| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 96.69 | 7.2% | 19.0% |
| Total Income | 96.69 | 7.2% | 19.0% |
| Expenditure | 90.87 | 3.2% | 14.6% |
| PBT | 5.40 | 671.4% | 2028.6% |
| Net Profit | 3.33 | 85.1% | 326.5% |
| OPM | 6.02% | 3.71pp | 3.62pp |
| NPM | 3.44% | 21.37pp | 5.25pp |
| EPS | 0.23 | 85.4% | 309.1% |
Twin Disc Reports Q3 FY26 Sales Up 19% to $96.7 Million
06 May 2026 · 6 May, 6:01 pm
Summary
Twin Disc reported a 19.0% increase in sales for the third quarter of fiscal year 2026, reaching $96.7 million. This growth was primarily driven by strength in the Company’s Veth products in Marine and Propulsion Systems. Gross margin improved to 28.1%, an increase of 134 basis points from the prior year. Net income attributable to Twin Disc was $3.3 million, and EBITDA was $9.4 million. The company's backlog remains strong at $179.5 million.
Key Highlights
- 1
Twin Disc's sales increased by 19.0% year-over-year to $96.7 million in the third quarter of fiscal year 2026.
- 2
The company's gross margin expanded by 134 basis points over the prior year, reaching 28.1%.
- 3
Net income attributable to Twin Disc was $3.3 million, with EBITDA reaching $9.4 million.
- 4
Twin Disc generated positive operating cash flow of $5.3 million and free cash flow of $1.8 million during the quarter.
- 5
The company's six-month backlog is robust at $179.5 million, supported by healthy ongoing demand.
- 6
Continued momentum in defense is supporting the Finland facility expansion to deliver long-term growth.
Management Comments
John H. Batten
Our third quarter results marked the beginning of the strong second-half performance we anticipated. We delivered meaningful sales growth, margin expansion and improved free cash flow generation, driven by solid execution and healthy demand across our end markets. Marine and propulsion systems remained a key driver of both top- and bottom-line expansion, supported by continued demand for our Veth products. Looking ahead, strong demand continues to support healthy order momentum and a growing, record backlog, including increased activity from our defense-related programs. At the same time, we remain focused on advancing internal initiatives that optimize our manufacturing footprint and support future growth, including relocating production to mitigate tariff exposure and adding capacity to support our expanding defense business. Together with improving profitability, these actions position Twin Disc well to capitalize efficiently on robust end market demand and drive long-term growth.
Jeffrey S. Knutson
Our third quarter results reflected strong year-over-year sales growth, improved profitability and higher free cash flow generation. Margin performance benefited from incremental volumes and stronger operating execution, while free cash flow generation improved significantly from the prior-year period due to effective inventory management and enhanced profitability. Moving forward, we remain focused on disciplined execution across the business, efficient backlog conversion and continued working capital improvements as we progress closer toward our long-term targets.”
Informational and educational content only. Not investment advice.