The massive EPS beat versus a very low consensus suggests the Street may have underestimated margin recovery and operating leverage. Watch for upward estimate revisions and continued defense order momentum in the next quarter.
How the stock moved after the report
⚠ Clustered NEUTRAL VIEWSTOCK BELOW ENTRY AT T+1- T+0 · Nov 4 $25.50entry
- T+1 · 13h ago −9.92%α −5.51% · $22.97
- T+5 · in 5d Pending
- T+20 · in 27d Pending
- T+60 · in 3mo Pending
Price Chart
How similar events traded
Executive Summary
Twin Disc reported Q1 FY2027 revenue of $88.7M (+10.9% YoY) and GAAP EPS of $0.24, compared to consensus of $0.01 EPS and $89.6M revenue. The EPS beat was driven by strong operating income and lower interest expense, while revenue slightly missed consensus. Backlog rose to $190.6M, and free cash flow was positive at $5.6M.
Key Financial Metrics
Key Facts
- Revenue $88.7M vs consensus $89.6M (miss of ~1.0%)
- GAAP diluted EPS $0.24 vs consensus $0.01 (beat of 2300%)
- Revenue +10.9% YoY; organic sales +11.8%
- Gross margin 28.7%, consistent with prior year
- EBITDA $7.7M, +62.6% YoY
- Backlog $190.6M, up 7% from fiscal year end
- Free cash flow $5.6M; net debt reduced to $13.1M
- Defense orders accelerating from U.S. and European customers
Financial Impact
EPS of $0.24 far exceeded the $0.01 consensus; revenue of $88.7M slightly below $89.6M consensus. EBITDA rose 62.6% to $7.7M.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Marine and Propulsion Systems | $55.2M | +14.4% |
| Land-Based Transmissions | $15.0M | -14.7% |
| Industrial | $14.0M | +35.3% |
| Other | $4.6M | +19.5% |
Risk Factors
- Revenue slightly missed consensus despite double-digit growth
- Gross margin flat YoY at 28.7%, with below-average margins from Katsa and Veth
- Land-Based Transmissions revenue declined 14.7% YoY
- Foreign currency translation negatively impacted reported sales by $708K
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3395233 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 4, 2026 1d ago | 8-K | $25.50 | awaiting T+20 | awaiting T+20 | $22.97 (−9.92%) |
Nov 4, 2026 1d ago | 8-K | No price | awaiting T+20 | awaiting T+20 | No price |
Nov 4, 2026 1d ago | Press Release | $25.50 | awaiting T+20 | awaiting T+20 | $22.97 (−9.92%) |
Nov 2, 2026 3d ago | 8-K | $25.04 | awaiting T+20 | awaiting T+20 | $22.97 (−8.27%) |
Nov 2, 2026 3d ago | Press Release | $24.75 | awaiting T+20 | awaiting T+20 | $22.97 (−7.19%) |
Oct 29, 2026 7d ago | 8-K | $23.98 | awaiting T+20 | awaiting T+20 | $22.97 (−4.21%) |
Sep 14, 2026 7w ago | DEFA14A | $24.10 $26.25 | ▲ +8.92% | ▲ +6.66% | $22.97 (−4.69%) |
Aug 20, 2026 11w ago | 8-K | $24.47 $24.88 | ▲ +1.68% | ▲ +1.68% | $22.97 (−6.13%) |
Aug 20, 2026 11w ago | 8-K | No price | awaiting T+20 | awaiting T+20 | No price |
Aug 20, 2026 11w ago | Press Release | $24.47 $24.88 | ▲ +1.68% | ▲ +1.68% | $22.97 (−6.13%) |
US Market Status
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