Q1 2026 Twin Disc Inc Earnings Call Transcript

Nov 5, 2025 / 02:00 PM GMT

Release Date Price: €13.5 (+0.75%)

Transcript 10-Q8-K

Key Points

Positve

Sales grew 9.7% year over year to $80 million, driven by strong performance in the marine propulsion business and successful integration of acquisitions.
Gross margin expanded by 220 basis points to 28.7%, reflecting successful margin improvement initiatives and increased sales volumes.
Defense-related projects are growing, with orders up 45% year over year, comprising 15% of the total backlog.
The company has a robust six-month backlog of $163.3 million, providing solid visibility for the fiscal year.
Twin Disc Inc (TWIN) is well-positioned to capture emerging opportunities in hybrid propulsion and defense markets, supported by elevated government budgets.

Negative

The company expects a temporary increase in tariff impact on the second quarter cost of sales, rising to 1-3% from roughly 1% previously.
Net loss attributable to Twin Disc Inc (TWIN) for the quarter was $518,000, although improved from a loss of $2.8 million last year.
Oil and gas shipments were nearly flat, with continued decline in China and cautious North American customers.
Net debt increased slightly in the first quarter, reflecting seasonal usage of the revolver and elevated inventory levels.
Free cash flow was challenging in Q1 due to inventory growth and pre-buys in anticipation of tariffs, with a target of 60% free cash flow as a percent of EBITA.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

TWIN.OQ - Twin Disc Inc
Q1 2026 Twin Disc Inc Earnings Call
Nov 05, 2025 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello and welcome to the Twin Disk Incorporated fiscal 1st quarter 2026 conference call. We will begin with introductory remarks from Jeff Kennington, TwinDisk's CFO.

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Unidentified_2 [2]
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Good morning and thank you for joining us today to discuss our fiscal 2026 1st quarter results. On the call with me today is John Batten, Twin Disk CEO. I would like to remind everyone that certain statements made during this conference call, especially statements expressing hopes, beliefs, expectations, or predictions for the future, are forward-looking statements. It is important to

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