Twin Disc, Incorporated (TWIN) Stock

Twin Disc, Incorporated (TWIN) is a Industrials stock trading at $24.75 (as of 2026-09-18), with a market capitalization of $356.89M and a trailing P/E of 13.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Twin Disc, Incorporated designs, manufactures, and sells marine and heavy-duty off-highway power transmission equipment, operating through Manufacturing and Distribution segments. Its offerings include marine transmissions, azimuth and surface drives, and related components, as well as heavy-duty power-shift and related industrial drivetrain products, sold via direct sales and distributor networks to customers in marine, energy and natural resources, government, and industrial markets.

Understand Twin Disc, Incorporated: how it makes money

Twin Disc makes marine transmissions, azimuth drives, propellers, and heavy-duty power-shift transmissions sold to boat builders, defense contractors, and industrial OEMs. Marine and propulsion systems drive roughly 60% of revenue, with the remainder coming from land-based transmissions for off-road and industrial equipment.

Profit hinges on product mix: high-margin marine and defense applications must offset lower-margin industrial and non-Twin Disc distribution to squeeze a 6% operating margin out of 28% gross.

Revenue by segment (latest quarter)
Marine & Propulsion	$0.1B
Land-Based Transmissions	$0.0B
Other	$0.0B

Business quality (Mixed): Mixed: 19% revenue growth and a cheap 14x multiple are positive, but a 6% operating margin and recent gross-margin compression from tariffs keep this firmly in the cyclical-component-supplier category.

Valuation: At 14× earnings, TWIN trades 56% below the Machinery average (32×). Note: the low multiple may reflect one-time earnings items.

Bull case

Defense opens multiyear revenue stream: Management flagged defense as a growing multiyear opportunity backed by Navy and NATO demand (Q4 FY26 call), giving the stock a longer-duration growth catalyst beyond the marine cycle.
Priced at 56% below industry: Twin Disc trades at 14.1x earnings versus the Machinery sector average of 32x, leaving substantial multiple expansion room if the defense and EFRAC ramp materialize.

Bear case

Tariffs and mix squeeze margins: Product mix shifts and tariff costs compressed gross margin in the quarter, limiting near-term earnings conversion even as revenue grew 19% (Q4 FY26 call).
Cost benefits years away: Finland facility efficiencies are not expected to show up until fiscal 2028, leaving current-period costs elevated and operating margin thin in the interim.

Valuation — source: SEC EDGAR (first-party)
Price	$24.75
Market Cap	$356.89M
P/E Ratio	13.2
EV / EBITDA	11.7
Price / Book	1.62
Price / Sales	0.94
Dividend Yield	0.6%
FCF Yield	2.6%
DCF Value (model)	$9.30
DCF Upside vs Price	-62.4%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$381.27M
Net Margin	7.1%
Return on Equity	12.3%
Debt / Equity	0.14
Current Ratio	2.35
Revenue Growth (YoY)	11.9%
EPS Growth (YoY)	-1471.4%
FCF Growth (YoY)	4.1%

Financial Health — source: SEC EDGAR
Altman Z-Score	3.37 (safe)
Piotroski F-Score	5/9 (moderate)

Valuation vs Sector & Industry
Stock P/E	13.2
Sector P/E (Industrials)	26.8
Industry P/E (Machinery)	29.9
vs Sector	-50.8%
vs Industry	-55.9%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	GAMCO INVESTORS, INC. ET AL ($37.81M)
Institutional Holders Tracked	10

Company
Sector	Industrials
Industry	Machinery
CEO	John H. Batten
Employees	910
Country	US
IPO Date	1980-03-17

Twin Disc, Incorporated earnings call transcripts

TWIN Q4 FY26 earnings call transcript (reported 2026-08-20) · analysis
TWIN Q4 FY25 earnings call transcript (reported 2025-08-21) · analysis

All TWIN earnings calls

Related Companies (Machinery; 8 comparable machinery makers)

Data as of 2026-09-18.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.