Core Insights - Twin Disc, Inc. reported a strong fiscal second quarter 2025 with a 23.2% year-over-year increase in sales to $89.9 million, driven by the acquisition of Katsa Oy and strong demand in the marine and industrial segments [4][7] - The company is focusing on strategic priorities and operational efficiencies to enhance its business and capitalize on growth opportunities in hybrid and electric solutions [3][10] Financial Performance - Sales increased by 23.2% year-over-year to $89.9 million, with organic sales growth of 10.1% [4][7] - Gross profit rose 5.0% to $21.7 million, but gross margin decreased by approximately 420 basis points to 24.1% due to inventory write-downs and unfavorable product mix [5] - Net income attributable to Twin Disc was $0.9 million, consistent with the previous year, while EBITDA increased 13.5% to $6.3 million [8][7] Product Segment Performance - Marine and Propulsion Systems sales increased by 23.9% to $56.7 million, while Industrial segment sales surged by 44.8% to $9.5 million [4] - The Land-Based Transmissions segment also saw a 19.8% increase in sales [4] Geographic Sales Distribution - The company experienced double-digit growth in both European and North American regions, with a shift in sales distribution favoring Europe and a decline in the Asian Pacific region [4] Operational Metrics - The backlog of orders to be shipped over the next six months is approximately $124.0 million, supported by strong ongoing order activity [9] - Cash decreased by 24.3% to $15.9 million, while total debt increased by 40.5% to $24.9 million, primarily due to the Katsa acquisition [9] Management Commentary - The CEO highlighted the stable marine market and the recovery in the industrial segment, while also acknowledging ongoing challenges in the Asian oil and gas markets [2][3] - The CFO noted near-term pressure on margins due to product mix and charges associated with the Katsa acquisition, but expressed confidence in the company's financial position and operational priorities [10]

Core Viewpoint - Twin Disc, Inc. is set to release its fiscal 2025 second-quarter results on February 5, 2025, followed by a conference call to discuss the results with the investment community [1]. Company Overview - Twin Disc, Inc. designs, manufactures, and sells marine and heavy-duty off-highway power transmission equipment, including marine transmissions, azimuth drives, surface drives, propellers, and boat management systems [3]. - The company also offers power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems [3]. - Twin Disc primarily serves customers in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government, and industrial markets [3]. - Sales are conducted through a direct sales force and a distributor network, catering to both domestic and foreign customers [3].

Financial Data and Key Metrics Changes - The company reported sales of $72.9 million for Q1 2025, an increase of $9.3 million or 14.7% from the prior year, driven by the Katsa acquisition and healthy demand in global end markets [23] - Net loss attributable to the company was $2.8 million or $0.20 per diluted share, compared to a net loss of $1.2 million or $0.09 per diluted share in Q1 2024 [24] - Gross profit margin increased to 26.5% from 26.2% in the prior year, with gross profit rising 16.1% to $19.3 million [25] - EBITDA was $1.7 million in Q1 2025, down 23% compared to the same quarter in fiscal 2024 [28] Business Line Data and Key Metrics Changes - Marine and Propulsion segment sales grew 22.9% year-over-year, driven by strong demand and the Katsa acquisition [11] - Industrial segment sales increased 61.3% year-over-year, primarily due to the addition of Katsa and stabilization of end market demand [18] - Land-based transmission business saw a 7% decline in sales, mainly due to softness in the Asia Pacific region [15] Market Data and Key Metrics Changes - Sales in Europe increased due to the Katsa acquisition, with continued growth in sales from Middle Eastern markets [27] - The luxury yacht market backlog grew sequentially by 19% in the quarter, with incoming orders for Veth products reaching an all-time high [12] Company Strategy and Development Direction - The company aims to become a leading provider of hybrid electrification solutions, focusing on controls and systems integration to drive sustainable growth [21][22] - The strategic focus includes expanding offerings in hybrid and electrification space, with active projects on fully electric and hybrid applications [21] Management's Comments on Operating Environment and Future Outlook - Management noted that end market demand in the industrial business is stabilizing, and they expect to continue gaining share despite challenges in construction and agricultural markets [19] - The company is optimistic about capturing growth opportunities in the hybrid and electrification sectors, supported by heightened government defense spending [14] Other Important Information - The company’s backlog reached historical levels, with a six-month backlog growing both sequentially and year-over-year [20] - Net debt increased to $13.1 million, primarily due to the Katsa acquisition [27] Q&A Session Summary Question: What is the outlook for free cash flow given the sizable negative generation this quarter? - Management expects to return to generally positive free cash flow levels for the rest of the year, targeting around 60% of EBITDA [35] Question: Any update on the EFAC offering introduced a few quarters ago? - The prototype is still available, but there have been no purchases yet; customer focus is currently on traditional rigs [36] Question: How much did the oil and gas business contribute to this quarter? - Oil and gas represented about 10% of revenue for the quarter, down from 15% in the previous year [37]

