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Twin Disc Incorporated (TWIN)

Industrials Specialty Industrial Machinery
22.10 $
Closing price · As of: 20. Jul 2026
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Read the Full Deep Dive
Twin Disc Stock: Record Revenue at a Marine-Gear Maker Since 1918 — and a Multimillion-Dollar Profit That Comes Almost Entirely From the Tax Line

Twin Disc has built marine and heavy-duty industrial transmissions since 1918 and shows up in our in-house "Joshua" growth scanner (data as of July 17, 2026), while the stock is up roughly 164 percent in a year. We read the annual report (10-K) for fiscal year 2025 and the three quarterly reports (10-Q) of fiscal year 2026: record revenue of $340.7 million, yet a net loss at the bottom line — and then nine-month net income of $25.2 million, of which $19.0 million is a one-time tax benefit. Not investment advice — just the question of what a profit is worth when the factory did not earn it, the accounting did.

Appears in These Scanners

This stock currently matches 16 of our scanner strategies — each hit links to the scanner.

Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners

Basics

Market Cap
0.3Mrd. $
Shares Outstanding
14Mio.
Float
71.9%
Beta
0.6

Performance

Perf. 1M
36.60%
Perf. 3M
55.30%
Perf. 6M
38.10%
YTD Performance (%)
33.50%
52-Week-High Distance
-1.2%

Valuation

P/E
13.0
Forward P/E
31.4
PEG
3.2
P/B
1.8
P/S
0.9
EV/EBITDA
14.2
Price/FCF
478.6

Profitability

Gross Margin
28.2%
EBIT Margin
Net Margin
7.3%
Return on Equity
16.1%
Return on Assets
2.4%

Balance Sheet & Safety

Equity Ratio
Debt/Equity
0.4
Altman Z
7.90
very solid
Piotroski
8 von 9

Growth

Sales Growth Last Quarter
19.00%
EPS Growth Last Quarter
Sales Growth (Year)
15.45%
Forward Sales Growth
8.39%
Forward EPS Growth

Dividend

Dividend Yield
0.70%
Dividend Per Share (TTM)
0.16$
Payout Ratio
8.7%
Years Without a Cut
2Years
Increase Streak
0Years

Quality & Screener

Stage
2
Top 10%
RS Rating
91
EPS Rating
98
very solid
Piotroski
8 von 9
Fundamental Rating
B (+48 von 100)
Altman Z
7.90

AI Rating

Neutral

Geprüft am 17.07.2026 gegen die Geschäftsberichte (10-K) für die Geschäftsjahre 2025 (eingereicht 05.09.2025) und 2024 (06.09.2024) sowie die vier jüngsten Quartalsberichte (10-Q, zum 27.03.2026, 26.12.2025, 26.09.2025 und 28.03.2025). In sämtlichen ausgewerteten SEC-Filings von Twin Disc findet sich „keine einzige“ Erwähnung von „artificial intelligence“, „machine learning“, „generative“ oder verwandten Begriffen — weder eine KI-Umsatzquelle noch dokumentierter operativer KI-Einsatz noch ein konkretes KI-Geschäftsrisiko für das eigene Modell. Twin Disc baut mechanische Antriebstechnik (Schiffs- und Off-Highway-Getriebe, Propeller, Kupplungen, Steuerungen); die Investment-Story dreht sich um Zukäufe (Katsa, Kobelt), die Auflösung einer US-Steuer-Wertberichtigung und Zyklik, nicht um KI. Nach dem Kriterienkatalog bleibt es damit klar bei „neutral“ (dokumentierter Negativ-Befund: geprüfte Filings gelistet, keine belastbaren KI-Treffer).

View the full file — quotes, sources, reviewed filings

Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.

