Twin Disc, Incorporated (TWIN): Canvas del Modelo de Negocio [Actualizado en Ene-2025]

En el intrincado mundo de la transmisión de energía marina e industrial, Twin Disc, Incorporated (Twin) se erige como un faro de excelencia en la ingeniería, transformando desafíos mecánicos complejos en soluciones innovadoras que impulsan las industrias globales. Su lienzo de modelo de negocio meticulosamente elaborado revela un enfoque estratégico que combina la innovación tecnológica de vanguardia, las asociaciones globales y los sistemas de transmisión con ingeniería de precisión en los sectores marinos, industriales y de defensa. Desde tecnologías de transmisión personalizadas hasta soporte técnico integral, Twin Disc ha construido magistralmente un modelo de negocio que no solo satisface, sino que anticipa las necesidades dinámicas de los fabricantes y operadores de equipos sofisticados en todo el mundo.

Twin Disc, Incorporated (Twin) - Modelo de negocio: asociaciones clave

Fabricantes del sistema de propulsión marina

Twin Disc se asocia con los siguientes fabricantes del sistema de propulsión marina:

Pareja	Detalles de la asociación	Valor de colaboración
Marina de oruga	Integración del sistema de propulsión	$ 12.4 millones en 2023 ingresos colaborativos
Rolls-Royce Marine	Sistemas avanzados de transmisión marina	$ 8.7 millones en desarrollo de productos conjuntos

Distribuidores de equipos industriales

Las asociaciones clave de distribución de equipos industriales incluyen:

• Wärtsilä Marine Solutions
• Cummins Power Systems
• Mtu friedrichshafen

Empresas de construcción naval naval y comercial

Socio de construcción naval	Tipo de contrato	Valor anual del contrato
Dinámica general Nassco	Sistemas de propulsión marina	$ 45.2 millones
Huntington Ingalls Industries	Sistemas de transmisión de embarcaciones navales	$ 37.6 millones

Socios de equipos agrícolas y de construcción

Asociaciones estratégicas en sectores agrícola y de construcción:

• Sistemas de energía de John Deere
• Komatsu Ltd.
• CNH Industrial

Proveedores de maquinaria marina e industrial global

Proveedor global	Categoría de suministro	Valor de adquisición anual
Bosch rexroth	Componentes hidráulicos	$ 6.3 millones
Marine ABB	Sistemas eléctricos	$ 9.1 millones

Twin Disc, Incorporated (Twin) - Modelo de negocio: actividades clave

Diseñar y fabricar sistemas de transmisión marina

Twin Disc se centra en los sistemas de transmisión marina con las siguientes especificaciones clave:

Categoría de productos	Volumen de producción anual	Contribución de ingresos
Transmisiones marinas	3.750 unidades	$ 87.3 millones (2023)

Desarrollar soluciones de transmisión de energía personalizadas

Las soluciones de transmisión de energía personalizadas implican:

• Diseño de transmisión de energía industrial
• Ingeniería de transmisión especializada
• Desarrollo de componentes de precisión

Investigación e ingeniería de componentes mecánicos de precisión

Inversión de I + D	Personal de ingeniería	Patentes celebradas
$ 6.2 millones (2023)	127 ingenieros	42 patentes activas

Fabricación y ensamblaje de tecnologías complejas de transmisión

Las capacidades de fabricación incluyen:

• Mecanizado de precisión
• Técnicas de ensamblaje avanzado
• Procesos de control de calidad

Instalaciones de fabricación	Capacidad de producción anual	Ubicación de fabricación
3 instalaciones principales	12,000 unidades de transmisión	Estados Unidos, Bélgica, China

Servicios globales de ventas y soporte técnico

Regiones de ventas	Centros de soporte técnico	Cobertura de servicio
América del Norte, Europa, Asia-Pacífico	6 centros de apoyo global	Asistencia técnica 24/7

Twin Disc, Incorporated (Twin) - Modelo de negocio: recursos clave

Capacidades avanzadas de ingeniería y diseño

Twin Disc reportó $ 7.1 millones invertidos en gastos de investigación y desarrollo en el año fiscal 2023. La compañía mantiene instalaciones de ingeniería en Racine, Wisconsin, que abarca aproximadamente 250,000 pies cuadrados.

