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Twin Disc Delivers Strong Q3 Sales and Profit Rebound

Story Highlights
  • Twin Disc’s Q3 2026 sales and margins rose sharply, returning the company to profitability.
  • Robust backlog, cash generation and defense-linked investments underpin Twin Disc’s long-term growth plans.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Twin Disc Delivers Strong Q3 Sales and Profit Rebound

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Twin Disc ( (TWIN) ) has issued an update.

Twin Disc reported that for the third quarter ended March 27, 2026, sales climbed 19.0% year over year to $96.7 million, led by strong demand for Veth products in Marine and Propulsion Systems and double-digit growth in North America. Gross margin expanded to 28.1%, while net income swung to a $3.3 million profit from a prior-year loss, and EBITDA more than doubled to $9.4 million, reflecting volume gains and margin improvement efforts.

Operating cash flow reached $5.3 million and free cash flow was $1.8 million in the quarter, supported by tighter inventory management and stronger profitability. The company ended the period with a six-month backlog of $179.5 million, increased debt tied largely to the Kobelt acquisition, and continued to invest in manufacturing optimization and Finland defense-related expansion to support long-term growth and capitalize on robust end-market demand.

Spark’s Take on TWIN Stock

According to Spark, TipRanks’ AI Analyst, TWIN is a Neutral.

The score is driven primarily by improved but still uneven financial quality (thin operating margins and weak recent free-cash-flow conversion), alongside a balanced earnings outlook where record backlog/defense demand offsets near-term tariff and EBITDA pressure. Technicals are moderately constructive and valuation is reasonable, providing additional support.

To see Spark’s full report on TWIN stock, click here.

More about Twin Disc

Twin Disc, Inc. is a Milwaukee-based manufacturer of marine and heavy-duty off-highway power transmission equipment, including marine transmissions, azimuth and surface drives, propellers, boat management systems, power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, control and braking systems. The company serves pleasure craft, commercial and military marine customers, as well as energy, natural resources, government and industrial markets worldwide through a mix of direct sales and a distributor network.

Average Trading Volume: 50,262

Technical Sentiment Signal: Buy

Current Market Cap: $216.8M

For a thorough assessment of TWIN stock, go to TipRanks’ Stock Analysis page.

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