Sales Per Quarter ($M)
2024: Q4 · 89.9 Mio. $ Q4 2025: Q1 · 81.2 Mio. $ Q1 2025: Q2 · 96.7 Mio. $ Q2 2025: Q3 · 80.0 Mio. $ Q3 2025: Q4 · 90.2 Mio. $ Q4 2026: Q1 · 96.7 Mio. $ Q1
Earnings Per Share Per Quarter ($)
2024: Q4 · 0.06 $ Q4 2025: Q1 · -0.10 $ Q1 2025: Q2 · 0.10 $ Q2 2025: Q3 · -0.04 $ Q3 2025: Q4 · 1.55 $ Q4 2026: Q1 · 0.23 $ Q1
Net Margin Per Quarter (%)
2024: Q4 · 1.0 % Q4 2025: Q1 · -1.8 % Q1 2025: Q2 · 1.5 % Q2 2025: Q3 · -0.6 % Q3 2025: Q4 · 24.8 % Q4 2026: Q1 · 3.4 % Q1
Operating Cash Flow Per Quarter ($M)
2024: Q4 · 8.7 Mio. $ Q4 2025: Q1 · 3.2 Mio. $ Q1 2025: Q2 · 16.4 Mio. $ Q2 2025: Q3 · -7.5 Mio. $ Q3 2025: Q4 · 4.6 Mio. $ Q4 2026: Q1 · 5.3 Mio. $ Q1
Free Cash Flow Per Quarter ($M)
2024: Q4 · 5.9 Mio. $ Q4 2025: Q1 · 0.9 Mio. $ Q1 2025: Q2 · 8.7 Mio. $ Q2 2025: Q3 · -11.0 Mio. $ Q3 2025: Q4 · 1.2 Mio. $ Q4 2026: Q1 · 1.8 Mio. $ Q1
Sales Growth vs. Year-Ago Quarter (%)
2024: Q4 · 23.2 % Q4 2025: Q1 · 9.5 % Q1 2025: Q2 · 14.5 % Q2 2025: Q3 · 9.7 % Q3 2025: Q4 · 0.3 % Q4 2026: Q1 · 19.0 % Q1
EPS Growth vs. Year-Ago Quarter (%)
2024: Q4 · -1.2 % Q4 2025: Q1 · -138.5 % Q1 2025: Q2 · -80.8 % Q2 2025: Q4 · 2,334.3 % Q4
Price Change in Quarter (%)
2024: Q4 · -5.6 % Q4 2025: Q1 · -35.3 % Q1 2025: Q2 · 17.3 % Q2 2025: Q3 · 58.6 % Q3 2025: Q4 · 20.0 % Q4 2026: Q1 · -9.4 % Q1

Quarterly Figures

Quarterly Figures
Quarter EPS (Earnings Per Share) EPS YoY (%) Sales ($M) Sales YoY (%) Net Margin (%) OCF ($M) FCF ($M)
2024: Q4 0.06 -1.20 90 23.20 1.00 9 6
2025: Q1 -0.10 -138.50 81 9.50 -1.80 3 1
2025: Q2 0.10 -80.80 97 14.50 1.50 16 9
2025: Q3 -0.04 80 9.70 -0.60 -8 -11
2025: Q4 1.55 2,334.30 90 0.30 24.80 5 1
2026: Q1 0.23 97 19.00 3.40 5 2
What Do These Terms Mean?
EPS (Earnings Per Share):
Quarterly profit divided by the total share count — how much of the profit works out to a single share.
YoY (Year over Year):
Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
Sales:
All revenue for the quarter, before any costs are deducted — the top line of the income statement.
Net Margin:
What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
OCF (Operating Cash Flow):
The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
FCF (Free Cash Flow):
Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.

Assessment: Opportunities & Risks

Revenue & order intake

Five fiscal years of revenue growth without a setback to a record $340.7 million (FY 2025, +15.5 percent), gross profit up 11.3 percent to $92.7 million, a six-month backlog of $150.5 million (+13 percent as of 06/30/2025); the FY 2026 quarters keep rising ($80.0 → $90.2 → $96.7 million).