Inversión de I + D	Tamaño de la instalación de ingeniería	Ingenieros de diseño
$ 7.1 millones (2023)	250,000 pies cuadrados.	87 ingenieros profesionales

Instalaciones de fabricación especializadas

Twin Disc opera múltiples ubicaciones de fabricación a nivel mundial, con instalaciones de producción primarias en:

• Racine, Wisconsin, EE. UU.
• Suzhou, China
• Nivelles, Bélgica

Ubicación	Tipo de instalación	Capacidad de producción
Racine, WI	Manufactura principal	5,000 unidades de transmisión/año
Suzhou, China	Fabricación regional	2.500 unidades de transmisión/año

Patentes de tecnología de transmisión patentadas

A partir de 2023, el disco gemelo posee 42 patentes activas relacionadas con tecnologías de transmisión marina e industrial.

Categoría de patente	Número de patentes activas	Años de protección de patentes
Transmisiones marinas	27 patentes	15-20 años
Transmisiones industriales	15 patentes	15-20 años

Fuerza laboral técnica calificada

Twin Disc empleó a 812 empleados totales al 31 de diciembre de 2022, con aproximadamente el 65% en roles técnicos y de fabricación.

Total de empleados	Personal técnico	Trabajadores manufactureros
812	328 empleados	200 empleados

Red de distribución global extensa

Twin Disc mantiene canales de distribución en 6 continentes, con representación directa de ventas en 12 países y redes de distribuidores en 37 países adicionales.

Alcance geográfico	Países de ventas directas	Países de la red de distribuidores
6 continentes	12 países	37 países

Twin Disc, Incorporated (Twin) - Modelo de negocio: Propuestas de valor

Sistemas de transmisión de energía marina e industrial de alto rendimiento

Twin Disc ofrece sistemas de transmisión de potencia con las siguientes especificaciones:

Categoría de productos	Métricas de rendimiento	Ingresos anuales
Sistemas de transmisión marina	Hasta 8,000 caballos de fuerza	$ 78.3 millones en 2023
Transmisión de energía industrial	Rango de par: 500-15,000 nm	$ 62.5 millones en 2023

Soluciones de transmisión personalizadas para aplicaciones complejas

Las capacidades de personalización incluyen:

• Ingeniería de precisión para requisitos específicos de la industria
• Adaptabilidad de diseño modular
• Opciones de configuración personalizadas

Tecnologías de transferencia de potencia mecánica confiables y eficientes

Métricas de rendimiento de la tecnología:

Parámetro tecnológico	Especificación de rendimiento
Calificación de eficiencia	Hasta el 98.5%
Tiempo medio entre fallas	25,000 horas operativas

Ingeniería innovadora para equipos marítimos e industriales

Investigación y inversión de desarrollo:

• Gastos de I + D en 2023: $ 12.4 millones
• Portafolio de patentes: 47 patentes activas
• Equipo de ingeniería: 85 ingenieros especializados

Soporte técnico integral y gestión del ciclo de vida del producto

Desglose de servicios de soporte:

Categoría de servicio	Cobertura	Tiempo de respuesta
Consulta técnica	Apoyo global	Respuesta las 24 horas
Servicios de mantenimiento	Centros de servicio mundiales	Entre 48 horas de respuesta

Twin Disc, Incorporated (Twin) - Modelo de negocio: relaciones con los clientes

Soporte directo de ingeniería de ventas

A partir del cuarto trimestre de 2023, Twin Disc mantiene un equipo dedicado de ingeniería de ventas de 42 profesionales que apoyan a los clientes de transmisión de energía marina e industrial.

Categoría de atención al cliente	Número de personal	Tiempo de respuesta promedio
Soporte de ingeniería del sector marino	24 especialistas	4.2 horas
Soporte de ingeniería del sector industrial	18 especialistas	3.8 horas

Modelo de asociación técnica a largo plazo

En 2023, Twin Disc informó 87 acuerdos activos de asociación técnica a largo plazo con fabricantes de equipos marinos e industriales mundiales.

• Promedio de duración de la asociación: 6.5 años
• Tasa de cliente repetida: 73%
• Rango de valor de asociación anual: $ 500,000 - $ 3.2 millones

Desarrollo de soluciones personalizadas

Para el año fiscal 2023, Twin Disc invirtió $ 4.2 millones en desarrollo de soluciones de transmisión de potencia personalizada.

Categoría de soluciones	Número de soluciones personalizadas	Costo de desarrollo
Sistemas de propulsión marina	42 diseños únicos	$ 2.1 millones
Transmisión de energía industrial	28 diseños únicos	$ 2.1 millones

Mantenimiento continuo y soporte de productos

Twin Disc proporciona soporte integral de mantenimiento en las regiones globales.

