Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. It operates through two segments, Manufacturing and Distribution. The company's products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. It also provides non-twin disc manufactured products. The company sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial, and military marine markets, as well as in the energy and natural resources, government, and industrial markets. Twin Disc, Incorporated was founded in 1918 and is headquartered in Racine, Wisconsin.
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Here are 1-3 brief analogies for Twin Disc (TWIN):
- Caterpillar for heavy-duty power transmission components.
- A specialized ZF for marine and industrial transmissions.
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- Marine Transmissions: Gearboxes that transmit power from an engine to the propeller in marine vessels.
- Marine Control Systems: Electronic systems, including joysticks and throttles, used for precise maneuvering of marine propulsion.
- Surface Drives: Advanced propulsion systems designed to enhance speed and efficiency in high-performance marine vessels.
- Power Take-Offs (PTOs): Devices that divert mechanical power from an engine to operate auxiliary equipment in industrial and off-highway applications.
- Industrial Clutches: Mechanical devices used to engage and disengage power transmission in various industrial machinery.
- Off-Highway Transmissions: Heavy-duty transmissions designed for demanding applications in construction, mining, and other off-highway vehicles.
- Torque Converters: Fluid couplings that transfer and multiply rotational power from an engine to a driven load.
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Major Customers of Twin Disc (TWIN)
Twin Disc (TWIN) primarily sells its products, which include marine transmissions, surface drives, propellers, industrial clutches, and power-shift transmissions, to other companies. This makes it a Business-to-Business (B2B) operation.
According to Twin Disc's recent annual report (10-K filing), no single customer accounted for 10% or more of its net sales during fiscal years 2023, 2022, or 2021. Therefore, Twin Disc does not publicly disclose the names of individual "major customers" as defined by SEC reporting thresholds.
While specific customer names are not disclosed due to a diversified customer base, Twin Disc's products are integral components for Original Equipment Manufacturers (OEMs) and end-users in several key industries. Their customer companies operate in the following sectors:
- Marine Industry: Customers include manufacturers of commercial vessels (e.g., fishing boats, tugboats, offshore supply vessels, ferries), governmental and defense vessels (e.g., patrol boats, military craft), and recreational yachts and pleasure craft.
- Off-Highway and Industrial Markets: These customers include companies that manufacture or utilize heavy equipment for:
- Oil & Gas: Equipment used in drilling, well servicing (e.g., fracking pumps), and production.
- Mining: Heavy machinery such as haul trucks, excavators, and other specialized mining vehicles.
- Construction: Large equipment like cranes, bulldozers, and excavators.
- Government & Defense: Various military and specialized government vehicles and equipment.
- Agriculture: Certain types of heavy-duty agricultural machinery.
- General Industrial Applications: Power generation systems, material handling equipment, and other industrial machinery.
Twin Disc also distributes its products through a global network of independent distributors, who then supply parts and systems for maintenance, repair, and overhaul (MRO) to a broad range of end-users within these industrial and marine sectors.
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John H. Batten, Chief Executive Officer
Mr. Batten was elected Chief Executive Officer of Twin Disc, Inc., effective November 1, 2013. He joined the company in 1996 as an Applications Engineer and has held various positions including Commercial Manager – Marine; Vice President and General Manager, Marine Products; Executive Vice President; and President and Chief Operations Officer. He became a director of the company in 2002. Mr. Batten earned a BA in History from Yale University and a BS in Mechanical Engineering from the University of Colorado-Boulder, and completed the Advanced Management Program of the Harvard Business School in 2004. He is also a member of the Board of Directors at Charter Manufacturing and Walker Forge. The Batten family has a historical connection to Twin Disc, with P. H. Batten, his grandfather, being a co-founder and early president of the company.
Jeffrey S. Knutson, Vice President - Finance, CFO, Treasurer and Secretary
Mr. Knutson is responsible for the financial leadership of Twin Disc, including developing financial strategy, overseeing the capital structure, financial reporting, and investor relations. He was elected Chief Financial Officer and Treasurer effective June 22, 2015, in addition to his roles as Vice President of Finance and Secretary. Mr. Knutson joined Twin Disc in February 2005 as the Controller of its North American manufacturing operation and became Corporate Controller in October 2005. Prior to joining Twin Disc, he was employed by Tower Automotive - Milwaukee Division as Controller and held various financial positions at several divisions of Invensys, Bucyrus International, and PricewaterhouseCoopers. Mr. Knutson holds a Bachelor of Business Administration degree from the University of Wisconsin - Whitewater and is a Certified Public Accountant.
Tim Batten, Executive Vice President
Mr. Batten serves as Executive Vice President at Twin Disc.
Michael B. Gee, Vice President, Corporate Engineering
Mr. Gee holds the position of Vice President, Corporate Engineering at Twin Disc.
Mark Sandercock, Vice President, Operations & Supply Chain
Mr. Sandercock is the Vice President, Operations & Supply Chain for Twin Disc.
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The accelerating global shift towards electrification and alternative propulsion systems (e.g., hybrid, hydrogen fuel cells) in the marine and off-highway industries presents a clear emerging threat. As Twin Disc's core business revolves around power transmission equipment optimized for internal combustion engines, the increasing adoption of electric motors and integrated electric drivetrains by major customers (such as shipbuilders, marine operators, and heavy equipment manufacturers) could significantly reduce demand for traditional mechanical transmissions. This trend is driven by stricter environmental regulations, demand for greater efficiency, and technological advancements. New entrants and established competitors are heavily investing in and developing integrated electric propulsion systems that may bypass or simplify the need for Twin Disc's specialized mechanical components.
