Twin Disc Reports Q2 2026 Earnings with Record Backlog and Defense Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
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Should l Buy TWIN?
Source: seekingalpha
- Performance Highlights: Twin Disc reported sales of $90.2 million in Q2, a 0.3% increase year-over-year, primarily driven by strong performance in the Marine and Industrial Product groups, along with contributions from the newly acquired Kobelt.
- Defense Business Growth: The company has defense-related opportunities exceeding $50 million, with an 18% sequential increase in defense backlog, highlighting the strategic importance of defense as a growth driver and enhancing the company's market position in this sector.
- Margin Improvement: Gross profit for the second quarter was $22.4 million, with a gross margin of 24.8%, supported by the absence of last year's inventory-related charges, despite being partially offset by an unfavorable product mix.
- Future Outlook: Management anticipates good growth in the second half, particularly in Q3 and Q4, and despite challenges from tariffs and shipping delays, they expect to improve margins through operational optimization and relocating ARFF assembly.
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Analyst Views on TWIN
About TWIN
Twin Disc, Incorporated designs, manufactures and sells marine and heavy duty off-highway power transmission equipment. The Company has two reportable segments: manufacturing and distribution. The Company’s products offered include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and control systems. The Company sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. It is also a manufacturer of custom-designed, high-quality power transmission components and gearboxes for industrial and marine end-markets for a broad range of end market applications. The Company's worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Twin Disc Reports Q2 2026 Earnings with Record Backlog and Defense Growth
- Performance Highlights: Twin Disc reported sales of $90.2 million in Q2, a 0.3% increase year-over-year, primarily driven by strong performance in the Marine and Industrial Product groups, along with contributions from the newly acquired Kobelt.
- Defense Business Growth: The company has defense-related opportunities exceeding $50 million, with an 18% sequential increase in defense backlog, highlighting the strategic importance of defense as a growth driver and enhancing the company's market position in this sector.
- Margin Improvement: Gross profit for the second quarter was $22.4 million, with a gross margin of 24.8%, supported by the absence of last year's inventory-related charges, despite being partially offset by an unfavorable product mix.
- Future Outlook: Management anticipates good growth in the second half, particularly in Q3 and Q4, and despite challenges from tariffs and shipping delays, they expect to improve margins through operational optimization and relocating ARFF assembly.
See More
Twin Disc (TWIN) Q2 2026 Earnings Call Transcript
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Twin Disc Reports Strong Q2 Earnings with Revenue Growth
- Earnings Performance: Twin Disc reported a GAAP EPS of $1.55 for Q2, indicating stability in profitability despite ongoing challenges in the overall market environment.
- Slight Revenue Growth: The company achieved revenue of $90.2 million, reflecting a modest year-over-year increase of 0.3%, which demonstrates Twin Disc's ability to maintain slight growth amid improving end-markets, showcasing its market adaptability.
- Optimistic Market Outlook: While current revenue growth is limited, management emphasizes the importance of long-term margin improvement, anticipating enhancements in profitability through operational optimization and cost control in the future.
- Investor Focus: As market conditions improve, Twin Disc's financial performance has garnered investor attention, with analysts expressing optimism about its future growth potential, which may drive stock price appreciation.
See More
Aris Mining and Three Others Lead in Growth and Momentum
- Growth and Momentum Synergy: Aris Mining focuses on underground gold mining in Colombia, and its sustained operational improvements and rising investor interest are reflected in strong relative price performance, indicating market recognition and potential transition to industry leadership.
- Industrial Equipment Demand Recovery: Twin Disc manufactures heavy-duty power transmission equipment, and as demand for industrial equipment and marine activity strengthens, its revenue and earnings have consistently improved, with persistent price strength reflecting market confidence in its long-term growth and suggesting a broader re-rating.
- Steady Growth in Consulting Services: Willdan Group provides engineering and energy efficiency consulting services, and with long-term public sector demand for infrastructure and energy-related services, the company has demonstrated steady revenue growth, while its price action reflects steady accumulation, indicating market confidence in forward earnings under the combined growth and momentum framework.
- Energy Market Recovery: Tetra Technologies provides products and services to the energy industry, and with a recovery in earnings paired with sustained price strength, market confidence in its operational improvements is increasing, showcasing a strong alignment of growth and momentum in smaller energy services companies.
See More
Twin Disc CFO Jeff Knutson to Present at Noble Capital Markets Conference on December 3
- Executive Presentation: Twin Disc CFO Jeff Knutson is scheduled to present at the Noble Capital Markets Emerging Growth Equity Conference on December 3, which is expected to enhance the company's visibility and attract investor interest.
- One-on-One Investor Meetings: During the conference, Twin Disc executives will engage in one-on-one meetings with registered investors, aiming to strengthen relationships and explore future collaboration opportunities.
- Market Positioning: Twin Disc designs, manufactures, and sells marine and heavy-duty off-highway power transmission equipment, including marine transmissions and industrial clutches, primarily serving the pleasure craft, commercial, and military marine markets, showcasing the company's strong competitive edge across diverse sectors.
- Global Sales Network: The company transacts sales through a direct sales force and distributor network to both domestic and foreign customers, further solidifying its market position in the energy, natural resources, and industrial sectors.
See More
Twin Disc Shares Jump 44% Despite Year-over-Year Decline in Q2 Earnings Due to Increased Costs
Stock Performance: Twin Disc, Incorporated's shares have increased by 44.3% following their earnings report for Q4 of fiscal 2025, significantly outperforming the S&P 500 index's 0.8% gain during the same period.
