olivLaw · US equity research
Twin Disc, Inc. TWIN
General Industrial Machinery & Equipment · SIC 3560 · Vertical: General Industrial Machinery & Equipment (SIC 3560)
Twin Disc designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment. The company is in a growth phase driven by military and marine demand, with net sales in fiscal 2026 reaching $381.3 million, up 11.9%.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Twin Disc, Inc. (TWIN) stock was 25.50 USD (+1.84% on the day), with market capitalisation 370.7 m USD, P/E 11.9 on diluted EPS of 2.15 USD over the last 12 months, dividend yield 0.67%, beta 1.42, 52-week range 14.45–28.72 USD. Latest reported quarter (Q1 2027): revenue of 88.7 m USD (+10.9% YoY), net income of 3.4 m USD, diluted EPS 0.24 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 51.6
- neutral
- Bollinger (20, 2)
- 23.67 – 26.79
- in the upper half of the band · %B 0.59 · band width 12.4%
- SMA 50 / 200
- 25.17 / 20.61
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- -0.18 / -0.16
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −11.2% | −1.1% | −10.1 pp | — |
| 3 months | +7.1% | −0.5% | +7.6 pp | — |
| 6 months | +41.0% | +4.4% | +36.6 pp | — |
| Year to date | +52.9% | +12.3% | +40.6 pp | — |
| 1 year | +59.4% | +13.5% | +45.8 pp | +12.6% |
| 3 years | +114.3% | +76.4% | +37.9 pp | +46.8% |
| 5 years | +96.6% | +63.7% | +32.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 25 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 89.9 m | 81.2 m | 96.7 m | 80.0 m | 90.2 m | 96.7 m | 114.4 m | 88.7 m |
| Cost of revenue | 68.2 m | 59.5 m | 65.5 m | 57.1 m | 67.8 m | 69.6 m | 84.3 m | 63.3 m |
| Gross profit | 21.7 m | 21.7 m | 31.2 m | 22.9 m | 22.4 m | 27.1 m | 30.1 m | 25.4 m |
| SG&A | 18.9 m | 19.8 m | 24.3 m | 20.7 m | 20.7 m | 21.3 m | 21.8 m | 20.8 m |
| Operating income | 2.8 m | 1.9 m | 6.5 m | 2.2 m | 2.1 m | 5.8 m | 7.8 m | 4.6 m |
| Depreciation & amortisation | 3.3 m | 3.7 m | 4.7 m | 3.5 m | 3.3 m | 3.4 m | 3.5 m | 3.4 m |
| Interest expense | 495.0 k | 660.0 k | 855.0 k | 800.0 k | 772.0 k | 790.0 k | 715.0 k | 428.0 k |
| Pre-tax income | 2.7 m | -280.0 k | 2.7 m | 571.0 k | 698.0 k | 5.4 m | 6.9 m | 3.9 m |
| Income tax | 1.6 m | 1.1 m | 47.0 k | 983.0 k | 14.3 m | -1.8 m | 2.5 m | 415.0 k |
| Net income | 919.0 k | -1.5 m | 2.6 m | -518.0 k | 14.9 m | 3.3 m | 9.4 m | 3.4 m |
| Diluted EPS | 0.07 | -0.11 | 0.19 | -0.04 | 1.04 | 0.23 | 0.64 | 0.24 |
| Operating cash flow | 8.7 m ≈ | 3.2 m ≈ | 16.4 m | -7.5 m | 4.6 m ≈ | 5.3 m ≈ | 20.6 m | 11.5 m |
| Capex | 2.8 m ≈ | 2.3 m ≈ | 7.7 m | 3.4 m | 3.3 m ≈ | 3.6 m ≈ | 3.4 m | 5.8 m |
| Dividends paid | 566.0 k ≈ | 566.0 k ≈ | 582.0 k | 566.0 k | 571.0 k ≈ | 580.0 k ≈ | 568.0 k | 742.0 k |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 21 percentile of its own 24-quarter history (min 9.4, median 18.7, max 127.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 302.7 m | 246.8 m | 218.6 m | 242.9 m | 277.0 m | 295.1 m | 340.7 m | 381.3 m |
| Revenue YoY | +25.7% | −18.4% | −11.4% | +11.1% | +14.0% | +6.6% | +15.5% | +11.9% |
