Overview

• US power transmission maker's fiscal Q3 sales rose 19% yr/yr, driven by marine systems

• Net income turned positive from a loss last year as operating income improved

• Gross margin expanded to 28.1% on higher volumes and margin initiatives

Outlook

• Twin Disc says strong demand supports healthy order momentum and a record backlog

• Company is adding capacity to support expanding defense business and mitigate tariff exposure

• Twin Disc remains focused on efficient backlog conversion and working capital improvements

Result Drivers

• MARINE & PROPULSION DEMAND - Sales growth was driven largely by strength in Veth products within marine and propulsion systems

• MARGIN IMPROVEMENT INITIATIVES - Gross margin expanded due to higher volumes and margin improvement actions

• DEFENSE PROGRAMS - Backlog growth supported by increased defense-related activity

Company press release: ID:nGNX73lQv0

Key Details

Analyst Coverage

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 15 three months ago

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