The record backlog of $179.5M provides strong visibility into H2 FY2026 revenue. Watch for continued margin expansion as the company converts this backlog and benefits from its Finland defense facility expansion. The stock's $228M market cap implies a ~2.4x trailing revenue multiple — cheap if the growth trajectory sustains. Key risk: tariff-related shipment delays and elevated debt ($45.1M) from the Kobelt acquisition.
Price Chart
Executive Summary
Twin Disc reported a strong fiscal Q3 2026 beat, with revenue surging 19.0% YoY to $96.7M and GAAP EPS swinging from a -$0.11 loss to +$0.23 profit. Gross margins expanded 134 bps to 28.1%, EBITDA more than doubled to $9.4M, and the six-month backlog grew to a record $179.5M, signaling accelerating demand across marine, defense, and industrial end markets.
Key Financial Metrics
Key Facts
- Revenue increased 19.0% YoY to $96.7M, with organic growth of 7.0%
- GAAP diluted EPS of $0.23 vs -$0.11 in prior year quarter
- Gross margin expanded 134 bps to 28.1%
- EBITDA of $9.4M, up 135.1% YoY
- Six-month backlog reached a record $179.5M, up from $175.3M at Q2 end
- Operating cash flow of $5.3M and free cash flow of $1.8M in the quarter
- All four product groups posted double-digit sales growth: Marine +20.0%, Land-Based +22.2%, Industrial +15.2%, Other +4.1%
- ME&A expenses as a percentage of sales decreased 230 bps due to operational leverage
Financial Impact
Revenue grew $15.5M YoY; EPS improved by $0.34; EBITDA increased by $5.4M
Risk Factors
- Tariff-related shipment timing disruptions could delay backlog conversion
- Total debt of $45.1M (up 10.5% YoY) increases financial leverage
- Net debt of $29.0M limits financial flexibility
- Restructuring charges of $309K in the quarter indicate ongoing cost actions
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-015030 |
| Document: twin20260501_8k.htm | 0001437749-26-015030 |
| Document: 0001437749-26-015030-index-headers.html | 0001437749-26-015030 |
| Document: 0001437749-26-015030-index.html | 0001437749-26-015030 |
| Document: 0001437749-26-015030.txt | 0001437749-26-015030 |
| 8-K Data (Synthetic) | 0001437749-26-015030 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 6w ago | DEFA14A | $24.10 $26.25 | ▲ +8.92% | ▲ +6.66% | $24.64 (+2.24%) |
Aug 20, 2026 9w ago | 8-K | $24.47 $24.88 | ▲ +1.68% | ▲ +1.68% | $24.64 (+0.69%) |
Aug 20, 2026 9w ago | 8-K | $24.47 $24.88 | ▲ +1.68% | ▲ +1.68% | $24.64 (+0.69%) |
Aug 20, 2026 9w ago | Press Release | $24.47 $24.88 | ▲ +1.68% | ▲ +1.68% | $24.64 (+0.69%) |
Aug 7, 2026 11w ago | Press Release | $24.14 $23.85 | ▼ −1.20% | ▼ −0.80% | $24.64 (+2.07%) |
May 6, 2026 24w ago | 8-K | $18.09 $18.01 | ▼ −0.44% | ▼ −3.22% | $24.64 (+36.21%) |
May 6, 2026 24w ago | 8-K | $18.09 $18.01 | ▼ −0.44% | ▼ −3.22% | $24.64 (+36.21%) |
May 6, 2026 24w ago | Press Release | $18.09 $18.01 | ▼ −0.44% | ▼ −3.22% | $24.64 (+36.21%) |
US Market Status
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