Twin Disc, Incorporated · NASDAQ:TWIN
Twin Disc — Q4 2026 Earnings Presentation
23 slides from Twin Disc's earnings presentation, Aug 20, 2026
Slide 1: Earnings Presentation 4Q & YE 2026
We Put Horsepower to Work. 4Q & YE 2026 Earnings Presentation NASDAQ: TWIN
Slide 2: Disclosures
Disclosures Safe Harbor This presentation contains statements that are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management’s current expectations that are based on assumptions that are subject to risks and u n
Slide 3: Investment Highlights
Investment Highlights Leader in global power transmission technology Diversified IP-protected portfolio Healthy backlog and robust project pipeline Benefitting from industry tailwinds Margin enhancement driving results Successful integration of acquisitions Strong cash flow generation and balance sh
Slide 4: 4Q Financial & Operational Highlights
4Q Financial & Operational Highlights • Defense continues to be a key growth driver, supported by demand from the U.S. Navy and NATO $114.4M Sales • Enhanced performance from Oil & Gas, which is trending Record 4th Quarter Revenue positively due to higher-margin e-frac opportunities 18.3% increase Y
Slide 5: Defense Remains a Key Long-Term Driver
Investment Highlights Defense Remains a Key Long-Term Driver R obust Defense Ac ti vi t y M ajor Geog raphie s +13% YoY increase in 2026 U.S. Defense spending (1) North America Europe 150% YoY increase in NATO spend target, as a share of GDP (2) (3) Asia Pacific Del iv eri ng R esul ts S ele ct Defe
Slide 6: Marine & Propulsion Systems
Marine & Propulsion Systems • Performance driven by continued demand for Veth products and the addition of the Kobelt product line 20% • Improved military demand for marine transmissions 4Q26 YoY sales increase • Improved commercial maritime demand in Asia • Generally strong market conditions 6
Slide 7: Land-Based Transmissions
Land-Based Transmissions • 4Q26 sales increased by 26% YoY, driven by improved shipment volumes • Increase in global demand for energy related products and orders for energy applications • Improving sentiment among North American energy customers points to additional investment in frack rigs, rebuil
Slide 8: Industrial
Industrial • 4Q26 sales decreased by 1.6% YoY • Kobelt product line provides considerable market opportunity • Katsa represents a strong near-term growth driver via defense vehicle components in Europe • Strong global military demand • Continued demand in North American construction & recycling mark
Slide 9: Strong Six-Month Backlog
Strong Six-Month Backlog Backlog And Inventory % Of Backlog • Six-month backlog at 4QF26 was approximately $178.3 million, consistent with backlog at the end of 3QF26 of $179.5 million, and demonstrates the strength of the pipeline and demand across product groups • Made solid progress on shipments
Slide 10: Long-Term Strategy
Long-Term Strategy Leading Hybrid/Electric solution provider for niche marine and land-based applications 2030 FY Targets Strategic acquisitions to reach new markets and geographies $500M Revenue Rationalize global footprint for efficiency and customer response 30% Gross Margins Increased focus on c
Slide 11: Financial Overview
Financial Overview 11
Slide 12: Financial Performance
Financial Performance Sales ($ in millions) $114.4 $96.7 • Continued healthy demand across global markets • Contribution from acquisitions and operational execution driving performance and sales growth 4QF25 4QF26 Earnings Per Share $0.64 • EPS improvement attributable to higher operating income fro
Slide 13: Sales Diversity
Sales Diversity Sales By Product Group ($ In Millions) $4.9 $4.4 $12.9 $13.1 Sales growth driven by strength and contributions from $33.0 $26.1 acquisitions: • Consistent demand across core marine and $53.0 $63.6 propulsion end markets, particularly Veth products • Incremental revenue contribution f
Slide 14: Margins & Near-Term Expectations
Margins & Near-Term Expectations Fourth Quarter Twin Disc Gross Margin Fourth Quarter Gross Margin Drivers • Margin contraction in the quarter was primarily related 32.3% to product mix and a one-time $3 million favorable adjustment in Q4 of last year. 4QF25 gross margin was 26.3% 28% excluding one-
Slide 15: Strengthened Balance Sheet
Strengthened Balance Sheet Balance Sheet ($ in millions) $31.4 $29.8 $16.1 $16.0 $15.3 NET Leverage Ratio $13.8 0.8x Total Debt Cash Net Debt 0.5x 4QF25 4QF26 LTM EBITDA ($ in millions) 4QF25 4QF26 $29.9 $20.2 4QF25 4QF26 15
Slide 16: Capital Allocation Framework
Capital Allocation Framework Organic Growth Bolt-On & Transformational Return Capital To Shareholders Acquisitions & Deleverage • Research & Development • Cash Dividends • Strategic Fit • Geographic Extension • Share repurchases • Financial Fit (Internal Rate of • Marketing • Debt Reduction Return >
Slide 17: Summary
Summary • 2026 was a year of strong sales performance, profitability and cash flow generation • We remain confident that gross margins will improve over the long-term as we continue to diversify our end markets and recognize enhanced operating leverage • Defense momentum continues to build in backlo
Slide 18: Q&A
Q&A 18
Slide 19: Appendix
Appendix 19
Slide 20: Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures
Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures RECONCILIATION OF REPORTED NET SALES TO ORGANIC NET SALES (In thousands; unaudited) FY26 FY25 Net Sales $381,270 $340,738 Less: Acquisition 7,550 - Less: Foreign Currency Impact 17,225 - Organic Net Sales $356,495 $340,738
Slide 21: Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures
Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures RECONCILIATION OF TOTAL DEBT TO NET DEBT TO EBITDA LEVERAGE RATIO CALCULATION (In thousands; unaudited) June 30, 2026 June 30, 2025 Current maturities of long-term debt $1,500 $3,000 Long-term debt 28,310 28,446 Total debt
Slide 22: Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures
Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures RECONCILIATION OF CONSOLIDATED NET INCOME TO EBITDA (In thousands; unaudited) FY25 2QF26 4QF25 FY26 (As Adjusted) 4QF26 3QF26 (As Adjusted) 1QF26 (As Adjusted) Net Income (loss) attributable to Twin Disc $27,077 ($697) $9,3
Slide 23: Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures
Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures RECONCILIATION OF NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES TO FREE CASH FLOW (In thousands; unaudited) 4Q26 4Q25 FY26 FY25 Net cash provided (used) by operating $20,562 $16,448 $22,899 $23,979 activities Acquisition