Twin Disc Reports $22.5 Million Net Income and $90.2 Million Revenue for December Quarter

Twin Disc, Incorporated reported a net income of $22.5 million for the quarter ending December 26, 2025, a significant increase from the $1.1 million recorded in the same quarter of the previous year. This translates to a basic earnings per share of $1.58, compared to $0.07 in the prior year. The company’s total revenue for the quarter was $90.2 million, reflecting a slight increase of 0.3% from $89.9 million in the previous year. The growth was primarily driven by the acquisition of Kobelt, which contributed $3.2 million in additional revenue, although this was partially offset by a decline in commercial marine demand and ongoing tariff impacts.

In terms of operational performance, Twin Disc's manufacturing segment saw a 3.3% increase in sales, while the distribution segment experienced a notable decline of 29%. The decrease in distribution sales was attributed to reduced demand in Asia and North America, particularly for commercial marine transmissions. The company’s gross profit margin improved to 24.8%, up from 24.1% in the prior year, aided by better operational execution and successful margin improvement initiatives, despite facing challenges such as a less favorable product mix and tariff-related costs.

Twin Disc's inventory levels rose to $163.2 million, an increase of 7.4% from the previous fiscal year-end, with the largest increases occurring in the U.S. and Netherlands operations. The company reported a backlog of orders amounting to $175.3 million, up from $150.5 million at the end of June 2025, indicating strong market conditions for its Veth product line and increasing global defense spending. The company’s total assets were reported at $384 million, with total equity increasing by 12.6% to $185.2 million.

Strategically, Twin Disc has been active in expanding its capabilities through acquisitions, including the recent purchase of Kobelt, which has been integrated into its operations. The company has also entered into an amended and restated Credit Agreement with Bank of Montreal, which provides for a term loan and revolving credit facility to support its growth initiatives. The company anticipates continued investment in capital assets, with a focus on modernizing manufacturing processes and improving operational efficiencies.

Looking ahead, Twin Disc expects to leverage its acquisitions and improve operational performance to drive future growth. The company remains committed to addressing market challenges, including tariff impacts and fluctuating demand in certain regions, while capitalizing on opportunities in the defense and industrial sectors. The management believes that available cash, credit facilities, and cash generated from operations will be sufficient to meet its financial obligations and support its strategic initiatives in the foreseeable future.