Twin Disc, Incorporated reported a significant increase in financial performance for the third quarter of fiscal 2026, with net sales reaching $96.7 million, a 19% increase from $81.2 million in the same quarter of the previous year. The company attributed this growth to strong demand across various markets, particularly in commercial marine and land-based transmission sectors. The acquisition of Kobelt Manufacturing Co. Ltd. contributed an additional $2.2 million in revenue. Gross profit for the quarter was $27.1 million, representing a gross margin of 28.1%, up from 26.7% in the prior year, driven by improved operational efficiencies and cost initiatives.
In comparison to the previous fiscal period, Twin Disc's total revenue for the first nine months of fiscal 2026 increased by 9.3% to $266.9 million, compared to $244.1 million in the same period last year. The favorable impact of currency translation, particularly from the strengthening euro, added approximately $14.9 million to revenue. The company also noted a significant increase in backlog orders, which grew to $179.5 million, reflecting strong market conditions and increased global defense spending.
Operationally, Twin Disc's manufacturing segment saw a 12.9% increase in sales, bolstered by the Kobelt acquisition, while the distribution segment experienced a decline of 16.4% due to weaker demand in Asia and North America. The company reported an increase in trade receivables to $64.1 million, up 8.7% from the previous fiscal year-end, and inventories rose to $160.3 million, reflecting a 5.5% increase as the company prepared for future demand.
The company’s long-term debt increased to $45.0 million as of March 27, 2026, up from $31.4 million at the end of the previous fiscal year, primarily due to financing the Kobelt acquisition. Twin Disc remains in compliance with its financial covenants under its amended credit agreement with Bank of Montreal, which allows for a revolving credit commitment of up to $50 million. The company expects to continue leveraging its cash flow and credit facilities to support its operational and capital needs moving forward.
Looking ahead, Twin Disc anticipates continued growth driven by strong demand in its core markets and the successful integration of Kobelt. The company is focused on enhancing operational efficiencies and expanding its product offerings to capitalize on market opportunities. Management remains optimistic about achieving its financial targets, supported by a favorable economic environment and strategic investments in its manufacturing capabilities.
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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