Core Insights - Twin Disc, Inc. will have its Chief Financial Officer Jeff Knutson present at the Noble Capital Markets Emerging Growth Equity Conference on December 3, 2025 [1] - The company will also facilitate one-on-one meetings with registered investors during the conference [1] Company Overview - Twin Disc, Inc. specializes in designing, manufacturing, and selling marine and heavy-duty off-highway power transmission equipment [3] - The product range includes marine transmissions, azimuth drives, surface drives, propellers, boat management systems, power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems [3] - The company serves various markets, including pleasure craft, commercial and military marine, energy and natural resources, government, and industrial sectors [3] - Sales are conducted through a direct sales force and a distributor network, catering to both domestic and international customers [3]

Core Viewpoint - Twin Disc, Inc. is actively engaging with investors through presentations and one-on-one meetings at the upcoming Three Part Advisors Southwest IDEAS Conference, indicating a focus on investor relations and transparency [1][2]. Company Overview - Twin Disc, Inc. specializes in designing, manufacturing, and selling marine and heavy-duty off-highway power transmission equipment, including marine transmissions, azimuth drives, surface drives, propellers, and boat management systems [3]. - The company serves various markets, primarily in pleasure craft, commercial and military marine sectors, as well as energy, natural resources, government, and industrial markets [3]. - Sales are conducted through a direct sales force and a distributor network, catering to both domestic and international customers [3].

Core 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]

Core Viewpoint - Twin Disc, Inc. is set to release its fiscal 2026 first-quarter results on November 5, 2025, at 8:00 am Eastern, followed by a conference call at 9:00 am Eastern to discuss the results and engage with the investment community [1]. Company Overview - Twin Disc, Inc. specializes in designing, manufacturing, and selling marine and heavy-duty off-highway power transmission equipment, including marine transmissions, azimuth drives, surface drives, propellers, and boat management systems [3]. - The company serves various markets, including pleasure craft, commercial and military marine, energy and natural resources, government, and industrial sectors [3]. - Sales are conducted through a direct sales force and a distributor network, catering to both domestic and international customers [3].

Core Insights - Twin Disc, Inc. will present at the Noble Emerging Growth Virtual Equity Conference on October 8, 2025, at 3:30 pm Central [1] - The company's executives will be available for one-on-one meetings with registered investors during the conference [1] Company Overview - Twin Disc, Inc. designs, manufactures, and sells marine and heavy-duty off-highway power transmission equipment [3] - Product offerings include marine transmissions, azimuth drives, surface drives, propellers, boat management systems, power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems [3] - The company serves customers in pleasure craft, commercial and military marine markets, as well as energy, natural resources, government, and industrial markets [3] - Sales are conducted through a direct sales force and a distributor network, targeting both domestic and foreign customers [3]

Core Viewpoint - Twin Disc, Incorporated (TWIN) has experienced a significant share price increase of 70.4% over the past six months, outperforming the industry growth of 11.6% and other competitors like Flowserve Corporation and Nordson Corporation [1] Company Overview - Twin Disc, established in 1918, specializes in designing, manufacturing, and selling marine and heavy-duty off-highway power transmission equipment, with operations in North America and Europe and distribution in the Asia-Pacific [3] - The product portfolio includes marine transmissions, azimuth and surface drives, propellers, power-shift transmissions, torque converters, industrial clutches, control systems, and braking systems, serving various markets through a global sales network [3] Key Tailwinds - Rising global defense spending is a major tailwind, with TWIN positioned to capture a growing defense pipeline valued at $50–75 million, which now accounts for approximately 15% of the backlog [4] - The company leads in hybrid and electrification solutions, capitalizing on sustainability trends by offering electric and hybrid systems that significantly reduce emissions and fuel consumption [5] - Strategic acquisitions have expanded TWIN's product offerings and geographic reach, diversifying revenue sources and creating synergies in manufacturing and distribution [6][7] Operational Strengths - TWIN benefits from operational initiatives that enhance margins and responsiveness, alongside a strong balance sheet that supports long-term growth [8] - The company targets a free cash flow conversion above 60% and has significantly reduced leverage from 5.5x in FY21 to 0.8x in FY25, with ambitious revenue and margin goals for 2030 [8] Challenges - Nearly 60% of TWIN's revenues come from cyclical marine and oil & gas sectors, making it vulnerable to economic fluctuations, particularly in Europe [9] - The transition to hybrid systems faces challenges such as high costs and fragmented supply chains, along with exposure to currency and geopolitical risks due to global operations [9] Valuation - TWIN is currently undervalued, trading at 0.58X trailing 12-month EV/sales, significantly lower than the industry average of 3.64X and peers like Flowserve and Nordson [10] Conclusion - The company is strategically transforming its business through defense expansion, electrification, and acquisitions, supported by operational discipline and a robust balance sheet, positioning it well to navigate near-term volatility [11][12]

