Twin Disc (TWIN) AI Stock Analysis

• Market Cap: $226.04M
• Dividend Yield: 1.02%
• Average Volume (3M): 32.02K
• Price to Earnings (P/E): 646.5
• Beta (1Y): 1.12
• Revenue Growth: 14.24%
• EPS Growth: -96.24%
• Country: US
• Employees: 910
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.04
• Shares Outstanding: 14,388,031
• 10 Day Avg. Volume: 28,105
• 30 Day Avg. Volume: 32,020
• PEG Ratio: 0.55
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 13.87
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.12
• Revenue Forecast (FY): $382.00M

• Rating: 66 Neutral
• Price Target: $17.00 ▲(9.47% Upside)

Twin Disc's overall stock score reflects a mixed financial performance with challenges in profitability and cash flow, offset by positive technical indicators and a strong earnings call. The high P/E ratio suggests overvaluation concerns, but the positive outlook from the earnings call and technical trends provide some optimism.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing Twin Disc's market position and long-term growth potential.

Defense Segment Expansion

Significant growth in the defense segment diversifies revenue streams and strengthens Twin Disc's position in a stable and lucrative market.

Operational Efficiency

Improved operational efficiencies and product mix enhance profitability, supporting sustainable margin expansion and competitive advantage.

Negative Factors

Profitability Challenges

Negative net profit margins indicate ongoing profitability challenges, which may hinder Twin Disc's ability to reinvest in growth and innovation.

Free Cash Flow Decline

Declining free cash flow growth raises concerns about cash generation, potentially limiting Twin Disc's financial flexibility and investment capacity.

Net Loss Reported

The net loss reflects financial strain and may impact investor confidence, necessitating strategic adjustments to improve financial health.

Twin Disc Business Overview & Revenue Model

Company Description

Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. It operates through two segments, Manufacturing and Distribution. The company's products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. It also provides non-twin disc manufactured products. The company sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial, and military marine markets, as well as in the energy and natural resources, government, and industrial markets. Twin Disc, Incorporated was founded in 1918 and is headquartered in Racine, Wisconsin.

How the Company Makes Money

Twin Disc generates revenue primarily through the sale of its core products, which include marine transmissions, hydraulic components, and power take-off systems. The company's revenue model is structured around both original equipment manufacturer (OEM) sales and aftermarket parts and services. OEM sales involve direct contracts with manufacturers of marine vessels and industrial equipment, while aftermarket sales provide ongoing revenue through the sale of replacement parts, repairs, and maintenance services. Additionally, Twin Disc benefits from strategic partnerships with various OEMs and distributors, which enhance its market reach and capability to deliver integrated solutions. Factors contributing to its earnings include increased demand in the marine industry, technological advancements in power transmission systems, and a strong focus on research and development to innovate and improve product offerings.

Twin Disc Financial Statement Overview

Summary

Twin Disc shows moderate revenue growth and a stable financial position with low leverage. However, profitability remains a challenge with negative net profit margins and declining free cash flow growth. The company needs to focus on improving profitability and cash flow generation to enhance overall financial health.

Income Statement

Twin Disc's income statement shows moderate revenue growth with a 2.08% increase in TTM. However, the net profit margin is negative at -0.56%, indicating challenges in profitability. The gross profit margin is stable at 27.21%, but the EBIT and EBITDA margins are relatively low at 1.30% and 5.67%, respectively. Overall, the company demonstrates revenue growth but struggles with profitability.

