David Macgregor

Tze-Kiang Wong

Simon Wong

- Twin Disc reported fiscal year revenue just under **$341 million** with a gross margin of **27.2%**, noting that North America accounts for **27%** of its business, while Europe is its largest end market.  **[0000100378_2172624_1]** 
- The company is strategically diversifying away from oil and gas through acquisitions like Veth, Katsa Oy, and Kobelt, with Veth demonstrating a **23% CAGR** since fiscal 2022.  **[0000100378_2172624_1]** **[0000100378_2172624_4]** 
- Strong market tailwinds from increased defense spending have led to a **15%** year-over-year increase in the overall backlog, with the defense portion growing **45%** year-over-year, driven by US Navy autonomous vessels and European land-based defense.  **[0000100378_2172624_2]** 
- Twin Disc is investing in IP-protected hybrid and electric solutions, particularly a hybrid marine controller, which offers a potential **10x content multiplier** and is seeing the most traction in the marine sector.  **[0000100378_2172624_1]** **[0000100378_2172624_3]** **[0000100378_2172624_8]** 
- The company aims to improve margins and believes its current operational footprint can support revenue up to **$400 million**, with acquisitions being key to reaching **$500 million**.  **[0000100378_2172624_1]** **[0000100378_2172624_3]** **[0000100378_2172624_5]**

Twin Disc Highlights Diversification Strategy, Defense Spending Tailwinds, and Hybrid Solutions

- Twin Disc Inc. is a global power transmission provider with fiscal 2025 revenue just over **$340 million** and gross margins of **27.2%**.  **[100378_tx_375165_1]** 
- The company has strategically diversified its portfolio, with Europe now its largest market and a heavy weighting in marine markets.  **[100378_tx_375165_1]**  Recent acquisitions, including Veth, Katsa, and Kobelt, have been key to this diversification and growth, particularly in the heating defense markets, where backlog is up to **15%** (a **45%** year-over-year growth).  **[100378_tx_375165_1]** **[100378_tx_375165_2]** **[100378_tx_375165_3]** **[100378_tx_375165_5]** 
- Twin Disc aims to reach **$500 million** in revenue and **30%** gross margins, with further acquisitions being a key part of this strategy.  **[100378_tx_375165_4]** **[100378_tx_375165_6]**  The company maintains a strong balance sheet, with debt below **two times debt to EBITDA**, supporting continued M&A activity.  **[100378_tx_375165_5]**

TWIN DISC (TWIN)