Twin Disc Q3 Sales Up 19% to $96.7M, Backlog Reaches $179.5M
Q3 sales rose 19.0% to $96.7 million, gross margin expanded 134 basis points to 28.1%, and net income reached $3.3 million with EBITDA up 135.1% to $9.4 million. Six-month backlog increased to $179.5 million, led by defense programs and robust marine propulsion demand.
1. Strong Q3 Financial Performance
Twin Disc’s fiscal third quarter sales increased 19.0% year-over-year to $96.7 million, while gross margin expanded 134 basis points to 28.1%. Net income attributable to Twin Disc was $3.3 million, EBITDA rose 135.1% to $9.4 million, and operating cash flow reached $5.3 million with free cash flow of $1.8 million.
2. Product Group and Regional Growth
Sales growth was led by Marine and Propulsion Systems at $59.1 million (20.0% increase), Land-Based Transmissions at $21.7 million (22.2% increase), Industrial at $11.2 million (15.2% increase), and Other at $4.6 million (4.1% increase). Double-digit growth in the North American region shifted sales mix, while Middle East and Asia Pacific contributions declined proportionally.
3. Backlog and Defense Expansion
Twin Disc’s six-month backlog grew to approximately $179.5 million from $175.3 million, driven by healthy demand in defense-related programs and marine propulsion products. Inventory as a percentage of backlog fell from 93.1% to 89.3%, reflecting effective working capital management.
4. Operational Initiatives and Outlook
The company is expanding its Finland facility to support rising defense orders, relocating production to mitigate tariff exposure and optimize its manufacturing footprint. Management highlighted integration of the Kobelt acquisition, disciplined backlog conversion and working capital improvements as keys to long-term growth.