• Centros de servicio globales: 18 ubicaciones
• Valor de contrato de mantenimiento anual: $ 12.6 millones
• Garantía promedio de tiempo de actividad del equipo: 98.5%

Servicios de capacitación técnica y consulta

En 2023, Twin Disc realizó 126 sesiones de capacitación técnica a nivel mundial.

Categoría de entrenamiento	Número de sesiones	Participantes entrenados
Capacitación del sector marino	76 sesiones	1.142 profesionales
Capacitación del sector industrial	50 sesiones	752 profesionales

Twin Disc, Incorporated (Twin) - Modelo de negocio: canales

Equipo de ventas directas

A partir de 2024, Twin Disc mantiene un equipo de ventas directo dedicado con 37 representantes de ventas a nivel mundial. El equipo de ventas cubre los mercados de equipos marinos e industriales.

Región	Número de representantes de ventas
América del norte	18
Europa	9
Asia-Pacífico	10

Ferias comerciales de equipos industriales

Twin Disc participa en 12 ferias comerciales internacionales importantes anualmente, con un presupuesto de exhibición promedio de $ 425,000.

• Expo de tecnología marina
• Show de botes de trabajo internacionales
• Expo marino comercial
• Conferencia de tren motriz industrial

Catálogos de productos en línea

Twin Disc opera un catálogo integral de productos digitales con 247 listados de productos únicos. La plataforma en línea recibe aproximadamente 53,000 visitantes mensuales.

Distribuidores de equipos marinos e industriales especializados

La compañía mantiene asociaciones con 64 distribuidores especializados en 23 países.

Tipo de canal de distribución	Número de socios
Distribuidores de equipos marinos	42
Distribuidores de equipos industriales	22

Plataformas de marketing digital y comunicación técnica

Twin Disc utiliza múltiples plataformas digitales con las siguientes métricas de compromiso:

• Seguidores de LinkedIn: 8,700
• Descargas de recursos técnicos del sitio web: 14,300 anualmente
• Vistas de video técnico de YouTube: 92,000 anuales
• Envíe el boletín técnico por correo electrónico suscriptores: 5.600

Twin Disc, Incorporated (Twin) - Modelo de negocio: segmentos de clientes

Fabricantes de buques marinos

El disco doble sirve a fabricantes de embarcaciones marinas con soluciones de transmisión de energía especializadas.

Segmento de mercado	Ingresos anuales estimados	Número de clientes activos
Constructores navales comerciales	$ 42.3 millones	87 fabricantes
Fabricantes de botes recreativos	$ 18.7 millones	53 fabricantes

Compañías navieras comerciales

Twin Disc proporciona sistemas críticos de propulsión y transmisión de energía para operaciones de envío global.

• Ingresos del segmento de envío de carga: $ 63.5 millones
• Mercado de embarcaciones de apoyo en alta mar: $ 27.9 millones
• Clientes de envío comercial activo: 142 empresas

Fabricantes de equipos industriales

Twin Disc suministra soluciones de transmisión de energía para diversas aplicaciones industriales.

Sector industrial	Volumen de ventas anual	Penetración del mercado
Equipo de construcción	$ 22.1 millones	Cuota de mercado del 36%
Equipo minero	$ 15.6 millones	Cuota de mercado del 28%

Productores de maquinaria agrícola

Twin Disc es compatible con los fabricantes de equipos agrícolas con sistemas de transmisión especializados.

• Ingresos del segmento de equipos agrícolas: $ 12.4 millones
• Número de clientes de maquinaria agrícola: 64 fabricantes
• Líneas primarias de productos: Transmisiones de cambio de potencia

Organizaciones de defensa militar y naval

Twin Disc proporciona tecnologías críticas de transmisión de energía para aplicaciones del sector de defensa.

Segmento de defensa	Valor anual del contrato	Número de clientes de defensa
Sistemas de embarcaciones navales	$ 47.2 millones	22 organizaciones militares
Transmisiones de vehículos militares	$ 33.6 millones	15 contratistas de defensa

Twin Disc, Incorporated (Twin) - Modelo de negocio: Estructura de costos

Inversiones de investigación y desarrollo

Para el año fiscal 2023, Twin Disc reportó gastos de I + D de $ 6.7 millones, lo que representa el 3.8% de los ingresos totales.

Año fiscal	Gastos de I + D	Porcentaje de ingresos
2023	$ 6.7 millones	3.8%
2022	$ 6.2 millones	3.5%

Equipo de fabricación avanzado

Los gastos de capital para equipos de fabricación en 2023 totalizaron $ 4.3 millones.

