contract
+Added: Costs in Excess of Billings, Net
+Added: Trade Accounts Receivable, Net
+Added: Total Contract Assets
+Added: Customer Deposits
+Added: Deferred Revenue
+Added: Total Contract Liabilities
June 30, 2024
June 30, 2025
−Removed: December 26, 2025
−Removed: The Company’s contracts are generally short term in nature, and therefore, the amount included in contract liabilities at each quarter is recognized as revenue in the next year.
+Added: March 27, 2026
+Added: The Company’s contracts are generally short term in nature, and therefore, the amount included in contract liabilities at each quarter is generally recognized as revenue within the next year.
Inventories, Net
The major classes of inventories were as follows:
−Removed: December 26, 2025
+Added: March 27, 2026
June 30, 2025
7 unchanged sentences
While we believe the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable in the future could differ materially from what actually transpires.
−Removed: The following is a listing of the activity in the warranty reserve as of December 26, 2025 and June 30, 2025:
−Removed: December 26, 2025
+Added: The following is a listing of the activity in the warranty reserve as of March 27, 2026 and June 30, 2025:
+Added: March 27, 2026
June 30, 2025
Reserve balance, beginning of period
+Added: $ 5,257 $ 4,220
Current period expense and adjustments
Payments or credits to customers
+Added: ( 3,858 ) ( 4,676 )
Reserve balance, end of period
−Removed: The current portion of the warranty accrual ($ 4,452 and $ 4,174 as of December 26, 2025 and June 30, 2025, respectively) is reflected in accrued liabilities, while the long-term portion ($ 889 and $ 1,083 as of December 26, 2025 and June 30, 2025, respectively) is included in other long-term liabilities on the condensed consolidated balance sheets.
+Added: $ 4,692 $ 5,257
+Added: The current portion of the warranty accrual ($ 3,763 and $ 4,174 as of March 27, 2026 and June 30, 2025, respectively) is reflected in accrued liabilities, while the long-term portion ($ 929 and $ 1,083 as of March 27, 2026 and June 30, 2025, respectively) is included in other long-term liabilities on the condensed consolidated balance sheets.
Contingencies
13 unchanged sentences
The CODM evaluates the performance of its segments based on net sales, gross profit, operating income (loss), and net income (loss).
−Removed: The following table presents the selected financial information with respect to the Company’s reportable segments as of the quarter ended December 26, 2025:
+Added: The following table presents the selected financial information with respect to the Company’s reportable segments as of the quarter ended March 27, 2026:
Manufacturing
−Removed: Elimination and adjustments
+Added: Elimination and
$ 83,528 $ 32,644 $ - $ ( 19,478 ) $ 96,694
18 unchanged sentences
Other operating income
−Removed: - - ( 374 ) - ( 374 )
Operating income (loss)
23 unchanged sentences
2,116 488 2,566 - 5,170
−Removed: The following table presents the selected financial information with respect to the Company’s reportable segments as of the quarter ended December 27, 2024:
+Added: The following table presents the selected financial information with respect to the Company’s reportable segments as of the quarter ended March 28, 2025:
Manufacturing
−Removed: Elimination and adjustments
+Added: Elimination and
$ 72,484 $ 30,138 $ - $ ( 21,380 ) $ 81,242
12 unchanged sentences
( 13,246 ) ( 964 ) - ( 14,210 ) -
−Removed: Total consoldiated cost of goods sold
+Added: Total consolidated cost of goods sold
42,067 17,604 - 135 59,536
20 unchanged sentences
Minority interest
−Removed: - 180 - - 180
Net income (loss) attributable to Twin Disc, Incorporated
4 unchanged sentences
1,600 209 500 - 2,309
−Removed: The following table presents the selected financial information with respect to the Company’s reportable segments as of the two quarters ended December 26, 2025:
+Added: The following table presents the selected financial information with respect to the Company’s reportable segments as of the three quarters ended March 27, 2026:
Manufacturing
14 unchanged sentences
( 31,375 ) ( 2,644 ) - ( 34,019 ) -
−Removed: Total consoldiated cost of goods sold
+Added: Total consolidated cost of goods sold
147,730 47,446 - 738 194,438
31 unchanged sentences
7,784 682 1,840 - 10,306
−Removed: The following table presents the selected financial information with respect to the Company’s reportable segments as of the two quarters ended December 27, 2024:
+Added: The following table presents the selected financial information with respect to the Company’s reportable segments as of the three quarters ended March 28, 2025:
Manufacturing
Elimination and adjustments
+Added: $ 212,265 $ 95,448 $ - $ ( 63,653 ) $ 244,060
Intra-segment sales
+Added: ( 5,172 ) ( 16,164 ) - 21,336 -
Inter-segment sales
+Added: ( 39,102 ) ( 3,215 ) - 42,317 -
Total consolidated net sales
+Added: 167,991 76,069 - - 244,060
Cost of goods sold:
Cost of goods sold
+Added: 170,550 74,756 - $ 63,954 181,352
Intra-segment cost of goods sold
+Added: ( 5,171 ) ( 16,164 ) - ( 21,335 ) -
Inter-segment cost of goods sold
−Removed: Total consoldiated cost of goods sold
+Added: ( 39,102 ) ( 3,215 ) - ( 42,317 ) -
+Added: Total consolidated cost of goods sold
+Added: 126,277 55,377 - 302 181,352
+Added: 41,714 20,692 - 302 62,708
Marketing, engineering and administrative expenses
+Added: 28,372 11,118 18,676 - 58,166
Operating income (loss)
+Added: 13,342 9,574 ( 18,676 ) 302 4,542
Other income (expense):
Interest income
+Added: 676 410 1,182 ( 2,198 ) 70
Interest expense
+Added: ( 2,932 ) ( 988 ) ( 69 ) 2,198 ( 1,791 )
Other income (expense)
+Added: ( 2,554 ) ( 2,802 ) 2,831 ( 70 ) ( 2,595 )
Total consolidated other income (expense)
+Added: ( 4,810 ) ( 3,380 ) 3,944 ( 70 ) ( 4,316 )
Pretax earnings (loss)
+Added: 8,532 6,194 ( 14,732 ) 232 226
Income tax benefit (expense)
+Added: ( 1,959 ) ( 2,054 ) 227 466 ( 3,320 )
Net income (loss)
+Added: 6,573 4,140 ( 14,505 ) 698 ( 3,094 )
Minority interest
+Added: - 223 - - 223
Net income (loss) attributable to Twin Disc, Incorporated
+Added: $ 6,573 $ 3,917 $ ( 14,505 ) $ 698 $ ( 3,317 )
Total consolidated assets
+Added: $ 495,226 $ 40,854 $ ( 195,317 ) $ ( 7,881 ) $ 332,882
Depreciation and amortization
+Added: $ 9,000 $ 265 $ 929 $ - $ 10,194
Expenditures for segment assets
+Added: 5,659 800 993 - 7,452
Disaggregated revenue:
−Removed: The following table presents details deemed most relevant to the users of the financial statements for the quarters ended December 26, 2025 and December 27, 2024.
−Removed: Net sales by product group for the quarter ended December 26, 2025 is summarized as follows:
+Added: The following table presents details deemed most relevant to the users of the financial statements for the quarters ended March 27, 2026 and March 28, 2025.
+Added: Net sales by product group for the quarter ended March 27, 2026 is summarized as follows:
Elimination of
1 unchanged sentence
Intercompany Sales
+Added: $ 11,355 $ 856 $ ( 996 ) $ 11,215
Land-based transmissions
+Added: 20,027 4,337 ( 2,649 ) 21,715
Marine and propulsion systems
−Removed: Net sales by product group for the quarter ended December 27, 2024 is summarized as follows:
+Added: 52,146 22,489 ( 15,488 ) 59,147
+Added: - 4,962 ( 345 ) 4,617
+Added: $ 83,528 $ 32,644 $ ( 19,478 ) $ 96,694
+Added: Net sales by product group for the quarter ended March 28, 2025 is summarized as follows:
Elimination of
1 unchanged sentence
Intercompany Sales
+Added: $ 9,679 $ 1,400 $ ( 1,345 ) $ 9,734
Land-based transmissions
+Added: 17,220 3,878 ( 3,322 ) 17,776
Marine and propulsion systems
−Removed: Net sales by product group for the two quarters ended December 26, 2025 is summarized as follows:
+Added: 45,536 20,176 ( 16,414 ) 49,298
+Added: 49 4,684 ( 299 ) 4,434
+Added: $ 72,484 $ 30,138 $ ( 21,380 ) $ 81,242
+Added: Net sales by product group for the three quarters ended March 27, 2026 is summarized as follows:
Elimination of
1 unchanged sentence
Intercompany Sales
+Added: $ 33,313 $ 2,951 $ ( 3,131 ) $ 33,133
Land-based transmissions
+Added: 55,618 9,705 ( 8,586 ) 56,737
Marine and propulsion systems
−Removed: Net sales by product group for the two quarters ended December 27, 2024 is summarized as follows:
+Added: 150,739 52,845 ( 39,505 ) 164,079
+Added: - 14,280 ( 1,359 ) 12,921
+Added: $ 239,670 $ 79,781 $ ( 52,581 ) $ 266,870
+Added: Net sales by product group for the three quarters ended March 28, 2025 is summarized as follows:
Elimination of
16 unchanged sentences
Benefits under the Omnibus Plan may be granted, awarded or paid in any one or a combination of stock options, stock appreciation rights, restricted stock awards, restricted stock units, cash-settled restricted stock units, performance stock awards, performance stock unit awards, performance unit awards, and dividend equivalent awards.
