Twin Disc Reports Q2 Revenue of $90.18M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
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Should l Buy TWIN?
Reports Q2 revenue $90.18M vs $89.921M last year. "Second quarter results reflected our continued focus on execution in an uneven operating environment, as tariff-related impacts affected shipment timing and near-term activity. Despite these headwinds, demand across our end markets remains strong as we delivered sequential sales growth and resilient order momentum. Orders reflected increased activity from our defense-related programs such as our Katsa product lines, along with strong interest for our hybrid propulsion systems as our leading reputation for innovation solidifies our presence in these growing markets. Our expanding presence is illustrated by our record backlog, which continues to grow and provides confidence as we move into the second half of the fiscal year," commented John H. Batten, President and Chief Executive Officer of Twin Disc.
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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 segments, manufacturing and distribution. Its product offerings 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, control systems, and braking systems. The Company’s brands are Arneson, Katsa, Kobelt, Rolla, Technodrive, and Veth Propulsion. Its Katsa brand specializes in designing and manufacturing gearboxes and mechanical power transmission solutions. 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. 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 Strong Q3 2026 Earnings Growth and Margin Expansion
- Significant Sales Growth: Twin Disc reported a 19% year-over-year increase in sales to $96.7 million in Q3, driven by strong demand in marine and propulsion systems and contributions from acquisitions, indicating sustained competitive strength in the market.
- Margin Expansion: The company's gross margin expanded to 28.1%, supported by higher volumes and operational improvements, resulting in $1.8 million in free cash flow for the quarter, reflecting ongoing enhancements in profitability.
- Increased Backlog: The six-month backlog rose to approximately $179.5 million, with defense orders representing about 15% and a year-over-year increase of roughly 20%, highlighting the company's growth potential in the defense sector.
- Optimistic Outlook: Management expects tariff impacts to be around 1% to 3% of cost of goods sold in the upcoming quarter, emphasizing increased confidence in future demand due to growing backlog and improved execution, with defense opportunities remaining substantial, estimated at $50 million to $75 million.
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Twin Disc Reports Strong Q3 Earnings with 19% Revenue Growth
- Earnings Performance: Twin Disc reported a GAAP EPS of $0.23 for Q3, indicating a sustained improvement in profitability, which reflects the company's enhanced competitiveness in the market.
- Revenue Growth: The company achieved revenues of $96.7 million in the third quarter, a 19% year-over-year increase, primarily driven by new product launches and a rebound in market demand, further solidifying its market position.
- Significant EBITDA Increase: Q3 EBITDA reached $9.4 million, up 135.1% compared to the same period last year, showcasing substantial progress in cost control and operational efficiency, which enhances the sustainability of future profits.
- Stock Price Reaction: Following the earnings report, Twin Disc's stock price rose by 9.8%, indicating a positive market reaction to its financial performance and reflecting increased investor confidence in the company's growth potential.
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Twin Disc to Release Q3 Fiscal 2026 Results on May 6
- Earnings Release Schedule: Twin Disc, Inc. will announce its fiscal 2026 third-quarter results on May 6, 2026, at 8:00 AM Eastern, followed by a webcast and conference call at 9:00 AM to provide detailed insights into financial performance and address investor inquiries.
- Investor Engagement: The Q&A session post-earnings will facilitate interaction with the investment community, aiming to enhance transparency and bolster investor confidence through direct engagement on financial results.
- Webcast Access: Investors can access the live audio webcast via Twin Disc's website, ensuring broad participation and effective dissemination of information, which is crucial for maintaining strong investor relations.
- Replay Availability: A replay of the webcast will be available on the company's website until May 7, 2027, allowing investors who cannot attend live to access critical information and insights at their convenience.
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.
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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
Twin Disc Reports Strong Q3 2026 Earnings Growth and Margin Expansion
- Significant Sales Growth: Twin Disc reported a 19% year-over-year increase in sales to $96.7 million in Q3, driven by strong demand in marine and propulsion systems and contributions from acquisitions, indicating sustained competitive strength in the market.
- Margin Expansion: The company's gross margin expanded to 28.1%, supported by higher volumes and operational improvements, resulting in $1.8 million in free cash flow for the quarter, reflecting ongoing enhancements in profitability.
- Increased Backlog: The six-month backlog rose to approximately $179.5 million, with defense orders representing about 15% and a year-over-year increase of roughly 20%, highlighting the company's growth potential in the defense sector.
- Optimistic Outlook: Management expects tariff impacts to be around 1% to 3% of cost of goods sold in the upcoming quarter, emphasizing increased confidence in future demand due to growing backlog and improved execution, with defense opportunities remaining substantial, estimated at $50 million to $75 million.
See More
Twin Disc Reports Strong Q3 Earnings with 19% Revenue Growth
- Earnings Performance: Twin Disc reported a GAAP EPS of $0.23 for Q3, indicating a sustained improvement in profitability, which reflects the company's enhanced competitiveness in the market.
- Revenue Growth: The company achieved revenues of $96.7 million in the third quarter, a 19% year-over-year increase, primarily driven by new product launches and a rebound in market demand, further solidifying its market position.
- Significant EBITDA Increase: Q3 EBITDA reached $9.4 million, up 135.1% compared to the same period last year, showcasing substantial progress in cost control and operational efficiency, which enhances the sustainability of future profits.
- Stock Price Reaction: Following the earnings report, Twin Disc's stock price rose by 9.8%, indicating a positive market reaction to its financial performance and reflecting increased investor confidence in the company's growth potential.
See More
Twin Disc to Release Q3 Fiscal 2026 Results on May 6
- Earnings Release Schedule: Twin Disc, Inc. will announce its fiscal 2026 third-quarter results on May 6, 2026, at 8:00 AM Eastern, followed by a webcast and conference call at 9:00 AM to provide detailed insights into financial performance and address investor inquiries.
- Investor Engagement: The Q&A session post-earnings will facilitate interaction with the investment community, aiming to enhance transparency and bolster investor confidence through direct engagement on financial results.
- Webcast Access: Investors can access the live audio webcast via Twin Disc's website, ensuring broad participation and effective dissemination of information, which is crucial for maintaining strong investor relations.
- Replay Availability: A replay of the webcast will be available on the company's website until May 7, 2027, allowing investors who cannot attend live to access critical information and insights at their convenience.
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
