Q3 2025 Twin Disc Inc Earnings Call Transcript
Key Points
- Twin Disc Inc (TWIN) reported a 10% increase in sales, reaching $81.2 million, with strong gross margins of 26.7%.
- The company's marine and propulsion business continues to perform robustly, driven by sustained global demand, particularly in commercial marine and luxury yacht markets.
- Recent acquisitions of CASA and COBELT are off to a solid start, contributing positively to the company's performance.
- The backlog strengthened to approximately $134 million, indicating sustained robust demand across product lines.
- Operational improvements and disciplined inventory management drove positive cash flow during the quarter, with expectations for continued positive free cash flow.
- Net loss attributable to Twin Disc Inc (TWIN) was $1.5 million, or a loss of $0.11 per diluted share, compared to net income in the prior year period.
- Earnings per share were negatively impacted by $1.6 million in other expenses, primarily due to currency translation impacts.
- Tariff-related impacts are estimated to be approximately $500,000 for the upcoming fourth quarter, representing roughly 1% of the cost of goods sold.
- North American new build activity in the oil and gas sector remains muted as customers maintain capital discipline.
- There is potential for softness in the pleasure craft segment due to tariff impacts, particularly affecting American customers buying yachts in Europe.
Thank you for standing by. My name is Alex, and I will be your conference operator today. At this time, I would like to welcome everyone to the twin this incorporated fiscal 3rd quarter 2025 conference call.
All signs have been placed on mute to prevent any background noise after the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press 1. And press start one again.
Thank you. I would now like to turn the conference over to Mr. Jeff Knutson. You may begin.
Good morning and thank you for joining us today to discuss our fiscal 2025 third quarter results.
On the call with me today is John Batton, Twin Disc, Inc, CEO.
I would like to remind everyone that certain statements made during this conference call, especially
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