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Twin Disc, Inc. (symbol: TWIN) operates in several addressable markets for its main products and services, primarily focusing on marine and heavy-duty off-highway power transmission equipment.
Main Products and Addressable Markets:
- Marine Transmissions/Gearboxes: The global marine gearbox market was valued at approximately USD 7.76 billion in 2024 and is projected to reach USD 10.88 billion by 2031, growing at a Compound Annual Growth Rate (CAGR) of 4.3% from 2024 to 2031. Another estimate for the global marine engine transmissions market placed its value at USD 3.36 billion in 2024, expected to grow to USD 5 billion by 2035 at a CAGR of 3.7%. A broader "Marine Transmission Systems" market was valued at US$34.1 billion in 2024 and is projected to reach US$37.3 billion by 2030.
- Power Take-Offs (PTOs): The global Power Takeoff (PTO) market was valued at approximately USD 1.92 billion in 2021 and is projected to reach USD 4.00 billion by 2033, growing at a CAGR of 6.324%. North America remains the largest market by value, while the Asia-Pacific region is the growth engine. Other estimates suggest a smaller market, with the global Power Take Off (PTO) market size estimated at USD 408.2 million in 2024, with Europe holding over 30% and North America over 40% of the global revenue.
- Industrial Clutches: The global industrial clutches and brakes market was valued at approximately USD 2.05 billion in 2025 and is projected to reach USD 3.46 billion by 2035, with a CAGR of 4.6%. More specifically, the global multi-disc clutches market size was valued at USD 2.1 billion in 2023 and is projected to reach USD 3.6 billion by 2032, growing at a CAGR of 5.8%. Another source indicates the global multi-disc clutch market at approximately USD 5.5 billion in 2025, with a projected CAGR of 5.8% through 2033.
- Hybrid and Electric Propulsion Systems: Twin Disc is actively focusing on hybrid and all-electric propulsion systems, a market that is expected to grow at a 12% CAGR through 2030 globally. A specific dollar value for the total addressable market size was not available in the search results.
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Expected Drivers of Future Revenue Growth for Twin Disc (TWIN)
Over the next 2-3 years, Twin Disc (TWIN) is expected to drive revenue growth through several key initiatives and market trends:
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Strategic Acquisitions and Integration: Twin Disc anticipates revenue growth from the continued integration of strategic acquisitions, such as Kobelt and Katsa. These acquisitions are broadening the company's capabilities, expanding its global reach, and enhancing its market position, particularly in hybrid and electric systems.
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Robust Demand in the Defense Sector: The company is experiencing strong and accelerating demand within its defense segment, evidenced by a significant increase in backlog and multi-year contracts related to NATO and U.S. Navy platforms. This sustained demand is expected to be a substantial contributor to future revenue.
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Growth in Marine and Propulsion Systems: Twin Disc's Marine and Propulsion Systems segment, including Veth products and solutions for the luxury yacht market, is consistently showing strong performance. Record new-unit bookings and increased demand for autonomous-vessel applications, workboats, and government programs are key drivers within this segment.
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Expansion into Hybrid and Electric Solutions: Twin Disc has articulated a strategic mission to become a leading supplier of hybrid and electric solutions across its various end markets. This focus on next-generation power transmission technologies is expected to unlock new revenue streams and market opportunities.
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Recovery and Demand for Higher-Content Solutions in the Industrial Segment: The industrial segment is showing signs of sequential recovery in demand and customer activity. Steady demand for higher-content solutions is reinforcing the product mix and contributing to sales growth in this area.
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Share Repurchases
- Twin Disc did not repurchase any shares in fiscal 2025, with 315,000 shares remaining authorized for repurchase under its existing plan.
- Treasury stock, at cost, decreased from $9,783 thousand (637,778 shares) in fiscal 2024 to $7,402 thousand (482,181 shares) in fiscal 2025.
Share Issuance
- The value of common shares on the balance sheet increased by $471 thousand from $41,798 thousand in fiscal 2024 to $42,269 thousand in fiscal 2025, while the number of issued shares remained constant.
- The value of common shares increased by $77 thousand from $41,721 thousand in fiscal 2022 to $41,798 thousand in fiscal 2023, corresponding to an increase of 62,323 shares.
Outbound Investments
- Fiscal 2025 sales growth was primarily driven by strategic acquisitions, including Kobelt and Katsa.
- The acquisition of Kobelt contributed to an increase in long-term debt by $16.4 million, bringing net debt to $29.5 million in fiscal 2025.
- Twin Disc continued its investment in India during 2023.
Capital Expenditures
- Capital expenditures for fiscal 2025 were $15.2 million, primarily invested in property, plant, and equipment to support growth and operational efficiency.
- For fiscal 2024, anticipated capital expenditures were approximately $9 million - $11 million, with a focus on modern equipment to drive efficiencies, quality improvements, and cost reductions.
- The company anticipates capital expenditures of approximately $17 million to $19 million in fiscal 2026 to support strategic acquisitions and capital investments.
