Shares of Twin Disc, Integrated TWIN have gained 1.3% because the firm reported its earnings for the quarter ended Dec. 27, 2024. This compares with the S&P 500 index’s 0.1% progress over the identical time-frame. Over the previous month, the inventory has gained 2.5% in contrast with the S&P 500’s 5.4% progress.
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Twin Disc reported second-quarter fiscal 2025 internet revenue per share of seven cents, unchanged from the prior-year interval.
The corporate reported gross sales of $89.9 million, marking a 23.2% enhance 12 months over 12 months. Natural gross sales, which exclude the impression of acquisitions and international change, rose 10.1%.
Internet revenue attributable to the corporate remained flat at $0.9 million. EBITDA elevated 13.5% to $6.3 million, reflecting progress pushed by the corporate’s marine and industrial product segments. Nevertheless, gross revenue margins declined 420 foundation factors to 24.1% on account of stock write-downs related to the Katsa Oy acquisition and an unfavorable product combine.
Twin Disc, Integrated Value, Consensus and EPS Shock
Twin Disc, Incorporated price-consensus-eps-surprise-chart | Twin Disc, Integrated Quote
Phase Efficiency
Marine and Propulsion Methods
Gross sales within the Marine and Propulsion Methods section elevated 23.9% 12 months over 12 months to $56.7 million. The Veth product line contributed considerably to progress, benefiting from sturdy demand in North America, significantly in business and luxurious yacht purposes. Moreover, elevated authorities protection spending supported continued demand for patrol boat initiatives.
Land-Primarily based Transmissions
Revenues from land-based transmissions rose 19.8% 12 months over 12 months to $19 million. Progress on this section was pushed by robust demand for the corporate’s transmissions utilized in airport rescue and firefighting (ARFF) autos. The corporate attributed this power to elevated international airport improvement and ageing fleet replacements.
Industrial
The commercial section posted the strongest progress, with gross sales surging 44.8% 12 months over 12 months to $9.5 million. This enlargement was partly attributed to the contribution of Katsa Oy and elevated orders from the corporate’s Lufkin facility. Order momentum on this section improved sequentially, reflecting rising demand for high-content industrial merchandise utilized in agriculture, building and different purposes.
Different Merchandise
Revenues on this section decreased 1.8% 12 months over 12 months to $4.8 million.
Administration Commentary
CEO John Batten highlighted the corporate’s give attention to integrating Katsa Oy and capitalizing on cross-selling alternatives, significantly in Europe and North America. He emphasised that demand for Twin Disc’s hybrid and electrical propulsion methods stays robust, supporting the corporate’s long-term strategic goals.
CFO Jeff Knutson acknowledged near-term margin pressures, largely because of the stock rationalization tied to Katsa’s acquisition. Nevertheless, he expressed confidence within the firm’s potential to enhance operational efficiencies and scale back prices over the approaching quarters.
Backlog and Monetary Place
Twin Disc reported a six-month backlog of $124 million, down from $144.3 million within the prior quarter. The corporate attributed the decline to robust shipments slightly than weakening demand. Money ranges decreased 24.3% 12 months over 12 months to $15.9 million, whereas whole debt elevated 40.5% to $24.9 million, primarily because of the Katsa acquisition. Internet debt stood at $9 million, up $12.3 million from the prior-year interval.
Capital Allocation and Steering
Administration reiterated its dedication to sustaining a balanced method to capital allocation. Twin Disc expects to spend roughly $12 million to $14 million on capital expenditures for fiscal 2025, with elevated funding deliberate for the second half of the 12 months. Free money movement conversion stays a key focus. Nevertheless, administration acknowledged that reaching its goal of changing 60% of EBITDA into free money movement may very well be difficult given the weaker first-quarter efficiency.
Different Developments
Twin Disc continues to discover strategic acquisitions that align with its core experience in industrial and marine know-how. The mixing of Katsa Oy stays a precedence, with administration emphasizing efforts to streamline stock, align product traces, and improve operational synergies. Moreover, the corporate stays targeted on advancing its hybrid and electrical propulsion initiatives, though no new commercialized merchandise had been introduced in the course of the quarter.
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