Twin Disc, a Milwaukee‑based power transmission maker, said its fiscal 2026 results set new company records. Revenue reached $381 million, while earnings before interest and taxes rose to roughly $30 million, a near‑50% year‑over‑year increase. The company posted earnings per share of $1.86, helped by a full reversal of a prior tax provision, and generated $92 million of free cash flow, including $17 million in the fourth quarter.
The firm’s gross margin stayed in the 27%‑28% range and the quarterly cash dividend was lifted 25% to $0.05 per share. Twin Disc’s credit facility, backed by BMO and JPMorgan, still provides about $60 million of available capacity.
Defense contracts were a key growth driver. Orders tied to the sector represent roughly 17% of the $178 million backlog, which grew more than 50% year‑over‑year and now reflects a six‑month backlog with an annualized run rate near $360 million. An additional $30 million‑$50 million of projects is already in the pipeline. CFO Jeff Knutson described the defense market as a “once‑in‑a‑generation or every‑two‑generations event” and positioned Twin Disc as the go‑to specialist for hybrid and electric marine propulsion.
Twin Disc’s acquisition strategy continues to shape its portfolio. The Dutch azimuth‑thruster maker Veth, bought for about $60 million before the COVID pandemic, grew its revenue from roughly $55 million at acquisition to about $100 million. Earlier acquisitions of Finland’s Katsa and Vancouver‑based Kobelt have broadened the company’s product range. Management indicated the balance sheet can support another deal in the $40 million‑$60 million range.
Looking ahead, Twin Disc targets $500 million in revenue and a 30% gross margin by 2030, with a 60% conversion rate from EBITDA to free cash flow. The company’s business mix remains heavily weighted toward marine propulsion, which accounts for about 60% of total sales, while hydraulic fracturing transmissions hold a 30% market share against rivals such as Allison and Caterpillar. In the airport rescue and firefighting segment, Twin Disc serves 80%‑90% of the market outside Oshkosh, primarily through partners Rosenbauer and NAFFCO.
Twin Disc operates manufacturing facilities in Wisconsin, Texas, Vancouver, Finland, Belgium, the Netherlands, Italy and Switzerland, with distribution offices in Singapore, New Zealand and Australia and a sales office in China.
