Twin Disc Inc. (NASDAQ: TWIN) reported fourth-quarter fiscal 2026 adjusted earnings per share of $0.64, exceeding the $0.48 consensus estimate, as revenue climbed 18.3% year-over-year to $114.4 million.
Net income attributable to the company totaled $9.4 million, or $0.64 per diluted share, compared with $2.6 million, or $0.19 per share, in the same period a year earlier. EBITDA increased 35.1% to $11.1 million from $8.2 million, while gross margin narrowed by approximately 600 basis points to 26.3%. Marketing, engineering and administrative expenses fell 10% to $22.2 million.
Revenue growth was led by a 26.2% year-over-year increase in land-based transmissions to $33.0 million and a 20% rise in marine and propulsion systems to $63.6 million. Defense activity and oil and gas performance also contributed to the overall gain. The company’s six-month backlog stood at $178.3 million, roughly unchanged from $179.5 million at the end of the prior quarter.
Free cash flow for the quarter reached $17.2 million, up from $8.7 million in the year-ago period, while the company recorded a $2.5 million income tax benefit from the reversal of a domestic valuation allowance. Twin Disc’s president and CEO, John H. Batten, highlighted the quarter’s record revenue, profitability and cash generation, noting that defense remains a structural growth driver supported by demand from the U.S. Navy and NATO.
Shares were little changed in after-hours trading, rising 0.72% immediately following the release.
