Twin Disc(US:TWIN) Globenewswire·2025-11-05 13:00Core Insights - Twin Disc, Inc. reported a solid start to fiscal 2026 with a 9.7% year-over-year increase in sales to $80.0 million, driven by the acquisition of Kobelt and strong performance in Marine and Propulsion Systems [5][9] - The company experienced significant growth in the Defense market, with a 8.5% increase in the six-month backlog since the end of fiscal 2025 [3][9] - Despite a net loss of $518 thousand, EBITDA improved significantly by 172.3% year-over-year to $4.7 million, reflecting higher sales and improved margins [10][12] Financial Performance - Sales increased by 9.7% year-over-year to $80.0 million, with organic sales growth of 1.1% [5][9] - Gross profit rose 18.7% to $22.9 million, with gross margin expanding by 220 basis points to 28.7% [7][9] - Marketing, engineering, and administrative expenses increased by 6.2% to $20.7 million, primarily due to the Kobelt acquisition and inflationary wage impacts [8][9] Product Group Performance - Marine and Propulsion Systems sales increased by 14.6% to $48.2 million, while Land-Based Transmissions saw a modest increase of 1.6% to $17.6 million [6] - Industrial product sales grew by 13.2% to $10.4 million, while the "Other" category experienced a decline of 11.7% [6] Market Outlook - The company remains focused on executing its growth strategy through operational discipline, innovation, and customer engagement, with a healthy backlog of $163.3 million [4][12] - Continued momentum in the Defense sector is expected, with accelerating orders and an expanding pipeline in both the U.S. and Europe [9][12] Balance Sheet and Cash Flow - Cash decreased by 14.8% to $14.2 million, while total debt increased by 46.7% to $43.7 million, primarily due to the Kobelt acquisition [11][12] - The company reported a net cash used in operating activities of $7.5 million for the quarter, reflecting normal seasonal patterns and investments in growth [31]