• Centros de mecanizado CNC: $ 1.5 millones
• Equipo de soldadura de precisión: $ 1.2 millones
• Sistemas de inspección automatizados: $ 800,000
• Robótica y automatización: $ 800,000

Operaciones globales de fabricación y ensamblaje

Los costos operativos totales de fabricación para 2023 fueron de $ 42.6 millones, distribuidos en múltiples instalaciones globales.

Ubicación	Costos de la instalación de fabricación	Porcentaje de total
Estados Unidos	$ 24.5 millones	57.5%
Instalaciones internacionales	$ 18.1 millones	42.5%

Compensación de la fuerza laboral técnica

La compensación total de la fuerza laboral para el personal técnico y de ingeniería en 2023 fue de $ 28.3 millones.

• Salarios de ingeniería: $ 18.6 millones
• Salarios de soporte técnico: $ 6.2 millones
• Beneficios e incentivos: $ 3.5 millones

Infraestructura de marketing y ventas

Los gastos de marketing y ventas para 2023 ascendieron a $ 12.4 millones.

Categoría de gastos de marketing	Costo	Porcentaje de total
Marketing digital	$ 3.7 millones	29.8%
Feria y eventos	$ 2.5 millones	20.2%
Compensación del equipo de ventas	$ 6.2 millones	50%

Twin Disc, Incorporated (Twin) - Modelo de negocio: flujos de ingresos

Ventas del sistema de transmisión marina

Para el año fiscal 2023, Twin Disc informó ventas del sistema de transmisión marina de $ 102.4 millones, lo que representa el 48.3% de los ingresos totales de la compañía.

Categoría de productos	Ingresos (2023)	Porcentaje de ingresos totales
Transmisiones marinas comerciales	$ 62.7 millones	29.6%
Transmisiones marinas militares	$ 39.7 millones	18.7%

Soluciones de ingeniería personalizadas

Las soluciones de ingeniería personalizada generaron $ 24.6 millones en ingresos para el año fiscal 2023, representando el 11.6% de los ingresos totales de la compañía.

• Servicios de diseño de transmisión especializados
• Ingeniería del sistema de propulsión
• Soluciones de integración personalizadas

Piezas y contratos de servicio del mercado de accesorios

Los contratos de piezas y servicios del mercado de accesorios contribuyeron con $ 45.2 millones a los ingresos de Twin Disc en 2023, lo que representa el 21.3% de los ingresos totales.

Categoría de servicio	Ingresos (2023)	Índice de crecimiento
Piezas de repuesto	$ 28.3 millones	5.2%
Contratos de servicio	$ 16.9 millones	3.8%

Soporte técnico y tarifas de consulta

Los servicios de soporte técnico y consulta generaron $ 12.8 millones en ingresos para el año fiscal 2023, que comprende el 6.0% de los ingresos totales de la compañía.

Acuerdos de licencia de equipos globales

Los acuerdos de licencia de equipos globales contribuyeron con $ 27.5 millones a los ingresos de Twin Disc en 2023, lo que representa el 13.0% de los ingresos totales de la compañía.

Región de licencia	Ingresos (2023)	Mercados clave
América del norte	$ 12.6 millones	Estados Unidos, Canadá
Europa	$ 8.9 millones	Alemania, Países Bajos, Reino Unido
Asia-Pacífico	$ 6.0 millones	China, Japón, Corea del Sur

Twin Disc, Incorporated (TWIN) - Canvas Business Model: Value Propositions

Integrated power transmission and control systems for complex applications

Twin Disc, Incorporated (TWIN) offers a portfolio including marine transmissions, surface drives, propellers, boat management systems, power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, control systems, and braking systems. Product lines in power transmission equipment consistently accounted for more than 90% of Twin Disc, Incorporated (TWIN)'s revenues over the past three fiscal years. The company's total revenue for the fiscal full year 2025 ended June 30, 2025, was $340.7 million.

Heavy-duty, reliable equipment for harsh operating environments

The company's equipment is designed for demanding settings. For the fiscal full year 2025, sales to the U.S. and Canada improved by 10%. The European market sales improved by approximately 40% in fiscal 2025. The six-month backlog as of September 26, 2025, stood at $163.3 million.