| Net income | 10.7 m | -39.8 m | -29.7 m | 10.5 m | 10.4 m | 11.0 m | -697.0 k | 27.1 m |
| Net income YoY | +12.0% | −473.1% | unavailable | unavailable | −0.8% | +5.9% | −106.3% | unavailable |
| Diluted EPS | 0.83 | -3.03 | -2.24 | 0.78 | 0.75 | 0.79 | -0.05 | 1.86 |
| Diluted EPS YoY | +1.2% | −465.1% | unavailable | unavailable | −3.8% | +5.3% | −106.3% | unavailable |
| net % | 3.5% | -16.1% | -13.6% | 4.3% | 3.7% | 3.7% | -0.2% | 7.1% |
| Free cash flow | -17.4 m | -1.6 m | 2.1 m | -13.0 m | 15.0 m | 25.0 m | 8.8 m | 9.2 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- unavailable USD
- Financial debt
- 29.8 m USD
- Net debt
- unavailable USD
- Equity
- 219.9 m USD
- Total assets
- 401.2 m USD
- Debt / equity
- 0.14x
- Current ratio
- 2.35x
- ROE
- 13.0%
- ROA
- 6.9%
- FCF margin
- 2.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 218.6 m | 242.9 m | 277.0 m | 295.1 m | 340.7 m | 381.3 m | SEC (XBRL)· 04 Sept 2026verified |
| Cost of revenue | 167.7 m | 174.1 m | 202.6 m | 211.8 m | 246.8 m | 278.7 m | SEC (XBRL)· 04 Sept 2026verified |
| Gross profit | 50.9 m | 68.8 m | 74.3 m | 83.3 m | 93.9 m | 102.6 m | SEC (XBRL)· 04 Sept 2026verified |
| Research & development | 1.9 m | 1.6 m | 2.5 m | 2.6 m | 2.7 m | 2.9 m | SEC (XBRL)· 04 Sept 2026verified |
| SG&A | 55.8 m | 60.1 m | 62.2 m | 71.6 m | 82.4 m | 84.5 m | SEC (XBRL)· 04 Sept 2026verified |
| Operating income | -12.3 m | 11.0 m | 16.1 m | 11.5 m | 11.1 m | 18.0 m | SEC (XBRL)· 04 Sept 2026verified |
| Depreciation & amortisation | 11.2 m | 9.5 m | 9.4 m | 10.0 m | 14.9 m | 13.7 m | SEC (XBRL)· 04 Sept 2026verified |
| EBITDA | -1.0 m ≈ | 20.6 m ≈ | 25.4 m ≈ | 21.5 m ≈ | 26.0 m ≈ | 31.7 m ≈ | SEC (XBRL)· 04 Sept 2026derived |
| Interest expense | 2.4 m | 2.1 m | 2.3 m | 1.4 m | 2.6 m | 3.1 m | SEC (XBRL)· 04 Sept 2026verified |
| Pre-tax income | -9.8 m | 12.6 m | 14.5 m | 15.4 m | 3.0 m | 13.6 m | SEC (XBRL)· 04 Sept 2026verified |
| Income tax | 19.7 m | 1.8 m | 3.8 m | 4.1 m | 3.4 m | -14.0 m | SEC (XBRL)· 04 Sept 2026verified |
| Net income | -29.7 m | 10.5 m | 10.4 m | 11.0 m | -697.0 k | 27.1 m | SEC (XBRL)· 04 Sept 2026verified |
| Diluted EPS | -2.24 | 0.78 | 0.75 | 0.79 | -0.05 | 1.86 | SEC (XBRL)· 04 Sept 2026verified |
| Weighted average diluted shares | 13.2 m | 13.4 m | 13.8 m | 13.9 m | 13.9 m | 14.6 m | SEC (XBRL)· 04 Sept 2026verified |
| Dividend per share | 0.00 | 0.00 | 0.00 | 0.12 | 0.16 | 0.16 | SEC (XBRL)· 04 Sept 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Receivables | 39.5 m | 45.5 m | 54.8 m | 52.2 m | 58.9 m | 66.8 m | SEC (XBRL)· 04 Sept 2026verified |
| Inventories | 115.0 m | 127.1 m | 131.9 m | 130.5 m | 184.1 m | 178.0 m | SEC (XBRL)· 04 Sept 2026verified |
| Current assets | 192.0 m | 204.5 m | 219.7 m | 219.6 m | 279.0 m | 278.2 m | SEC (XBRL)· 04 Sept 2026verified |
| Property, plant & equipment, net | 45.5 m | 41.6 m | 38.7 m | 58.1 m | 69.6 m | 68.1 m | SEC (XBRL)· 04 Sept 2026verified |
| Goodwill | 0 | 0 | 0 | 0 | 2.9 m | 2.8 m | SEC (XBRL)· 04 Sept 2026verified |
| Intangibles (excl. goodwill) | 17.5 m | 13.0 m | 12.6 m | 12.7 m | 13.4 m | 14.1 m | SEC (XBRL)· 04 Sept 2026verified |