−Removed: The Omnibus Plan is designed to benefit key employees (including officers) of the Company and its subsidiaries, as well as non-employee directors of the Company.
+Added: The Omnibus Plan is designed to benefit key employees (including officers) of the Company and its subsidiaries, as well as non-employee directors and consultants of the Company.
There is reserved for issuance under the Plan an aggregate of 1,636.6 shares of the Company’s common stock, which consists of the previously-approved 715.0 shares of common stock reserved for issuance under the 2021 LTI Plan prior to its amendment and restatement to become the Omnibus Plan; 521.6 shares of common stock that remained available for issuance under the 2020 Directors' Plan; and 400.0 newly authorized shares of common stock.
2 unchanged sentences
Performance Stock Awards ( “ PSA ” )
−Removed: During the first two quarters of fiscal 2026 and 2025, the Company granted a target number of 166.5 and 116.1 PSAs, respectively, to various employees of the Company, including executive officers.
+Added: During the first three quarters of fiscal 2026 and 2025, the Company granted a target number of 166.5 and 116.1 PSAs, respectively, to various employees and consultants of the Company, including executive officers.
The fiscal 2026 PSAs will vest if the Company achieves performance-based target objectives relating to average return on invested capital and cumulative EBITDA (as defined in the PSA Grant Agreement), in the cumulative three fiscal year period ending June 30, 2028.
2 unchanged sentences
These PSAs are subject to adjustment if the Company’s return on invested capital and cumulative EBITDA falls below or exceeds the specified target objective, and the maximum number of performance shares that can be awarded if the target objective is exceeded is 232.2 .
−Removed: There were 396.4 and 350.0 unvested PSAs outstanding at December 26, 2025 and December 27, 2024, respectively.
+Added: There were 396.4 and 350.0 unvested PSAs outstanding at March 27, 2026 and March 28, 2025, respectively.
The fair value of the PSAs (on the date of grant) is expensed over the performance period for the shares that are expected to ultimately vest.
−Removed: Compensation expense of $ 455 and $ 376 was recognized for the quarters ended December 26, 2025 and December 27, 2024, respectively, related to PSAs.
−Removed: Compensation expense of $ 833 and $ 1,035 was recognized for the two quarters ended December 26, 2025 and December 27, 2024, respectively, related to PSAs.
−Removed: The weighted average grant date fair value of the unvested awards at December 26, 2025 was $ 11.12 .
−Removed: At December 26, 2025, the Company had $ 2,281 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2026 and 2025 awards.
−Removed: The total fair value of PSAs vested as of December 26, 2025 and December 27, 2024 was $ 0 .
+Added: Compensation expense of $ 369 and $ 376 was recognized for the quarters ended March 27, 2026 and March 28, 2025, respectively, related to PSAs.
+Added: Compensation expense of $ 1,202 and $ 1,411 was recognized for the three quarters ended March 27, 2026 and March 28, 2025, respectively, related to PSAs.
+Added: The weighted average grant date fair value of the unvested awards at March 27, 2026 was $ 11.12 .
+Added: At March 27, 2026, the Company had $ 1,912 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2026 and 2025 awards.
+Added: The total fair value of PSAs vested as of March 27, 2026 and March 28, 2025 was $ 0 .
Performance Stock Unit Awards ( “ PSUA ” )
2 unchanged sentences
These PSUAs are subject to adjustment if the Company’s return on invested capital and cumulative EBITDA falls below or exceeds the specified target objective, and the maximum number of performance shares that can be awarded if the target objective is exceeded is 20.9 .
−Removed: There were 8.0 and 10.5 unvested PSUAs outstanding at December 26, 2025 and December 27, 2024, respectively.
+Added: There were 8.0 and 10.5 unvested PSUAs outstanding at March 27, 2026 and March 28, 2025, respectively.
The fair value of the PSUAs (on the date of grant) is expensed over the performance period for the shares that are expected to ultimately vest.
−Removed: Compensation expense of $ 9 and $ 11 was recognized for the quarters ended December 26, 2025 and December 27, 2024, respectively, related to PSUAs.
−Removed: Compensation expense of $ 17 and $ 22 was recognized for the two quarters ended December 26, 2025 and December 27, 2024, respectively, related to PSUAs.
−Removed: The weighted average grant date fair value of the unvested awards at December 26, 2025 was $ 12.15 .
−Removed: At December 26, 2025, the Company had $ 17 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2025 awards.
−Removed: The total fair value of PSUAs vested as of December 26, 2025 and December 27, 2024 was $ 0 .
+Added: Compensation expense of $ 8 and $ 11 was recognized for the quarters ended March 27, 2026 and March 28, 2025, respectively, related to PSUAs.
+Added: Compensation expense of $ 25 and $ 33 was recognized for the three quarters ended March 27, 2026 and March 28, 2025, respectively, related to PSUAs.
+Added: The weighted average grant date fair value of the unvested awards at March 27, 2026 was $ 12.15 .
+Added: At March 27, 2026, the Company had $ 8 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2024 awards.
+Added: The total fair value of PSUAs vested as of March 27, 2026 and March 28, 2025 was $ 0 .
Restricted Stock Awards ( “ RS ” )
1 unchanged sentence
The fair value of the RS grants is recorded as compensation expense over the vesting period, which is generally 1 to 3 years.
−Removed: During the first two quarters of fiscal 2026 and 2025, the Company granted 147.2 and 44.0 service based restricted shares, respectively, to employees and non-employee directors.
−Removed: There were 225.0 and 251.0 unvested shares outstanding at December 26, 2025 and December 27, 2024, respectively.
−Removed: A total of 2.1 and 0 shares of restricted stock were forfeited during the two quarters ended December 26, 2025 and December 27, 2024, respectively.
−Removed: Compensation expense of $ 298 and $ 317 was recognized for the quarters ended December 26, 2025 and December 27, 2024, respectively.
−Removed: Compensation expense of $ 602 and $ 628 was recognized for the two quarters ended December 26, 2025 and December 27, 2024, respectively.
−Removed: The total fair value of restricted stock grants vested as of December 26, 2025 and December 27, 2024 was $ 1,817 and $ 437 , respectively.
−Removed: As of December 26, 2025, the Company had $ 1,472 of unrecognized compensation expense related to restricted stock which will be recognized over the next three years.
+Added: During the first three quarters of fiscal 2026 and 2025, the Company granted 148.4 and 45.8 service based restricted shares, respectively, to employees and non-employee directors and consultants.
+Added: There were 224.3 and 251.3 unvested shares outstanding at March 27, 2026 and March 28, 2025, respectively.
+Added: A total of 2.1 and 0 shares of restricted stock were forfeited during the three quarters ended March 27, 2026 and March 28, 2025, respectively.
+Added: Compensation expense of $ 298 and $ 321 was recognized for the quarters ended March 27, 2026 and March 28, 2025, respectively.
+Added: Compensation expense of $ 900 and $ 949 was recognized for the three quarters ended March 27, 2026 and March 28, 2025, respectively.
+Added: The total fair value of restricted stock grants vested as of March 27, 2026 and March 28, 2025 was $ 1,849 and $ 454 , respectively.
+Added: As of March 27, 2026, the Company had $ 1,194 of unrecognized compensation expense related to restricted stock which will be recognized over the next three years.
Restricted Stock Unit Awards ( “ RSU ” )
1 unchanged sentence
The fair value of the RSUs (on the date of grant) is recorded as compensation expense over the vesting period.
−Removed: During the first two quarters of fiscal 2026 and 2025, the Company granted 0 and 77.4 of employment based RSUs, respectively.
−Removed: There were 79.2 and 159.9 unvested RSUs outstanding at December 26, 2025 and December 27, 2024, respectively.
−Removed: Compensation expense of $ 85 and $ 149 was recognized for the quarters ended December 26, 2025 and December 27, 2024, respectively.
−Removed: Compensation expense of $ 256 and $ 192 was recognized for the two quarters ended December 26, 2025 and December 27, 2024, respectively.
−Removed: The total fair value of restricted stock units vested as of December 26, 2025 and December 27, 2024 was $ 33 and $ 701 , respectively.
−Removed: The weighted average grant date fair value of the unvested awards at December 26, 2025 was $ 12.84 .
−Removed: As of December 26, 2025, the Company had $ 520 of unrecognized compensation expense related to restricted stock which will be recognized over the next three years.
+Added: During the first three quarters of fiscal 2026 and 2025, the Company granted 0 and 77.4 of employment based RSUs, respectively.
