Twin Disc Incorporated
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
The business model carries, the balance sheet is healthy ($219.9 million of equity against $29.8 million of debt), and there is no going-concern warning and no governance breach. But one material operating question is open: the US home market has posted a pre-tax loss for the third year running ($5.9 million in 2026), gross margin fell to 26.9% despite record revenue, organic growth was only 4.6%, and the whole year's free cash flow arose in the closing quarter. On top of that, half of the reported 2026 profit stems from a non-repeatable tax effect and the prior-year comparison was recalculated by the change in inventory valuation — both make earnings power considerably harder to judge. The operating turn has begun and is visible in the numbers, but it is not yet proven; hence yellow rather than green. We expressly do not see a threat to the substance of the business that would justify red. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Twin Disc is a 108-year-old gearbox builder whose operating business measurably improved in fiscal 2026: record revenue of $381.3 million, operating income up 62% to $18.0 million, an order book up 18.5%, a falling cost ratio and a healthy balance sheet. But the two numbers that made the headlines are accounting outcomes: net income of $27.1 million exceeds pre-tax income of $13.6 million because the tax line credited a one-off $14.0 million — and the prior-year comparison was retrospectively changed by the switch from LIFO to FIFO. Organic revenue grew 4.6% and the home market is still losing money. Investing here means buying the continuation of the operating trend, not the reported profit figure. Not investment advice.
Revenue & order book
Four consecutive fiscal years of revenue growth to a record $381.3 million (FY 2026, +11.9%), six-month backlog of $178.3 million (+18.5% at June 30, 2026), Q4 revenue $114.4 million (+18.3%). Veth +16.4%, Katsa +30.8%, the Swiss propeller works +45.9% (10-K FY 2026, Item 7).
Operating earnings power
Operating income rose from $11.1 million to $18.0 million (+62%), EBITDA by 48.0% to $29.9 million, and administrative and selling costs fell from 24.2% to 22.2% of sales. This is the line that depends neither on tax nor on valuation method — and it shows real progress (10-K FY 2026; earnings release August 20, 2026).
Earnings quality & the tax line
Net income of $27.1 million exceeds pre-tax income of $13.6 million because the tax line was a $14.0 million benefit (effective rate −102.8%). Of $23.9 million of released US valuation allowance, $16.4 million ran through the income statement and $7.4 million went straight into equity; only $0.1 million remains — the effect will not return (10-K FY 2026, Note N).
Comparability & growth quality
The switch from LIFO to FIFO in Q4 FY 2026 retrospectively changed all prior-year figures (equity at June 30, 2025 from $164.4m to $196.5m, the FY 2025 loss from −$1.9m to −$0.7m, Q2 EPS from $1.55 to $1.04). Organic revenue grew only 4.6%; distribution shrank 11.6% and gross margin fell to 26.9% (10-K FY 2026, Notes B and S; earnings release August 20, 2026).
Balance sheet & funding
$219.9 million of equity stands against $29.8 million of debt and $13.8 million net; current ratio 2.3, covenants met, roughly $60 million available under the new agreement with Bank of Montreal and JPMorgan Chase (to 2031). Inventories fell for the first time in years ($178.0m versus $184.1m) and the quarterly dividend was raised 25% in August 2026.
Cash flow & home market
Free cash flow of $9.2 million arose entirely in the closing quarter ($17.2 million); the conversion rate of roughly 31% of EBITDA sits far below the 60% target named since 2024. The US business lost $5.9 million pre-tax (prior year as adjusted −$11.1 million) against $19.5 million of foreign earnings — the direction is right, the destination is not reached (10-K FY 2026, Note N; earnings release August 20, 2026).
Worth Noting
TWIN reached our research list in July 2026 via the "Joshua" growth scanner in our in-house stock scanner. This edition was rewritten in full on September 5, 2026, after Twin Disc reported full-year results on August 20, 2026 and filed the audited annual report (10-K) for fiscal 2026 on September 4, 2026.
