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

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

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 2.8%

Shares of NASDAQ:TWIN traded up $0.71 during trading on Wednesday, reaching $25.75. The company’s stock had a trading volume of 63,354 shares, compared to its average volume of 81,450. The company has a current ratio of 2.35, a quick ratio of 0.84 and a debt-to-equity ratio of 0.13. Twin Disc has a 12 month low of $14.22 and a 12 month high of $29.24. The firm’s 50 day simple moving average is $25.13 and its two-hundred day simple moving average is $20.60. The stock has a market capitalization of $374.40 million, a PE ratio of 10.82 and a beta of 0.50.

Twin Disc Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Wednesday, November 18th will be issued a $0.05 dividend. The ex-dividend date of this dividend is Wednesday, November 18th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.8%. Twin Disc’s dividend payout ratio (DPR) is presently 8.40%.

Insider Buying and Selling

In other Twin Disc news, CFO Jeffrey Knutson sold 7,482 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $24.25, for a total transaction of $181,438.50. Following the sale, the chief financial officer directly owned 164,891 shares of the company’s stock, valued at $3,998,606.75. The trade was a 4.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders sold a total of 17,686 shares of company stock valued at $417,606 in the last ninety days. Company insiders own 21.10% of the company’s stock.

Twin Disc News Summary

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

• Positive Sentiment: Adjusted for the reported figures, earnings were $0.24 per share, well above the $0.01 consensus estimate. Revenue rose 10.9% year over year to $88.7 million, while net income was $3.4 million and EBITDA was $7.7 million. Twin Disc Announces First Quarter Results
• Positive Sentiment: The company cited a robust six-month backlog of $190.6 million, healthy ongoing demand, and accelerating orders from U.S. and European defense customers—supportive indicators for future sales. Twin Disc Announces First Quarter Results
• Neutral Sentiment: Twin Disc declared its regular quarterly dividend of $0.05 per share, payable December 1 to shareholders of record November 18. The payout is unchanged. Twin Disc Board Approves Quarterly Dividend
• Negative Sentiment: Quarterly revenue of $88.75 million fell short of the $89.60 million analyst consensus, and gross margin was 28.7%, unchanged from the year-ago quarter. Twin Disc First-Quarter Earnings Report

Analyst Upgrades and Downgrades

A number of brokerages recently commented on TWIN. Weiss Ratings raised Twin Disc from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Wall Street Zen upgraded Twin Disc from a “buy” rating to a “strong-buy” rating in a report on Saturday, September 12th. Finally, Lake Street Capital started coverage on Twin Disc in a research note 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 issued a Hold rating to the stock. 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 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.