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olivLaw · US equity research

Twin Disc, Inc. TWIN

General Industrial Machinery & Equipment · SIC 3560 · Vertical: General Industrial Machinery & Equipment (SIC 3560)

25.50USD+1.84% · 1 dayClose 04 Nov 2026

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The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).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.

Market cap
370.7 m USD
shares as of 27 Oct 2026
P/E (TTM)
11.9
Diluted EPS TTM 2.15 · TTM to 25 Sept 2026
E/P (TTM)
8.43%
TTM to 25 Sept 2026
Dividend yield
0.67%
DPS 12m 0.17
Beta (2y)
1.42
Volatility (1y) 52%
52-week range
14.4528.72

Price history

Loading chart…

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

CompanyS&P 500vs S&P 500Vertical 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—
Max drawdown (1y)
−23.4%
16 Jan 2026 → 19 Mar 2026
Max drawdown (5y)
−65.2%
24 Mar 2022 → 21 Apr 2025
Compound annual growth (5y)
+14.5%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2027 · 25 Sept 2026

Revenue
88.7 m USD
+10.9% YoY
Net income
3.4 m USD
unavailable YoY
Diluted EPS
0.24
unavailable YoY
net / operating
3.9% / 5.2%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27
Revenue89.9 m81.2 m96.7 m80.0 m90.2 m96.7 m114.4 m88.7 m
Cost of revenue68.2 m59.5 m65.5 m57.1 m67.8 m69.6 m84.3 m63.3 m
Gross profit21.7 m21.7 m31.2 m22.9 m22.4 m27.1 m30.1 m25.4 m
SG&A18.9 m19.8 m24.3 m20.7 m20.7 m21.3 m21.8 m20.8 m
Operating income2.8 m1.9 m6.5 m2.2 m2.1 m5.8 m7.8 m4.6 m
Depreciation & amortisation3.3 m3.7 m4.7 m3.5 m3.3 m3.4 m3.5 m3.4 m
Interest expense495.0 k660.0 k855.0 k800.0 k772.0 k790.0 k715.0 k428.0 k
Pre-tax income2.7 m-280.0 k2.7 m571.0 k698.0 k5.4 m6.9 m3.9 m
Income tax1.6 m1.1 m47.0 k983.0 k14.3 m-1.8 m2.5 m415.0 k
Net income919.0 k-1.5 m2.6 m-518.0 k14.9 m3.3 m9.4 m3.4 m
Diluted EPS0.07-0.110.19-0.041.040.230.640.24
Operating cash flow8.7 m ≈3.2 m ≈16.4 m-7.5 m4.6 m ≈5.3 m ≈20.6 m11.5 m
Capex2.8 m ≈2.3 m ≈7.7 m3.4 m3.3 m ≈3.6 m ≈3.4 m5.8 m
Dividends paid566.0 k ≈566.0 k ≈582.0 k566.0 k571.0 k ≈580.0 k ≈568.0 k742.0 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 year20192020202120222023202420252026
Revenue302.7 m246.8 m218.6 m242.9 m277.0 m295.1 m340.7 m381.3 m
Revenue YoY+25.7%−18.4%−11.4%+11.1%+14.0%+6.6%+15.5%+11.9%
Net income10.7 m-39.8 m-29.7 m10.5 m10.4 m11.0 m-697.0 k27.1 m
Net income YoY+12.0%−473.1%unavailableunavailable−0.8%+5.9%−106.3%unavailable
Diluted EPS0.83-3.03-2.240.780.750.79-0.051.86
Diluted EPS YoY+1.2%−465.1%unavailableunavailable−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 m2.1 m-13.0 m15.0 m25.0 m8.8 m9.2 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