Important for any metric built on trailing twelve-month profits: in the fourth quarter of fiscal 2026 Twin Disc switched inventory valuation from LIFO to FIFO and restated prior-year figures. Price-earnings ratios, returns on equity and earnings surprises may therefore rest on either the old or the new basis depending on each provider's data vintage. Every time series in this analysis uses the adjusted (FIFO) basis exclusively.
Price and valuation figures are dated September 4, 2026 (close $23.85, market capitalisation roughly $347 million based on 14,538,916 shares per the annual report cover, as of August 10, 2026). Our analyses are evergreen; a daily price is not a reason to buy. Twin Disc's fiscal year ends June 30 — every quarterly figure carries that offset.
Stock Watch
This analysis is as of September 5, 2026. Stock Watch will tell you what's changed at TWIN since then.
Later $1 a month per stock — signing up is free, and you'll be the first to know when it launches.
Price history
Chart
Interactive price chart (TradingView).
52-week range: 13.30 $ to 25.20 $ · Last price: 24.70 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
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.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Specialty Industrial Machinery
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Twin Disc Incorporated TWIN | 0.4 | 13.9 | 12.7 | 26.9 | – | 15.5 | 87.3 |
| GE Vernova LLC GEV | 270.8 | 26.0 | 81.5 | 20.6 | 5.5 | 8.9 | 50.8 |
| Eaton Corporation PLC ETN | 171.0 | 38.7 | 28.8 | 36.0 | 16.1 | 10.3 | 13.9 |
| Parker-Hannifin Corporation PH | 118.5 | 34.3 | 21.7 | 37.6 | 21.5 | -0.4 | 26.3 |
| Emerson Electric Company EMR | 86.6 | 33.8 | 18.4 | 53.2 | 24.2 | 3.0 | 14.3 |
| Illinois Tool Works Inc ITW | 78.5 | 25.1 | 17.7 | 44.2 | 25.7 | 0.9 | 4.5 |
| Cummins Inc CMI | 75.0 | 25.8 | 15.3 | 25.8 | 9.8 | -1.3 | 29.1 |
| Ametek Inc AME | 53.7 | 35.1 | 22.7 | 36.9 | 26.3 | 6.6 | 26.6 |
| Rockwell Automation Inc ROK | 47.8 | 42.5 | 28.0 | 49.1 | 20.7 | 1.0 | 22.9 |
| Median of companies shown | 78.5 | 33.8 | 21.7 | 36.9 | 21.1 | 3.0 | 26.3 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2017 | 168 | -9 | -6 | -0.56 | 3 | 124 | 211 |
| 2018 | 241 | 15 | 10 | 0.84 | 7 | 144 | 235 |
| 2019 | 303 | 19 | 11 | 0.84 | -5 | 182 | 346 |
| 2020 | 247 | -40 | -40 | -3.03 | 9 | 139 | 294 |
| 2021 | 219 | -12 | -30 | -2.24 | 7 | 130 | 275 |
| 2022 | 243 | 11 | 10 | 0.78 | -8 | 131 | 277 |
| 2023 | 277 | 16 | 10 | 0.75 | 23 | 145 | 289 |
| 2024 | 295 | 11 | 11 | 0.79 | 34 | 155 | 312 |
| 2025 | 341 | 10 | -2 | -0.14 | 24 | 164 | 356 |
| 2026 | 381 | 18 | 27 | 1.86 | 23 | 220 | 401 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| 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 |
| 2026: Q2 | 0.64 | 540.00 | 114 | 18.30 | 8.20 | 21 | 17 |
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.
Screening
Appears in These Scanners
This stock currently matches 17 of our scanner strategies — each hit links to the scanner.