| Total assets | 275.4 m | 276.5 m | 289.2 m | 312.1 m | 387.7 m | 401.2 m | SEC (XBRL)· 04 Sept 2026verified |
| Accounts payable | 31.0 m | 28.5 m | 36.5 m | 32.6 m | 38.7 m | 30.8 m | SEC (XBRL)· 04 Sept 2026verified |
| Short-term debt | 2.0 m | 2.0 m | 2.0 m | 2.0 m | 3.0 m | 1.5 m | SEC (XBRL)· 04 Sept 2026verified |
| Long-term debt | 30.1 m | 34.5 m | 16.6 m | 23.8 m | 28.4 m | 28.3 m | SEC (XBRL)· 04 Sept 2026verified |
| Current liabilities | 78.6 m | 81.1 m | 100.1 m | 99.5 m | 125.8 m | 118.6 m | SEC (XBRL)· 04 Sept 2026verified |
| Total liabilities | 144.8 m | 145.3 m | 143.7 m | 157.0 m | 191.2 m | 181.3 m | SEC (XBRL)· 04 Sept 2026verified |
| Equity | 130.7 m | 131.2 m | 145.5 m | 186.0 m | 196.5 m | 219.9 m | SEC (XBRL)· 04 Sept 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 6.5 m | -8.3 m | 22.9 m | 33.7 m | 24.0 m | 22.9 m | SEC (XBRL)· 04 Sept 2026verified |
| Capex | 4.5 m | 4.7 m | 7.9 m | 8.7 m | 15.2 m | 13.7 m | SEC (XBRL)· 04 Sept 2026verified |
| Free cash flow | 2.1 m ≈ | -13.0 m ≈ | 15.0 m ≈ | 25.0 m ≈ | 8.8 m ≈ | 9.2 m ≈ | SEC (XBRL)· 04 Sept 2026derived |
| Investing cash flow | -2.7 m | 5.9 m | -408.0 k | -32.1 m | -32.9 m | -14.1 m | SEC (XBRL)· 04 Sept 2026verified |
| Financing cash flow | -4.3 m | 4.1 m | -19.5 m | 2.8 m | -965.0 k | -6.6 m | SEC (XBRL)· 04 Sept 2026verified |
| Dividends paid | — | — | 0 | 1.7 m | 2.3 m | 2.3 m | SEC (XBRL)· 04 Sept 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 78 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 370.7 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet95
- Growth97
- Quality51
- Returns46
- Valuation87
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 52.26 – 57.43 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E52.26 – 57.43 (Mid 56.40)6 companies used · median multiple 26.2x · quartiles 24.3x – 26.7xEFXT, GTES, IR, ITW, ZBRA, ZWS
- Dividend discount (DDM)outside the aggregate2.10 – 2.83 (Mid 2.41)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 78/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 8.0% | 25 (vs peers) | 9% |
| FCF conversion · Quality | 83.4% | 76 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 11.2% | 94 (on a fixed band) | 12% |
| EPS CAGR 3Y · Growth | 35.4% | 100 (on a fixed band) | 12% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 7.5x | 92 (on a fixed band) | 9% |
| Current ratio · Balance sheet | 2.5x | 100 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 11.9x | 88 (vs peers) | 15% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 7.0% | 87 (on a fixed band) | 12% |
| Shareholder yield (distributions) · Returns | 0.7% | 9 (on a fixed band) | 9% |
| Payout ratio (FCF) · Returns | 9.5% | 100 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet95/100 · 2/3 factors with a value
- Growth97/100 · 2/2 factors with a value
- Quality51/100 · 2/3 factors with a value
- Returns46/100 · 2/2 factors with a value
- Valuation87/100 · 2/3 factors with a value
Memo
TWIN DISC, INCORPORATED (TWIN). Latest full fiscal year: 2026; data up to 2026-09-25.
