Q2 2026 Twin Disc Inc Earnings Call Transcript

Feb 4, 2026 / 02:00 PM GMT

Release Date Price: €15.8 (-2.47%)

Transcript 10-Q8-K

Key Points

Positve

Twin Disc Inc (TWIN) reported a record backlog of $175.3 million, up 41.4% year over year, providing solid visibility into the second half of fiscal 2026.
Defense-related opportunities are growing, with the backlog up 18% sequentially, driven by elevated defense spending in the United States and NATO.
The industrial business saw a 22% year-over-year increase in sales, benefiting from recent acquisitions and steady demand.
Gross profit rose 3.2% to $22.4 million, with gross margin improving by 70 basis points to 24.8%, reflecting the absence of inventory-related charges from the previous year.
International oil and gas demand showed early signs of improvement, particularly in China, where customer engagement exceeded expectations.

Negative

Tariff impacts were elevated, accounting for approximately 3% of the cost of sales, causing friction in order placement and shipping lead times.
Sales in the land-based transmission segment decreased by 8.1% year over year due to shipment delays and cautious customer behavior in North America.
Aftermarket activity experienced short-term softness due to customer timing and year-end dynamics, impacting margins.
Net debt increased to $29.6 million, primarily due to the strategic acquisition of Cobalt, with a cash balance down 6.4% from the prior year.
EBITDA decreased by 25% compared to the prior year, affected by higher MEA expenses, tariff-related impacts, and non-recurring items.

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

TWIN.OQ - Twin Disc Inc
Q2 2026 Twin Disc Inc Earnings Call
Feb 04, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Welcome to the TwinDisk Inc. Fiscal second quarter 2026 conference call. We will begin with introductory remarks from Jeff Knutson, TwinDisk 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 second 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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