Growth
Quality & Balance Sheet
Breakout & Setup
Momentum & Trend
- 21-EMA Trend
- Above the 50- & 200-SMA
- Gary Antonacci: Dual Momentum (Stock Adaptation)
- High ADR (≥5%)
- Mark Minervini: Trend Criteria — 1 Month
- Mike Webster: Power Trend Leader
- Near 52-Week High
- RS Leader (≥90)
- RS New Highs
- Stan Weinstein: Checklist
- Stan Weinstein: Stage 2
Research
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
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 06/30/2027 | 0.74 | 0.74 – 0.74 | 410 | – | 1 |
| 06/30/2028 | 1.02 | 1.02 – 1.02 | 443 | – | 1 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 16.7% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $9.2M |
|---|---|
| Market cap | $356.0M |
| Free cash flow in year ten | $43.1M |
| Terminal value as a share of market value | 63.7% |
For comparison: over the past five years free cash flow grew by 34.8% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
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
Filings Reviewed: 10-Q 2026-05-06 · 10-Q 2026-02-04 · 10-Q 2025-11-05 · 10-Q 2025-05-07 · 10-K 2025-09-05 · 10-K 2024-09-06
Rated on July 17, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 11.2%
- More than 10% revenue growth is expected for the coming year 8.4%
- Share count grows by less than 3% a year 1.8%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 14.3%
- Gross margin at 40% or higher and without meaningful erosion 26.9%
- Goodwill from acquisitions does not grow faster than revenue 0.7%
- Net debt below twice EBITDA 1.0 x EBITDA
- Operating cash flow covers the profits of the last three years 44 m
- Return on capital at 15% or higher, or up versus two years ago 6.4%
- Insiders hold at least 10% or are net buyers 22.1%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
3/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 9.5%
- Exp. sales growth 3Y > 5% 7.8%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% -25.9%
- Net debt < 4x EBIT 1.6x
- EBIT positive, 10Y straight 7
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% 13.4%
- ROCE > 15% 6.4%
- Expected return > 10% -24.0%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 8, 2026 | Knutson Jeffrey Scott | VP Finance, CFO, Secr & Trea | Sell | 7,482 | 24.25 | 181,439 |
| Sep 4, 2026 | Knutson Jeffrey Scott | VP Finance, CFO, Secr & Trea | Sell | 5,902 | 23.25 | 137,222 |
| Sep 3, 2026 | Knutson Jeffrey Scott | VP Finance, CFO, Secr & Trea | Sell | 4,302 | 23.00 | 98,946 |
| Aug 5, 2026 | Batten John H | President and CEO | Other | 18,756 | 24.01 | 450,332 |
| Aug 5, 2026 | Batten John H | President and CEO | Other | 36,986 | 24.01 | 888,034 |
| Aug 5, 2026 | Batten John H | President and CEO | Other | 78,693 | 24.01 | 1,889,419 |
| Aug 5, 2026 | Batten John H | President and CEO | Other | 15,479 | 23.34 | 361,218 |
| Aug 5, 2026 | Knutson Jeffrey Scott | VP Finance, CFO, Secr & Trea | Other | 8,734 | 24.01 | 209,703 |
| Aug 5, 2026 | Knutson Jeffrey Scott | VP Finance, CFO, Secr & Trea | Other | 18,158 | 24.01 | 435,974 |
| Aug 5, 2026 | Knutson Jeffrey Scott | VP Finance, CFO, Secr & Trea | Other | 38,638 | 24.01 | 927,698 |
The company
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.
- Employees
- 1,087
- Headquarters
- Milwaukee, WI
- Address
- 222 East Erie Street, 53202 Milwaukee, United States
- Phone
- 262 638 4000
- Website
- twindisc.com
- IPO Date
- 12/31/1987
- ISIN
- US9014761012
- Stock Split
- 2:1 on 01/02/2008
- Stock Split
- 2:1 on 04/03/2006
Management
| Name | Title | Birth Year |
|---|---|---|
| John H. Batten | President, CEO & Director | 1965 |
| Jeffrey S. Knutson C.P.A. | 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.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/25/2026 TWIN DISC INC (TWIN): Regulation FD Disclosure; Financial Statements and Exhibits SEC ↗
- 08/20/2026 TWIN DISC INC (TWIN): Regulation FD Disclosure; Financial Statements and Exhibits SEC ↗
- 08/20/2026 TWIN DISC INC (TWIN): Results of Operations and Financial Condition; Regulation FD Disclosure; Financial Statements and Exhibits SEC ↗
- 08/11/2026 TWIN DISC INC (TWIN): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers; Financial Statements and Exhibits SEC ↗
- 07/06/2026 TWIN DISC INC (TWIN): Entry into a Material Definitive Agreement; Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 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.