Q4 2026 Twin Disc Inc Earnings Call Transcript

Aug 20, 2026 / 01:00 PM GMT

Release Date Price: €20.6 (+3.00%)

Transcript 8-K

Key Points

Positve

Record Q4 revenue of $114.4 million, up 18.3% year-over-year, with strong demand across marine and land-based segments.
Defense backlog grew 56% year-over-year, now 17% of total backlog, with a $30-50 million project pipeline, positioning Twin Disc Inc (TWIN) for durable multi-year growth.
Free cash flow improved significantly to $17.2 million in Q4, and net leverage ratio decreased to 0.5, strengthening the balance sheet.
Board approved a 25% increase in quarterly dividend to $0.05 per share, reflecting confidence in future performance.
Oil and gas segment ramped up, with revenue over 10% of total in Q4, driven by higher-margin EFRAC opportunities, and improving North American energy sentiment points to further investment.
Proactive tariff mitigation, including relocating assembly to Lufkin, Texas, and new facility in Finland, supports long-term margin improvement and capacity expansion.

Negative

Gross margin decreased approximately 600 basis points to 26.3% in Q4, impacted by product mix, tariff dilution, and a prior-year favorable adjustment.
Tariff dilution alone reduced gross margin by 60 basis points in the quarter, and the company continues to face cost pressures.
Industrial segment sales decreased modestly year-over-year, though stabilizing, indicating ongoing softness in that market.
Defense business remains fragmented across products and regions, making it difficult to track and report, which could obscure performance visibility.
New facility in Finland and other capacity expansions are not expected to be fully operational until fiscal 2028, delaying potential benefits.
CapEx for fiscal 2027 is expected to be north of $20 million, a significant investment that could pressure near-term cash flows.

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

TWIN.OQ - Twin Disc Inc
Q4 2026 Twin Disc Inc Earnings Call
Aug 20, 2026 / 01:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Welcome to the Twin Desk Inc.

Fiscal for quarter 2026 conference call.

We will begin with introductory remarks from Jeff Kennison, Twin Disk CFO.

Please go ahead.

Good morning and thank you for joining us today to discuss our fiscal 2026 4th quarter results.

On the call with me today is John Batten, Tundisk, CEO.

I would like to remind everyone that certain statements made during this conference call, especially students expressing hopes, beliefs, expectations, or predictions for the future are forward-looking statements.

It is important to remember that the company's actual results could differ materially from those projected in such forward-looking statements.

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.