+Added: There were 79.2 and 156.9 unvested RSUs outstanding at March 27, 2026 and March 28, 2025, respectively.
+Added: Compensation expense of $ 85 and $ 135 was recognized for the quarters ended March 27, 2026 and March 28, 2025, respectively.
+Added: Compensation expense of 341 and $ 327 was recognized for the three quarters ended March 27, 2026 and March 28, 2025, respectively.
+Added: The total fair value of restricted stock units vested as of March 27, 2026 and March 28, 2025 was $ 33 and $ 701 , respectively.
+Added: The weighted average grant date fair value of the unvested awards at March 27, 2026 was $ 12.84 .
+Added: As of March 27, 2026, the Company had $ 435 of unrecognized compensation expense related to restricted stock which will be recognized over the next three years.
Pension and Other Postretirement Benefit Plans
3 unchanged sentences
For the Quarter Ended
−Removed: For the Two Quarters Ended
−Removed: December 26, 2025
−Removed: December 27, 2024
−Removed: December 26, 2025
−Removed: December 27, 2024
+Added: For the Three Quarters Ended
+Added: March 27, 2026
+Added: March 28, 2025
+Added: March 27, 2026
+Added: March 28, 2025
Pension Benefits:
+Added: $ 89 $ 79 $ 269 $ 243
Prior Service cost
Interest cost
+Added: 774 835 2,322 2,507
Expected return on plan assets
+Added: ( 751 ) ( 825 ) ( 2,253 ) ( 2,477 )
Amortization of transition obligation
1 unchanged sentence
Amortization of actuarial net loss (gain)
+Added: 647 247 1,942 740
Net periodic benefit cost (gain)
+Added: $ 772 $ 356 $ 2,321 $ 1,077
Postretirement Benefits:
+Added: $ 1 $ 2 $ 4 $ 5
Interest cost
+Added: 35 41 104 124
Amortization of prior service cost (benefit)
Amortization of actuarial net loss (gain)
+Added: ( 13 ) ( 65 ) ( 40 ) ( 196 )
Net periodic benefit cost (gain)
+Added: $ 23 $ ( 22 ) $ 68 $ ( 67 )
The service cost component is included in cost of goods sold and marketing, engineering and administrative expenses.
1 unchanged sentence
The Company expects to contribute approximately $ 702 to its pension plans in fiscal 2026.
−Removed: As of December 26, 2025, the amount of $ 383 in contributions to the pension plans have been made.
−Removed: The Company has reclassified $ 640 (net of $ 1 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended December 26, 2025, and $ 140 (net of $ 13 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended December 27, 2024.
+Added: As of March 27, 2026, the amount of $ 544 in contributions to the pension plans have been made.
+Added: The Company has reclassified $ 477 (net of $ 146 in taxes) of benefit plan adjustments from accumulated other comprehensive income (loss) during the quarter ended March 27, 2026, and $ 201 (net of $ 5 in taxes) of benefit plan adjustments from accumulated other comprehensive income (loss) during the quarter ended March 28, 2025.
These reclassifications are included in the computation of net periodic benefit cost (gain).
−Removed: The Company has reclassified $ 1,272 (net of $ 0 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the two quarters ended December 25, 2026, and $ 361 (net of $ 2 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the two quarters ended December 27, 2024.
+Added: The Company has reclassified $ 1,749 (net of $ 146 in taxes) of benefit plan adjustments from accumulated other comprehensive income (loss) during the three quarters ended March 27, 2026, and ($ 1,246 ) (net of $ 3 in taxes) of benefit plan adjustments from accumulated other comprehensive income (loss) during the three quarters ended March 28, 2025.
These reclassifications are included in the computation of net periodic benefit cost (gain).
7 unchanged sentences
The Company has evaluated the realizability of deferred tax assets and concluded that the U.S.
−Removed: and state valuation allowance is no longer required and should be released as of December 26, 2025.
+Added: and state valuation allowance is no longer required and was released December 26, 2025.
The Company is expected to be in a cumulative three year income position at the end of the year, and expects to be profitable in future periods.
This release relates to both projections of future income and a significant tax planning action for the current year which constitutes a significant unusual or infrequently occurring tax only item, the tax effects of which have been excluded from the estimated AETR as per ASC 740 - 270.
−Removed: The Company recognized $ 22.8 million of the related $ 23.9 million domestic valuation allowance release tax benefit as a discrete item during the quarter.
−Removed: The Company continues to maintain a valuation allowance in immaterial foreign jurisdictions, due to continued losses and uncertain future earnings.
+Added: The Company recognized $ 22.8 million of the related $ 23.9 million domestic valuation allowance release tax benefit as a discrete item during the second quarter of the current fiscal year.
+Added: The Company continues to maintain a valuation allowance in an immaterial foreign jurisdiction, due to continued losses and uncertain future earnings.
Permanent differences continue to fluctuate and are significant compared to projected ordinary income.
2 unchanged sentences
For the Quarter-Ended
−Removed: For the Two Quarters Ended
−Removed: December 26, 2025
−Removed: December 27, 2024 December 26, 2025 December 27, 2024
+Added: For the Three Quarters Ended
+Added: March 27, 2026
+Added: March 28, 2025
+Added: March 27, 2026
+Added: March 28, 2025
Foreign earnings (loss), before income taxes of $ 1,734 , $ 1,140 , $ 3,756 , and $ 3,546 , respectively
$ 7,049 $ 5,054 $ 13,960 $ 14,154
−Removed: Domestic and immaterial foreign jurisdiction earnings (loss), before income taxes of ($ 22,804 ), $ 0 , ($ 22,819 ) and ($ 227 ), respectively
+Added: Domestic earnings (loss), before income taxes of $ 105 , $ 1 , ($22,714) and ($226) , respectively
( 1,654 ) ( 5,334 ) ( 7,296 ) ( 13,928 )
7 unchanged sentences
Goodwill represents the excess of the consideration transferred net of the acquisition-date fair values of the identifiable assets acquired and the liabilities assumed.
−Removed: As of December 26, 2025, changes in the carrying amount of goodwill are summarized as follows:
−Removed: Net Book Value Rollforward
+Added: As of March 27, 2026, changes in the carrying amount of goodwill are summarized as follows:
Balance at June 30, 2025
Translation adjustment
−Removed: Balance at December 26, 2025
−Removed: As of December 26, 2025, the following acquired intangible assets have definite useful lives and are subject to amortization:
+Added: Balance at March 27, 2026
+Added: As of March 27, 2026, the following acquired intangible assets have definite useful lives and are subject to amortization:
Net Book Value Rollforward
4 unchanged sentences
Balance at June 30, 2025
+Added: $ 43,403 $ ( 30,042 ) $ 13,361 $ 7,195 $ 1,834 $ 2,036 $ 2,296 $ 13,361
+Added: 1,625 - 1,625 - - - 1,625 1,625
+Added: - ( 2,114 ) ( 2,114 ) ( 982 ) ( 146 ) ( 229 ) ( 757 ) ( 2,114 )
Translation adjustment
−Removed: Balance at December 26, 2025
+Added: ( 631 ) 416 ( 215 ) ( 126 ) ( 24 ) ( 33 ) ( 32 ) ( 215 )
+Added: Balance at March 27, 2026
+Added: $ 44,397 $ ( 31,740 ) $ 12,657 $ 6,087 $ 1,664 $ 1,774 $ 3,132 $ 12,657
Other intangibles consist mainly of computer software.
1 unchanged sentence
The weighted average remaining useful life of the intangible assets included in the table above is approximately 7 years.
−Removed: Intangible amortization expense was $ 682 and $ 880 for the quarters ended December 26, 2025, and December 27, 2024, respectively.
−Removed: Intangible amortization expense was $ 1,349 and $ 1,806 for the two quarters ended December 26, 2025, and December 27, 2024, respectively.
+Added: Intangible amortization expense was $ 765 and $ 915 for the quarters ended March 27, 2026, and March 28, 2025, respectively.
+Added: Intangible amortization expense was $ 2,114 and $ 2,721 for the three quarters ended March 27, 2026, and March 28, 2025, respectively.
Estimated intangible amortization expense for the remainder of fiscal 2026 and each of the next five fiscal years and thereafter is as follows:
Long-term Debt
−Removed: Long-term debt at December 26, 2025 and June 30, 2025 consisted of the following:
−Removed: December 26, 2025
+Added: Long-term debt at March 27, 2026 and June 30, 2025 consisted of the following:
+Added: March 27, 2026
June 30, 2025
1 unchanged sentence
Revolving loans (expire April 2027)
+Added: $ 33,043 $ 17,921
Term loan (due April 2027)
+Added: 12,000 13,500
+Added: 45,068 31,446
current maturities
+Added: ( 3,000 ) ( 3,000 )
Total long-term debt
+Added: $ 42,068 $ 28,446
Credit Agreement Debt :
5 unchanged sentences
The maturity date of the Term Loan is April 1, 2027, and the Company is required to make principal installments on the Term Loan of at least $ 0.75 million per quarter.
−Removed: Under the Credit Agreement, the Company is restricted in making dividend payments beyond $ 5 million in any fiscal year.