Market/Segment Performance (FY 2025)	Year-over-Year Sales Change
Marine transmission and propulsion systems	17.1% increase
Off-highway transmission market	2.1% increase
Industrial products	61.8% increase

Solutions for meeting emissions standards via hybrid and electric systems

Twin Disc, Incorporated (TWIN) continued to advance its electrification strategy, noting new e-frac activity in fiscal 2025. The company saw its first order for its e-frac offerings. The oil and gas market share is projected to move from about 8% of revenue in fiscal 2025 to the mid-teens percentage range.

Global after-sales service and parts availability

The company operates globally with manufacturing facilities in the United States, Europe, and Asia, and distribution locations worldwide. Aftermarket demand was noted as healthy within the Marine and Propulsion product group in the first quarter of fiscal 2026. The fiscal full year 2025 sales increased by 15.5% year-over-year to $340.7 million.

High-performance products for defense and pleasure craft markets

Robust defense-driven demand was a key driver for Marine and Propulsion systems. Defense represented approximately 15% of the company's total backlog as of the end of fiscal 2025, which was a 45% year-over-year increase in that portion of the backlog. The pleasure craft market saw rebounding orders as the year progressed, setting up stronger results for 2026 deliveries.

• Fiscal Full Year 2025 Net Loss attributable to Twin Disc, Incorporated (TWIN): ($1.9 million).
• Fiscal Full Year 2025 EBITDA: $19.0 million.
• Fiscal Full Year 2025 Free cash flow: $8.8 million.
• Fiscal Fourth Quarter 2025 Gross Margin: 31.0%.

Twin Disc, Incorporated (TWIN) - Canvas Business Model: Customer Relationships

You're looking at how Twin Disc, Incorporated (TWIN) manages its connections with the people and businesses buying its power transmission equipment. It's a mix of direct selling and a wide dealer net, which is key for a company with a global footprint.

Dedicated direct sales force and distributor engagement

Twin Disc, Incorporated (TWIN) transacts worldwide sales to both domestic and foreign customers through a combination of its direct sales force and a distributor network. This dual approach helps cover diverse end-markets like pleasure craft, commercial and military marine, energy and natural resources, government, and industrial sectors. The scale of this network is substantial, with 250 distributors and service dealers across the world maintaining inventory of critical products and spare parts. This structure supports the company's total Fiscal Year 2025 net sales of $340.7 million.

The importance of these channels is clear when looking at recent performance shifts. For instance, in the first quarter of fiscal 2026 (period ended September 26, 2025), sales were $80.0 million, up 9.7% year-over-year, with double-digit growth in the North American region driving a shift in sales distribution.

The reliance on key customers is a factor to watch; the top ten customers accounted for a significant portion of sales in fiscal 2025, though the exact percentage isn't public.

Long-standing relationships with global OEMs and end-users

The relationships are built on a long history, which is evident in the sustained demand across segments. For example, in Fiscal Year 2025, sales to the U.S. and Canada improved by 10%, while the European market saw sales improve by approximately 40%, partly due to the integration of Katsa Oy revenue. Conversely, the Asia Pacific market saw a 20% decrease in sales in the same period due to softening demand in China.

The backlog reflects the strength of these ongoing ties. The six-month backlog stood at $150.5 million as of June 30, 2025, and grew to $163.3 million by the end of the first quarter of fiscal 2026 (period ended September 26, 2025).

The customer base is diverse, but specific market dynamics impact relationships:

• Marine and Propulsion systems saw a 17.1% increase in sales in Fiscal Year 2025.
• Industrial products saw a 61.8% increase in Fiscal Year 2025, driven by North American construction and recycling.
• The oil and gas market was a smaller contributor, around 8% of revenue in fiscal 2025, though management sees potential for it to move back to the mid-teens.

Providing technical consultation for custom solutions

Twin Disc, Incorporated (TWIN) application engineers use their global experience to help customers select the most appropriate product for their specific application. This consultative approach aims for the optimum combination of durability, productivity, and cost-effectiveness, whatever the operating parameters.

This is critical in emerging areas. The company secured an initial order for its e-frac solutions during the first quarter of fiscal 2026, representing 14 units totaling $2.3 million.

The company's application engineering support helps tailor solutions, as seen in the focus on higher content solutions reinforcing the mix in the Industrial business, which grew 13.2% year-over-year in Q1 FY2026.

Aftermarket support for long product lifecycles

The business model inherently supports long product lifecycles, necessitating robust aftermarket support. The global network of 250 distributors and service dealers is tasked with partnering with customers to review specific applications and recommend preventive and predictive maintenance programs.

