Twin Disc (NASDAQ:TWIN) Releases Earnings Results, Misses Expectations By $0.02 EPS

Twin Disc (NASDAQ:TWIN) announced its quarterly earnings data on Wednesday. The industrial products company reported $0.23 EPS for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.02), FiscalAI reports. Twin Disc had a net margin of 6.26% and a return on equity of 0.02%. The company had revenue of $96.69 million for the quarter, compared to analyst estimates of $94.70 million.

Here are the key takeaways from Twin Disc’s conference call:

• Sales rose 19% YoY to $96.7M (organic +7%) with gross margin expanding to 28.1% and EBITDA improving to $9.4M, reflecting meaningful margin expansion and operational leverage.
• Backlog strengthened to ~$179.5M, giving better near-term revenue visibility; defense now ~15% of backlog, defense backlog +20% YoY with a pipeline of ~$50M–$75M supporting durable growth prospects.
• Free cash flow generation improved to $1.8M in the quarter, inventory declined ~$3M and inventory as a percentage of backlog improved to ~89%, signaling progress on working capital conversion.
• Recent acquisition activity (Kobelt) contributed to sales and margin improvement but increased leverage, with total debt at $45.1M and net debt at ~$29M, up ~18% year-over-year.
• The company expects tariff-related cost pressure of roughly 1%–3% of COGS next quarter, though management is pursuing manufacturing and footprint adjustments to mitigate impacts.

Twin Disc Stock Up 16.7%

Shares of TWIN traded up $2.64 during mid-day trading on Wednesday, reaching $18.48. The company’s stock had a trading volume of 97,137 shares, compared to its average volume of 48,048. The business has a fifty day moving average of $16.58 and a 200 day moving average of $16.50. The company has a market cap of $266.48 million, a price-to-earnings ratio of 12.32 and a beta of 0.71. Twin Disc has a 1 year low of $6.80 and a 1 year high of $19.63. The company has a quick ratio of 0.75, a current ratio of 2.12 and a debt-to-equity ratio of 0.22.

Twin Disc Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Monday, May 18th will be issued a $0.04 dividend. The ex-dividend date is Monday, May 18th. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.9%. Twin Disc’s dividend payout ratio is presently 10.67%.

Institutional Trading of Twin Disc

Hedge funds have recently modified their holdings of the business. Global Retirement Partners LLC purchased a new stake in shares of Twin Disc in the fourth quarter valued at $39,000. Strs Ohio purchased a new stake in shares of Twin Disc in the first quarter valued at $74,000. JPMorgan Chase & Co. raised its holdings in shares of Twin Disc by 28.6% during the third quarter. JPMorgan Chase & Co. now owns 5,361 shares of the industrial products company’s stock worth $75,000 after acquiring an additional 1,193 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of Twin Disc by 40.9% during the second quarter. Bank of America Corp DE now owns 15,811 shares of the industrial products company’s stock worth $140,000 after acquiring an additional 4,590 shares in the last quarter. Finally, Qube Research & Technologies Ltd purchased a new stake in shares of Twin Disc during the second quarter worth $141,000. Hedge funds and other institutional investors own 65.25% of the company’s stock.

Wall Street Analyst Weigh In

TWIN has been the subject of a number of recent research reports. Wall Street Zen downgraded Twin Disc from a “strong-buy” rating to a “buy” rating in a research report on Saturday, April 18th. Weiss Ratings upgraded Twin Disc from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, April 16th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy”.

About Twin Disc

Twin Disc, Inc (NASDAQ: TWIN) is a global designer and manufacturer of power transmission equipment for marine and industrial applications. Headquartered in Racine, Wisconsin, the company develops a range of mechanical and digital solutions that control power delivery in demanding environments. Its portfolio includes marine gears, power take-offs, clutches, brakes, transmissions and controllable pitch propeller systems engineered to withstand heavy loads and corrosive conditions.

In addition to original equipment manufacturing, Twin Disc offers aftermarket parts and services, including maintenance, repair and overhaul support through a network of service centers worldwide.