Simon Wong's questions to Twin Disc Inc (TWIN) leadership • Q4 2025
Question
Simon Wong of Gabelli Funds inquired about the current size of the oil and gas business following recent diversification efforts. He also asked for details on the company's differentiated e-frac offering, its potential future contribution to sales, and the CapEx forecast for fiscal 2026.
Answer
CFO Jeff Knudson stated that the oil and gas business represented about 8% of revenue for the year, roughly half its historical percentage, and projected fiscal 2026 CapEx to be between $12 million and $14 million. CEO John Batten explained that their e-frac solution uses a standard geared transmission with an electric motor, which they believe is a more robust and cost-effective solution than variable frequency drives. Batten expressed optimism that the oil and gas segment could rebound to represent 15% of total sales in the future.