Revenue
2024
295.1 m
2025
340.7 m
2026
381.3 m

SEC (XBRL)· 04 Sept 2026verified

Cost of revenue
2024
211.8 m
2025
246.8 m
2026
278.7 m

SEC (XBRL)· 04 Sept 2026verified

Gross profit
2024
83.3 m
2025
93.9 m
2026
102.6 m

SEC (XBRL)· 04 Sept 2026verified

Research & development
2024
2.6 m
2025
2.7 m
2026
2.9 m

SEC (XBRL)· 04 Sept 2026verified

SG&A
2024
71.6 m
2025
82.4 m
2026
84.5 m

SEC (XBRL)· 04 Sept 2026verified

Operating income
2024
11.5 m
2025
11.1 m
2026
18.0 m

SEC (XBRL)· 04 Sept 2026verified

Depreciation & amortisation
2024
10.0 m
2025
14.9 m
2026
13.7 m

SEC (XBRL)· 04 Sept 2026verified

EBITDA
2024
21.5 m ≈
2025
26.0 m ≈
2026
31.7 m ≈

SEC (XBRL)· 04 Sept 2026derived

Interest expense
2024
1.4 m
2025
2.6 m
2026
3.1 m

SEC (XBRL)· 04 Sept 2026verified

Pre-tax income
2024
15.4 m
2025
3.0 m
2026
13.6 m

SEC (XBRL)· 04 Sept 2026verified

Income tax
2024
4.1 m
2025
3.4 m
2026
-14.0 m

SEC (XBRL)· 04 Sept 2026verified

Net income
2024
11.0 m
2025
-697.0 k
2026
27.1 m

SEC (XBRL)· 04 Sept 2026verified

Diluted EPS
2024
0.79
2025
-0.05
2026
1.86

SEC (XBRL)· 04 Sept 2026verified

Weighted average diluted shares
2024
13.9 m
2025
13.9 m
2026
14.6 m

SEC (XBRL)· 04 Sept 2026verified

Dividend per share
2024
0.12
2025
0.16
2026
0.16

SEC (XBRL)· 04 Sept 2026verified

Balance sheet · USD

Receivables
2024
52.2 m
2025
58.9 m
2026
66.8 m

SEC (XBRL)· 04 Sept 2026verified

Inventories
2024
130.5 m
2025
184.1 m
2026
178.0 m

SEC (XBRL)· 04 Sept 2026verified

Current assets
2024
219.6 m
2025
279.0 m
2026
278.2 m

SEC (XBRL)· 04 Sept 2026verified

Property, plant & equipment, net
2024
58.1 m
2025
69.6 m
2026
68.1 m

SEC (XBRL)· 04 Sept 2026verified

Goodwill
2024
0
2025
2.9 m
2026
2.8 m

SEC (XBRL)· 04 Sept 2026verified

Intangibles (excl. goodwill)
2024
12.7 m
2025
13.4 m
2026
14.1 m

SEC (XBRL)· 04 Sept 2026verified

Total assets
2024
312.1 m
2025
387.7 m
2026
401.2 m

SEC (XBRL)· 04 Sept 2026verified

Accounts payable
2024
32.6 m
2025
38.7 m
2026
30.8 m

SEC (XBRL)· 04 Sept 2026verified

Short-term debt
2024
2.0 m
2025
3.0 m
2026
1.5 m

SEC (XBRL)· 04 Sept 2026verified

Long-term debt
2024
23.8 m
2025
28.4 m
2026
28.3 m

SEC (XBRL)· 04 Sept 2026verified

Current liabilities
2024
99.5 m
2025
125.8 m
2026
118.6 m

SEC (XBRL)· 04 Sept 2026verified

Total liabilities
2024
157.0 m
2025
191.2 m
2026
181.3 m

SEC (XBRL)· 04 Sept 2026verified

Equity
2024
186.0 m
2025
196.5 m
2026
219.9 m

SEC (XBRL)· 04 Sept 2026verified

Cash flow · USD

Operating cash flow
2024
33.7 m
2025
24.0 m
2026
22.9 m

SEC (XBRL)· 04 Sept 2026verified

Capex
2024
8.7 m
2025
15.2 m
2026
13.7 m

SEC (XBRL)· 04 Sept 2026verified

Free cash flow
2024
25.0 m ≈
2025
8.8 m ≈
2026
9.2 m ≈

SEC (XBRL)· 04 Sept 2026derived

Investing cash flow
2024
-32.1 m
2025
-32.9 m
2026
-14.1 m

SEC (XBRL)· 04 Sept 2026verified

Financing cash flow
2024
2.8 m
2025
-965.0 k
2026
-6.6 m

SEC (XBRL)· 04 Sept 2026verified

Dividends paid
2024
1.7 m
2025
2.3 m
2026
2.3 m

SEC (XBRL)· 04 Sept 2026verified

Computed indicators

Growth

Revenue growth (YoY)
11.9%
computed by olivLawFY 2026
Revenue CAGR 3Y
11.2%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
11.8%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
62.0%
computed by olivLawFY 2026
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
37.7%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
35.4%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
4.1%
computed by olivLawFY 2026