Core Insights - Twin Disc, Inc. reported strong financial performance for the fourth quarter and full fiscal year 2025, with significant sales growth driven by demand in Marine and Propulsion Systems [4][6][8]. Fiscal Full Year 2025 Highlights - Total sales for fiscal year 2025 increased by 15.5% year-over-year to $340.7 million, with notable growth in Marine and Propulsion Systems [6][9]. - The company experienced a net loss of $1.9 million for the fiscal year, a significant decline from a net income of $10.99 million in the previous year [12][24]. - EBITDA for the fiscal year decreased by 28.3% to $19.0 million, primarily due to increased currency translation losses and higher operating expenses [12][25]. Fiscal Fourth Quarter 2025 Highlights - Sales for the fourth quarter increased by 14.5% year-over-year to $96.7 million, with strong performance in Marine and Propulsion Systems [6][9]. - Net income for the fourth quarter was $1.4 million, down from $7.4 million in the same quarter of the previous year [12][24]. - Gross profit for the fourth quarter rose by 19.7% to $30.0 million, with a gross margin improvement to 31.0% [10][12]. Sales by Product Group - Marine and Propulsion Systems sales increased by 12.2% to $53.0 million in Q4 FY25 [7]. - Industrial segment sales surged by 82.0% to $13.1 million in Q4 FY25, reflecting a strong recovery [7]. - For the full year, Marine and Propulsion Systems sales grew by 17.1% to $201.1 million [9]. Operational Insights - The company maintained a healthy backlog of $150.5 million at the end of Q4, supported by strong ongoing order activity [14]. - Marketing, engineering, and administrative expenses increased by 20.9% in Q4, driven by acquisitions and inflationary wage impacts [11]. - The company is focused on driving growth and maintaining disciplined operations as it enters the new fiscal year [5]. Geographical Sales Distribution - Twin Disc experienced double-digit sales growth in the European and Asia-Pacific regions during fiscal year 2025 [9]. - The sales distribution shifted, with a greater proportion coming from Europe and a lower proportion from the Asia-Pacific region [9].

Company Overview - Twin Disc, Inc. designs, manufactures, and sells marine and heavy-duty off-highway power transmission equipment [3] - The product range includes marine transmissions, azimuth drives, surface drives, propellers, boat management systems, power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems [3] - The company serves customers in pleasure craft, commercial and military marine markets, as well as energy, natural resources, government, and industrial sectors [3] Recent Events - Twin Disc's CEO John Batten and CFO Jeff Knutson will present at the Three Part Advisors Midwest IDEAS Conference in Chicago on August 27 at 7:55 am Central [1] - The event will include one-on-one meetings with registered investors [1] - The presentation will be streamed live via a webcast on the company's Investor Presentations section of its website [2]

Company Investment - Hitachi Energy announced a $106 million investment to expand its transformer component manufacturing facility in Alamo, Tennessee, as part of a global investment strategy to address the transformer shortage and strengthen the U.S. grid supply chain [1][8] - The expansion will significantly increase production of transformer bushings, making the Alamo facility the largest bushings manufacturing site in North America and one of the largest globally [2][9] Facility Expansion Details - The project will add over 60,000 square feet to the facility, including 35,000 square feet for manufacturing, 20,000 square feet for warehouse space, and 5,000 square feet for new office space, expected to be operational by mid-2027 [3][7] - The expansion is projected to create over 100 new jobs in West Tennessee, focusing on engineering, skilled trades, and operational support roles [3][4] Economic Impact - The investment is expected to strengthen the local economy and provide long-term employment opportunities, reflecting Tennessee's pro-business policies and skilled workforce [5][6] - The project is part of Hitachi Energy's broader $6 billion global investment strategy, which includes $1.5 billion dedicated to scaling transformer manufacturing worldwide [8][9] Strategic Importance - The Alamo facility plays a critical role in meeting the growing demand for long-distance power transmission, particularly for data centers and AI infrastructure [2][6] - The expansion will enhance operational efficiency through the implementation of an integrated logistics center and vertically integrated machine shop [7][8]

Company Overview - Twin Disc, Inc. designs, manufactures, and sells marine and heavy-duty off-highway power transmission equipment [3] - The product range includes marine transmissions, azimuth drives, surface drives, propellers, boat management systems, power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems [3] - The company serves customers in pleasure craft, commercial and military marine markets, as well as energy, natural resources, government, and industrial markets [3] Upcoming Financial Results - Twin Disc will release its fiscal 2025 fourth-quarter results on August 21, 2025, at approximately 8:00 am Eastern [1] - A webcast and conference call to discuss the results will be held at 9:00 am Eastern, followed by a Q&A session with the investment community [1] Participation Details - The live audio webcast will be available on Twin Disc's website [2] - To participate in the conference call, interested parties should dial (646) 307-1963 approximately ten minutes before the call begins [2] - A replay of the webcast will be accessible shortly after the call until August 21, 2026 [2]