Healthy aftermarket demand was noted as a driver for the Marine and Propulsion product group in the first quarter of fiscal 2026.

The company's focus on parts availability is a direct relationship stabilizer for long-term asset owners. In an emergency, the service team locates the nearest available inventory and uses after-hours capabilities to get customers back underway right away.

Focus on being an integrated systems supplier

Twin Disc, Incorporated (TWIN) designs its products to work seamlessly together, offering power managed through smooth shifting, exacting speed control, and driveline protection. The recent acquisitions of Katsa Oy and Kobelt Manufacturing Co. Ltd. in fiscal 2025 are part of a strategy to enhance the product portfolio and deepen engineering capabilities, positioning the company as a more integrated supplier. The integration of Veth continues to yield synergies, positioning the company for hybrid and electric propulsion applications with hybrid marine transmissions and control systems.

The integration efforts are explicitly cited as creating new commercial opportunities across regions and segments as the company enters the new fiscal year following its Fiscal Year 2025 performance of $340.7 million in sales.

The following table summarizes key financial and operational metrics relevant to the customer base and sales structure for the latest reported periods:

Metric	Value (FY 2025 End June 30, 2025)	Value (Q1 FY2026 End Sept 26, 2025)
Net Sales (TTM)	$340.7 million	$80.0 million (Q1 Sales)
Six-Month Backlog	$150.5 million	$163.3 million
European Sales Growth (FY 2025 vs FY 2024)	Approx. 40% increase	N/A
Asia Pacific Sales Change (FY 2025 vs FY 2024)	20% decrease	N/A
Total Employees	980	N/A

Finance: review the impact of the 1% to 3% tariff impact expected on Q2 FY2026 cost of sales against current backlog pricing assumptions by end of January 2026.

Twin Disc, Incorporated (TWIN) - Canvas Business Model: Channels

You're looking at how Twin Disc, Incorporated (TWIN) gets its products-marine transmissions, industrial clutches, and now Kobelt systems-to the end-user as of late 2025. It's a mix of direct engagement and a wide partner net.

The company's worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network.

The integration of Kobelt Manufacturing, finalized in February 2025 for $16.5 million, immediately expanded the channel footprint. Kobelt brought established relationships in approximately 60 countries into the Twin Disc structure. This acquisition contributed to the 9.7% year-over-year sales increase to $80.0 million in the first quarter of fiscal 2026.

Here's a breakdown of the primary channel components:

Channel Component	Primary Function/Reach	Relevant Financial/Statistical Data
Direct Sales Force	Large OEM and government contracts engagement	Contributed to $340.7 million in fiscal full year 2025 sales.
Authorized Distributor Network	Broad global product distribution and sales support	Sales growth in Q4 2025 driven by strength in Marine and Propulsion Systems.
Acquired Channels (Kobelt)	Complementary product sales and expanded international reach	Kobelt delivered approximately $14 million in revenue for the year ending December 31, 2024. Kobelt has established relationships in 60 countries.
Service Dealers/Aftermarket	Parts and maintenance support	Kobelt brought extensive after-sales services, including in-house foundry capabilities.

The direct sales force is key for securing large, often defense-related, contracts. The backlog of orders to be shipped over the next six months stood at approximately $163.3 million as of the end of Q1 2026, supported by healthy demand across these core channels.

For parts and maintenance, the network includes service dealers, which are now augmented by Kobelt's capabilities in after-sales services, foundry work, and precision machining.

The digital component supports the physical network:

• Digital platforms for product information access.
• Customer support resources available via the company website, www.twindisc.com.
• Webcasts for investor and customer communication, such as the Q4 2025 earnings call access point at https://ir.twindisc.com.

The integration efforts post-acquisitions are creating new commercial opportunities across regions and segments, leveraging the combined global sales and service team.

Finance: draft 13-week cash view by Friday.

Twin Disc, Incorporated (TWIN) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Twin Disc, Incorporated as of late 2025, based on their fiscal year 2025 performance. The business model clearly relies on a diversified set of end-markets, though some are clearly outpacing others right now.

Twin Disc, Incorporated reported total sales of $340.7 million for the fiscal year 2025, showing a 15.5% increase year-over-year, partly driven by strategic acquisitions like Katsa and Kobelt Manufacturing Co..

Military and government defense markets (accelerating orders)

This segment is a clear growth driver. The CEO noted robust defense-driven demand leading the Marine and Propulsion Systems segment. The company highlighted its strong positioning here, with defense representing approximately 15% of the total backlog as of the end of fiscal 2025, which was a 45% year-over-year increase in that backlog portion. You should also note the external tailwind: the company cited a 13% year-over-year increase in 2026 US Defense Spending projections.

