Twin Disc posts Q2 2026 results with record backlog

The latest announcement is out from Twin Disc ( (TWIN) ).

On February 4, 2026, Twin Disc reported fiscal second-quarter 2026 results for the period ended December 26, 2025, with sales essentially flat year over year at $90.2 million but supported by strong demand in marine and propulsion systems and a recovering industrial segment, boosted by the Kobelt acquisition. Gross margin improved by 70 basis points to 24.8% due largely to the absence of prior-year inventory charges, while net income surged to $22.4 million, or $1.55 per diluted share, primarily reflecting a $21.8 million tax benefit from reversing a domestic valuation allowance, even as EBITDA fell 25% to $4.7 million amid higher operating expenses. The company highlighted tariff-related shipment delays and product-mix pressures that weighed on margins and elevated inventories, but emphasized that orders were deferred rather than lost, underpinning a record six‑month backlog of $175.3 million, expanding defense-related and hybrid propulsion opportunities in the U.S. and Europe, and positive operating and free cash flow generation despite increased debt tied to the Kobelt deal.

The most recent analyst rating on (TWIN) stock is a Hold with a $18.50 price target. To see the full list of analyst forecasts on Twin Disc stock, see the TWIN Stock Forecast page.

Spark’s Take on TWIN Stock

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

The score is driven mainly by middling financial fundamentals (negative net margin/ROE and declining free-cash-flow growth despite low leverage) and a very weak valuation signal from the extremely high P/E. These are partially offset by constructive earnings-call indicators (strong YoY sales, margin and EBITDA improvement, and rising backlog/defense strength) and supportive trend signals, though technical momentum appears overextended (RSI/Stoch).

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

More about Twin Disc

Twin Disc, Inc., based in Milwaukee, designs, manufactures and sells 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 systems and braking systems. It serves pleasure craft, commercial and military marine customers, as well as energy, natural resources, government and industrial markets worldwide through a combination of direct sales and a distributor network.

Average Trading Volume: 33,422

Technical Sentiment Signal: Buy

Current Market Cap: $257M

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