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Twin Disc(TWIN) - 2025 Q3 - Quarterly Results
TWINTwin Disc(TWIN)2025-05-07 12:30

Financial Performance - Sales for the fiscal 2025 third quarter increased 9.5% year-over-year to 81.2million,drivenbytheadditionofKatsaOyandKobelt,alongwithstrengthintheMarineandPropulsionSystemsandIndustrialproductsegments[5].−Grossprofitincreased3.881.2 million, driven by the addition of Katsa Oy and Kobelt, along with strength in the Marine and Propulsion Systems and Industrial product segments [5]. - Gross profit increased 3.8% to 21.7 million, while gross margin decreased approximately 150 basis points to 26.7% due to an unfavorable product mix [7]. - Net loss attributable to Twin Disc was (1.5)million,or(1.5) million, or (0.11) per diluted share, compared to net income of 3.8million,or3.8 million, or 0.27 per diluted share, for the same quarter last year [10]. - EBITDA for the third quarter was 4.0million,down42.74.0 million, down 42.7% compared to the third quarter of fiscal 2024 [10]. - Organic net sales for the quarter ended March 28, 2025, were 75,430 thousand, a slight increase from 74,161thousandinthesamequarterof2024[26].OrderBacklogandMarketActivity−Thesix−monthbacklogofordersincreasedtoapproximately74,161 thousand in the same quarter of 2024 [26]. Order Backlog and Market Activity - The six-month backlog of orders increased to approximately 133.7 million, compared to 124.0millionattheendofthesecondquarter[11].−Thecompanyreportedahealthysix−monthbacklogsupportedbystrongongoingorderactivityacrosskeymarkets[9].−StrongorderactivityforVethcontinuestobedrivenbydemandintheluxuryyachtandriverboatvessels[3].ExpensesandCashFlow−Marketing,engineering,andadministrativeexpensesincreasedby124.0 million at the end of the second quarter [11]. - The company reported a healthy six-month backlog supported by strong ongoing order activity across key markets [9]. - Strong order activity for Veth continues to be driven by demand in the luxury yacht and riverboat vessels [3]. Expenses and Cash Flow - Marketing, engineering, and administrative expenses increased by 2.3 million, or 13.2%, to 19.4million,primarilyduetotheadditionofKatsaandKobelt[8].−CashprovidedbyoperatingactivitiesforthethreequartersendedMarch28,2025,was19.4 million, primarily due to the addition of Katsa and Kobelt [8]. - Cash provided by operating activities for the three quarters ended March 28, 2025, was 7,531 thousand, down from 22,273thousandforthesameperiodin2024[30].−Thecompanyincurreddepreciationandamortizationexpensesof22,273 thousand for the same period in 2024 [30]. - The company incurred depreciation and amortization expenses of 10,194 thousand for the three quarters ended March 28, 2025, compared to 7,497thousandforthesameperiodin2024[30].−Cashattheendoftheperiodwas7,497 thousand for the same period in 2024 [30]. - Cash at the end of the period was 16,245 thousand, down from 20,070thousandatthebeginningoftheperiod[30].DebtandLiabilities−Cashdecreased19.120,070 thousand at the beginning of the period [30]. Debt and Liabilities - Cash decreased 19.1% to 16.2 million, while total debt increased 139.3% to 40.8million,primarilyduetohigherlong−termdebtrelatedtoacquisitions[11].−Totaldebtincreasedto40.8 million, primarily due to higher long-term debt related to acquisitions [11]. - Total debt increased to 40,774 thousand as of March 28, 2025, from 17,042thousandasofMarch29,2024[24].−Totalliabilitiesincreasedto17,042 thousand as of March 29, 2024 [24]. - Total liabilities increased to 182,693 thousand as of March 28, 2025, from 157,004thousandasofJune30,2024[28].AcquisitionsandStrategicFocus−Thecompanyremainsfocusedonintegratingrecentacquisitionsandadvancingitsstrategicprioritiesinhybridandelectricmarinesolutions[4].−ThecompanyacquiredKobelt,resultinginaninvestmentof157,004 thousand as of June 30, 2024 [28]. Acquisitions and Strategic Focus - The company remains focused on integrating recent acquisitions and advancing its strategic priorities in hybrid and electric marine solutions [4]. - The company acquired Kobelt, resulting in an investment of 16,346 thousand during the three quarters ended March 28, 2025 [30]. Inventory and Write-downs - The company reported a loss on the write-down of industrial product inventory amounting to $1,579 thousand for the three quarters ended March 28, 2025 [30].