Twin Disc (NASDAQ:TWIN) Issues Earnings Results

Twin Disc (NASDAQ:TWIN) issued its quarterly earnings results on Wednesday. The industrial products company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.21 by ($0.17), Zacks reports. Twin Disc had a net margin of 6.26% and a return on equity of 0.02%. The business had revenue of $90.18 million during the quarter, compared to analysts’ expectations of $92.80 million.

Here are the key takeaways from Twin Disc’s conference call:

• Twin Disc reported a record backlog of $175.3 million, up 41.4% year-over-year and 7% sequentially, giving strong visibility into H2 fiscal 2026.
• Tariffs (~3% of cost of sales) materially disrupted shipment timing and mix this quarter; the company is implementing mitigation plans (including moving ARFF assembly to a tariff-advantaged site) but near-term drag remains.
• Defense demand is a growing, durable driver — defense backlog rose 18% sequentially and the pipeline exceeds $50 million, with capacity largely in place in North America.
• Reported net income of $22.4 million ($1.55/sh) was driven primarily by a $21.8 million tax benefit (valuation allowance reversal); underlying performance showed EBITDA down 25% and organic revenue down ~7.9%.
• Industrial sales rose 22% YoY, aided by recent acquisitions (Kobelt, Katsa), but net debt increased to $29.6 million and free cash flow was modest at $1.2 million, with working capital expected to improve as backlog converts.

Twin Disc Trading Up 1.4%

Shares of Twin Disc stock opened at $16.37 on Friday. Twin Disc has a 52-week low of $6.16 and a 52-week high of $19.63. The company’s 50-day simple moving average is $16.79 and its 200-day simple moving average is $14.32. The firm has a market cap of $235.56 million, a price-to-earnings ratio of 10.91 and a beta of 0.68. The company has a quick ratio of 0.79, a current ratio of 2.08 and a debt-to-equity ratio of 0.25.

Twin Disc Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, March 2nd. Stockholders of record on Wednesday, February 18th will be paid a $0.04 dividend. This represents a $0.16 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Wednesday, February 18th. Twin Disc’s dividend payout ratio (DPR) is 10.67%.

Analyst Ratings Changes

TWIN has been the topic of several recent research reports. Zacks Research upgraded Twin Disc to a “hold” rating in a report on Tuesday, December 9th. Wall Street Zen lowered shares of Twin Disc from a “buy” rating to a “hold” rating in a report on Monday, January 19th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Twin Disc in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Twin Disc presently has an average rating of “Hold” and a consensus target price of $12.00.

Key Twin Disc News

Here are the key news stories impacting Twin Disc this week:

• Positive Sentiment: Huge EPS beat — Twin Disc reported GAAP EPS of $1.55 vs. the roughly $0.21 consensus, a surprise that likely drove the immediate rally. Twin Disc GAAP EPS of $1.55, revenue of $90.2M
• Positive Sentiment: Record backlog and defense pipeline growth — management highlighted a record backlog of about $175.3M and expanding defense-related opportunities, supporting revenue visibility ahead. Twin Disc outlines $175.3M record backlog and strategic tariff mitigation as defense pipeline grows
• Positive Sentiment: Management emphasized strategic growth and tariff-mitigation actions on the call and slide deck, which investors may view as a path to protect margins and capitalize on the defense pipeline. Twin Disc Inc (TWIN) Q2 2026 Earnings Call Highlights: Record Backlog and Strategic Growth Amid …
• Neutral Sentiment: Full call transcript and slide deck available — analysts and investors can review management’s commentary and the supplemental materials for guidance and backlog detail. Twin Disc, Incorporated (NASDAQ:TWIN) Q2 2026 earnings call transcript
• Neutral Sentiment: Revenue slightly missed expectations — Q2 revenue of ~$90.2M came in a bit below the consensus (~$92.8M), so upside was driven mainly by one-time or non-operational GAAP items and backlog strength rather than a revenue beat. Twin Disc Earnings Report: Q2 Overview
• Negative Sentiment: Thin reported margins and valuation risk — the company’s net margin was reported near 0.1% and the trailing P/E is very elevated (reflecting the profit makeup), which raises questions about sustainability of earnings and valuation. NASDAQ:TWIN — MarketBeat profile

Institutional Investors Weigh In On Twin Disc

Hedge funds and other institutional investors have recently bought and sold shares of the business. Ameriprise Financial Inc. lifted its position in shares of Twin Disc by 1,928.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 439,241 shares of the industrial products company’s stock valued at $3,878,000 after acquiring an additional 417,590 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in Twin Disc by 132.4% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 149,035 shares of the industrial products company’s stock worth $2,078,000 after acquiring an additional 84,908 shares during the period. Susquehanna International Group LLP grew its position in shares of Twin Disc by 441.6% in the third quarter. Susquehanna International Group LLP now owns 99,791 shares of the industrial products company’s stock valued at $1,391,000 after purchasing an additional 81,366 shares during the period. Mink Brook Asset Management LLC purchased a new stake in Twin Disc in the 2nd quarter valued at about $543,000. Finally, Two Sigma Investments LP purchased a new stake in Twin Disc in the third quarter valued at approximately $699,000. Institutional investors and hedge funds own 65.25% of the company’s stock.

About Twin Disc

Twin Disc, Inc (NASDAQ: TWIN) is a global designer and manufacturer of power transmission equipment for marine and industrial applications. Headquartered in Racine, Wisconsin, the company develops a range of mechanical and digital solutions that control power delivery in demanding environments. Its portfolio includes marine gears, power take-offs, clutches, brakes, transmissions and controllable pitch propeller systems engineered to withstand heavy loads and corrosive conditions.

In addition to original equipment manufacturing, Twin Disc offers aftermarket parts and services, including maintenance, repair and overhaul support through a network of service centers worldwide.