Twin Disc (NASDAQ:TWIN) Releases Earnings Results, Beats Estimates By $0.23 EPS

Twin Disc (NASDAQ:TWIN) released its quarterly earnings data on Wednesday. The industrial products company reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.01 by $0.23, Zacks reports. The company had revenue of $88.75 million for the quarter, compared to analysts’ expectations of $89.60 million. Twin Disc had a net margin of 9.06% and a return on equity of 6.78%.

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

• Revenue rose 10.9% to $88.7 million, while net income reached $3.4 million versus a year-ago loss and EBITDA increased 62.6%. Management attributed growth to defense, Veth products, stronger oil and gas demand, and broad market strength.
• Six-month backlog hit a record $190.6 million, up from $178.3 million at fiscal year-end. Defense represented 24% of backlog, and defense backlog more than doubled year over year, supported by NATO, Katsa, and U.S. Navy programs.
• Gross margin was flat year over year at 28.7%, and management expects margins to remain broadly in line with fiscal 2026. For fiscal 2027, free-cash-flow conversion is expected at 20%–40%, below the company’s long-term target above 60%, as it increases growth investment and targets about $25 million in capital expenditures.
• U.S. Navy orders for the first 30 unmanned vessels are beginning to enter the backlog, with another increase expected in the December quarter, followed potentially by a pause for several quarters. Management said the defense opportunity pipeline continues to grow, though the timing of further orders remains uncertain.

Twin Disc Trading Up 1.8%

Shares of TWIN stock opened at $25.50 on Thursday. The company has a market cap of $370.77 million, a price-to-earnings ratio of 28.78 and a beta of 0.50. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.35 and a quick ratio of 0.84. The firm has a fifty day moving average price of $25.17 and a 200-day moving average price of $20.64. Twin Disc has a 1 year low of $14.22 and a 1 year high of $29.24.

Twin Disc Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Wednesday, November 18th will be paid a dividend of $0.05 per share. The ex-dividend date is Wednesday, November 18th. This represents a $0.20 dividend on an annualized basis and a yield of 0.8%. Twin Disc’s payout ratio is currently 8.40%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on TWIN shares. Wall Street Zen upgraded shares of Twin Disc from a “buy” rating to a “strong-buy” rating in a research report on Saturday, September 12th. Weiss Ratings upgraded Twin Disc from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Finally, Lake Street Capital assumed coverage on Twin Disc in a research note on Thursday, July 9th. They issued a “buy” rating and a $30.00 target price on the stock. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $30.00.

Insider Buying and Selling

In other Twin Disc news, CFO Jeffrey Knutson sold 7,482 shares of Twin Disc stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $24.25, for a total value of $181,438.50. Following the sale, the chief financial officer directly owned 164,891 shares in the company, valued at approximately $3,998,606.75. The trade was a 4.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders sold 17,686 shares of company stock worth $417,606 over the last quarter. 21.10% of the stock is owned by company insiders.

Trending Headlines about Twin Disc

Here are the key news stories impacting Twin Disc this week:

• Positive Sentiment: Fiscal first-quarter adjusted results included EPS of $0.24, well above the $0.01 consensus estimate. Sales rose 10.9% year over year to $88.7 million, and net income attributable to Twin Disc was $3.4 million. Twin Disc Announces First Quarter Results
• Positive Sentiment: Management cited a robust $190.6 million six-month backlog, healthy ongoing demand, accelerating orders and momentum from U.S. and European defense customers—indicators of potential future sales. Twin Disc Announces First Quarter Results
• Neutral Sentiment: Twin Disc outlined $25 million of fiscal 2027 capital spending, including a Katsa expansion expected to begin production in May 2027. The added capacity could support growth, though the investment also requires significant near-term spending. Twin Disc outlines fiscal 2027 capex and Katsa expansion
• Negative Sentiment: Revenue of $88.7 million was slightly below the $89.6 million analyst estimate, and gross margin was 28.7%, unchanged from the year-ago quarter. These results temper the otherwise strong earnings beat. Twin Disc reports first-quarter results

Twin Disc Company Profile

Twin Disc, Inc designs, manufactures and sells power transmission and propulsion systems for marine, industrial and specialty vehicle applications. The company’s products are used to transfer and control engine power in commercial and recreational boats, workboats, military vessels, construction equipment and other heavy-duty machinery.

Its product portfolio includes marine transmissions, propulsion systems, surface drives, electronic controls, boat-management systems, power take-offs, torque converters and industrial transmissions.