In addition, the Company may, from time to time prior to the maturity date, enter into Revolving Loans in amounts not to exceed, in the aggregate and subject to a Borrowing Base, $ 50.0 million (the “Revolving Credit Commitment”).
76 unchanged sentences
and .15% and .3% for the Prior Unused Revolving Credit Commitment (each depending on the Company’s Total Funded Debt to EBITDA ratio).
+Added: The Company's credit agreement with its lender is scheduled to expire on April 1, 2027.
+Added: If the Company is unable to refinance or negotiate an extension of the maturity date, this could present an operating risk.
The Company remains in compliance with its liquidity and other covenants.
−Removed: As of December 26, 2025, current maturities include $ 3,000 of term loan payments due within the coming year.
−Removed: During the quarter ended December 26, 2025, the average interest rate was 6.50 % on the Term Loan, and 5.27 % on the Revolving Loans.
−Removed: As of December 26, 2025, the Company’s borrowing capacity on the Revolving Loans under the terms of the Credit Agreement was $ 45,358 , and the Company had approximately $ 13,617 available borrowings.
+Added: As of March 27, 2026, current maturities include $ 3,000 of term loan payments due within the coming year.
+Added: During the quarter ended March 27, 2026, the average interest rate was 6.41 % on the Term Loan, and 5.34 % on the Revolving Loans.
+Added: As of March 27, 2026, the Company’s borrowing capacity on the Revolving Loans under the terms of the Credit Agreement was $ 42,912 , and the Company had approximately $ 9,797 available borrowings.
In addition to the Credit Agreement, the Company has established unsecured lines of credit that are used from time to time to secure certain performance obligations by the Company.
−Removed: The Company’s borrowings described above approximate fair value at December 26, 2025 and June 30, 2025.
+Added: The Company’s borrowings described above approximate fair value at March 27, 2026 and June 30, 2025.
If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy.
−Removed: The Company is party to an interest rate swap arrangement with Bank of Montreal, with an initial notional amount of $ 20,000 and a maturity date of March 4, 2026 to hedge the Term Loan.
−Removed: As of December 26, 2025, the notional amount was $ 7,000 .
−Removed: This swap has been designated as a cash flow hedge under ASC 815, Derivatives and Hedging.
−Removed: This swap is included in the disclosures in Note O, Derivative Financial Instruments.
+Added: The Company’s interest rate swap matured on March 4, 2026, and was not renewed.
+Added: The Company had no interest rate swaps designated as cash flow hedges outstanding at March 27, 2026.
+Added: The maturity did not have a material impact on our condensed consolidated financial statements.
During the fourth quarter of fiscal 2021, the Company designated its euro denominated Revolving Loan as a net investment hedge to mitigate the risk of variability in its euro denominated net investments in wholly-owned foreign companies.
2 unchanged sentences
Shareholders ’ Equity
−Removed: The Company, from time to time, makes open market purchases of its common stock under authorizations given to it by the Board of Directors, of which 315.0 shares as of December 26, 2025 remain authorized for purchase.
−Removed: The Company did not make any open market purchases of its shares during the quarters ended December 26, 2025 and December 27, 2024.
−Removed: The following is a reconciliation of the Company’s equity balances for the first two fiscal quarters of 2026 and 2025:
+Added: The Company, from time to time, makes open market purchases of its common stock under authorizations given to it by the Board of Directors, of which 315.0 shares as of March 27, 2026 remain authorized for purchase.
+Added: The Company did not make any open market purchases of its shares during the quarters ended March 27, 2026 and March 28, 2025.
+Added: The following is a reconciliation of the Company’s equity balances for the first three fiscal quarters of 2026 and 2025:
Twin Disc, Inc.
31 unchanged sentences
38,139 146,130 3,509 ( 3,250 ) 651 185,179
+Added: Net income (loss)
+Added: 3,325 231 3,556
+Added: Dividends paid to shareholders
+Added: ( 580 ) ( 580 )
+Added: Translation adjustments
+Added: ( 3,140 ) (20 ) ( 3,160 )
+Added: Benefit plan adjustments, net of tax
+Added: Unrealized gain (loss) on hedges, net of tax
+Added: Compensation expense
+Added: Stock awards, net
+Added: Balance, March 27, 2026
+Added: $ 38,886 $ 148,875 $ 1,140 $ ( 3,237 ) $ 862 $ 186,526
Twin Disc, Inc.
32 unchanged sentences
$ 40,111 $ 126,610 $ ( 12,222 ) $ ( 7,475 ) $ 610 $ 147,634
−Removed: Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the two quarters ended December 26, 2025 and December 27, 2024 are as follows:
+Added: Net income (loss)
+Added: ( 1,472 ) 50 ( 1,422 )
+Added: Dividends paid to shareholders
+Added: ( 566 ) ( 566 )
+Added: Translation adjustments
+Added: 4,120 32 4,152
+Added: Benefit plan adjustments, net of tax
+Added: Unrealized gain (loss) on cash flow hedge, net of tax
+Added: ( 653 ) ( 653 )
+Added: Compensation expense
+Added: Stock awards, net
+Added: Balance, March 28, 2025
+Added: $ 40,927 $ 124,572 $ ( 8,554 ) $ ( 7,448 ) $ 692 $ 150,189
+Added: Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the three quarters ended March 27, 2026 and March 28, 2025 are as follows:
Net Investment
16 unchanged sentences
13,576 ( 10,189 ) 225 ( 103 )
+Added: Translation adjustment during the quarter
+Added: ( 3,140 ) - - -
+Added: Amounts reclassified from accumulated other comprehensive income (loss)
+Added: - 477 ( 12 ) 306
+Added: Net current period other comprehensive income (loss)
+Added: ( 3,140 ) 477 ( 12 ) 306
+Added: Balance, March 27, 2026
+Added: $ 10,436 $ ( 9,712 ) $ 213 $ 203
Net Investment
1 unchanged sentence
$ ( 849 ) $ ( 8,062 ) $ 504 $ 1,502
+Added: Translation adjustment during the quarter
Amounts reclassified from accumulated other comprehensive income (loss)
−Removed: Net current period other comprehensive income (loss)
- 221 ( 169 ) ( 684 )
13 unchanged sentences
( 5,012 ) ( 9,509 ) 359 1,940
−Removed: Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended December 26, 2025 are as follows:
+Added: Translation adjustment during the quarter
+Added: Amounts reclassified from accumulated other comprehensive income (loss)
+Added: - 201 ( 45 ) ( 608 )
+Added: Net current period other comprehensive income (loss)
+Added: 4,120 201 ( 45 ) ( 608 )
+Added: Balance, March 28, 2025
+Added: $ ( 892 ) $ ( 9,308 ) $ 314 $ 1,332
+Added: Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended March 27, 2026 are as follows:
Quarter Ended
−Removed: Two Quarters Ended
−Removed: December 26, 2025
−Removed: December 26, 2025
+Added: Three Quarters Ended
+Added: March 27, 2026
+Added: March 27, 2026
Changes in benefit plan items
−Removed: Actuarial loss (gain)
−Removed: $ 633 (a) $ 1,256 (a)
+Added: Actuarial losses
Transition asset and prior service cost (benefit)
Total amortization
+Added: ( 146 ) ( 146 )
Total reclassification, net of tax
$ 477 $ 1,749
−Removed: Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended December 27, 2024 is as follows:
+Added: Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended March 28, 2025 is as follows:
Quarter Ended
−Removed: Two Quarters Ended
−Removed: December 27, 2024
−Removed: December 27, 2024
+Added: Three Quarters Ended
+Added: March 28, 2025
+Added: March 28, 2025
Changes in benefit plan items
−Removed: Actuarial loss (gain)
+Added: Actuarial losses (gains)
+Added: $ 191 (a) $ 517 (a)
Transition asset and prior service cost (benefit)
+Added: 15 (a) 48 (a)
Return of plan assets
−Removed: ( 1,808 ) ( 1,808 )
Total amortization
9 unchanged sentences
For the Quarter Ended
−Removed: For the Two Quarters Ended
−Removed: December 26, 2025
−Removed: December 27, 2024
−Removed: December 26, 2025
−Removed: December 27, 2024
+Added: For the Three Quarters Ended
+Added: March 27, 2026
+Added: March 28, 2025
+Added: March 27, 2026
+Added: March 28, 2025
Net income (loss)
+Added: $ 3,556 $ ( 1,422 ) $ 25,622 $ ( 3,094 )
Net income (loss) attributable to noncontrolling interest, net of tax
+Added: 231 50 444 223
Net income (loss) attributable to Twin Disc, Incorporated
+Added: 3,325 ( 1,472 ) 25,178 ( 3,317 )
Weighted average shares outstanding - basic
+Added: 14,198 13,895 14,095 13,841
Basic earnings (loss) per share:
Basic earnings (loss) per share attributable to Twin Disc, Incorporated common shareholders
+Added: $ 0.23 $ ( 0.11 ) $ 1.79 $ ( 0.24 )
Net income (loss)
+Added: $ 3,556 $ ( 1,422 ) $ 25,622 $ ( 3,094 )
Net income (loss) attributable to noncontrolling interest, net of tax
+Added: 231 50 444 223
Net income (loss) attributable to Twin Disc, Incorporated
+Added: 3,325 ( 1,472 ) 25,178 ( 3,317 )
Weighted average shares outstanding - basic
+Added: 14,198 13,895 14,095 13,841
Effect of dilutive stock awards
Weighted average shares outstanding - diluted
+Added: 14,416 13,895 14,313 13,841
Diluted earnings (loss) per share:
Diluted earnings (loss) per share attributable to Twin Disc, Incorporated common shareholders
−Removed: The following potential common shares were excluded from diluted EPS for the two quarters ended December 27, 2024 as the Company reported a net loss:
−Removed: 404.3 related to the Company’s unvested PSAs, 7.9 related to the Company’s unvested PSAUs, 171.0 related to the Company’s unvested RS awards, and 68.0 related to the Company’s unvested RSUs.
