Twin Disc Q2 sales rise on defense demand

Reuters02-04
Twin Disc <a href="https://laohu8.com/S/QTWO">Q2</a> sales rise on defense demand 

Overview

  • Power transmission equipment maker's fiscal Q2 sales rose 0.3% yr/yr

  • Net income for fiscal Q2 rose significantly due to a tax benefit

  • Company reported a gross margin expansion of 70 basis points

Outlook

  • Twin Disc reports a six-month backlog of $175.3 mln, indicating strong ongoing demand

  • Company expects to convert backlog into shipments as timing normalizes

  • Twin Disc remains focused on execution and performance improvements

Result Drivers

  • DEFENSE DEMAND - Strong demand in defense-related programs, including Katsa product lines, contributed to order growth

  • TARIFF IMPACT - Tariff-related impacts affected shipment timing and product mix, leading to delayed shipments

  • BACKLOG SUPPORT - Record backlog of $175.3 mln supported by ongoing demand, providing confidence for future growth

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

Miss

$90.20 mln

$92.10 mln (1 Analyst)

Q2 EPS

$1.55

Q2 Net Income

$22.40 mln

Q2 Gross Margin

24.80%

Q2 EBITDA

$4.70 mln

Q2 Operating Cash Flow

$4.60 mln

Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Twin Disc Inc is $24.00, about 26.4% above its February 3 closing price of $18.98

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX5VcL19

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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