Twin Disc (NASDAQ:TWIN) Issues Earnings Results

Twin Disc (NASDAQ:TWIN) released its quarterly earnings data on Wednesday. The industrial products company reported $0.23 earnings per share for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.02), FiscalAI reports. Twin Disc had a return on equity of 0.02% and a net margin of 6.26%.The company had revenue of $96.69 million for the quarter, compared to analyst estimates of $94.70 million.

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

• Sales rose 19% YoY to $96.7M (organic +7%) with gross margin expanding to 28.1% and EBITDA improving to $9.4M, reflecting meaningful margin expansion and operational leverage.
• Backlog strengthened to ~$179.5M, giving better near-term revenue visibility; defense now ~15% of backlog, defense backlog +20% YoY with a pipeline of ~$50M–$75M supporting durable growth prospects.
• Free cash flow generation improved to $1.8M in the quarter, inventory declined ~$3M and inventory as a percentage of backlog improved to ~89%, signaling progress on working capital conversion.
• Recent acquisition activity (Kobelt) contributed to sales and margin improvement but increased leverage, with total debt at $45.1M and net debt at ~$29M, up ~18% year-over-year.
• The company expects tariff-related cost pressure of roughly 1%–3% of COGS next quarter, though management is pursuing manufacturing and footprint adjustments to mitigate impacts.

Twin Disc Stock Performance

Shares of NASDAQ TWIN traded up $2.34 during trading hours on Wednesday, reaching $18.18. The stock had a trading volume of 100,781 shares, compared to its average volume of 48,069. The firm has a market cap of $262.14 million, a price-to-earnings ratio of 12.16 and a beta of 0.71. The company has a current ratio of 2.12, a quick ratio of 0.75 and a debt-to-equity ratio of 0.22. Twin Disc has a fifty-two week low of $6.80 and a fifty-two week high of $19.63. The firm has a 50-day moving average of $16.58 and a 200-day moving average of $16.50.

Twin Disc Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Monday, May 18th will be given a $0.04 dividend. The ex-dividend date of this dividend is Monday, May 18th. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.9%. Twin Disc’s dividend payout ratio is 10.67%.

Institutional Trading of Twin Disc

Several institutional investors and hedge funds have recently added to or reduced their stakes in TWIN. Goldman Sachs Group Inc. raised its stake in Twin Disc by 19.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 41,712 shares of the industrial products company’s stock valued at $316,000 after acquiring an additional 6,774 shares during the last quarter. Strs Ohio purchased a new stake in Twin Disc during the 1st quarter valued at approximately $74,000. Arrowstreet Capital Limited Partnership purchased a new stake in Twin Disc during the 2nd quarter valued at approximately $566,000. First Trust Advisors LP raised its stake in Twin Disc by 4.1% during the 2nd quarter. First Trust Advisors LP now owns 35,168 shares of the industrial products company’s stock valued at $311,000 after acquiring an additional 1,378 shares during the last quarter. Finally, Marshall Wace LLP purchased a new stake in Twin Disc during the 2nd quarter valued at approximately $186,000. 65.25% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have commented on TWIN shares. Wall Street Zen downgraded Twin Disc from a “strong-buy” rating to a “buy” rating in a research report on Saturday, April 18th. Weiss Ratings raised Twin Disc from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, April 16th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy”.

Twin Disc Company Profile

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.