+Added: $ 0.23 $ ( 0.11 ) $ 1.76 $ ( 0.24 )
+Added: The following potential common shares were excluded from diluted EPS for the quarter and three quarters ended March 28, 2025 as the Company reported a net loss:
+Added: 350.0 related to the Company’s unvested PSAs, 10.5 related to the Company’s unvested PSUAs, 251.3 related to the Company’s unvested RS awards, and 156.9 related to the Company’s unvested RSUs.
Lease Liabilities
9 unchanged sentences
Balance Sheets Location
−Removed: December 26, 2025
+Added: March 27, 2026
June 30, 2025
14 unchanged sentences
For the Quarter Ended
−Removed: For the Two Quarters Ended
−Removed: December 26, 2025
−Removed: December 27, 2024
−Removed: December 26, 2025
−Removed: December 27, 2024
+Added: For the Three Quarters Ended
+Added: March 27, 2026
+Added: March 28,2025
+Added: March 27, 2026
+Added: March 28,2025
Finance lease cost:
9 unchanged sentences
For the Quarter Ended
−Removed: For the Two Quarters Ended
−Removed: December 26, 2025
−Removed: December 27, 2024
−Removed: December 26, 2025
−Removed: December 27, 2024
+Added: For the Three Quarters Ended
+Added: March 27, 2026
+Added: March 28,2025
+Added: March 27, 2026
+Added: March 28,2025
Cash paid for amounts included in the measurement of lease liabilities:
11 unchanged sentences
Finance leases
−Removed: Approximate future minimum rental commitments under non-cancellable leases as of December 26, 2025 were as follows:
+Added: Approximate future minimum rental commitments under non-cancellable leases as of March 27, 2026 were as follows:
Operating Leases
9 unchanged sentences
Interest Rate Swap Contracts
−Removed: The Company has one outstanding interest rate swap contract as of December 26, 2025, with a notional amount of $ 7,000 .
−Removed: It has been designated as a cash flow hedge in accordance with ASC 815, Derivatives and Hedging.
+Added: During the quarter, the Company had one interest rate swap contract that matured on March 4, 2026, with a notional amount of $ 6,500 .
+Added: It had been designated as a cash flow hedge in accordance with ASC 815, Derivatives and Hedging.
The primary purpose of the Company’s cash flow hedging activities is to manage the potential changes in value associated with interest payments on the Company’s SOFR-based indebtedness.
2 unchanged sentences
These contracts generally have original maturities of greater than twelve months.
−Removed: Net unrealized after-tax gain (loss) related to cash flow hedging activities that were included in accumulated other comprehensive income (loss) were $ 225 and $ 284 as of December 26, 2025, and June 30, 2025, respectively.
+Added: Net unrealized after-tax gain (loss) related to cash flow hedging activities that were included in accumulated other comprehensive income (loss) were $ 213 and $ 284 as of March 27, 2026, and June 30, 2025, respectively.
The unrealized amounts in accumulated other comprehensive income (loss) will fluctuate based on changes in the fair value of open contracts during each reporting period.
−Removed: The Company estimates that $ 15 of net unrealized gain (loss) related to cash flow hedging activities included in accumulated other comprehensive income (loss) will be reclassified into earnings within the next twelve months.
Derivatives Designated as Net Investment Hedges
2 unchanged sentences
All changes in the fair value of the euro revolver were then recorded in accumulated other comprehensive income (loss) along with the foreign currency translation adjustments on those foreign investments.
−Removed: Net unrealized after-tax gains (loss) related to net investment hedging activities that were included in accumulated other comprehensive income (loss) were $ 103 and $ 129 as of December 26, 2025 and June 30, 2025, respectively.
+Added: Net unrealized after-tax gains (loss) related to net investment hedging activities that were included in accumulated other comprehensive income (loss) were $ 203 and ($ 129 ) as of March 27, 2026 and June 30, 2025, respectively.
Fair Value of Derivative Instruments
2 unchanged sentences
Sheet Location
−Removed: December 26, 2025
+Added: March 27, 2026
June 30, 2025
2 unchanged sentences
Other current assets
−Removed: The impact of the Company’s derivative instruments on the condensed consolidated statements of operations and comprehensive income (loss) for the quarters ended December 26, 2025 and December 27, 2024, respectively, was as follows:
+Added: The impact of the Company’s derivative instruments on the condensed consolidated statements of operations and comprehensive income (loss) for the quarters ended March 27, 2026 and March 28, 2025, respectively, was as follows:
Condensed Consolidated Statements
1 unchanged sentence
For the Quarter Ended
−Removed: For the Two Quarters Ended
+Added: For the Three Quarters Ended
Income (Loss) Location
−Removed: December 26, 2025
−Removed: December 27, 2024
−Removed: December 26, 2025
−Removed: December 27, 2024
+Added: March 27, 2026
+Added: March 28,2025
+Added: March 27, 2026
+Added: March 28,2025
Derivative designated as hedge:
1 unchanged sentence
Interest expense
+Added: $ 39 $ 70 $ 125 $ 181
Interest rate swap
Unrealized gain (loss) on hedges
+Added: ( 12 ) ( 45 ) ( 71 ) ( 190 )
Net investment hedge
Unrealized gain (loss) on hedges
+Added: 306 ( 608 ) 332 ( 170 )
Management Discussion and Analysis
In the financial review that follows, we discuss our results of operations, financial condition and certain other information.
−Removed: This discussion should be read in conjunction with our condensed consolidated financial statements as of December 26, 2025, and related notes, as reported in Item 1 of this Quarterly Report.
+Added: This discussion should be read in conjunction with our condensed consolidated financial statements as of March 27, 2026, and related notes, as reported in Item 1 of this Quarterly Report.
Some of the statements in this Quarterly Report on Form 10-Q are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995.
5 unchanged sentences
Results of Operations
+Added: (In thousands)
Quarter Ended
−Removed: Two Quarters Ended
−Removed: December 26, 2025
−Removed: December 27, 2024
−Removed: December 26, 2025
−Removed: December 27, 2024
+Added: Three Quarters Ended
+Added: March 27, 2026
+Added: March 28,2025
+Added: March 27, 2026
+Added: March 28,2025
Cost of goods sold
3 unchanged sentences
Income (loss) from operations
−Removed: Comparison of the Second Quarter of Fiscal 2026 with the Second Quarter of Fiscal 2025
−Removed: Net sales for the second quarter increased 0.3%, or $0.3 million, to $90.2 million from $89.9 million in the same quarter a year ago.
−Removed: The acquisition of Kobelt, completed in the third quarter of fiscal 2025, contributed $3.2 million of additional revenue in the quarter.
−Removed: The remaining decrease of $2.9 million primarily reflects temporary weakness in commercial marine demand, impacted by the existing tariff structure, along with continued soft demand for oil and gas transmissions into China.
−Removed: These decreases were partially offset by continued growth in demand for the Company’s Veth propulsion systems, along with improved shipments of the Company’s Katsa products acquired in fiscal 2024.
−Removed: Global sales of marine and propulsion products were flat with the prior year, as weakness in commercial marine demand was offset by strength in demand for the Veth product.
−Removed: Shipments of off-highway transmission products decreased by 8.1%, with weakness in demand for oil and gas transmissions into China and delayed airport rescue and firefighting transmissions (“ARFF”) shipments resulting from ongoing tariff concerns.
−Removed: Shipments of industrial products improved nearly 22% as demand for Katsa product continues to grow, along with the favorable impact from the Kobelt acquisition.
−Removed: The European region saw a significant increase in revenue ($3.1 million or 8.4%) thanks primarily to strong regional demand for Veth and Katsa products.
−Removed: Sales into North America increased 9.6%, or $2.2 million, driven by the addition of Kobelt.
−Removed: The Asia Pacific region decreased 24.5%, or $5.0 million, on weaker demand for commercial marine and oilfield transmissions in the region.
−Removed: Currency translation had a favorable impact on second quarter fiscal 2026 sales compared to the second quarter of the prior year totaling $4.1 million primarily due to the strengthening of the euro against the U.S.
