Twin Disc, Incorporated · NASDAQ:TWIN
Twin Disc — Q1 FY2027 Earnings Presentation
23 slides from Twin Disc's earnings presentation, Nov 4, 2026
Slide 1: 1Q 2027 Earnings Presentation
We Put Horsepower to Work. Frwn(osc) 1Q 2027 Earnings Presentation NASDAQ; TWIN,
Slide 2: Disclosures: Safe Harbor and Non-GAAP
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
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: 1Q Financial & Operational Highlights
1Q Financial & Operational Highlights => + Defense continues to bea key growth driver supported by growing U.S. Navy and NATO demand $88.7M Sales 10.9% increase YoY + Record six-month backlog of $190.6 million up 7% from, fiscal year end, supported by strong interest and sales =~ momentum behind a r
Slide 5: Defense Remains a Key Long-Term Driver
Defense Remains a Key Long-Term Driver Delivering Results ~24% defense as 2 % oftotal backlog" $104% ov increase in Defense total backlog” $30-50M Identified defense pipeline Major Geographies North America Europe Asia Pacific Select Defense End Users
Slide 6: Marine & Propulsion Systems
Marine & Propulsion Systems 14% 1027 YoY sales increase Performance driven by continued demand for Veth and Kobelt product Improved military demand for marine transmissions Improved commercial maritime demand in Asia Generally strong market conditions
Slide 7: Land-Based Transmissions
Land-Based Transmissions FY 1027 sales decreased by 15% YoY Beginning in FY 1027, all Katsa sales previously classified in Land-Based Transmission are now classified in Industelal; in FY 1027, $4.7 million in revenue that would previously have been classified in Land-Based Transmission was classifie
Slide 8: Industrial
Industrial 1027 sales increased 35% YoY Beginning in FY 1027, all Katsa sales previously classified in Land-Based Transmission are now classified in Industrial; in FY 1027, $4.7 milion in revenue that would previously have been classified in Land-Based Transmission was classified in Industrial Katsa
Slide 9: Record Six-Month Backlog
Record Six-Month Backlog Backlog And Inventory % Of Backlog sis 1783 mmm backog SMM) —tnventory (% Backlog) ‘Six:month backlog at 1QF27 was approximately $190.6 million, up from $178.3 million at fiscal year end and ‘$163.3 million a year ago, and a record on a reported basis Inventory as a percenta
Slide 10: Long-Term Strategy
Long-Term Strategy 2030 FY Targets $500M Revenue 30% Gross Margins >60% FCF Conversion Leading Hybrid Electric solution provider for niche marine and land-based applications Strategic acquisitions to reach new markets and geographies Rationalize global footprint for efficiency and customer response
Slide 11: Financial Overview
Financial Overview
Slide 12: Financial Performance
Financial Performance sales $80.0 10826 Earnings Per Share — $88.7 10927 Sales performance driven by expanding demand from the defense sector, improved oil and gas demand, and ‘generally strong market conditions across the global enterprise Contribution from acquisitions and operational ‘execution d
Slide 13: Sales Diversity
Sales Diversity Sales By Product Group + Consistent demand across core marine and propulsion end markets, particularly Veth products + Acquired businesses (Katsa, Kobelt) continue to broaden product and end-market mix Fi 10927 l2Marine& Propulsion Systems and Bed Transmissions minds MOthe Sales Mix
Slide 14: Margins & Near-Term Expectations
Margins & Near-Term Expectations First Quarter Twin Disc Gross Margin First Quarter Gross Margin Drivers + Consistent YoY margins reflect stronger growth in Katsa and Veth, which operate at gross margins below the 28.7% 28.7% company average and continue to improve. This was partially offset by favo
Slide 15: Strengthened Balance Sheet
Strengthened Balance Sheet Balance Sheet $437 $398 Sez $285 sin ITM EBITDA $329 $220 Net Leverage Ratio 13 oan 10F26 10527
Slide 16: Organic Growth, Bolt-On & Transformational Acquisitions
Organic Growth Bolt-On & Transformational Acquisit Research & Development eographic Extension Marketing Strategic Fit Financial Fit (Intemal Rate of Return > WACC) Ability to enhance network and capabilities Return Capital To Shareholders & Deleverage Cash Dividends Share repurchases Debt Reduction
Slide 17: Summary
Summary First quarter results built on fiscal 2026 momentum; healthy defense demand and a record six-month backlog + Gross margins are expected to improve over time as we diversify end markets and benefit from greater operating leverage Defense momentum continues to build in both backlog and pipelin
Slide 18: Q&A
Slide 19: Appendix
Slide 20: Reconciliation of 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) 10°27 10926 Net Sales $98,745 $79596 ess Acquisition : Les: Foreign Currency impact (708) “ (Organic Net Sales $99,453
Slide 21: Reconciliation of Total Debt to Net Debt to EBITDA
Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures RECONCILIATION OF TOTAL DEBT TO NET DEBT TO EBITDA LEVERAGE RATIO CALCULATION (ln thousands; unaudited) September 30,2026 September 30, 2025 Current maturities of long-term debt $1,500 $3,000 Long-term debt 38,295 40,719 To
Slide 22: Reconciliation of Net Income to EBITDA
Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures RECONCILIATION OF CONSOLIDATED NETINCOME TO EBITDA (In thousands; unaudited) 20726 1027 ord 40826 30F26 (As Adjusted) 10F26 Net Income (loss) Desnutale fo Twin Dise $9,360 909 Interest expense a 3078 ns 790 m 200 Income tax
Slide 23: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation Of Non-GAAP Financial Measures To Reported Financial Measures RECONCILIATION OF NET CASH PROVIDED (USED) BY ‘OPERATING ACTIVITIES TO FREE CASH FLOW (ln thousands; unaudited) 3027 1026 ‘Net cash provided (used) by ‘operating activities = (s7s24) ‘Acquisition of property, plant, nn iden