Twin Disc, Incorporated reported a net sales increase of 9.7% for the first quarter of fiscal 2026, reaching $80.0 million compared to $72.9 million in the same period last year. This growth was bolstered by the acquisition of Kobelt, which contributed $3.1 million in additional revenue. The company also experienced a 14.6% rise in global sales of marine and propulsion products, primarily driven by demand for its Veth propulsion systems. However, the distribution segment saw a decline in sales of 26.4%, attributed to reduced demand for commercial marine products in Asia and North America.
The company's gross profit margin improved to 28.7%, up from 26.5% in the prior year, reflecting increased sales volume and successful margin enhancement initiatives. Marketing, engineering, and administrative expenses rose by 6.2% to $20.7 million, representing 25.9% of net sales, a decrease from 26.7% in the previous year. The company reported an operating income of $2.2 million, a significant turnaround from a loss of $0.2 million in the same quarter last year.
In terms of operational metrics, Twin Disc's inventory increased by 4.2% to $158.3 million, while trade receivables rose by 8.5% to $63.9 million. The company’s backlog of orders reached approximately $163.3 million, up from $150.5 million at the end of the previous fiscal year. The North American market saw a notable revenue increase of 48.9%, largely due to the Kobelt acquisition and expanded Veth product sales. Conversely, the Asia Pacific region experienced a decline of 14.5%, primarily due to weaker demand in the commercial marine sector.
Looking ahead, Twin Disc's management remains optimistic about future growth, driven by ongoing demand for its products and the integration of recent acquisitions. The company anticipates continued investment in capital assets, with a projected expenditure of $15 to $17 million for fiscal 2026, aimed at modernizing manufacturing processes and enhancing operational efficiencies. Despite the challenges in certain markets, the company believes its strategic initiatives will support long-term growth and profitability.
About TWIN DISC INC
Twin Disc, Incorporated designs, manufactures, and sells marine and heavy-duty off-highway power transmission equipment. Its products include marine transmissions, azimuth drives, surface drives, propellers, control systems, and industrial clutches, serving markets in pleasure craft, commercial, military, energy, and natural resources sectors worldwide. The company emphasizes innovation, global manufacturing, and distribution, with core competitive advantages in performance, design, and service.
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