Figures computed from the financial statements: revenue 381.3 m USD in 2026; YoY growth 11.9%; net margin 8.0%; ROE 16.3%.
The estimated value range is 52.26–57.43 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 56.40 USD, the price of 25.50 USD leaves a potential of 121.2% (value / price − 1) and a margin of safety of 54.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 78/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 83.4%
- Revenue CAGR 3Y: 11.2%
- EPS CAGR 3Y: 35.4%
- Interest coverage: 7.5x
- Current ratio: 2.5x
- P/E (TTM): 11.9x
- FCF yield: 7.0%
- Payout ratio (FCF): 9.5%
- The price is below the estimated value range
What contradicts it
- Net margin: 8.0%
- Shareholder yield (distributions): 0.7%
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
General Industrial Machinery & Equipment (SIC 3560) · same industry (4-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ITWIllinois Tool Works Inc | 83.4 bn | 26.1 | 101.7% | 19.4% | +0.9% | +18% / +21% |
| IRIngersoll Rand Inc. | 32.3 bn | 23.7 | 13.4% | 17.2% | +5.7% | +5% / +18% |
| ZBRAZebra Technologies Corporation | 15.7 bn | 26.8 | 16.5% | 9.8% | +8.3% | +32% / +40% |
| ZWSZurn Elkay Water Solutions Corporation | 7.5 bn | 26.3 | 17.7% | 15.9% | +8.3% | −5% / +53% |
| GTESGates Industrial Corporation Ltd. | 6.1 bn | 17.0 | 10.6% | 10.4% | +1.0% | +7% / +100% |
| EFXTEnerflex Ltd | 2.5 bn | 39.3 | 6.0% | 2.5% | +6.5% | +46% / +377% |
| GHMGraham Corporation | 816.0 m | 67.1 | 7.5% | 4.5% | +16.9% | +21% / +275% |
| TWINTwin Disc, Incorporated | 370.7 m | 11.9 | 16.3% | 8.0% | +11.9% | +59% / +114% |
| GTECGreenland Technologies Holding Corporation | 10.7 m | 0.9 | 16.0% | 12.3% | +8.0% | −51% / −79% |
1- and 3-year price returns: for TWIN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 15.98 Total return -37% · Per year -37% | 28.17 Total return 11% · Per year 11% | 42.31 Total return 67% · Per year 67% |
| 3 years | 17.68 Total return -29% · Per year -11% | 34.86 Total return 39% · Per year 12% | 57.17 Total return 127% · Per year 31% |
| 5 years | 19.57 Total return -20% · Per year -4% | 43.14 Total return 74% · Per year 12% | 77.25 Total return 209% · Per year 25% |
- Exit P/E± 8.71
- Net margin± 6.10
- Annual revenue growth± 4.70
- Annual dilution± 0.51
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Sept 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
In brief
Twin Disc designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment. The company is in a growth phase driven by military and marine demand, with net sales in fiscal 2026 reaching $381.3 million, up 11.9%.
SWOT
Strengths
- The company has a broad range of specialised products and an international customer base with a large share of revenue from Europe. Order accumulation and military growth are visible strengths in recent reporting.
- Operating cash flow stayed solid and total debt declined in fiscal 2026, supporting financial flexibility.
- The Kobelt acquisition extended the range of control, propulsion and braking systems, and management describes the company as well positioned for fiscal 2027 growth.
Weaknesses
- Gross margin fell in fiscal 2026 because of product mix and tariff dilution, and management expects margin improvement to be gradual.
- Dependence on a few large customers and on single-source suppliers for some components makes operations vulnerable to disruption.
- Net income in fiscal 2026 benefited from a release of a tax valuation allowance, which makes reported profit harder to compare without adjustments.
Opportunities
- Growth in defense and naval projects could open new contracts, and management describes its project pipeline as robust.
- If the e-frac segment keeps developing, the company could achieve higher margins in oil and gas.
