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Shares of Twin Disc, Incorporated TWIN have gained 1.3% since the company reported its earnings for the quarter ended Dec. 27, 2024. This compares with the S&P 500 index’s 0.1% growth over the same time frame. Over the past month, the stock has gained 2.5% compared with the S&P 500’s 5.4% growth.
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Twin Disc reported second-quarter fiscal 2025 net income per share of 7 cents, unchanged from the prior-year period.
The company reported sales of $89.9 million, marking a 23.2% increase year over year. Organic sales, which exclude the impact of acquisitions and foreign exchange, rose 10.1%.
Net income attributable to the company remained flat at $0.9 million. EBITDA increased 13.5% to $6.3 million, reflecting growth driven by the company's marine and industrial product segments. However, gross profit margins declined 420 basis points to 24.1% due to inventory write-downs associated with the Katsa Oy acquisition and an unfavorable product mix.
Twin Disc, Incorporated Price, Consensus and EPS Surprise
Twin Disc, Incorporated price-consensus-eps-surprise-chart | Twin Disc, Incorporated Quote
Segment Performance
Marine and Propulsion Systems
Sales in the Marine and Propulsion Systems segment increased 23.9% year over year to $56.7 million. The Veth product line contributed significantly to growth, benefiting from robust demand in North America, particularly in commercial and luxury yacht applications. Additionally, increased government defense spending supported continued demand for patrol boat projects.
Land-Based Transmissions
Revenues from land-based transmissions rose 19.8% year over year to $19 million. Growth in this segment was driven by strong demand for the company’s transmissions used in airport rescue and firefighting (ARFF) vehicles. The company attributed this strength to increased global airport development and aging fleet replacements.
Industrial
The industrial segment posted the strongest growth, with sales surging 44.8% year over year to $9.5 million. This expansion was partly attributed to the contribution of Katsa Oy and increased orders from the company’s Lufkin facility. Order momentum in this segment improved sequentially, reflecting growing demand for high-content industrial products used in agriculture, construction and other applications.
Other Products
Revenues in this segment decreased 1.8% year over year to $4.8 million.
Management Commentary
CEO John Batten highlighted the company’s focus on integrating Katsa Oy and capitalizing on cross-selling opportunities, particularly in Europe and North America. He emphasized that demand for Twin Disc’s hybrid and electric propulsion systems remains strong, supporting the company’s long-term strategic objectives.