Balance Sheet

The balance sheet reflects a healthy debt-to-equity ratio of 0.30, suggesting manageable leverage. However, the return on equity is negative at -1.23%, indicating inefficiencies in generating returns for shareholders. The equity ratio stands at 44.10%, showing a solid equity base relative to total assets. The company maintains a stable financial position with low leverage but needs to improve its return on equity.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by -9.27% in TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.19, indicating some cash flow challenges. The free cash flow to net income ratio is 0.37, suggesting limited cash flow relative to net income. While the company generates positive operating cash flow, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	347.84M	340.74M	295.13M	276.96M	242.91M	218.58M
Gross Profit	96.34M	92.73M	83.32M	74.33M	68.81M	50.86M
EBITDA	22.46M	19.31M	26.79M	26.08M	24.28M	3.76M
Net Income	352.00K	-1.89M	10.99M	10.38M	10.47M	-29.72M
Balance Sheet
Total Assets	363.54M	355.56M	312.06M	289.18M	276.52M	275.41M
Cash, Cash Equivalents and Short-Term Investments	14.24M	16.11M	20.07M	13.26M	12.52M	12.34M
Total Debt	66.57M	49.20M	48.22M	29.44M	47.12M	44.97M
Total Liabilities	202.65M	191.17M	157.00M	143.66M	145.34M	144.75M
Stockholders Equity	160.32M	164.01M	154.70M	145.09M	130.78M	130.21M
Cash Flow
Free Cash Flow	4.57M	8.82M	25.01M	14.98M	-13.04M	2.06M
Operating Cash Flow	20.80M	23.98M	33.72M	22.90M	-8.31M	6.53M
Investing Cash Flow	-33.62M	-32.90M	-32.07M	-408.00K	5.90M	-2.74M
Financing Cash Flow	7.97M	-965.00K	2.75M	-19.51M	4.05M	-4.32M

Twin Disc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWIN, the sentiment is Positive. The current price of 15.53 is above the 20-day moving average (MA) of 15.47, above the 50-day MA of 15.45, and above the 200-day MA of 10.69, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 45.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TWIN.

Twin Disc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FELE	71 Outperform	$4.34B	31.84	10.89%	1.09%	5.06%	-22.73%
HI	68 Neutral	$2.23B	52.04	3.07%	2.85%	-16.00%	―
KAI	68 Neutral	$3.43B	33.66	11.32%	0.46%	-0.96%	-11.55%
TWIN	66 Neutral	$226.04M	646.50	0.22%	1.02%	14.24%	-96.24%
NPO	64 Neutral	$4.54B	52.94	5.80%	0.58%	6.44%	101.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$9.12B	27.56	12.38%	―	5.52%	9.03%

Twin Disc Corporate Events

Twin Disc Reports Strong Q1 Sales Growth for 2026

Twin Disc reported a 9.7% increase in sales for the first quarter of fiscal 2026, reaching $80 million, driven by the acquisition of Kobelt and strong performance in Marine and Propulsion Systems. The company’s gross margin improved by 220 basis points to 28.7%, and EBITDA rose by 172.3% compared to the previous year. Despite a net loss of $518 thousand, the company saw a robust six-month backlog of $163.3 million, supported by strong demand, particularly in the defense sector. The CEO highlighted growth in marine and propulsion bookings and steady land-based transmission activity, positioning the company for profitable growth in fiscal 2026.

Twin Disc to Present at Investor Meetings

Twin Disc, a company involved in manufacturing, is set to present materials at investor meetings and conferences starting November 5, 2025. The presentation will include non-GAAP financial information to provide insights into the company’s core business performance, although these measures are not a substitute for GAAP results. The company emphasizes that these materials should not be deemed as material information and highlights the risks associated with forward-looking statements included in the presentation.

Twin Disc Holds Annual Shareholders Meeting

On October 30, 2025, Twin Disc held its Annual Meeting of Shareholders where several key decisions were made. The shareholders elected John H. Batten, Juliann Larimer, and Kevin M. Olsen as directors, approved the compensation of the company’s named executive officers, and ratified the appointment of RSM US LLP as the independent registered public accounting firm for the fiscal year ending June 30, 2026. Additionally, non-employee directors received restricted stock under the company’s Omnibus Incentive Plan, reflecting a significant portion of their annual board retainer.