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: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Financial Strategic Q3 sales +9.5% vs. YA to $81.2 million Strong order momentum and healthy Organic sales increased 1.7% vs. YA backlog with stable demand Gross margin decreased ~150 bps vs. YA Advancing acquisitions integrations to enhance capabilities to 26.7%
Slide 4: Marine & Propulsion Systems
MARINE & PROPULSION SYSTEMS Sales increased by 10.7% vs. YA Commercial markets show notable strength globally Strong Veth orders and healthy backlog, supported by robust demand across markets Supplementing production through agile manufacturing presence to alleviate short- term capacity cons
Slide 5: Land-Based Transmissions
LAND-BASED TRANSMISSIONS Sales decreased by 6.9% vs. YA Strong ARFF transmissions shipments and backlog growth in the quarter In Oil & Gas, North American new build activity remains muted due to capital discipline, while aftermarket business stays resilient In China, lower but stable volumes
Slide 6: Industrial
INDUSTRIAL Sales increased by 56.2% vs. YA Continued sequential stabilization in demand and order trends Volume growth strengthened by Katsa Oy and Kobelt acquisitions Steady demand for higher-content solutions 6
Slide 7: Continued Backlog Growth
CONTINUED BACKLOG GROWTH BACKLOG AND INVENTORY % OF BACKLOG $144.3 $130.5 $133.7 $133.7 $124.0 6-month backlog higher sequentially and on a year-over-year basis on high 1.03 1.03 shipments in the quarter FX contributed $2.6 million from 1.00 1.00 prior quarter 0.98 Sustained demand across prod
Slide 8: Long-Term Strategy
LONG-TERM STRATEGY Leading Hybrid/Electric Continued expansion of Veth Rationalize global footprint solution provider for niche product to reach new for efficiency and customer marine and land-based markets and geographies response applications Increased focus on controls M&A priorities: Industrial
Slide 9: Financial Overview
FINANCIAL OVERVIEW 9
Slide 10: Financial Performance
FINANCIAL PERFORMANCE SALES ($ in millions) $89.9 $84.4 $81.2 $74.2 $72.9 Continued healthy demand across global markets Operational execution driving performance 3QF24 4QF24 1QF25 2QF25 3QF25 EARNINGS PER SHARE $0.53 $0.27 $0.07 EPS impacted by currency loss and pension amortization ($0.11) (
Slide 11: Sales Diversity
SALES DIVERSITY SALES BY PRODUCT GROUP ($ in millions) $4.8 $5.0 $4.4 Sales growth driven by strength within $4.3 $4.3 $9.5 $7.2 $6.2 $9.7 Marine and Propulsion Systems and $9.2 $19.0 $19.1 $25.0 $17.8 Industrials: $17.3 • Consistent market demand $56.7 $44.5 $47.2 $42.1 $49.3 • Geographic expansion
Slide 12: Strong Balance Sheet
STRONG BALANCE SHEET BALANCE SHEET ($ in millions) $40.8 $23.8 $24.5 LEVERAGE RATIO $17.0 $16.2 1.0x -$6.8 Total Debt Cash Net Debt 3QF24 3QF25 EBITDA ($ in millions) $7.0 (0.3)x $4.0 3QF24 3QF25 3QF24 3QF25 12
Slide 13: Margins & Near-Term Expectations
MARGINS & NEAR-TERM EXPECTATIONS TWIN DISC GROSS MARGIN THIRD QUARTER GROSS MARGIN DRIVERS 28.2% 26.7% Gross margin decreased by 150 basis points vs. YA Impact of unfavorable product mix with reduced shipments of oil and gas 3QF24 3QF25 transmissions into China THIRD QUARTER GROSS PROFIT BY PROD
Slide 14: 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 15: Key Takeaways
KEY TAKEAWAYS Delivered a solid quarter with strong margins and operational execution, and continued strong backlog in Marine & Propulsion Systems and Industrial segments Strategic acquisitions strengthening competitive position, expanding global reach Limited direct tariff exposure combined w
Slide 16: Q&A Fiscal 2025 Third Quarter Earnings Call
Q&A Fiscal 2025 Third Quarter Earnings Call 16
Slide 17: Appendix
APPENDIX a>.
Slide 18: 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) 3Q25 3Q24 Net Sales $81,242 $74,161 Less: Acquisitions/Divestitures(1) (8,346) - Less: Foreign Currency Impact 2,534 - Organic Net Sales $7
Slide 19: 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 (In thousands; unaudited) March 28, 2025 March 29, 2024 Current maturities of long-term debt 3,000 2,000 Long-term debt 37,774 15,042 Total debt $40,774 $17,042 Less cash 16,245 23,8
Slide 20: 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) 3Q25 LTM 3QF25 FY24 2QF25 1QF25 4QF24 3QF24 Net Income (loss) attributable to Twin Disc $4,098 $(1,472) $10,989 $919 $(2,765) $7,410 $3,822 Inter
Slide 21: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO REPORTED FINANCIAL MEASURES NET DEBT TO EBITDA LEVERAGE RATIO CALCULATION 3QF25 3QF24 Net debt $24,529 $(6,801) LTM EBITDA 23,831 25,939 Leverage Ratio 1.0x -0.3x 21