Twin Disc Inc
NASDAQ:TWIN
Twin Disc Inc
Twin Disc, Inc. engages in manufacturing and sale of marine and off-highway power transmission equipment. The company is headquartered in Racine, Wisconsin and currently employs 252 full-time employees. The firm operates through two segments: manufacturing and distribution. Its products include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. Its industrial products include clutches, power take-offs and pump drives sold to the agriculture, recycling, construction and oil and gas markets. Its land-based transmission products include applications for oilfield and natural gas, military, and airport rescue and firefighting. The marine and propulsion systems include marine transmission, azimuth drives, controls, surface drives, propellers and boat management systems for the global commercial marine, pleasure craft and patrol boat markets.
Twin Disc, Inc. engages in manufacturing and sale of marine and off-highway power transmission equipment. The company is headquartered in Racine, Wisconsin and currently employs 252 full-time employees. The firm operates through two segments: manufacturing and distribution. Its products include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. Its industrial products include clutches, power take-offs and pump drives sold to the agriculture, recycling, construction and oil and gas markets. Its land-based transmission products include applications for oilfield and natural gas, military, and airport rescue and firefighting. The marine and propulsion systems include marine transmission, azimuth drives, controls, surface drives, propellers and boat management systems for the global commercial marine, pleasure craft and patrol boat markets.
Record Backlog: Twin Disc's 6-month backlog reached a record $175.3 million, up 41.4% year-over-year and 7% sequentially, providing strong visibility for the rest of fiscal 2026.
Revenue: Sales were $90.2 million, nearly flat year-over-year, though organic revenue fell about 7.9% due to shipment delays and tariff-related timing.
Profit Surge: Net income jumped to $22.4 million ($1.55 per share) from $919,000 last year, mainly due to a $21.8 million income tax benefit.
Gross Margin: Gross margin improved 70 basis points to 24.8%, helped by the absence of inventory charges, but was pressured by mix, temporary delays, and tariffs.
Tariff Impact: Tariffs remained a significant headwind, elevating costs by about 3% of cost of sales, but management expects mitigation strategies and mix changes to ease the impact moving forward.
Defense Momentum: Defense backlog rose 18% sequentially, with a pipeline exceeding $50 million, and management emphasized ongoing strength in this segment.
Outlook: Management anticipates stronger revenue and improved performance in the second half of fiscal 2026 as shipment patterns normalize and operational initiatives take hold.
