Twin Disc (NASDAQ:TWIN) Announces Quarterly Earnings Results

Twin Disc (NASDAQ:TWIN) announced its earnings results on Wednesday. The industrial products company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate 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 business had revenue of $88.75 million for the quarter, compared to analysts’ expectations 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 Stock Up 4.1%

NASDAQ:TWIN traded up $1.03 during mid-day trading on Wednesday, hitting $26.07. 56,874 shares of the company’s stock traded hands, compared to its average volume of 81,448. The company has a fifty day moving average of $25.13 and a 200 day moving average of $20.60. Twin Disc has a twelve month low of $14.22 and a twelve month high of $29.24. The company has a market capitalization of $379.09 million, a P/E ratio of 10.95 and a beta of 0.50. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 2.35.

Twin Disc Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Wednesday, November 18th will be paid a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.8%. The ex-dividend date is Wednesday, November 18th. Twin Disc’s payout ratio is 8.40%.

Analysts Set New Price Targets

Several research firms have recently commented on TWIN. Wall Street Zen raised Twin Disc from a “buy” rating to a “strong-buy” rating in a research report on Saturday, September 12th. Lake Street Capital assumed coverage on Twin Disc in a research report on Thursday, July 9th. They set a “buy” rating and a $30.00 price objective on the stock. Finally, Weiss Ratings upgraded Twin Disc from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $30.00.

Insiders Place Their Bets

In other Twin Disc news, CFO Jeffrey Knutson sold 7,482 shares of the firm’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $24.25, for a total value of $181,438.50. Following the completion of the sale, the chief financial officer owned 164,891 shares of the company’s stock, valued at approximately $3,998,606.75. This trade represents a 4.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 17,686 shares of company stock valued at $417,606 over the last three months. 21.10% of the stock is currently owned by company insiders.

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.