Twin Disc, Incorporated (TWIN) shares have surged 70.4% in the past six months, significantly outpacing the industry’s 11.6% growth. The company has outperformed other industry players, including Flowserve Corporation (FLS) and Nordson Corporation (NDSN) , which posted increases of 15.7% and 9.2%, respectively, in the same time frame. TWIN benefits from surging defense spending, hybrid/electric system leadership, strategic acquisitions, operational efficiencies and strong free cash flow and balance sheet.Im ...

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 [2] - 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 [2] - The company serves customers in pleasure craft, commercial and military marine markets, as well as energy and natural resources, government, and industrial markets [2] - Sales are conducted through a direct sales force and a distributor network, targeting both domestic and foreign customers [2] Recent Developments - Twin Disc's CEO John Batten and CFO Jeff Knutson will attend the D. Boral Inaugural Global Conference on May 14 in New York City [1] - Executives from Twin Disc will be available for one-on-one meetings with registered investors during the conference [1]

Core Insights - Twin Disc, Inc. reported a solid performance in the third quarter of fiscal 2025, with a 9.5% year-over-year increase in sales to $81.2 million, driven by acquisitions and strong demand in marine propulsion markets [4][8] - The company experienced a net loss of $1.5 million for the quarter, a significant decline from a net income of $3.8 million in the same period last year, primarily due to reduced operating income and increased expenses [9][10] - The six-month backlog of orders increased to $133.7 million, reflecting sustained order activity across key markets [10][11] Financial Performance - Sales increased by 9.5% year-over-year to $81.2 million, with organic revenue growth of 1.7% when excluding acquisitions and foreign currency impacts [4][27] - Gross profit rose 3.8% to $21.7 million, but gross margin decreased by approximately 150 basis points to 26.7% due to an unfavorable product mix [6][8] - Marketing, engineering, and administrative expenses increased by 13.2% to $19.4 million, driven by the addition of Katsa and Kobelt, as well as inflationary impacts [7][8] Product Group Performance - Marine and Propulsion Systems sales increased by 10.7% year-over-year to $49.3 million, while Land-Based Transmissions saw a decline of 6.9% [5] - The Industrial product segment experienced significant growth, with sales up 56.2% to $9.7 million [5] Strategic Focus - The company is focused on integrating recent acquisitions, driving operational efficiencies, and positioning itself as a leader in hybrid and electric marine solutions [3][11] - Twin Disc's diversified geographic footprint and mission-critical portfolio are expected to provide resiliency amid global macroeconomic uncertainties [2][3] Cash Flow and Debt - Operating cash flow for the quarter was $3.4 million, with a healthy backlog supporting future cash generation [8][10] - Total debt increased by 139.3% to $40.8 million, primarily due to higher long-term debt related to acquisitions [10][29]