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 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].

Summary of Twin Disc Conference Call (October 08, 2025) Company Overview - **Company**: Twin Disc (NasdaqGS:TWIN) - **Industry**: Global transmission power technology - **Headquarters**: Wisconsin, USA - **Established**: 1918 - **Employees**: Approximately 1,000 globally - **Revenue**: Just under $341 million with a gross margin of 27.2% [3][4][22] Key Points Market Position and Strategy - Twin Disc has been a leader in transmission power technology for 100 years, focusing on hybrid and electric solutions [2][22] - The company is well-positioned to benefit from increased defense spending, particularly in NATO countries and the U.S. Navy [2][10] - The company has made significant acquisitions, including Veth in the Netherlands, Katsa Oy in Finland, and Kobelt in Canada, to diversify its offerings and enhance cash flow [3][6][19] Financial Performance - The backlog has increased by 15% year-over-year, with defense-related backlog up 45% year-over-year [10][22] - The company aims to grow its industrial business to match the scale of its marine transmission and propulsion business, currently at 12% of total revenue [14][19] Product Segments - The largest end market is Europe, driven by acquisitions and growth in marine business [4][10] - Marine products account for approximately 60% of the business, while land-based transmission systems make up 24% [4][5] - The company is focusing on hybrid and electric solutions, particularly in marine applications, due to regulatory pressures and market demand [11][35] Defense and Government Programs - The company sees significant growth potential in defense spending, particularly for autonomous vessels and military applications [10][32] - The focus has shifted from oil and gas to more stable markets, reducing reliance on cyclical industries [19][28] Acquisitions and Integration - Recent acquisitions are progressing well, with successful integration strategies in place [24][27] - The company is focused on leveraging its global service network to enhance the growth of acquired companies [19][20] Challenges and Risks - Supply chain issues, particularly related to battery and motor components, are hindering the rollout of hybrid solutions [11][12] - Tariffs are creating uncertainty in the U.S. market, affecting order placements and inventory management [31] Future Outlook - The company anticipates growth across all markets, with defense and marine sectors expected to lead [30][32] - Twin Disc is committed to investing in organic growth and further acquisitions to enhance its market position [20][21] Conclusion - Twin Disc is strategically positioned to capitalize on market trends in defense and hybrid technology, with a strong focus on integrating recent acquisitions and expanding its product offerings [22][38]

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 [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]