+Added: Comparison of the Third Quarter of Fiscal 2026 with the Third Quarter of Fiscal 2025
+Added: Net sales for the third quarter increased 19.0%, or $15.5 million, to $96.7 million from $81.2 million in the same quarter a year ago.
+Added: Currency translation had a favorable impact on third quarter fiscal 2026 sales compared to the third quarter of the prior year totaling $7.5 million primarily due to the strengthening of the euro against the U.S.
+Added: The remaining organic increase of $8.0 million (9.8%) reflects strength across most of the Company’s markets including commercial marine, global defense and land-based transmission.
+Added: Global sales of marine and propulsion products were up 20.0% compared with the prior year, as improved commercial marine demand in Asia combined with continued strength in global demand for Veth propulsion products.
+Added: Shipments of off-highway transmission products increased by 22.2%, with improved ARFF shipments in the quarter following some delays in the second fiscal quarter.
+Added: Shipments of industrial products improved by 15.2% as demand for the Katsa product continues to grow, along with the favorable impact from the Kobelt acquisition.
+Added: The European region saw a significant increase in revenue ($7.4 million or 21.3%) thanks primarily to strong regional demand for the Veth and Katsa products.
+Added: Sales into North America increased 33.7%, or $7.3 million, driven by improved commercial marine and transmission shipments, along with the addition of Kobelt.
+Added: The Asia Pacific region increased 9.0%, or $1.6 million, on improved demand for commercial marine transmissions in the region.
Sales at our manufacturing segment increased 15.5%, or $11.0 million, versus the same quarter last year.
The Company’s new acquisition, Kobelt, in Canada contributed $2.2 million of incremental revenue.
−Removed: manufacturing operations experienced a 10.6%, or $3.3 million, decrease in sales versus the second fiscal quarter of 2025, with shipment delays for ARFF products and weaker demand for oil and gas transmissions in China.
−Removed: The Company’s operation in the Netherlands saw increased revenue of $1.6 million (6.4%) compared to the second fiscal quarter of 2025, as this operation continues to experience record demand for its propulsion systems.
−Removed: The Company’s Belgian operation saw a decrease compared to the prior year second quarter (16.6% or $0.9 million), with weaker demand for its marine transmission products due in part to the domestic tariff structure.
−Removed: The Company’s Italian manufacturing operation was up $2.5 million (77.7%) compared to the second quarter of fiscal 2025, due primarily to stronger European demand for industrial and commercial marine products.
+Added: manufacturing operations experienced an 8.0%, or $2.3 million, increase in sales versus the third fiscal quarter of 2025, with a recovery in shipments of ARFF products impacted by tariff driven delays in the second quarter.
+Added: The Company’s operation in the Netherlands saw a slight decrease in revenue of $1.1 million (4.7%) compared to the third fiscal quarter of 2025, primarily due to timing of shipments of projects.
+Added: The Company’s Belgian operation saw a decrease compared to the prior year third quarter (10.7% or $0.6 million), with weaker demand for its marine transmission products due in part to the domestic tariff structure.
+Added: The Company’s Italian manufacturing operation was up $0.7 million (16.0%) compared to the third quarter of fiscal 2025, due primarily to stronger European demand for industrial and commercial marine products.
The Company’s operation in Finland saw revenue increase 86.2% ($6.1 million), with strong demand for defense related products in the region.
−Removed: The Company’s Swiss manufacturing operation, which supplies customized propellers for the global mega yacht and patrol boat markets, was up $0.4 million (23.7%) compared to the prior year second quarter.
−Removed: Our distribution segment experienced a decrease in sales of $10.4 million (29.0%) in the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025.
−Removed: The Company’s Asian distribution operations in Singapore, China and Japan were down 37.2%, or $6.0 million, from the prior year on reduced demand for commercial marine transmissions and oil and gas transmissions for China.
−Removed: The Company’s North America distribution operation saw a decrease ($1.9 million or 32.7%) impacted by the existing tariff structure and related impact on goods coming from European manufacturing operations.
−Removed: Similarly, the Company’s European distribution operation saw a decline ($1.9 million or 30.9%) on weaker shipments of commercial marine projects.
−Removed: The Company’s distribution operation in Australia and New Zealand, which provides boat accessories, propulsion and marine transmission systems for the pleasure craft market, saw a decrease in revenue of 6.9% from the prior year second fiscal quarter, primarily due to weaker pleasure craft demand.
−Removed: Gross profit as a percentage of sales for the second quarter of fiscal 2026 improved to 24.8%, compared to 24.1% for the same period last year.
−Removed: The prior year quarter includes the impact of a non-cash inventory write-down of $1.6 million.
−Removed: This write-down reflected the results of a product rationalization exercise of the Company’s industrial product line following the acquisition of Katsa.
−Removed: The current quarter was impacted by a less favorable product mix, dilution of margin due to invoicing of tariffs and isolated operational/quality issues within the quarter.
−Removed: For the fiscal 2026 second quarter, marketing, engineering and administrative (“ME&A”) expenses, as a percentage of sales, were 22.9%, compared to 21.0% for the fiscal 2025 second quarter.
+Added: The Company’s Swiss manufacturing operation, which supplies customized propellers for the global mega yacht and patrol boat markets, was up $1.3 million (94.0%) compared to the prior year third quarter.
+Added: Our distribution segment experienced an increase in sales of $2.5 million (8.3%) in the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025.
+Added: The Company’s Asian distribution operations in Singapore, China and Japan were up 22.2% or $2.7 million from the prior year on improved demand for commercial marine transmissions and oil and gas transmissions for China.
+Added: The Company’s North America distribution operation saw a decrease ($0.3 million or 6.0%), negatively impacted by the existing tariff structure and related impact on goods coming from European manufacturing operations.
+Added: The Company’s European distribution operation saw a decline ($1.0 million or 16.4%) on weaker shipments of commercial marine projects.
+Added: The Company’s distribution operation in Australia and New Zealand, which provides boat accessories, propulsion and marine transmission systems for the pleasure craft market, saw an increase in revenue of 16.7% from the prior year third fiscal quarter, primarily due to improved pleasure craft demand.
+Added: Gross profit as a percentage of sales for the third quarter of fiscal 2026 improved to 28.1%, compared to 26.7% for the same period last year.
+Added: The current quarter was impacted by a positive volume impact and the positive impact of cost initiatives, offsetting a less favorable product mix and the impact of margin dilution resulting from the invoicing of tariffs..
+Added: For the fiscal 2026 third quarter, marketing, engineering and administrative (“ME&A”) expenses, as a percentage of sales, were 21.7%, compared to 24.0% for the fiscal 2025 third quarter.
ME&A expenses increased $1.5 million (7.6%) over the same period last fiscal year.
−Removed: The increase in ME&A spending for the quarter was comprised of the addition of Kobelt ($0.5 million), a foreign currency impact ($0.5 million), increased commission expense ($0.5 million) and a small net inflationary impact of $0.3 million.
−Removed: Interest expense was up $0.3 million to $0.8 million in the second quarter of fiscal 2026, with a higher average outstanding revolver balance following the Katsa and Kobelt acquisitions.
−Removed: Other income (expense) of $0.6 million for the second fiscal quarter was primarily attributable to a currency gain ($0.1 million), partially offset by pension amortization expense ($0.7 million).
−Removed: The fiscal 2026 second quarter effective tax rate was -3,120.4% compared to 58.5% in the prior fiscal year second quarter.
−Removed: The change in the effective tax rate for the quarter resulted from a full reversal of the domestic valuation allowance.
−Removed: Comparison of the First Six Months of Fiscal 2026 with the First Six Months of Fiscal 2025
−Removed: Net sales for the first six months increased 4.5%, or $7.4 million, to $170.2 million from $162.8 million in the same period a year ago.
−Removed: The acquisition of Kobelt, completed in the third quarter of fiscal 2025, contributed $6.3 million of additional revenue in the first half.
−Removed: The remaining increase of $1.1 million reflects continued growth in demand for the Company’s Veth propulsion systems, along with improved shipments of the Company’s Katsa products acquired in fiscal 2024.
−Removed: These increases were partially offset by temporary weakness in commercial marine demand, impacted by the existing tariff structure, along with continued soft demand for oil and gas transmissions into China.
−Removed: Global sales of marine and propulsion products improved 5.9% from the prior year, driven by strong demand for Veth product offset by some weakness in commercial marine demand.
+Added: The increase in ME&A spending for the quarter was comprised of the addition of Kobelt ($0.3 million) and a foreign currency impact ($1.0 million), along with a general inflationary impact offset by cost savings initiatives.
+Added: Interest expense was up $0.1 million to $0.8 million in the third quarter of fiscal 2026, with a higher average outstanding revolver balance following the Katsa and Kobelt acquisitions.
+Added: Other expense (benefit) of $(0.3) million for the third fiscal quarter was primarily attributable to a currency gain ($1.0 million), partially offset by pension amortization expense ($0.7 million).
+Added: The fiscal 2026 third quarter effective tax rate was 34.1% compared to (407.9%) in the prior fiscal year third quarter.
