Twin Disc (TWIN) Reports Full Year And Fourth Quarter Earnings Results

Twin Disc, Incorporated (TWIN) today announced its financial results for the most recent quarter, revealing a mixed performance. The company reported earnings per share of $0.10, falling short of analysts’ expectations by $0.16, while revenue reached $96.7 million, surpassing estimates by $3.4 million. Despite the earnings miss, the revenue beat highlights Twin Disc’s ability to generate strong sales in a competitive market.

Key Highlights

• Sales increased 15.5% year-over-year to $340.7 million for fiscal year 2025.
• Net loss attributable to Twin Disc was ($1.9) million for the fiscal year.
• EBITDA for fiscal year 2025 was $19.0 million, impacted by currency translation losses and stock-based compensation.
• Operating cash flow was $24.0 million, with free cash flow of $8.8 million.
• Strong backlog of $150.5 million supported by ongoing order activity.
• Fourth quarter sales increased 14.5% year-over-year to $96.7 million, with net income of $1.4 million.
• CEO John H. Batten highlighted strong execution and resilience in dynamic markets, particularly in Marine and Propulsion sectors.

Summary

Twin Disc, Inc. reported robust financial results for the fourth quarter and full fiscal year 2025, with sales increasing by 15.5% year-over-year to $340.7 million. The company experienced a net loss of $1.9 million for the fiscal year, while EBITDA was reported at $19.0 million, reflecting challenges such as currency translation losses and increased operating expenses. The fourth quarter alone saw a 14.5% increase in sales to $96.7 million, with a net income of $1.4 million. The company also reported a healthy backlog of $150.5 million, indicating strong demand and order activity.

CEO John H. Batten expressed confidence in the company’s performance, stating, “We closed out the fiscal year with our strongest quarter, a reflection of the team’s consistent execution and resilience in dynamic markets.” He noted that the Marine and Propulsion sectors were particularly strong, driven by defense-related demand, while the Industrial segment showed signs of recovery. Looking ahead, Batten emphasized the company’s commitment to driving growth and maintaining operational discipline, supported by a solid backlog and strategic integration efforts.

Twin Disc, Incorporated (TWIN) has experienced a tumultuous ride in the stock market, with a notable decline of 30.48% over the past year, reflecting investor concerns about its long-term growth potential. Despite a modest uptick of 0.82% in the last month, the stock has struggled to maintain momentum, evidenced by a 3.45% drop in the past week. The company’s price-to-earnings ratio stands at 28.7, suggesting that investors are paying a premium for its earnings, which may be a cause for concern given the negative two-year compound annual growth rate (CAGR) of -45.77% in earnings per share. On a more positive note, Twin Disc has managed to achieve a revenue CAGR of 10.50% over the same period, indicating some resilience in its top-line performance. However, the net profit margin of just 1.05% and a return on invested capital of 2.05% highlight challenges in profitability and efficient capital use. As the company navigates these financial metrics, investors will be keenly watching for signs of recovery and improved operational efficiency in the coming quarters.

Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. It operates through two segments, Manufacturing and Distribution. The company’s 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. It also provides non-twin disc manufactured products. The company sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial, and military marine markets, as well as in the energy and natural resources, government, and industrial markets. Twin Disc, Incorporated was founded in 1918 and is headquartered in Racine, Wisconsin.