- Integrating Kobelt and Veth could support expansion into higher-margin segments such as advanced marine propulsion.
Threats
- Trade tariffs, policy changes and retaliation by other countries could raise costs and reduce demand outside the United States.
- Rising steel and energy prices could compress margins if they cannot be passed on to customers.
- Cyclical oil, gas and construction markets can weaken quickly, and international conflicts can disrupt supply chains.
Risks
- Euro exchange rate exposuremedium
A significant part of sales and costs is in euros, and large moves in the exchange rate could affect profitability, according to the 10-K risk factors 1.
- Tariffs and trade policyhigh
Tariffs and retaliatory trade measures can raise the cost of sales and reduce demand for products sold abroad, which could materially affect results 1.
- Debt and financial covenantsmedium
The company must meet a total funded debt to EBITDA ratio and a minimum fixed charge coverage ratio; failure could require forbearance or alternative financing 1.
- Customer and supplier concentrationmedium
Losing a significant customer or a disruption from a sole-source supplier could affect deliveries and business relationships 1.
- Value of acquired intangible assetslow
Intangible assets from the Kobelt acquisition are significant, and the company may never fully realise their total value 1.
Investment thesis
What would need to be true (bull case)
- If military and naval demand keeps growing, the current backlog and pipeline could support sustained sales growth, according to the quarterly release 2.
- Free cash flow improved in the fourth quarter, which could allow debt reduction and growth investment if the trend continues 2.
- If the broader range from Kobelt and Veth reaches higher-margin segments, the company could recover the gross margin lost in fiscal 2026 12.
What would break the thesis
- Gross margin fell in fiscal 2026 and management acknowledges that improvement could be slow, which could limit profit growth 2.
- Reported net profit was influenced by a tax valuation allowance release, and without this effect the result could be much more modest 2.
- Exposure to tariffs, commodity costs and cyclical markets could reduce results if oil or construction demand weakens 1.
What to watch
- Trend in gross margin and the effect of tariffs on product mixQ1 2027
- Development of the six-month backlog and its conversion into salesQ1 2027
- Fiscal 2027 guidance and pace of investment from the military pipeline2027
- Next 10-K on covenant compliance and debt developmentnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Sept 2026; since then the company filed 8-K (04 Nov 2026 · results), 10-Q (04 Nov 2026).
The business
Twin Disc, Incorporated, incorporated in Wisconsin in 1918, designs, manufactures and sells power transmission equipment for pleasure craft and heavy off-highway machinery 1. Products include 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 1. These products accounted for more than 90% of revenues in each of the last three fiscal years 1. In February 2025 the company acquired 100% of Kobelt Manufacturing, based in Surrey, British Columbia, a maker of controls, propulsion, steering and braking systems 1.
Segments
Market context
The company sells mainly to customers in pleasure craft, commercial and military marine, energy and natural resources, government and industrial markets 1. Most revenue is generated in Europe, followed by North America, Asia Pacific and Latin America 2. Demand can be affected by overall economic strength, government spending, fuel prices and interest rates 1.
Trends
- Military demandtailwind
Growing military demand for both marine and industrial products contributed to sales, and the company describes defense as a key structural growth driver, citing customers such as the US Navy and NATO 12. If this demand persists, it could support medium-term growth.
- Tariffs and commodity costsheadwind
Tariffs and trade policy changes have created uncertainty and raised the risk of higher costs for steel, other materials and energy 1. In fiscal 2026 tariffs invoiced with no margin diluted the gross margin, which could continue if the pressure does not ease 1.
- Oil and gas marketmixed
Products used in oil exploration and drilling depend on oil prices and global demand; fiscal 2026 showed recovery in e-frac demand but softer demand in China 12. The cyclical nature of this market remains a factor.
- Currency exposuremixed
A significant part of sales and costs is in euros and other currencies, so profitability depends on the dollar against the euro 1. Currency translation added about $17.2 million to fiscal 2026 sales, showing that currency moves can help or hurt results 1.
Competitive position
The company's products face direct competition, including from divisions of other larger independent manufacturers, and it competes with parts manufacturing divisions of some major customers 1. The main competitive factors are design, technology, performance, price, service and availability 1.
The company also depends on a concentrated customer base: its top ten customers accounted for about 36% of consolidated net sales in fiscal 2026, though no single customer reached 10% 1. Losing a key customer could affect sales and profitability 1.
