XVARY Composite Score
48
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
Twin Disc makes gear that transfers engine power to boats, heavy equipment, and industrial machines.
How it gets paid
Last year Twin Disc made $341M in revenue. Marine transmissions was the main engine at $119M, or 35% of sales.
Why it's growing
Revenue grew 15.5% last year. Full-year revenue grew ~15.5%. Gross margin came in at ~27.2% — money left after production — which says something about pricing before overhead and mix.
What just happened
Twin Disc put up roughly ~$85M in quarterly revenue — not $170M for one quarter unless the filing is multi-period.
At a Glance
C++ balance sheet — some cracks in the foundation
15/100 earnings predictability — expect surprises
1.1% dividend yield — cash in your pocket every quarter
6.6% return on capital — nothing to write home about
-$0.14 fy2025 eps est
XVARY composite: 48/100 — below average
What They Do
Twin Disc makes gear that transfers engine power to boats, heavy equipment, and industrial machines.
Twin Disc wins by selling ugly, essential parts you cannot fake in the field. If your vessel or machine loses a transmission, downtime gets expensive fast. The company sells through a global network across at least 11 countries and posted ~27.2% gross margin on FY 2025, which is gross margin → money left after making the product → proof customers pay for reliability.
How They Make Money
$341M
annual revenue · their business grew +15.5% last year
Marine transmissions
$119M
Propulsion systems
$78M
Off-highway transmissions
$68M
Industrial clutches and torque converters
$44M
Controls and braking systems
$32M
The Products That Matter
Marine power systems
Marine & Defense
$170M segment · ~half of ~$341M FY
this is the center of gravity at the segment level — roughly half the company on an annual basis, not a quarterly revenue print for the whole firm.
largest segment
Energy and off-highway drivetrains
Energy & Off-Highway
$136M · about 40% of revenue
it generated $136M last year, and Q1 sales reached $80M with help from the Kobelt acquisition. you need that lift to turn into cleaner earnings, not just bigger sales.
acquisition lift
Industrial components and other
Industrial & Other
$34M · about 10% of revenue
this $34M bucket was flat. it does not drive the story, but it does show you where growth is not coming from.
flat sales
Key Numbers
$341M
annual revenue
That is the size of the business today, and it grew 15.5% vs. prior year, which is sales growth → more dollars coming in → demand was real.
7.4%
operating margin
Operating margin → what is left after running the company → Twin Disc does not have a huge cushion if costs rise.
6.6%
return on capital
Return on capital → profit from the money tied up in the business → this is decent, not elite.
$59M
long-term debt
Debt equals 22% of capital, which is debt load → fixed obligations → manageable, but not invisible for a $214M company.
Financial Health
C++
Strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 2 — safer than 80% of stocks
- price stability 15 / 100
- long-term debt $59M (22% of capital)
C++ — risk rank looks solid but balance sheet grade needs watching.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
mixed print
Twin Disc put up roughly ~$85M in quarterly revenue (~¼ of ~$341M FY) — not $170M for one quarter unless the filing is multi-period.
Full-year revenue grew ~15.5%. Gross margin came in at ~27.2% — money left after production — which says something about pricing before overhead and mix do the rest.
~$85M
revenue (q)
n/m
eps (q)
~27.2%
gross margin (FY)
the number that mattered
The ~15.5% full-year revenue move matters more than a mis-scaled “quarter” headline — scale the period before you compare vs. prior year %.
source: company earnings report, 2026
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What Could Go Wrong
The top risk is backlog that does not convert into revenue on schedule.
Med
Order conversion risk
Twin Disc ended with a $175M backlog, up 41% from last year. Then the quarter still printed $90.18M against a $99M forecast. That gap is the whole story.
If shipments slip again, the backlog stops looking like future revenue and starts looking like delayed revenue.
Med
Tariff and supply chain pressure
A ~27% gross margin business does not have much room for input cost shocks. The latest year-over-year lift was modest— watch whether it holds if mix shifts.
If costs move the wrong way, the recent margin gain disappears fast and the loss estimate for fy2025 gets harder to escape.
Med
Cyclical customer demand
The business leans on $170M of Marine & Defense revenue and $136M of Energy & Off-Highway revenue. Those are customer groups that spend in waves, not straight lines.
If customer budgets tighten, backlog growth can slow at the same time margins stay thin. That is a bad mix for a company earning just 6.6% on capital.
If backlog stalls, a ~27% gross margin business with 6.6% return on capital does not have much cushion.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Metric
Backlog versus revenue
$175M in backlog only matters if quarterly revenue stops missing expectations like the recent $90.18M print versus $99M.
Calendar
Next earnings report
The next update needs to show cleaner conversion from orders to shipments. Another miss changes the tone fast.
Trend
Gross margin direction
24.8% is better than before, but not by much. You want the 0.7-point improvement to hold, not reverse.
Risk
Acquisition quality
Kobelt helped lift Q1 sales. The question now is whether the added revenue shows up in profit and cash, not just bigger segment totals.
Analyst Rankings
earnings predictability
15 / 100
in human-speak, analysts do not trust the quarterly earnings path to be smooth.
risk rank
2
that score says balance-sheet distress is not the immediate problem. operating execution is.
price stability
15 / 100
the stock has not behaved like a sleepy industrial. if you own it, expect swings.
Source: institutional data
Institutional Activity
institutional ownership data for TWIN is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$16
Current price
Target midpoint · from current
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