Twin Disc (TWIN) AI Stock Analysis

• Market Cap: $201.32M
• Dividend Yield: 1.19%
• Average Volume (3M): 58.95K
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.89
• Revenue Growth: 15.45%
• EPS Growth: -117.28%
• Country: US
• Employees: 910
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.10
• Shares Outstanding: 14,390,226
• 10 Day Avg. Volume: 40,419
• 30 Day Avg. Volume: 58,955
• 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: 0.81
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: 8.44
• 1Y Price Target: $12.00
• Price Target Upside: -14.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $12.00 ▼(-14.22% Downside)

Twin Disc's overall score reflects strong sales growth and strategic positioning in the defense sector, as highlighted in the earnings call. However, profitability challenges and valuation concerns weigh on the score. Technical indicators show bullish momentum, but overbought conditions suggest caution.

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 power transmission products and systems. The company operates in two main segments: the marine segment, which includes marine transmissions and controls for boats, and the industrial segment, which encompasses hydraulic clutches and drives for various industrial applications. Key revenue streams include direct sales to original equipment manufacturers (OEMs) and aftermarket sales for existing installations. Significant partnerships with major OEMs in the marine and industrial markets further enhance its revenue potential. Additionally, Twin Disc benefits from a strong aftermarket service component, providing maintenance and replacement parts that contribute to ongoing revenue. The company’s diverse product range and strategic focus on high-performance applications position it well to capitalize on growing demand in its sectors.

Twin Disc Financial Statement Overview

Summary

Twin Disc shows steady revenue growth but struggles with profitability, evidenced by a negative net profit margin and declining cash flow. The balance sheet is strong with low leverage, but negative returns on equity highlight inefficiencies.

Income Statement

Twin Disc has shown a steady revenue growth rate of 3.73% in the latest year, indicating positive momentum. However, the net profit margin is negative at -0.56%, reflecting challenges in converting revenue into profit. The gross profit margin is stable at 27.21%, but the EBIT and EBITDA margins have decreased compared to previous years, suggesting pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.30, indicating a conservative leverage position. However, the return on equity is negative at -1.15%, highlighting inefficiencies in generating returns for shareholders. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

Free cash flow has declined by 15.28%, which is a concern for liquidity. The operating cash flow to net income ratio is 0.19, indicating moderate cash generation relative to earnings. The free cash flow to net income ratio is 0.37, showing some ability to convert earnings into cash flow, but with room for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	340.74M	340.74M	295.13M	276.96M	242.91M	218.58M
Gross Profit	92.73M	92.73M	83.32M	74.33M	68.81M	50.86M
EBITDA	19.31M	19.31M	27.05M	26.39M	24.64M	4.16M
Net Income	-1.89M	-1.89M	10.99M	10.38M	10.47M	-29.72M
Balance Sheet
Total Assets	355.56M	355.56M	312.06M	289.18M	276.52M	275.41M
Cash, Cash Equivalents and Short-Term Investments	16.11M	16.11M	20.07M	13.26M	12.52M	12.34M
Total Debt	49.20M	49.20M	48.22M	36.74M	54.26M	44.97M
Total Liabilities	191.17M	191.17M	157.00M	143.66M	145.34M	144.75M
Stockholders Equity	164.01M	164.01M	154.70M	145.09M	130.78M	130.21M
Cash Flow
Free Cash Flow	8.82M	8.82M	25.01M	14.98M	-13.04M	2.06M
Operating Cash Flow	23.98M	23.98M	33.72M	22.90M	-8.31M	6.53M
Investing Cash Flow	-32.90M	-32.90M	-32.07M	-408.00K	5.90M	-2.74M
Financing Cash Flow	-965.00K	-965.00K	2.75M	-19.51M	4.05M	-4.32M

Twin Disc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.99
• 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 13.99 is above the 20-day moving average (MA) of 13.32, above the 50-day MA of 10.92, and above the 200-day MA of 9.39, indicating a bullish trend. The MACD of 0.84 indicates Positive momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 54.08 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
TAYD	70 Neutral	156.29M	17.29	―	―	3.84%	13.91%
TWIN	68 Neutral	$201.32M	29.82	-1.19%	1.19%	15.45%	-117.28%
CVV	51 Neutral	22.43M	-61.28	-1.45%	―	34.35%	93.12%
HURC	49 Neutral	111.34M	-8.32	-8.02%	―	-6.13%	-6.61%
BWEN	46 Neutral	47.12M	-20.89	-3.73%	―	-18.38%	-128.11%
TPICQ	38 Underperform	1.59M	>-0.01	42.17%	―	4.77%	7.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Twin Disc Corporate Events

Twin Disc to Present at Investor Meetings

Twin Disc, a company involved in the manufacturing sector, announced that its executive officers plan to present materials at investor meetings and conferences starting August 27, 2025. These materials, which include non-GAAP financial information, will be available on the company’s website. The company emphasizes that these non-GAAP measures provide additional insights into their core business operations, although they should not replace GAAP-compliant results. The announcement highlights the company’s efforts to engage with investors and analysts, potentially impacting its market positioning and stakeholder perceptions.

Twin Disc Reports FY 2025 Results with Sales Growth

On August 21, 2025, Twin Disc announced its fiscal year 2025 results, highlighting a 15.5% increase in sales to $340.7 million and a net loss of $1.9 million. Despite challenges in the oil and gas sector, the company saw strong demand in marine and propulsion systems, and industrial segments. The company reported a healthy backlog, increased operating cash flow, and continued strategic acquisitions, enhancing its global footprint and market diversification. CEO John H. Batten emphasized the company’s resilience and strategic positioning for future growth, supported by a robust defense market presence and ongoing integration efforts.

Twin Disc to Present at Investor Meetings

Twin Disc, a company involved in manufacturing, is preparing to present materials at investor meetings and conferences starting August 21, 2025. These presentations will include non-GAAP financial measures to provide additional insights into the company’s performance. The company emphasizes that these non-GAAP measures are not a substitute for GAAP results and warns against undue reliance on forward-looking statements due to potential risks and uncertainties.

Twin Disc Sets 2026 Executive Compensation Plan

On August 6, 2025, Twin Disc‘s Compensation and Human Capital Committee approved the base salaries and fiscal 2026 bonus targets for its principal executive officers, with no increase for CEO John H. Batten and a 4.2% increase for CFO Jeffrey S. Knutson. The committee also awarded restricted and performance stock awards under the Omnibus Incentive Plan, with specific performance objectives set for the three-year period ending June 30, 2028. These decisions reflect the company’s strategic focus on aligning executive compensation with performance metrics, potentially impacting its operational efficiency and stakeholder value.