+Added: The full domestic valuation allowance in place during fiscal 2025 is the primary cause of the prior year rate.
+Added: The current year rate was primarily impacted by the mix of foreign earnings by jurisdiction.
+Added: Comparison of the First Nine Months of Fiscal 2026 with the First Nine Months of Fiscal 2025
+Added: Net sales for the first nine months increased 9.3%, or $22.8 million, to $266.9 million from $244.1 million in the same period a year ago.
+Added: The acquisition of Kobelt, completed in the third quarter of fiscal 2025, contributed $8.7 million of additional revenue in the first nine months.
+Added: Currency translation had a favorable impact of $14.9 million on revenue for the first nine months of fiscal 2026 sales compared to the same period of the prior year due to the strengthening of the euro against the U.S.
+Added: The remaining decrease of $0.8 million reflects continued growth in demand for the company’s Veth propulsion systems, offset by weakness in global demand for commercial marine products through the first half of the fiscal year.
+Added: Global sales of marine and propulsion products improved 10.8% from the prior year, driven by strong demand for the Veth product and a third quarter recovery in commercial marine demand.
Shipments of industrial products improved by 16.8%, driven by the addition of Katsa and Kobelt.
−Removed: Shipments of off-highway transmission products declined by 3.5%, with delayed ARFF shipments.
−Removed: The European region saw a significant increase in revenue ($5.1 million or 7.7%) thanks primarily to growing demand for Veth and Katsa products in the region.
−Removed: Sales into North America increased 26.7%, or $10.9 million, on improved industrial and commercial marine shipments in the second quarter.
−Removed: The Asia Pacific region decreased 20.0%, or $7.4 million, on weaker demand for commercial marine and oil and gas transmissions in the region.
−Removed: Currency translation had a favorable impact on first half fiscal 2026 sales compared to the first half of the prior year totaling $4.1 million primarily due to the strengthening of the euro against the U.S.
+Added: Shipments of off-highway transmission products improved by 4.9%, with recovery in ARFF shipments that were delayed in the previous quarter.
+Added: The European region saw a significant increase in revenue ($12.5 million or 12.4%) thanks primarily to growing demand for the Veth and Katsa products in the region.
+Added: Sales into North America increased 29.1%, or $18.2 million, on improved industrial and commercial marine shipments in the second and third quarters.
+Added: The Asia Pacific region decreased 10.70%, or $5.8 million, on weaker demand for commercial marine and oil and gas transmissions in the region during the first half of the fiscal year.
Sales at our manufacturing segment increased 12.9%, versus the same period last year.
The Company’s new acquisition, Kobelt, in Canada contributed $8.5 million of incremental revenue.
−Removed: manufacturing operations experienced a 6.2%, or $3.7 million, decline in sales versus the first half of fiscal 2025, with tariff concerns creating a drag on shipments.
−Removed: The Company’s operation in the Netherlands saw increased revenue of $8.4 million (20.7%) compared to the first half of fiscal 2025, as this operation continues to experience record demand for its propulsion systems and has begun to increase capacity to satisfy the growing demand.
−Removed: The Company’s Belgian operation saw a decrease compared to the prior year first half (16.4% or $1.7 million), with weaker US demand for its marine transmission products, impacted by tariffs.
−Removed: The Company’s Italian manufacturing operation was up $3.1 million (45.4%) compared to the first half of fiscal 2025, due primarily to stronger European demand for industrial and commercial marine products.
+Added: manufacturing operations experienced a 1.5%, or $1.3 million, decline in sales versus the first nine months of fiscal 2025, with tariff concerns creating a drag on shipments.
+Added: The Company’s operation in the Netherlands saw increased revenue of $7.4 million (11.5%) compared to the first nine months of fiscal 2025, which includes a favorable currency impact, as this operation continues to experience record demand for its propulsion systems and has begun to increase capacity to satisfy the growing demand.
+Added: The Company’s Belgian operation saw a decrease compared to the prior year first nine months (14.4% or $2.3 million), with weaker US demand for its marine transmission products, impacted by tariffs.
+Added: The Company’s Italian manufacturing operation was up $3.9 million (33.6%) compared to the first nine months of fiscal 2025, due primarily to stronger European demand for industrial and commercial marine products.
The Company’s operation in Finland saw revenue increase 34.1% ($9.0 million), with improving demand for defense related products in the region.
−Removed: The Company’s Swiss manufacturing operation, which supplies customized propellers for the global mega yacht and patrol boat markets, was up $1.1 million (33.7%) compared to the prior year first half.
−Removed: Our distribution segment experienced a decrease in sales of $18.2 million (27.8%) in the first half of fiscal 2026 compared to the first half of fiscal 2025.
+Added: The Company’s Swiss manufacturing operation, which supplies customized propellers for the global mega yacht and patrol boat markets, was up $2.3 million (51.9%) compared to the prior year first nine months.
+Added: Our distribution segment experienced a decrease in sales of $15.7 million (16.4%) in the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025.
The Company’s Asian distribution operations in Singapore, China and Japan were down 15.6% or $6.3 million from the prior year on weaker commercial marine activity in the region, along with reduced demand for oilfield transmissions into China.
−Removed: The Company’s North America distribution operation saw a decrease ($4.0 million or 36.9%) on softening North American demand for European manufactured product, impacted by the current tariff structure.
+Added: The Company’s North America distribution operation saw a decrease ($4.4 million or 27.1%) on softening in North American demand for European manufactured product, impacted by the current tariff structure.
The Company’s European distribution operation saw a decrease ($5.4 million or 30.4%) on soft demand for commercial marine projects in the region.
−Removed: The Company’s distribution operation in Australia and New Zealand, which provides boat accessories, propulsion and marine transmission systems for the pleasure craft market, saw a decrease in revenue of 5.0% from the prior year first fiscal half, primarily due to weaker pleasure craft demand partially offset by a favorable currency impact.
−Removed: Gross profit as a percentage of sales for the first half of fiscal 2026 improved to 26.6%, compared to 25.2% for the same period last year.
+Added: The Company’s distribution operation in Australia and New Zealand, which provides boat accessories, propulsion and marine transmission systems for the pleasure craft market, saw an increase in revenue of 1.9% from the prior year first nine months, primarily due to improving pleasure craft demand along with a favorable currency impact.
+Added: Gross profit as a percentage of sales for the first nine months of fiscal 2026 improved to 27.1%, compared to 25.7% for the same period last year.
The prior year includes the impact of a non-cash inventory write-down of $1.6 million.
This write-down reflected the results of a product rationalization exercise of the Company’s industrial product line following the acquisition of Katsa.
−Removed: Excluding this adjustment, the fiscal 2025 first half gross profit percentage was 26.2%.
−Removed: The improvement in gross profit percentage versus the prior year first half is attributed to improved operational execution at our Veth operation and successful margin improvement initiatives, partially offset by isolated quality and facility charges.
−Removed: For the fiscal 2026 first half, ME&Aexpenses, as a percentage of sales, were 24.3%, compared to 23.6% for the first half of fiscal 2025.
+Added: Excluding this adjustment, the fiscal 2025 gross profit percentage was 26.3%.
+Added: The improvement in gross profit percentage versus the prior year first nine months is attributed to the increased volume, operational execution at our Veth operation and successful margin improvement initiatives, partially offset by margin dilution resulting from the invoicing of tariff charges.
+Added: For the fiscal 2026 first nine months, marketing, engineering and administrative (“ME&A”) expenses, as a percentage of sales, were 23.3%, compared to 23.7% for the same period of fiscal 2025.
ME&A expenses increased $4.5 million (7.8%) over the same period last fiscal year.
−Removed: The increase in ME&A spending for the first half was comprised of the addition of Kobelt ($1.1 million), a foreign currency translation impact ($1.0 million), an increase in professional fees ($0.7 million) and the net of savings initiatives offset by inflation related increases ($0.2 million).
−Removed: Interest expense was up $0.4 million to $1.6 million in the first half of fiscal 2026, with a higher average outstanding revolver balance following the Katsa and Kobelt acquisitions.
−Removed: Other expense of $1.5 million for the first half was primarily attributable to pension amortization expense ($1.4 million), along with a small currency loss ($0.1 million).
−Removed: The fiscal 2026 first half effective tax rate was -1,638.9% compared to 430.6% in the prior fiscal year first half.
−Removed: The change in the effective tax rate for the first half resulted from a full reversal of the domestic valuation allowance.
+Added: The increase in ME&A spending for the first nine months was comprised of the addition of Kobelt ($1.4 million), a foreign currency translation impact ($2.0 million), and general inflationary increases partially offset by the favorable impact of savings initiatives.
+Added: Interest expense was up $0.6 million to $2.4 million in the first nine months of fiscal 2026, with a higher average outstanding revolver balance following the Katsa and Kobelt acquisitions.
+Added: Other expense of $1.2 million for the first nine months was primarily attributable to pension amortization expense ($2.1 million), partially offset by a currency gain ($0.9 million).
+Added: The fiscal 2026 first nine-month effective tax rate was (284.5%) compared to 1,469.0% in the prior fiscal year first nine months.
