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Twin Disc reports 18% Q4 revenue growth on defense demand
The company attributed a 600 basis point gross margin contraction to product mix, tariff dilution, and the lack of a prior-year one-time capitalization adjustment.
Twin Disc, Incorporated reported record fourth-quarter revenue that rose 18% year over year, driven primarily by demand in defense and land-based transmission markets, according to the companys Q4 2026 earnings call summary.
Defense activity is emerging as a structural growth driver, with the U.S. Navy and NATO increasing demand for unmanned vessel transmissions and military vehicle components, the summary said.
Twin Disc said it is prioritizing e-frac opportunities in the oil and gas segment to shift the portfolio toward a higher-margin profile, while gross margin fell 600 basis points due to unfavorable product mix, tariff dilution, and the absence of a prior-year one-time capitalization adjustment.
On execution, the company focused on reducing past-due backlog and maintained a stable six-month backlog of $178.3 million despite high shipment volumes. It also projected fiscal 2027 capital expenditures exceeding $20 million for a new Finland facility and machine tool upgrades in Racine, with the Finland assembly and test facility expected to be fully operational by fiscal 2028, supporting a step change in output capacity.