Twin Disc, Incorporated · NASDAQ:TWIN
Twin Disc — Q4 2025 Earnings Presentation
24 slides from Twin Disc's earnings presentation, Aug 21, 2025
Slide 1: Twin Disc, Inc Investor Presentation
TWIN DISC, INC Investor Presentation
Slide 2: Disclosures
DISCLOSURES Safe Harbor Statement 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 ris
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS A leader in global power transmission technology with an increasingly diversified IP-protected portfolio Well-positioned to benefit from tailwinds in defense markets and hybrid transmissions supported by robust backlog Margin enhancement and operational initiatives driving favo
Slide 4: Full Year Highlights
FULL YEAR HIGHLIGHTS Strategic Financial FY sales +15.5% vs. YA to $340.7 million Strategic acquisitions enhancing market reach and capabilities across hybrid/electric systems Organic sales +1.0% vs. YA Streamlining operations to improve margins and EBITDA of $19.0 million which includes a
Slide 5: Capturing Robust Defense Market Demand with Runway for Growth
CAPTURING ROBUST DEFENSE MARKET DEMAND WITH RUNWAY FOR GROWTH Robust TWIN Delivering Defense Activity Well Positioned Results Select Defense Products Defense as a +13% ~15% percentage of Total Backlog YoY Increase in 2026 US Defense Spending (1) Marine Transmissions, Transmissions, Propulsions Contr
Slide 6: Marine & Propulsion Systems
MARINE & PROPULSION SYSTEMS Sales increased by 12.2% vs. YA Supported by robust activity in workboats, government contracts, and Veth’s ELITE thruster products Strong momentum for orders for unmanned U.S. Navy vessels Marine aftermarket strength driven by continued utilization of military an
Slide 7: Land-Based Transmissions
LAND-BASED TRANSMISSIONS Sales increased by 4.5% vs. YA Strong ARFF transmissions shipments and backlog growth in the quarter In China, Oil & Gas shipment declined as tariff uncertainties impact new build pace Continue to see customer inquires for new E-Frac systems, initial order received i
Slide 8: Industrial
INDUSTRIAL Sales increased by 82.0% vs. YA Sales excluding Katsa and Kobelt increased 13.1% vs. YA Continued sequential stabilization in demand and order trends Steady demand for higher-content solutions 8
Slide 9: Continued Backlog Growth
CONTINUED BACKLOG GROWTH BACKLOG AND INVENTORY % OF BACKLOG $150.5 190.0% $150.0 $144.3 170.0% 6-month backlog higher sequentially $140.0 and on a year-over-year basis on high $133.7 $133.7 150.0% shipments in the quarter $130.0 130.0% FX contributed $7.0 million from $124.0 prior quarter 100% 1
Slide 10: Long-Term Strategy
LONG-TERM STRATEGY Leading Hybrid/Electric solution provider for niche marine and land-based applications 2030 FY Targets Continued expansion of acquisitions to reach new markets and geographies $500M Revenue Rationalize global footprint for efficiency and customer response 30% Gross Margins Increas
Slide 11: Financial Overview
FINANCIAL OVERVIEW nos
Slide 12: Financial Performance
FINANCIAL PERFORMANCE SALES ($ in millions) $96.7 $84.4 $89.9 $81.2 Continued healthy demand across $72.9 global markets Operational execution driving performance 4QF24 1QF25 2QF25 3QF25 4QF25 EARNINGS PER SHARE $0.53 $0.07 $0.10 EPS impacted by increased FX losses, higher operating expenses,
Slide 13: Sales Diversity
SALES DIVERSITY SALES BY PRODUCT GROUP ($ in millions) $4.8 $4.4 Sales growth driven by strength $5.0 $4.4 $7.2 $4.3 $9.5 $13.1 within Marine and Propulsion $9.7 $25.0 $9.2 $19.0 $17.8 $26.1 Systems and Industrials: $17.3 Consistent market demand $47.2 $56.7 $49.3 $53.0 $42.1 Geographic expansio
Slide 14: Strong Balance Sheet
STRONG BALANCE SHEET BALANCE SHEET ($ in millions) $31.4 $25.8 $20.1 LEVERAGE RATIO $16.1 $15.3 $5.7 0.8x 0.2x Total Debt Cash Net Debt FY24 FY25 EBITDA FY24 FY25 ($ in millions) $26.5 Increase primarily $19.0 due to acquisition of Kobelt FY24 FY25 14
Slide 15: Margins & Near-Term Expectations
MARGINS & NEAR-TERM EXPECTATIONS FULL YEAR TWIN DISC GROSS MARGIN INFLATION & SUPPLY CHAIN EXPECTATIONS 28.2% 27.2% Monitoring evolving tariff landscape and reviewing global manufacturing strategy accordingly Tariff impact ~1% of COGS FY24 FY25 FOURTH QUARTER GROSS MARGIN DRIVERS GROSS MARGIN BY
Slide 16: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Debt Reduction Research & Development Focus Areas Geographic diversification / expansion Marketing Return Capital to Shareholders (Dividends) Diversification away from Oil & Gas Strategic Fit Acquisition logic immediately evident Organic Growth Evident value
Slide 17: Key Takeaways
KEY TAKEAWAYS Delivered a solid quarter, supported by strong margins, disciplined execution, and sustained backlog strength in Marine & Propulsion Systems and Industrial segments Well-positioned to capture defense tailwinds supporting strong momentum Strategic acquisitions strengthening compet
Slide 18: Q&A Fiscal 2025 Fourth Quarter Earnings Call
Q&A Fiscal 2025 Fourth Quarter Earnings Call 18
Slide 19: Appendix
APPENDIX a>.
Slide 20: Reconciliation of Reported Net Sales to Organic Net Sales
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO REPORTED FINANCIAL MEASURES RECONCILIATION OF REPORTED NET SALES TO ORGANIC NET SALES (In thousands; unaudited) 4Q25 4Q24 FY25 FY24 Net Sales $96,678 $84,418 $340,738 $295,127 Less: (16,457) - (43,972) (2,556) Acquisitions/Divestitures(1) Less: Foreig
Slide 21: Reconciliation of Total Debt to Net Debt
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO REPORTED FINANCIAL MEASURES RECONCILIATION OF TOTAL DEBT TO NET DEBT (In thousands; unaudited) June 30, 2025 June 30, 2024 Current maturities of long-term debt 3,000 2,000 Long-term debt 28,446 23,811 Total debt $31,446 $25,811 Less cash 16,109 20,070
Slide 22: Reconciliation of Consolidated Net Income to EBITDA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO REPORTED FINANCIAL MEASURES RECONCILIATION OF CONSOLIDATED NET INCOME TO EBITDA (In thousands; unaudited) FY25 FY24 4Q25 3QF25 2QF25 1QF25 4QF24 Net Income (loss) attributable to Twin Disc ($1,894) 10,988 $1,424 ($1,472) $919 ($2,765) $7,410 Interest
Slide 23: Net Debt to EBITDA Leverage Ratio Calculation
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO REPORTED FINANCIAL MEASURES NET DEBT TO EBITDA LEVERAGE RATIO CALCULATION FY25 FY24 Net debt $15,337 $5,741 LTM EBITDA 19,019 26,553 Leverage Ratio 0.8x 0.2x 23
Slide 24: Reconciliation of Operating Cash Flow to Free Cash Flow
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO REPORTED FINANCIAL MEASURES RECONCILIATION OF NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW 4Q25 4Q24 FY25 FY24 Net cash provided by operating $16,448 $11,499 $23,979 $33,716 activities Acquisition of property, plant, (7,705) (1,1