Financial Results: The company reported a net income of $1.4 million for the quarter, down from $7.4 million the previous year, with sales rising 14.5% to $96.7 million despite a decline in profitability due to higher expenses and currency losses.
Segment Growth: Marine and Propulsion Systems led sales growth, while Industrial sales surged 82% due to recent acquisitions. The company has a strong backlog of $150.5 million, indicating healthy demand across markets.
Future Outlook: Management reaffirmed long-term revenue targets of $500 million by fiscal 2030, focusing on leveraging defense demand, expanding hybrid and electric capabilities, and optimizing operations, while also emphasizing the importance of strategic acquisitions for growth.
See More
Twin Disc Reports Q2 2026 Earnings with Record Backlog and Defense Growth
- Performance Highlights: Twin Disc reported sales of $90.2 million in Q2, a 0.3% increase year-over-year, primarily driven by strong performance in the Marine and Industrial Product groups, along with contributions from the newly acquired Kobelt.
- Defense Business Growth: The company has defense-related opportunities exceeding $50 million, with an 18% sequential increase in defense backlog, highlighting the strategic importance of defense as a growth driver and enhancing the company's market position in this sector.
- Margin Improvement: Gross profit for the second quarter was $22.4 million, with a gross margin of 24.8%, supported by the absence of last year's inventory-related charges, despite being partially offset by an unfavorable product mix.
- Future Outlook: Management anticipates good growth in the second half, particularly in Q3 and Q4, and despite challenges from tariffs and shipping delays, they expect to improve margins through operational optimization and relocating ARFF assembly.
See More
Twin Disc (TWIN) Q2 2026 Earnings Call Transcript
See More
Twin Disc Reports Strong Q2 Earnings with Revenue Growth
- Earnings Performance: Twin Disc reported a GAAP EPS of $1.55 for Q2, indicating stability in profitability despite ongoing challenges in the overall market environment.
- Slight Revenue Growth: The company achieved revenue of $90.2 million, reflecting a modest year-over-year increase of 0.3%, which demonstrates Twin Disc's ability to maintain slight growth amid improving end-markets, showcasing its market adaptability.
- Optimistic Market Outlook: While current revenue growth is limited, management emphasizes the importance of long-term margin improvement, anticipating enhancements in profitability through operational optimization and cost control in the future.
- Investor Focus: As market conditions improve, Twin Disc's financial performance has garnered investor attention, with analysts expressing optimism about its future growth potential, which may drive stock price appreciation.
See More
Aris Mining and Three Others Lead in Growth and Momentum
- Growth and Momentum Synergy: Aris Mining focuses on underground gold mining in Colombia, and its sustained operational improvements and rising investor interest are reflected in strong relative price performance, indicating market recognition and potential transition to industry leadership.
- Industrial Equipment Demand Recovery: Twin Disc manufactures heavy-duty power transmission equipment, and as demand for industrial equipment and marine activity strengthens, its revenue and earnings have consistently improved, with persistent price strength reflecting market confidence in its long-term growth and suggesting a broader re-rating.
- Steady Growth in Consulting Services: Willdan Group provides engineering and energy efficiency consulting services, and with long-term public sector demand for infrastructure and energy-related services, the company has demonstrated steady revenue growth, while its price action reflects steady accumulation, indicating market confidence in forward earnings under the combined growth and momentum framework.
- Energy Market Recovery: Tetra Technologies provides products and services to the energy industry, and with a recovery in earnings paired with sustained price strength, market confidence in its operational improvements is increasing, showcasing a strong alignment of growth and momentum in smaller energy services companies.
See More
Twin Disc CFO Jeff Knutson to Present at Noble Capital Markets Conference on December 3
- Executive Presentation: Twin Disc CFO Jeff Knutson is scheduled to present at the Noble Capital Markets Emerging Growth Equity Conference on December 3, which is expected to enhance the company's visibility and attract investor interest.
- One-on-One Investor Meetings: During the conference, Twin Disc executives will engage in one-on-one meetings with registered investors, aiming to strengthen relationships and explore future collaboration opportunities.
- Market Positioning: Twin Disc designs, manufactures, and sells marine and heavy-duty off-highway power transmission equipment, including marine transmissions and industrial clutches, primarily serving the pleasure craft, commercial, and military marine markets, showcasing the company's strong competitive edge across diverse sectors.
- Global Sales Network: The company transacts sales through a direct sales force and distributor network to both domestic and foreign customers, further solidifying its market position in the energy, natural resources, and industrial sectors.
See More
Twin Disc Shares Jump 44% Despite Year-over-Year Decline in Q2 Earnings Due to Increased Costs
Stock Performance: Twin Disc, Incorporated's shares have increased by 44.3% following their earnings report for Q4 of fiscal 2025, significantly outperforming the S&P 500 index's 0.8% gain during the same period.
Financial Results: The company reported a net income of $1.4 million for the quarter, down from $7.4 million the previous year, with sales rising 14.5% to $96.7 million despite a decline in profitability due to higher expenses and currency losses.
Segment Growth: Marine and Propulsion Systems led sales growth, while Industrial sales surged 82% due to recent acquisitions. The company has a strong backlog of $150.5 million, indicating healthy demand across markets.
Future Outlook: Management reaffirmed long-term revenue targets of $500 million by fiscal 2030, focusing on leveraging defense demand, expanding hybrid and electric capabilities, and optimizing operations, while also emphasizing the importance of strategic acquisitions for growth.
See More