Twin Disc, Inc. (TWIN) incurred a net loss per share of 20 cents for the first quarter of fiscal 2025, wider than the loss of 9 cents per share recorded in the prior-year quarter.Revenues rose 14.7% year over year to $72.9 million, up from $63.6 million in the first quarter of fiscal 2024. The increase in sales was primarily driven by the acquisition of Katsa Oy and strong performance in the company’s Marine and Propulsion Systems and Industrial segments.Despite a broader increase in sales, the overall fina ...

MILWAUKEE, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ: TWIN), today announced that it will release its fiscal 2025 first-quarter results at approximately 8:00 am Eastern on November 6, 2024, and host a webcast and conference call to discuss those results at 9:00 am Eastern. Following their prepared remarks, the Company will host a question-and-answer session with the investment community. The live audio webcast will be available on Twin Disc’s website at https://ir.twindisc.com. To participat ...

Twin Disc, Incorporated (TWIN) reported earnings per share (EPS) of 53 cents in the fourth quarter of fiscal 2024 compared with 62 cents in the prior-year period. The company's quarterly revenues rose slightly by 0.6% to $84.4 million, up from $83.9 million in the fourth quarter of 2023. Overall, Twin Disc witnessed key strengths in specific segments during the fourth quarter of fiscal 2024 and strategic initiatives like the Katsa acquisition. However, the rise in operational expenses and challenges in the ...

MILWAUKEE, Aug. 15, 2024 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ: TWIN) today reported results for the fourth quarter and full fiscal year 2024 ended June 30, 2024. Fiscal Full Year 2024 Highlights Sales increased 6.6% year-over-year to $295.1 million Net income attributable to Twin Disc was $11.0 million EBITDA* increased 2.9% year-over-year to $26.5 million Robust operating cash flow of $33.7 million Free cash flow* of $25.0 million compared to $15.0 million in the year-ago period Strong six-month bac ...

MILWAUKEE, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ: TWIN), today announced that the Board of Directors (the "Board") approved a regular quarterly cash dividend of $0.04 per share payable on September 2, 2024, to shareholders of record at the close of business on August 19, 2024. About Twin Disc Twin Disc, Inc. designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment. Products offered include marine transmissions, azimuth drives, surface drives, propell ...

MILWAUKEE, July 01, 2024 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ:TWIN) announced today that it has been added to the Russell 2000® and Russell 3000® indexes, effective July 1, 2024. "We are pleased to be included in the Russell indexes, highlighting the growth that Twin Disc has achieved in recent years through solid, consistent execution of our operational playbook," commented John H. Batten, President and Chief Executive Officer of Twin Disc. "We look forward to continuing our momentum as we drive fur ...

MILWAUKEE, July 01, 2024 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ:TWIN) announced today that it has been added to the Russell 2000® and Russell 3000® indexes, effective July 1, 2024. Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. "We are pleased to be included in the Russell indexes, highlighting the growth that ...