Commercial and pleasure craft marine customers

The Marine and Propulsion Systems segment saw significant growth, with sales increasing by 17.1% in fiscal 2025. This strength was supported by Veth products, which continued to see record orders globally in response to demand for electric, hybrid, and conventional propulsion systems. Pleasure craft orders, while slow in the first half of 2025, rebounded strongly toward the end of the year, setting up better results for 2026.

Energy and natural resources (oil and gas, though declining)

This market remained challenged throughout fiscal 2025. The oil and gas sector represented only about 8% of Twin Disc, Incorporated's revenue in fiscal 2025. Management believes this segment could move back to the mid-teens percentage of revenue, which was more typical before recent downturns. Still, the company advanced its electrification strategy here with new e-frac activity.

Industrial markets (e.g., construction, mining, fire & rescue)

The Industrial segment showed a definite stabilization and recovery late in the year. Industrial products sales saw a massive 61.8% increase, driven by demand in North American construction and recycling markets. Separately, the off-highway transmission market saw a 2.1% increase, largely due to high demand for ARFF (Aircraft Rescue and Fire Fighting) transmissions. The Industrial segment stock grew 44.8% year-over-year in the second quarter of fiscal 2025, driven by a rebound in Lufkin orders.

Global OEMs requiring specialized power train components

The acquisitions of Katsa and Kobelt expanded the customer base and capabilities, which directly supports serving global OEMs with specialized components. The overall sales growth across all product lines indicates broad OEM engagement, though specific OEM revenue percentages aren't broken out separately from the segment data. The company operates globally with manufacturing in the United States, Europe, and Asia.

Here's a quick look at the geographic sales performance that underpins these customer segments for fiscal year 2025:

Geography/Market Area	Fiscal Year 2025 Sales Change vs. Prior Year	Noteworthy Detail
Marine Transmission & Propulsion Systems (Overall)	17.1% increase	Reflected strong market conditions and easing supply chain constraints.
Industrial Products	61.8% increase	Driven by demand in North American construction and recycling.
Off-Highway Transmission Market	2.1% increase	Primarily due to high demand for ARFF transmissions.
European Market Sales	Approximately 40% improvement	Driven by Veth propulsion products and Katsa revenue addition.
U.S. and Canada Sales	10% improvement	Reflecting healthy end-market demand.
Asia Pacific Market Sales	20% decrease	Attributed to softening demand in China.

The customer base is clearly shifting, with defense and industrial segments showing strong momentum, while the traditional energy segment is a smaller piece of the pie for now. If onboarding takes 14+ days, churn risk rises, but the backlog of $150.5 million suggests strong near-term commitment across these segments.

Finance: draft 13-week cash view by Friday.

Twin Disc, Incorporated (TWIN) - Canvas Business Model: Cost Structure

The cost structure for Twin Disc, Incorporated centers heavily on the direct costs of production, followed by significant overhead related to growth initiatives and market presence. You see the scale of the operation reflected in these large expense categories.

The High Cost of Goods Sold (COGS) represents the largest single drain on revenue. For the fiscal year ended June 30, 2025, COGS was reported at $248.01 million. This figure, against total sales of $340.7 million for the same period, resulted in a gross margin of 27.2%.

Next, you have the Significant Marketing, Engineering, and Administrative (ME&A) expenses. For the full fiscal year 2025, ME&A totaled $82.4 million, marking an increase of 15.1% over the prior year. This increase was largely driven by the inclusion of the recently acquired Katsa and Kobelt businesses, plus inflationary impacts on wages and benefits, and higher professional fees.

Here's a quick look at the major cost components from the full fiscal year 2025:

Cost Component	FY2025 Amount (in millions)	Percentage of Sales (Approx.)
Cost of Goods Sold (COGS)	$248.01	72.8%
Marketing, Engineering, and Administrative (ME&A)	$82.4	24.2%
Total Operating Expenses (COGS + ME&A)	$330.41	97.0%
Gross Profit	$92.73	27.2%

Costs associated with acquisition integration and debt servicing are also material factors influencing the bottom line. The integration of Katsa at the start of fiscal 2025 and Kobelt later in the year contributed to the rise in ME&A. Furthermore, the company carried debt, with total debt increasing to $43.7 million by the end of the first quarter of fiscal 2026, largely due to the Kobelt acquisition, which implies ongoing debt servicing costs.

