Twin Disc, Incorporated (TWIN) AI Stock Analysis

Twin Disc, Incorporated is a global manufacturer and distributor of marine and heavy-duty off-highway power transmission equipment. Operating through Manufacturing and Distribution segments, its product lines include marine transmissions, azimuth and surface drives, propellers, and boat management systems. It also produces power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems. These products serve pleasure craft, commercial, and military marine sectors, as well as energy, natural resources, government, and industrial markets. Headquartered in Racine, Wisconsin, Twin Disc sells products worldwide via a direct sales force and an extensive distributor network.

Twin Disc grew revenue from $242.9M in FY2022 to $381.3M in FY2026, achieving a 5-year revenue CAGR of 11.8%. FY2026 revenue increased 11.9% year over year, while gross margin stood at 26.9% and operating margin reached 4.7%. Net income improved to $27.1M with diluted EPS of $2.38 in FY2026, recovering from a net loss of -$1.9M and EPS of -$0.15 in FY2025. Operating cash flow was $22.9M, producing $9.2M in free cash flow. In the latest quarter ended June 30, 2026, quarterly revenue grew 18.3% year over year, while quarterly earnings declined 29.7%.

As of June 30, 2026, Twin Disc held $16.0M in cash and short-term investments alongside total debt of $45.0M, resulting in net debt of $29.0M. The balance sheet carried $219.7M in shareholders' equity and $401.2M in total assets. Liquidity is supported by a current ratio of 2.35 and a debt-to-equity ratio of 0.20. In FY2026, capital expenditures totaled $13.7M, while dividends paid were $2.3M. Over the past five years, the share count increased by 9.7%.

At $24.47, Twin Disc carries a market capitalization of $355.8M and an enterprise value of $406.0M. It trades at a trailing P/E of 13.2x and a forward P/E of 7.5x, compared to medians of 24.8x and 17.2x for US-listed Industrials peers. Its price-to-sales of 0.9x is lower than the peer median of 1.5x, while its EV-to-EBITDA ratio of 13.3x is close to the peer median of 13.9x. The stock gained 71.6% over the past year, outperforming the S&P 500 (SPY) return of 16.8%.

Twin Disc pays a quarterly dividend with an annual forward payout of $0.20 per share, representing a dividend yield of 0.82%. The dividend payout ratio is 7.1%, and the company has paid dividends for 4 consecutive years. The most recent ex-dividend date was August 18, 2026.

Wall Street coverage consists of 1 analyst, who rates the stock a Strong Buy. The mean price target is $30.00, representing 22.6% upside from the last close of $24.47. For the fiscal year ending June 30, 2027, the consensus projects revenue of $410.1M and EPS of $0.74, an EPS decline of 60.2%. Over the last four quarters, the company beat EPS estimates twice. The next earnings release is scheduled for November 4, 2026.

This page is an AI-written research summary of Twin Disc, Incorporated (TWIN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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