Twin Disc (NASDAQ:TWIN) Announces Earnings Results

Twin Disc (NASDAQ:TWIN) announced its quarterly earnings data on Thursday. The industrial products company reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.41, FiscalAI reports. Twin Disc had a net margin of 7.32% and a return on equity of 2.77%. The company 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 Price Performance

Shares of NASDAQ TWIN opened at $24.47 on Friday. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.81 and a current ratio of 2.09. Twin Disc has a one year low of $8.50 and a one year high of $25.50. The firm has a market capitalization of $352.86 million, a P/E ratio of 13.30 and a beta of 0.64. The company’s fifty day moving average is $22.88 and its two-hundred day moving average is $19.14.

Twin Disc Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th will be given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, August 18th. This is an increase from Twin Disc’s previous quarterly dividend of $0.04. Twin Disc’s payout ratio is presently 10.87%.

Institutional Trading of Twin Disc

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in Twin Disc by 0.9% during the third quarter. Vanguard Group Inc. now owns 576,549 shares of the industrial products company’s stock worth $8,037,000 after buying an additional 5,407 shares in the last quarter. Ameriprise Financial Inc. increased its holdings in Twin Disc by 1,928.7% in the second quarter. Ameriprise Financial Inc. now owns 439,241 shares of the industrial products company’s stock valued at $3,878,000 after buying an additional 417,590 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Twin Disc by 132.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 149,035 shares of the industrial products company’s stock valued at $2,078,000 after acquiring an additional 84,908 shares during the period. Geode Capital Management LLC lifted its position in shares of Twin Disc by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 131,241 shares of the industrial products company’s stock valued at $2,190,000 after acquiring an additional 1,550 shares during the period. Finally, Susquehanna International Group LLP lifted its position in shares of Twin Disc by 441.6% during the 3rd quarter. Susquehanna International Group LLP now owns 99,791 shares of the industrial products company’s stock valued at $1,391,000 after acquiring an additional 81,366 shares during the period. Institutional investors and hedge funds own 65.25% of the company’s stock.

Analyst Ratings Changes

TWIN has been the topic of a number of recent analyst reports. Wall Street Zen lowered shares of Twin Disc from a “strong-buy” rating to a “buy” rating in a research note on Saturday, June 6th. Weiss Ratings upgraded shares of Twin Disc from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, June 12th. Finally, Lake Street Capital started coverage on Twin Disc in a report on Thursday, July 9th. They issued a “buy” rating and a $30.00 price objective on the stock. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, Twin Disc currently has a consensus rating of “Moderate Buy” and an average target price of $30.00.

About Twin Disc

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.