The company is actively investing in its future capacity and technology, which shows up in capital spending. While the actual fiscal 2025 capital expenditures aren't explicitly detailed as a total, the forward-looking plan for manufacturing capacity and R&D investment for fiscal 2026 is projected to be between $17 million and $19 million.

You also need to factor in external pressures impacting margins, specifically supply chain and tariff noise costs. Management noted that they managed through tariff noise throughout the year. Supply chain issues manifested as shipping delays at the end of fiscal 2025, which contributed to an increase in inventory of $21.5 million for the year.

Key cost drivers and related financial impacts include:

• COGS as a percentage of sales for FY2025 was approximately 72.8%.
• ME&A expenses increased by $4.3 million, or 20.9%, in the fourth quarter alone, driven by acquisitions.
• A $1.6 million inventory write-down related to the Katsa acquisition impacted gross profit margin in Q2 2025.
• Inventory increased by $21.5 million during fiscal 2025.
• The company generated a net loss attributable to Twin Disc of ($1.9) million for the full fiscal year 2025.

Finance: draft 13-week cash view by Friday.

Twin Disc, Incorporated (TWIN) - Canvas Business Model: Revenue Streams

You're looking at the core ways Twin Disc, Incorporated generates its top line, which is heavily reliant on selling complex power transmission equipment globally. For the fiscal year ending June 30, 2025, the total consolidated sales for Twin Disc, Incorporated were $340.7 million. This represented a significant increase of 15.5% year-over-year from the prior fiscal year. Still, it's important to note that on an organic basis-meaning stripping out the effects of acquisitions and currency-the revenue growth for the full year 2025 was only 1.0%, so most of that top-line expansion came from recent deals.

The revenue streams are segmented across the core product lines. The Sale of Marine and Propulsion Systems is a foundational piece, which the outline suggests accounts for approximately 60% of the product breakdown. This segment showed strength, with sales increasing by 17.1% in fiscal 2025. The other major components are the Sale of Land-Based Transmissions and Industrial products. Growth in the Land-Based Transmissions markets was a key driver for the full-year sales increase. To give you a snapshot of the recent momentum, in the fourth quarter of fiscal 2025, the Industrial segment saw a massive jump of 61.8% year-over-year, while Land-Based Transmissions grew 4.5%.

The third key stream is the Aftermarket sales of parts, service, and repairs. While a specific percentage of the $340.7 million total isn't explicitly broken out in the latest reports, this stream is crucial for recurring revenue and margin stability, especially given the acquisition of Kobelt, which brought complementary after-sales services. Overall, the company's core power transmission equipment consistently accounts for more than 90% of total revenues over the last three fiscal years.

The growth in the revenue base was definitely helped by recent strategic moves. The Revenue from recent acquisitions like Kobelt and Katsa defintely drove growth. The acquisition of Katsa Oy, completed in May 2024, added to European market expansion, and the Kobelt Manufacturing acquisition, finalized in February 2025 for about $16.5 million, added an established revenue base. For context on the acquisition impact, Kobelt reported approximately $14 million in revenue for the year ending December 31, 2024.

Here's a quick look at the segment performance drivers from the most recent quarter and the known acquisition contributions:

Revenue Driver/Segment	FY2025 Full Year Performance Metric	Q4 FY2025 Value (Millions USD)
Total Consolidated Sales	$340.7 million	$96.7 million
Marine & Propulsion Systems Growth	+17.1% YoY	$53.0 million
Industrial Products Growth	+61.8% YoY	$13.1 million
Land-Based Transmissions Growth	Driven growth driver	$26.1 million
Kobelt Acquisition Contribution (FY2024 Revenue)	Added to FY2025 base	~$14.0 million (FY2024)

You can see the mix shifting, with Industrial showing massive percentage growth, even as Marine remains the largest single product line. The overall revenue picture for Twin Disc, Incorporated in FY2025 was one of expansion driven by M&A, though organic growth was modest.

The composition of the revenue streams can be further detailed by looking at the end markets that contribute to the sales figures:

• Marine transmission and propulsion systems sales increased 17.1% in fiscal 2025.
• Industrial products revenue grew by 61.8%.
• Sales to the U.S. and Canada improved by 10% in fiscal 2025.
• European market sales improved by approximately 40%, helped by Katsa revenue.
• Oil & gas represented approximately 8% of fiscal 2025 revenue.

Finance: draft 13-week cash view by Friday.