Twin Disc, Incorporated · NASDAQ:TWIN
Twin Disc — Q1 2026 Earnings Presentation
22 slides from Twin Disc's earnings presentation, Nov 5, 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: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Strategic Financial Acquisitions continuing to enhance market reach and capabilities across hybrid/electric systems Q1 sales +9.7% vs. YA to $80.0 million Sales growth supported by execution across Organic sales +1.1% vs. YA diversified global portfolio EBITDA of $
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 14.6% vs. YA Record new-unit bookings in the quarter and increased demand for autonomous-vessels Continued support from strong activity in workboats, government contracts, and Veth’s ELITE thruster products Demand traction for Veth thruster in w
Slide 7: Land-Based Transmissions
LAND-BASED TRANSMISSIONS Sales increased by 1.6% vs. YA Flat Oil & Gas shipments with continual decline in China as tariff uncertainties impact new build pace North American Oil & Gas demand showing positive momentum as rebuild cycle matures Sustained demand for ARFF transmissions Advancin
Slide 8: Industrial
INDUSTRIAL Sales increased by 13.2% vs. YA Continued sequential recovery in demand and order trends with growth in customer activity Steady demand for higher-content solutions reinforcing product mix 8
Slide 9: Continued Backlog Growth
CONTINUED BACKLOG GROWTH BACKLOG AND INVENTORY % OF BACKLOG $163.3 $160.0 190.0% Healthy 6-month backlog higher $150.5 $150.0 170.0% sequentially and on a year-over-year $144.3 basis 150.0% $140.0 $133.7 Growth in backlog led by 130.0% $130.0 propulsion and defense 100% $124.0 103% 101% 110.0% a
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) $80.0 $72.9 Continued healthy demand across global markets Operational execution driving performance and sales growth 1QF25 1QF26 EARNINGS PER SHARE ($0.04) EPS impacted by increased operating income and a decrease in other expenses year-over-year, p
Slide 13: Sales Diversity
SALES DIVERSITY SALES BY PRODUCT GROUP ($ in millions) $3.8 $4.3 $10.4 Sales growth driven by strength $9.2 $17.6 within Marine and Propulsion $17.3 Systems and Industrials: Consistent market demand $42.1 $48.2 Geographic expansion 1QF25 1QF26 Recovery in Industrials sales Marine & Propulsion
Slide 14: Strong Balance Sheet
STRONG BALANCE SHEET BALANCE SHEET ($ in millions) $43.7 $29.8 $29.5 $16.7 LEVERAGE RATIO $14.2 $13.1 1.3x Total Debt Cash Net Debt 1QF25 1QF26 0.5x EBITDA ($ in millions) 1QF25 1QF26 $4.7 Increase primarily due to acquisition of $1.7 Kobelt 1QF25 1QF26 14
Slide 15: Margins & Near-Term Expectations
MARGINS & NEAR-TERM EXPECTATIONS FIRST QUARTER GROSS MARGIN DRIVERS FIRST QUARTER TWIN DISC GROSS MARGIN Gross margin increased by 220 basis points vs. YA 28.7% Continued benefits of incremental 26.5% volume and successful margin improvement initiatives INFLATION & SUPPLY CHAIN EXPECTATIONS Mo
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 Clear value cr
Slide 17: Key Takeaways
KEY TAKEAWAYS Delivered a strong start to the year, reflecting profitable growth, margin expansion, and consistent execution across a diversified global portfolio Monitoring tariff developments closely, with proactive mitigation measures in place to limit potential cost impacts Defense momentu
Slide 18: Q&A Fiscal 2026 First Quarter Earnings Call
Q&A Fiscal 2026 First 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) 1Q26 1Q25 Net Sales $79,996 $72,897 Less: Acquisition(1) (3,094) - Less: Foreign Currency Impact (3,191) - Organic Net Sales $73,711 $72,89
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 (In thousands; unaudited) September 26, 2025 September 27, 2024 Current maturities of long-term debt 3,000 2,000 Long-term debt 40,719 27,794 Tot
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) 1Q26 FY25 4Q25 3QF25 2QF25 1QF25 Net Income (loss) attributable to Twin Disc ($518) ($1,894) $1,424 ($1,472) $919 ($2,765) Interest expense 800 2