- Divisions of larger independent industrial manufacturers
Direct competition named in the 10-K without a specific issuer identified
- Parts manufacturing divisions of major customers
Customers can compete through their own parts operations, as stated in the filing
- Local manufacturers in operating countries
Risk that local policies favour domestic producers is named among international risk factors
- Marine propulsion and distribution players
Competition in marine and propulsion segments, with no specific issuer identified in the sources
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Qualcomm’s stock falls as twin forces pressure salesMarketWatch — Top Stories · 04 Nov 2026 · EN
- No More 747s: Even Boeing Admits That The "Future Of Freighters" Is Twin-Engine JetsSimple Flying · 02 Nov 2026 · EN
- Twin study links artistic, but not scientific, creativity to poorer mental healthMedical Xpress · 31 Oct 2026 · EN
- Ghanaian twin brothers and US woman plead guilty to $9m romance scamBBC World News · 27 Oct 2026 · EN
- Jesy Nelson has reportedly withdrawn from Im a Celebrity ... Get Me Out of Here ! to care for her twin daughters - 27 - Oct - 2026Surge — GDELT DOC · 27 Oct 2026 · RO
- Chest 'digital twin' predicts light paths to help plan personalized pneumonia treatmentMedical Xpress · 26 Oct 2026 · EN
- 8 Of The World's Largest Widebody Fleets: Who Flies The Most Twin-Aisles?Simple Flying · 24 Oct 2026 · EN
- Protests In France Cool After Curfews Imposed | Twin Cities News TalkSurge — GDELT DOC · 20 Oct 2026 · RO
- Îl mai știi pe agentul Dale Cooper din "Twin Peaks"? Kyle MacLachlan are 67 de ani, un fiu de 18 ani și o femeie frumoasă și deșteaptă alături: "Soția mea, viața mea" - Libertatea pentru femeiSurge — Google News · 19 Oct 2026 · RO
- The 6 Rarest Twin-Engine Aircraft Variants Flown By US Carriers In 2026Simple Flying · 17 Oct 2026 · EN
- How Do You Fly A Twin Otter From Canada To Antarctica? Follow The British Antarctic Survey's JourneySimple Flying · 16 Oct 2026 · EN
- From Cairo to Tokyo: Can you guess these twin cities?Al Jazeera English · 14 Oct 2026 · EN
- Un accident fatal, doi frați gemeni și o minciună periculoasă. Noul thriller Netflix „The Twin” are o dată de lansare - Capital.roCapital.ro · 12 Oct 2026 · RO
- Digital twin to assist in operating Rooppur NPP in BangladeshTASS (RU, EN) · 12 Oct 2026 · EN
- Strengthening Care for Twin Pregnancies in the Context of Assisted Reproduction: Emphasizing the Effects of Environmental Exposures on Birth OutcomesEnvironmental Science & Technology · 10 Oct 2026 · EN
- Putin delivers statements on Caspian Sea’s digital twin, ecosystem protectionTASS (RU, EN) · 09 Oct 2026 · EN
- Twin study suggests screen time's link to mental health may be overstatedMedical Xpress · 08 Oct 2026 · EN
- Recreational screen use and internalizing problems from preadolescence to young adulthood in a longitudinal twin cohort with co-twin comparisonNature Human Behaviour · 08 Oct 2026 · EN
- Commentary: UMNO’s dark September - twin storms threaten party’s 'blue wave'CNA (Channel NewsAsia) · 07 Oct 2026 · EN
- Russia Holds Major Nuclear Drill, Simulates Twin-Reactor Accident at Beloyarsk PlantKyiv Post · 06 Oct 2026 · EN
SEC filings
- Current report04 Nov 2026Regulation FD disclosure · Financial statements and exhibits
- Current report04 Nov 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report04 Nov 2026
- Current report02 Nov 2026Shareholder vote · Other events · Financial statements and exhibits
- Current report29 Oct 2026Amendments to articles or bylaws · Other events · Financial statements and exhibits
- Proxy statement14 Sept 2026
- Annual report04 Sept 2026
- Current report25 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Current report20 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Current report20 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Twin Disc, Inc. · 04 Sept 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Twin Disc, Inc. · 20 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.