The massive EPS beat (178% vs consensus) and strong revenue growth will likely drive a positive open, but the lack of forward guidance and 600bps gross margin compression may cap upside. Monitor the conference call for FY2027 margin trajectory and defense pipeline updates.
Price Chart
Executive Summary
Twin Disc reported fiscal Q4 2026 revenue of $114.4M (+18.3% YoY) and diluted EPS of $0.64, significantly exceeding the single-analyst consensus estimate of $0.23. The beat was driven by strong Marine/Propulsion and Defense demand, a $2.5M income tax benefit from valuation allowance reversal, and lower expenses. Full-year sales rose 11.9% to $381.3M with net income of $27.1M vs a prior-year loss, though gross margins compressed 600bps in Q4 due to product mix and tariffs. The company did not provide quantitative forward guidance, capping the upside reaction.
Key Financial Metrics
Key Facts
- Q4 FY2026 revenue $114.4M, +18.3% YoY, vs consensus $100.3M
- Diluted EPS $0.64 vs consensus $0.23 — a 178% beat driven by a $0.17/share tax benefit and strong operations
- Full-year revenue $381.3M, +11.9% YoY; net income $27.1M vs a $(0.7M) loss in FY2025
- Q4 gross margin fell ~600bps to 26.3% due to product mix, tariffs, and a $3.0M prior-year favorable adjustment
- Six-month backlog $178.3M, roughly flat QoQ; net debt reduced to $13.8M
- New $90M credit facility with BMO and JP Morgan provides financial flexibility
- No quantitative FY2027 guidance provided; management commentary positive but non-specific
Financial Impact
Q4 EPS of $0.64 vs $0.23 consensus; revenue beat by $14.1M (14.1%). Full-year net income swing of +$27.8M YoY.
Risk Factors
- Gross margin compression from product mix and tariffs could persist
- No quantitative FY2027 guidance creates uncertainty on sustainability of earnings beat
- Backlog flat QoQ despite strong shipments — order conversion may slow
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3348309 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 6w ago | DEFA14A | $24.10 $26.25 | ▲ +8.92% | ▲ +6.66% | $25.07 (+4.02%) |
Aug 20, 2026 9w ago | 8-K | $24.47 $24.88 | ▲ +1.68% | ▲ +1.68% | $25.07 (+2.45%) |
Aug 20, 2026 9w ago | 8-K | $24.47 $24.88 | ▲ +1.68% | ▲ +1.68% | $25.07 (+2.45%) |
Aug 20, 2026 9w ago | Press Release | $24.47 $24.88 | ▲ +1.68% | ▲ +1.68% | $25.07 (+2.45%) |
Aug 7, 2026 11w ago | Press Release | $24.14 $23.85 | ▼ −1.20% | ▼ −0.80% | $25.07 (+3.85%) |
May 6, 2026 24w ago | 8-K | $18.09 $18.01 | ▼ −0.44% | ▼ −3.22% | $25.07 (+38.58%) |
May 6, 2026 24w ago | 8-K | $18.09 $18.01 | ▼ −0.44% | ▼ −3.22% | $25.07 (+38.58%) |
May 6, 2026 24w ago | Press Release | $18.09 $18.01 | ▼ −0.44% | ▼ −3.22% | $25.07 (+38.58%) |
US Market Status
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