Twin Disc (NASDAQ:TWIN) Releases Earnings Results, Beats Expectations By $0.41 EPS

Twin Disc (NASDAQ:TWIN) announced its earnings results on Thursday. The industrial products company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.23 by $0.41, FiscalAI reports. Twin Disc had a return on equity of 7.19% and a net margin of 9.06%.The business had revenue of $114.40 million during the quarter, compared to the consensus estimate of $100.35 million.

Here are the key takeaways from Twin Disc’s conference call:

• Positive Sentiment: Twin Disc reported record fourth-quarter revenue of $114.4 million, up 18.3% year over year, while operating income rose 19.5% to $7.8 million and EBITDA increased 35.1% to $11.1 million.
• Positive Sentiment: Defense is becoming a significant multi-year growth driver: defense represented 17% of year-end backlog, up 56% year over year, with an additional $30 million–$50 million project pipeline and capacity investments underway in Finland and the U.S.
• Positive Sentiment: Demand remained strong across marine propulsion and land-based transmissions, including oil and gas and higher-margin e-frac applications; the six-month backlog remained nearly level at $178.3 million despite strong shipments and efforts to reduce past-due orders.
• Negative Sentiment: Fourth-quarter gross margin fell roughly 600 basis points to 26.3%, pressured by product mix, tariffs, and the absence of a $3 million favorable inventory adjustment recorded in the prior-year quarter. Management expects margin improvement over time but continues to target 30% gross margins only by 2030.
• Positive Sentiment: Free cash flow improved to $17.2 million, net leverage declined to 0.5, and the board approved a 25% quarterly dividend increase to $0.05 per share; fiscal 2027 capital expenditures are expected to exceed $20 million to support growth initiatives.

Twin Disc Stock Performance

Shares of Twin Disc stock opened at $23.42 on Friday. The stock has a market cap of $337.72 million, a PE ratio of 9.84 and a beta of 0.64. The business has a fifty day simple moving average of $22.95 and a 200-day simple moving average of $19.17. The company has a quick ratio of 0.81, a current ratio of 2.09 and a debt-to-equity ratio of 0.23. Twin Disc has a 12 month low of $10.66 and a 12 month high of $25.50.

Twin Disc Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th will be issued a $0.05 dividend. The ex-dividend date is Tuesday, August 18th. This is an increase from Twin Disc’s previous quarterly dividend of $0.04. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.9%. Twin Disc’s dividend payout ratio is currently 10.87%.

Institutional Investors Weigh In On Twin Disc

Several hedge funds have recently bought and sold shares of the business. Global Retirement Partners LLC acquired a new stake in Twin Disc during the 4th quarter worth about $39,000. Strs Ohio acquired a new position in shares of Twin Disc in the 1st quarter valued at about $74,000. JPMorgan Chase & Co. increased its holdings in shares of Twin Disc by 28.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 5,361 shares of the industrial products company’s stock valued at $75,000 after purchasing an additional 1,193 shares during the period. Bank of America Corp DE lifted its position in shares of Twin Disc by 40.9% in the second quarter. Bank of America Corp DE now owns 15,811 shares of the industrial products company’s stock worth $140,000 after purchasing an additional 4,590 shares in the last quarter. Finally, Qube Research & Technologies Ltd purchased a new stake in shares of Twin Disc in the second quarter worth approximately $141,000. 65.25% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts recently weighed in on TWIN shares. Wall Street Zen cut Twin Disc from a “strong-buy” rating to a “buy” rating in a research note on Saturday, June 6th. Weiss Ratings raised shares of Twin Disc from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, June 12th. Finally, Lake Street Capital started coverage on shares of Twin Disc in a report on Thursday, July 9th. They issued a “buy” rating and a $30.00 target price for the company. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $30.00.

Twin Disc Company Profile

Twin Disc, Inc (NASDAQ: TWIN) is a global designer and manufacturer of power transmission equipment for marine and industrial applications. Headquartered in Racine, Wisconsin, the company develops a range of mechanical and digital solutions that control power delivery in demanding environments. Its portfolio includes marine gears, power take-offs, clutches, brakes, transmissions and controllable pitch propeller systems engineered to withstand heavy loads and corrosive conditions.

In addition to original equipment manufacturing, Twin Disc offers aftermarket parts and services, including maintenance, repair and overhaul support through a network of service centers worldwide.