Twin Disc (NASDAQ:TWIN – Get Free Report) released its quarterly earnings results on Wednesday. The industrial products company reported $0.24 EPS for the quarter, beating analysts’ consensus estimates of $0.01 by $0.23, Zacks reports. The firm had revenue of $88.75 million during the quarter, compared to analyst estimates of $89.60 million. Twin Disc had a net margin of 9.87% and a return on equity of 8.48%.
Here are the key takeaways from Twin Disc’s conference call:
- Revenue rose 10.9% to $88.7 million, while net income reached $3.4 million versus a year-ago loss and EBITDA increased 62.6%. Management attributed growth to defense, Veth products, stronger oil and gas demand, and broad market strength.
- Six-month backlog hit a record $190.6 million, up from $178.3 million at fiscal year-end. Defense represented 24% of backlog, and defense backlog more than doubled year over year, supported by NATO, Katsa, and U.S. Navy programs.
- Gross margin was flat year over year at 28.7%, and management expects margins to remain broadly in line with fiscal 2026. For fiscal 2027, free-cash-flow conversion is expected at 20%–40%, below the company’s long-term target above 60%, as it increases growth investment and targets about $25 million in capital expenditures.
- U.S. Navy orders for the first 30 unmanned vessels are beginning to enter the backlog, with another increase expected in the December quarter, followed potentially by a pause for several quarters. Management said the defense opportunity pipeline continues to grow, though the timing of further orders remains uncertain.
Twin Disc Trading Down 9.9%
Shares of Twin Disc stock opened at $22.97 on Friday. Twin Disc has a 1 year low of $14.22 and a 1 year high of $29.24. The firm has a market cap of $333.98 million, a PE ratio of 22.17 and a beta of 0.50. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.35 and a quick ratio of 0.84. The company has a 50 day simple moving average of $25.16 and a two-hundred day simple moving average of $20.66.
Twin Disc Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Wednesday, November 18th will be paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Wednesday, November 18th. Twin Disc’s dividend payout ratio (DPR) is currently 8.40%.
Wall Street Analyst Weigh In
TWIN has been the topic of a number of recent analyst reports. Lake Street Capital started coverage on Twin Disc in a research report on Thursday, July 9th. They issued a “buy” rating and a $30.00 price objective on the stock. Weiss Ratings upgraded Twin Disc from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Finally, Wall Street Zen upgraded Twin Disc from a “buy” rating to a “strong-buy” rating in a research report on Saturday, September 12th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Twin Disc has a consensus rating of “Moderate Buy” and an average target price of $30.00.
Get Our Latest Stock Report on TWIN
Insider Buying and Selling
In other Twin Disc news, CFO Jeffrey Knutson sold 7,482 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $24.25, for a total value of $181,438.50. Following the completion of the transaction, the chief financial officer owned 164,891 shares of the company’s stock, valued at $3,998,606.75. The trade was a 4.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last three months, insiders have sold 17,686 shares of company stock valued at $417,606. 21.10% of the stock is owned by insiders.
Twin Disc Company Profile
Twin Disc, Inc designs, manufactures and sells power transmission and propulsion systems for marine, industrial and specialty vehicle applications. The company’s products are used to transfer and control engine power in commercial and recreational boats, workboats, military vessels, construction equipment and other heavy-duty machinery.
Its product portfolio includes marine transmissions, propulsion systems, surface drives, electronic controls, boat-management systems, power take-offs, torque converters and industrial transmissions.
Featured Stories
- Five stocks we like better than Twin Disc
- These 3 Underperforming Stocks Are Seeing Notable CEO Insider Trades
- GE Aerospace Has a $170 Billion Backlog, But Is the Stock Worth the Premium?
- Google’s Credit Backstop May Be TeraWulf’s Biggest Advantage
- Could the Midterms Revive Medicare for All? 3 Healthcare Stocks to Watch
Receive News & Ratings for Twin Disc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Twin Disc and related companies with MarketBeat.com's FREE daily email newsletter.