+Added: The reversal of the full domestic valuation allowance in the current year explains the significant fluctuation in the effective tax rate.
Financial Condition, Liquidity and Capital Resources
−Removed: Comparison between December 26, 2025 and June 30, 2025
−Removed: As of December 26, 2025, the Company had net working capital of $133.3 million, which represents an increase of $12.2 million, or 10.1%, from the net working capital of $121.1 million as of June 30, 2025.
−Removed: Cash decreased by $1.2 million to $14.9 million as of December 26, 2025, versus $16.1 million as of June 30, 2025.
−Removed: As of December 26, 2025, the majority of the cash is at the Company’s overseas operations in Europe ($5.8 million) and Asia-Pacific ($8.1 million).
−Removed: Trade receivables of $53.6 million were down $5.3 million, or 9.0%, when compared to last fiscal year-end.
−Removed: The impact of foreign currency translation was essentially neutral versus June 30, 2025.
−Removed: As a percent of sales, trade receivables finished at 59.5% in the second quarter of fiscal 2026 compared to 59.7% for the comparable period in fiscal 2025 and 61.0% for the fourth quarter of fiscal 2025.
+Added: Comparison between March 27, 2026 and June 30, 2025
+Added: As of March 27, 2026, the Company had net working capital of $136.1 million, which represents an increase of $14.3 million, or 11.7%, from the net working capital of $121.8 million as of June 30, 2025.
+Added: Cash of $16.1 million as of March 27, 2026 was unchanged from June 30, 2025.
+Added: As of March 27, 2026, the majority of the cash was at the Company’s overseas operations in Europe ($4.6 million) and Asia-Pacific ($10.6 million).
+Added: Trade receivables of $64.1 million were up $5.1 million, or 8.7%, when compared to last fiscal year-end.
+Added: The impact of foreign currency translation was a reduction of $1.0 million versus June 30, 2025.
+Added: As a percent of sales, trade receivables finished at 66.3% in the third quarter of fiscal 2026 compared to 70.5% for the comparable period in fiscal 2025 and 61.0% for the fourth quarter of fiscal 2025.
Inventories increased by $8.4 million, or 5.5%, versus June 30, 2025 to $160.3 million.
−Removed: The impact of foreign currency translation was essentially neutral versus June 30, 2025.
−Removed: The largest increase came at our operations in the United States ($6.0 million), unfavorably impacted by tariff related shipment delays.
−Removed: Our operation in the Netherlands saw an increase ($2.9 million) in support of growing backlog for the Veth product.
+Added: The impact of foreign currency translation was to reduce inventory by $1.9 million versus June 30, 2025.
+Added: The largest increase came at our operations in the Netherlands ($5.4 million) in support of growing backlog for the Veth product.
The Singapore distribution entity experienced a $1.4 million increase primarily related to customer delays of deliveries on oilfield transmissions into China.
−Removed: Our operation in Finland also experienced an increase ($1.2 million or 8.4%) on strong demand for industrial products include defense applications.
−Removed: The global operations team is focused on driving inventory improvements in the second half and beyond.
−Removed: On a consolidated basis, as of December 26, 2025, the Company’s backlog of orders to be shipped over the next six months grew to $175.3 million, compared to $150.5 million at June 30, 2025 and $124.0 million at December 27, 2024.
+Added: Our operation in Finland also experienced an increase ($1.8 million or 12.8%) on strong demand for industrial products including defense applications.
+Added: The global operations team is focused on driving inventory improvements as we close out the fiscal year.
+Added: On a consolidated basis, as of March 27, 2026, the Company’s backlog of orders to be shipped over the next six months grew to $179.5 million, compared to $150.5 million at June 30, 2025 and $133.7 million at March 28, 2025.
The increase in backlog since June 30, 2025 ($29.0 million) is largely reflective of strong market conditions for the Veth product and increasing global defense spending.
−Removed: As a percentage of six-month backlog, inventory has decreased from 99% at June 30, 2025 to 93% at December 26, 2025.
+Added: As a percentage of six-month backlog, inventory has decreased from 99% at June 30, 2025 to 89% at March 28, 2025.
Net property, plant and equipment increased $0.4 million (1.4%) to $70.0 million versus $69.6 million at June 30, 2025.
−Removed: The Company had capital spending of $6.8 million in the first half, and a relatively neutral exchange impact.
−Removed: This increase was offset by depreciation of $4.5 million.
−Removed: Capital spending occurring in the first half was primarily related to replacement capital, along with capital to drive growth and operating efficiencies.
+Added: The Company had capital spending of $10.2 million in the first nine months.
+Added: This increase was partially offset by depreciation of $8.5 million and a currency driven decrease of $0.7 million.
+Added: Capital spending occurring in the first nine months was primarily related to replacement capital, along with capital to drive growth and operating efficiencies.
In total, the Company expects to invest between $13 and $16 million in capital assets in fiscal 2026.
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The Company’s capital program is focused on modernizing key core manufacturing, assembly and testing processes and improving efficiencies at its facilities around the world.
−Removed: Accounts payable as of December 26, 2025 of $36.7 million was down $2.1 million, or 5.4%, from June 30, 2025.
+Added: Accounts payable as of March 27, 2026 of $36.5 million was down $2.2 million, or 5.7%, from June 30, 2025.
The impact of foreign currency translation was to decrease accounts payable by $0.7 million versus June 30, 2025.
The remaining decrease is related to the normal timing of purchasing activity and related payments.
−Removed: Total borrowings and long-term debt as of December 26, 2025 increased $13.1 million to $44.5 million versus $31.4 million at June 30, 2025.
−Removed: During the first half, the Company reported negative free cash flow of $9.6 million (defined as operating cash flow less acquisitions of fixed assets), driven by an increase to inventory and capital spending.
+Added: Total borrowings and long-term debt as of March 27, 2026 increased $13.6 million to $45.0 million versus $31.4 million at June 30, 2025.
+Added: During the first nine months, the Company reported negative free cash flow of $8.0 million (defined as operating cash flow less acquisitions of fixed assets), driven by an increase to inventory and capital spending.
The Company ended the quarter with total debt, net of cash, of $29.0 million, compared to $15.3 million at June 30, 2025, for a net degradation of $13.7 million.
−Removed: Total equity increased $20.8 million, or 12.6%, to $185.2 million as of December 26, 2025.
−Removed: The net earnings during the first half increased equity by $21.9 million, while other decreases related to a favorable foreign currency translation of $1.4 million and dividends paid to shareholders of $1.1 million.
+Added: Total equity increased $22.1 million, or 13.5%, to $186.5 million as of March 27, 2026.
+Added: The net earnings during the first nine months increased equity by $25.2 million, while other decreases related to a favorable foreign currency translation of $4.6 million and dividends paid to shareholders of $1.7 million.
The net change in common stock and treasury stock resulting from the accounting for stock-based compensation increased equity by $0.8 million.
−Removed: The net remaining increase in equity of $1.4 million primarily represents the amortization of benefit plan adjustments on the Company’s defined benefit pension plans, along with the unrealized loss on cash flow hedges.
+Added: The net remaining increase in equity of $2.4 million primarily represents the amortization of benefit plan adjustments on the Company’s defined benefit pension plans, an unrealized loss on cash flow hedges and an increase to a noncontrolling interest.
On February 14, 2025, the Company entered into an amended and restated Credit Agreement (the “Credit Agreement”) with Bank of Montreal (the “Bank”) that refinances and replaces the credit agreement dated as of June 29, 2018, as amended, between the Company and BMO Harris Bank, N.A.
2 unchanged sentences
The maturity date of the Term Loan is April 1, 2027, and the Company is required to make principal installments on the Term Loan of at least $0.75 million per quarter.
−Removed: Under the Credit Agreement, the Company is restricted in making dividend payments beyond $5 million in any fiscal year.
In addition, the Company may, from time to time prior to the maturity date, enter into Revolving Loans in amounts not to exceed, in the aggregate and subject to a Borrowing Base, $50.0 million (the “Revolving Credit Commitment”).
34 unchanged sentences
Management believes that available cash, the Credit Agreement, the unsecured lines of credit, cash generated from future operations, and potential access to debt markets will be adequate to fund the Company's cash and capital requirements for the foreseeable future.
−Removed: Other significant contractual obligations as of December 26, 2025 are disclosed in Note N "Lease Liabilities" in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
+Added: Other significant contractual obligations as of March 27, 2026 are disclosed in Note N "Lease Liabilities" in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
There are no material undisclosed guarantees.
−Removed: As of December 26, 2025, the Company had no additional material purchase obligations other than those created in the ordinary course of business related to inventory and property, plant, and equipment, which generally have terms of less than 90 days.
+Added: As of March 27, 2026, the Company had no additional material purchase obligations other than those created in the ordinary course of business related to inventory and property, plant, and equipment, which generally have terms of less than 90 days.
The Company has long-term obligations related to its postretirement plans which are discussed in detail in Note H "Pension and Other Postretirement Benefit Plans” in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1of this Quarterly Report on Form 10-Q.
14 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.