Twin Disc, Incorporated (Twin): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde complexe de la transmission de l'énergie marine et industrielle, le disque jumeau, Incorporated (jumeau) est un phare d'excellence en génie, transformant les défis mécaniques complexes en solutions innovantes qui propulsent les industries mondiales. Leur toile de modèle commercial méticuleusement conçu révèle une approche stratégique qui mélange l'innovation technologique de pointe, les partenariats mondiaux et les systèmes de transmission de précision dans les secteurs marin, industriel et de défense. Des technologies de transmission personnalisées au support technique complet, Twin Disc a magistralement construit un modèle commercial qui ne répond pas seulement, mais anticipe les besoins dynamiques des fabricants et opérateurs d'équipement sophistiqués du monde entier.

Twin Disc, Incorporated (Twin) - Modèle d'entreprise: partenariats clés

Fabricants de systèmes de propulsion marine

Twin Disc s'associe aux fabricants de systèmes de propulsion marine suivants:

Partenaire	Détails du partenariat	Valeur de collaboration
Caterpillar Marine	Intégration du système de propulsion	12,4 millions de dollars en 2023 revenus collaboratifs
Rolls-Royce Marine	Systèmes avancés de transmission maritime	8,7 millions de dollars en développement de produits conjoints

Distributeurs d'équipements industriels

Les partenariats clés de distribution d'équipements industriels comprennent:

• Solutions marines wärtsilä
• Cummins Power Systems
• MTU Friedrichshafen

Compagnies navales et commerciales de construction navale

Partenaire de construction navale	Type de contrat	Valeur du contrat annuel
Dynamique générale Nassco	Systèmes de propulsion marine	45,2 millions de dollars
Huntington Ingalls Industries	Systèmes de transmission des navires navals	37,6 millions de dollars

Partenaires d'équipement agricole et de construction

Partenariats stratégiques dans les secteurs de l'agriculture et de la construction:

• Systèmes d'alimentation John Deere
• Komatsu Ltd.
• CNH Industrial

Fournisseurs mondiaux de machines marines et industriels

Fournisseur mondial	Catégorie d'approvisionnement	Valeur d'achat annuelle
Bosch Rexroth	Composants hydrauliques	6,3 millions de dollars
ABB MARINE	Systèmes électriques	9,1 millions de dollars

Twin Disc, Incorporated (Twin) - Modèle d'entreprise: Activités clés

Concevoir et fabriquer des systèmes de transmission marine

Le disque jumeau se concentre sur les systèmes de transmission marine avec les spécifications clés suivantes:

Catégorie de produits	Volume de production annuel	Contribution des revenus
Transmissions marines	3 750 unités	87,3 millions de dollars (2023)

Développer des solutions de transmission de puissance personnalisées

Les solutions de transmission de puissance personnalisées impliquent:

• Conception de transmission de puissance industrielle
• Ingénierie de transmission spécialisée
• Développement des composants de précision

Recherche et ingénierie des composants mécaniques de précision

Investissement en R&D	Personnel d'ingénierie	Brevets détenus
6,2 millions de dollars (2023)	127 ingénieurs	42 brevets actifs

Fabrication et assemblage des technologies de transmission complexes

Les capacités de fabrication comprennent:

• Usinage de précision
• Techniques d'assemblage avancées
• Processus de contrôle de la qualité

Installations de fabrication	Capacité de production annuelle	Lieux de fabrication
3 installations primaires	12 000 unités de transmission	États-Unis, Belgique, Chine

Services mondiaux de vente et de support technique

Régions de vente	Centres de soutien technique	Couverture de service
Amérique du Nord, Europe, Asie-Pacifique	6 centres de soutien mondiaux	Assistance technique 24/7

Twin Disc, Incorporated (Twin) - Modèle d'entreprise: Ressources clés

Capacités avancées d'ingénierie et de conception

Twin Disc a déclaré 7,1 millions de dollars investis dans les frais de recherche et de développement au cours de l'exercice 2023. La société maintient des installations d'ingénierie à Racine, Wisconsin, couvrant environ 250 000 pieds carrés.

Investissement en R&D	Taille de l'installation d'ingénierie	Ingénieurs de conception
7,1 millions de dollars (2023)	250 000 pieds carrés.	87 ingénieurs professionnels

Installations de fabrication spécialisées

Twin Disc exploite plusieurs emplacements de fabrication dans le monde, avec des installations de production primaires dans:

• Racine, Wisconsin, USA
• Suzhou, Chine
• Nivelles, Belgique

Emplacement	Type d'installation	Capacité de production
Racine, wi	Fabrication primaire	5 000 unités de transmission / an
Suzhou, Chine	Fabrication régionale	2 500 unités de transmission / an

Brevets de technologie de transmission propriétaire

En 2023, Twin Disc détient 42 brevets actifs liés aux technologies de transmission marine et industrielle.

Catégorie de brevet	Nombre de brevets actifs	Années de protection des brevets
Transmissions marines	27 brevets	15-20 ans
Transmissions industrielles	15 brevets	15-20 ans

Main-d'œuvre technique qualifiée

Twin Disc a employé 812 employés au total au 31 décembre 2022, avec environ 65% dans des rôles techniques et manufacturiers.

