Twin Disc Inc. Powers Through Q1 2027 with Strong Revenue Growth and Defense Momentum
Twin Disc Inc., a leading manufacturer of transmissions and power transmission equipment, has reported impressive first-quarter 2027 results, driven by strong revenue growth across its end markets and significant momentum in the defense sector.
The company's fiscal Q1 2027 revenue reached $88.7 million, a 10.9% increase over the same period last year, with net income of $3.5 million, a 63% year-over-year surge in EBITDA, and free cash flow of $5.6 million.
Defense continues to be a key growth driver for Twin Disc, supported by growing demand from the U.S. Navy and NATO customers. The company's subsidiary in Finland, Katsa, booked significant defense orders in the first quarter, while U.S. Navy orders related to their initial unmanned vessel program have begun to reach the order book.
Chief Executive Officer John Batten highlighted the importance of the defense sector, stating, "Defense remains one of our most important long-term growth opportunities...and today we serve two main groups of customers. In the U.S., we supply transmissions to shipbuilders for the U.S. Navy's unmanned and autonomous vessel programs, and in Europe, our Finnish subsidiary, Katsa, provides driveline components for military vehicles to NATO customers."
As of the end of Q1 2027, defense accounted for approximately 24% of total backlog, a significant increase from approximately 17% at year-end. The company's marine and propulsion systems segment also reported strong sales growth, rising 14% from a year ago.
Twin Disc's CEO emphasized the importance of maintaining a strong backlog level, stating, "We expect to maintain a strong backlog level as we continue to see strong interest and sales momentum, supporting a robust project pipeline."
The company has also demonstrated confidence in its business through increased capital expenditures to support growth and a 25% increase in quarterly cash dividend to $0.05 per share.
Twin Disc's Q1 2027 results demonstrate the company's ability to power through challenging market conditions, driven by strong demand from key sectors such as defense and marine and propulsion systems."
