TWIN · Twin Disc, Incorporated

Twin Disc’s third quarter fiscal 2026 results marked a strong operational and financial turnaround, reversing from a $1.5 million net loss in the prior-year quarter to $3.3 million in net income — a shift driven by robust top-line growth, disciplined cost management, and improved profitability. Sales rose 19.0% year-over-year to $96.7 million, with Marine and Propulsion Systems leading at 20.0% growth, particularly fueled by Veth product demand. Gross margin expanded 134 basis points to 28.1%, benefiting from volume leverage and ongoing margin initiatives, while ME&A expenses declined as a percentage of sales (down 230 bps) despite inflationary wage pressure and integration costs from the Kobelt acquisition. EBITDA surged 135.1% to $9.4 million, underscoring meaningful operating leverage. Management highlighted sustained momentum in defense-related programs and a record six-month backlog of $179.5 million — up $4.2 million sequentially — citing Finland facility expansion and tariff-mitigation production relocations as strategic enablers. The CFO emphasized improved free cash flow generation ($1.8 million) and inventory efficiency, noting working capital improvements contributed meaningfully to cash flow. Though no formal forward guidance is issued in the release, management’s commentary signals confidence in second-half execution, healthy order momentum, and continued conversion of the elevated backlog into revenue and earnings — positioning Twin Disc for sustained growth amid resilient end-market demand across marine, industrial, and defense sectors.