Earnings quality & the tax line

Of $25.2 million of nine-month profit (FY 2026), $19.0 million is a one-time, non-cash tax benefit (release of the U.S. valuation allowance on 12/26/2025); pretax income was only $6.7 million. In record year 2025, despite peak revenue, the bottom line was a net loss at a 190.4 percent tax rate (10-Q as of 03/27/2026, Note I; 10-K FY 2025).

U.S. business & growth quality

The domestic business lost $7.3 million pretax over nine months (FY 2026) while abroad earned $14.0 million; the revenue record is bought — without Katsa and Kobelt, revenue shrank in 2025 (manufacturing −2.5 percent, distribution −8.6 percent). The entire profit comes from abroad (10-Q as of 03/27/2026; 10-K FY 2025, Item 7).

Balance sheet & financing

$164.0 million of equity and modest debt (~$31.4 million) stand against heavy inventory ($152.0 million) and thin cash ($16.1 million); operating cash flow fell to $24.0 million, and the new credit line ($30M + $60M, 06/30/2026) is secured by nearly all assets and 65 percent of foreign subsidiaries.

Valuation & technicals

A Stan Weinstein stage-2 uptrend, plus 164 percent over twelve months and hits in 16 trend filters meet a trailing P/E around 13 that includes the tax benefit — adjusted it sits north of 50; P/S of 0.9 is fair-to-sporty at a barely 3 percent operating margin (data as of July 17, 2026).

Bottom Line

Twin Disc is a 108-year-old, solid gear maker with record revenue, a full order book and a foreign business that genuinely earns — but earnings quality lags revenue quality. The nine-month profit of $25.2 million (FY 2026) is three-quarters a one-time tax benefit, pretax income was only $6.7 million, the U.S. business loses money, and the revenue record is bought. The low P/E of 13 is therefore optical — adjusted it sits north of 50. Whoever invests here is buying the bet that the record revenue turns into a record profit. Not investment advice.

Worth Noting:
  • TWIN reached our research list via the "Joshua" growth scanner and a confluence of 16 trend filters in our in-house stock scanner (data as of July 17, 2026); the striking earnings surprise of plus 1,450 percent is an effect of the one-time tax benefit, not of the operating business.
  • Scanner metrics (P/E, P/S, ROE, earnings surprise) are computed from trailing twelve-month figures; the release of the U.S. valuation allowance (Q2 FY 2026) is baked in and distorts the P/E downward — an adjusted P/E sits north of 50.
  • Price and valuation figures are dated to July 17, 2026 (market value roughly $330 to $345 million); analyses are evergreen, daily prices are not a buy argument. Twin Disc's fiscal year ends June 30 — all quarterly references carry that fiscal-year offset.

About the Company

Twin Disc, Incorporated befasst sich mit dem Entwurf, der Herstellung und dem Verkauf von Kraftübertragungsanlagen für Marine- und schwere Off-Highway-Anwendungen in den USA, den Niederlanden, China, Australien, Finnland, Italien und international. Das Unternehmen ist in zwei Segmenten tätig: Manufacturing und Distribution.

Employees980
HeadquartersMilwaukee, WI
Websitetwindisc.com
IPO Date31. Dec 1987
Next Earnings20. Aug 2026

Management

Management
Name Title Birth Year
John H. Batten President, CEO & Director 1965
Jeffrey S. Knutson CPA VP of Finance, CFO, Treasurer & Secretary 1965
Tim Batten Executive Vice President of Sales & Operations
Robin Schilz Chief Information Officer
Brian W. Plemel Chief Human Resources Officer
Mike Kienast Corporate Controller
Greg Mueller Director of Strategic Marketing
Mark Sandercock Vice President of Supply Chain

Executives per the latest required filings; titles kept in their original language. Source: fundamental data.

Chart

Interactive price chart (TradingView).

Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)

Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.

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