Profitability

Gross margin
26.9%
computed by olivLawTTM to 25 Sept 2026
EBITDA margin
8.7%
computed by olivLawTTM to 25 Sept 2026
EBIT margin
5.2%
computed by olivLawTTM to 25 Sept 2026
Net margin
8.0%
computed by olivLawTTM to 25 Sept 2026
FCF margin
6.6%
computed by olivLawTTM to 25 Sept 2026

Returns

ROE
16.3%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
ROA
8.1%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
ROIC
unavailable
input data missing
ROCE
7.0%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Payout ratio (EPS)
7.9%
computed by olivLawTTM to 25 Sept 2026
Payout ratio (FCF)
9.5%
computed by olivLawTTM to 25 Sept 2026

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.2x
computed by olivLawbalance sheet at 25 Sept 2026
Interest coverage
7.5x
computed by olivLawTTM to 25 Sept 2026

Liquidity

Current ratio
2.5x
computed by olivLawbalance sheet at 25 Sept 2026
Quick ratio
0.9x
computed by olivLawbalance sheet at 25 Sept 2026
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
42.0 m USD
computed by olivLawTTM to 25 Sept 2026
Capital expenditure
16.1 m USD
computed by olivLawTTM to 25 Sept 2026
Free cash flow
25.9 m USD
computed by olivLawTTM to 25 Sept 2026
FCF conversion
83.4%
computed by olivLawTTM to 25 Sept 2026
Cash conversion
123.5%
computed by olivLawTTM to 25 Sept 2026

Efficiency

Days sales outstanding
56 days
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Days inventory outstanding
237 days
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Days payables outstanding
43 days
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Cash conversion cycle
249 days
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026

Market and valuation

Market capitalisation
370.7 m USD
computed by olivLawbalance sheet at 25 Sept 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
11.9x
computed by olivLawTTM to 25 Sept 2026
P/E (TTM)
11.9x
computed by olivLawTTM to 25 Sept 2026
Earnings yield
8.4%
computed by olivLawTTM to 25 Sept 2026
P/B
1.7x
computed by olivLawbalance sheet at 25 Sept 2026
P/S
1.0x
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
14.3x
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
FCF yield
7.0%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Dividend yield
0.7%
computed by olivLawTTM to 25 Sept 2026
Shareholder yield (distributions)
0.7%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026

Risk

Altman Z
3.46
computed by olivLawbalance sheet at 25 Sept 2026

Valuation

olivLaw classification

Neutral profile

Score: 78 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

25.50 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 370.7 m USD

Key indicators

Market capitalisation
370.7 m USD
computed by olivLawbalance sheet at 25 Sept 2026
P/E (TTM)
11.9x
computed by olivLawTTM to 25 Sept 2026
P/B
1.7x
computed by olivLawbalance sheet at 25 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
16.3%
computed by olivLawTTM to 25 Sept 2026 · balance sheet at 25 Sept 2026
Net margin
8.0%
computed by olivLawTTM to 25 Sept 2026
Revenue growth (YoY)
11.9%
computed by olivLawFY 2026
Dividend yield
0.7%
computed by olivLawTTM to 25 Sept 2026

Coverage and freshness

34/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 25 Sept 2026
Latest balance sheet date: 25 Sept 2026
Share count (cover of the latest filing), as of: 27 Oct 2026
Source: SEC (XBRL)published 04 Nov 2026
verified 2625derived 216

Score by group

  • Balance sheet95
  • Growth97
  • Quality51
  • Returns46
  • Valuation87

Estimated value range

Low
52.26
USD per share
Mid
56.40
USD per share
High
57.43
USD per share
Price: 25.50 USD
The price is below the range
Potential to the central value: 121.2% (value / price − 1)
Margin of safety: 54.8% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

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 – 26.7x
    EFXT, 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
Multiple comparisons use the SIC vertical: General Industrial Machinery & Equipment (SIC 3560)

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

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality8.0%25 (vs peers)9%
FCF conversion · Quality83.4%76 (on a fixed band)9%
Revenue CAGR 3Y · Growth11.2%94 (on a fixed band)12%
EPS CAGR 3Y · Growth35.4%100 (on a fixed band)12%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet7.5x92 (on a fixed band)9%
Current ratio · Balance sheet2.5x100 (on a fixed band)6%
P/E (TTM) · Valuation11.9x88 (vs peers)15%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation7.0%87 (on a fixed band)12%
Shareholder yield (distributions) · Returns0.7%9 (on a fixed band)9%
Payout ratio (FCF) · Returns9.5%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

P/E
11.9x
vertical median 26.2x
below median (−54.8%)
EV/EBITDA
—
vertical median 14.5x
P/S
1.0x
vertical median 2.8x
below median (−66.5%)
P/B
1.7x
vertical median 3.7x
below median (−53.9%)
ROE
16.3%
vertical median 14.7%
above median (+10.9%)
Net margin
8.0%
vertical median 11.3%
below median (−29.9%)
EBIT margin
5.2%
vertical median 15.6%
below median (−66.6%)
Revenue YoY
11.9%
vertical median 7.3%
above median (+63.6%)
Net debt/EBITDA
—
vertical median 0.9x
Dividend yield
0.7%
vertical median 0.8%
below median (−19.5%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
ITWIllinois Tool Works Inc83.4 bn26.1101.7%19.4%+0.9%+18% / +21%
IRIngersoll Rand Inc.32.3 bn23.713.4%17.2%+5.7%+5% / +18%
ZBRAZebra Technologies Corporation15.7 bn26.816.5%9.8%+8.3%+32% / +40%
ZWSZurn Elkay Water Solutions Corporation7.5 bn26.317.7%15.9%+8.3%−5% / +53%
GTESGates Industrial Corporation Ltd.6.1 bn17.010.6%10.4%+1.0%+7% / +100%
EFXTEnerflex Ltd2.5 bn39.36.0%2.5%+6.5%+46% / +377%
GHMGraham Corporation816.0 m67.17.5%4.5%+16.9%+21% / +275%
TWINTwin Disc, Incorporated370.7 m11.916.3%8.0%+11.9%+59% / +114%
GTECGreenland Technologies Holding Corporation10.7 m0.916.0%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.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
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%
What moves the 3-year price the most
  • 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

Land-based transmissions

Land-based transmission sales increased 11.9% in fiscal 2026 on stronger global demand for energy-related products, and rose 26.2% in the fourth quarter 12. The company said oil and gas activity is improving as it prioritises higher-margin e-frac opportunities 2.

Industrial

Industrial sales grew 11.0% in fiscal 2026 on stronger North American construction and recycling demand, and were roughly flat in the fourth quarter 12. The segment also includes the Kobelt product line for the full fiscal year 1.

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

News & filings

In the press

SEC filings

  • Current report04 Nov 2026
    Regulation FD disclosure · Financial statements and exhibits
  • Current report04 Nov 2026
    Results of operations · Regulation FD disclosure · Financial statements and exhibits
  • Quarterly report04 Nov 2026
  • Current report02 Nov 2026
    Shareholder vote · Other events · Financial statements and exhibits
  • Current report29 Oct 2026
    Amendments to articles or bylaws · Other events · Financial statements and exhibits
  • Proxy statement14 Sept 2026
  • Annual report04 Sept 2026
  • Current report25 Aug 2026
    Regulation FD disclosure · Financial statements and exhibits
  • Current report20 Aug 2026
    Regulation FD disclosure · Financial statements and exhibits
  • Current report20 Aug 2026
    Results of operations · Regulation FD disclosure · Financial statements and exhibits

Sources

  1. [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Twin Disc, Inc. · 04 Sept 2026
  2. [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.