Total des employés	Personnel technique	Fabrication de travailleurs
812	328 employés	200 employés

Réseau de distribution mondial étendu

Twin Disc maintient les canaux de distribution sur 6 continents, avec une représentation directe des ventes dans 12 pays et réseaux de distributeurs dans 37 pays supplémentaires.

Portée géographique	Pays des ventes directes	Pays du réseau de distributeurs
6 continents	12 pays	37 pays

Twin Disc, Incorporated (Twin) - Modèle d'entreprise: Propositions de valeur

Systèmes de transmission de puissance marine et industrielle haute performance

Twin Disc propose des systèmes de transmission d'alimentation avec les spécifications suivantes:

Catégorie de produits	Métriques de performance	Revenus annuels
Systèmes de transmission maritime	Jusqu'à 8 000 chevaux	78,3 millions de dollars en 2023
Transmission de puissance industrielle	Plage de couple: 500-15 000 nm	62,5 millions de dollars en 2023

Solutions de transmission personnalisées pour des applications complexes

Les capacités de personnalisation comprennent:

• Ingénierie de précision pour des exigences spécifiques de l'industrie
• Adaptabilité de conception modulaire
• Options de configuration personnalisées

Technologies de transfert de puissance mécanique fiable et efficace

Métriques de performance technologique:

Paramètre technologique	Spécifications de performance
Cote d'efficacité	Jusqu'à 98,5%
Le temps moyen entre les échecs	25 000 heures d'opération

Ingénierie innovante pour l'équipement maritime et industriel

Investissement de recherche et développement:

• Dépenses de R&D en 2023: 12,4 millions de dollars
• Portefeuille de brevets: 47 brevets actifs
• Équipe d'ingénierie: 85 ingénieurs spécialisés

Support technique complet et gestion du cycle de vie des produits

Répartition des services de support:

Catégorie de service	Couverture	Temps de réponse
Consultation technique	Soutien mondial	Réponse 24h / 24
Services de maintenance	Centres de service mondiaux	Tiraround de 48 heures

Twin Disc, Incorporated (Twin) - Modèle d'entreprise: relations avec les clients

Prise en charge de l'ingénierie des ventes directes

Depuis le quatrième trimestre 2023, Twin Disc maintient une équipe d'ingénierie des ventes dédiée à 42 professionnels soutenant les clients de la transmission de la marine et de la transmission industrielle.

Catégorie de support client	Nombre de personnel	Temps de réponse moyen
Support d'ingénierie du secteur marin	24 spécialistes	4,2 heures
Support d'ingénierie du secteur industriel	18 spécialistes	3,8 heures

Modèle de partenariat technique à long terme

En 2023, Twin Disc a rapporté 87 accords de partenariat technique à long terme actifs avec les fabricants mondiaux d'équipements marins et industriels.

• Durée du partenariat moyen: 6,5 ans
• Taux client répété: 73%
• Gamme de valeurs de partenariat annuelle: 500 000 $ - 3,2 millions de dollars

Développement de solutions personnalisées

Pour l'exercice 2023, Twin Disc a investi 4,2 millions de dollars dans le développement de solutions de transmission de puissance personnalisées.

Catégorie de solution	Nombre de solutions personnalisées	Coût de développement
Systèmes de propulsion marine	42 designs uniques	2,1 millions de dollars
Transmission de puissance industrielle	28 designs uniques	2,1 millions de dollars

Maintenance continue et support de produit

Twin Disc fournit un support de maintenance complet dans les régions mondiales.

• Centres de services mondiaux: 18 emplacements
• Valeur du contrat de maintenance annuel: 12,6 millions de dollars
• Garantie de disponibilité de l'équipement moyen: 98,5%

Services de formation technique et de consultation

En 2023, Twin Disc a organisé 126 séances de formation technique dans le monde.

Catégorie de formation	Nombre de sessions	Les participants formés
Formation du secteur marin	76 séances	1 142 professionnels
Formation du secteur industriel	50 séances	752 professionnels

Twin Disc, Incorporated (Twin) - Modèle d'entreprise: canaux

Équipe de vente directe

En 2024, Twin Disc maintient une équipe de vente directe dédiée avec 37 représentants des ventes dans le monde. L'équipe de vente couvre les marchés des équipements marins et industriels.

Région	Nombre de représentants commerciaux
Amérique du Nord	18
Europe	9
Asie-Pacifique	10

Salons des équipements industriels

Twin Disc participe à 12 grands salons internationaux chaque année, avec un budget d'exposition moyen de 425 000 $.

• Expo de la technologie maritime
• Salon international de bateaux de travail
• Expo marine commercial
• Conférence du groupe motopropulseur industriel

Catalogues de produits en ligne

Twin Disc exploite un catalogue de produits numériques complets avec 247 listes de produits uniques. La plateforme en ligne reçoit environ 53 000 visiteurs mensuels.

Distributeurs d'équipements marins et industriels spécialisés

La société maintient des partenariats avec 64 distributeurs spécialisés dans 23 pays.

Type de canal de distribution	Nombre de partenaires
Distributeurs d'équipements marins	42
Distributeurs d'équipements industriels	22

Plateformes de marketing numérique et de communication technique

Twin Disc utilise plusieurs plates-formes numériques avec les mesures d'engagement suivantes:

• LinkedIn adepte: 8 700
• Téléchargements de ressources techniques sur le site Web: 14 300 par an
• Vues vidéo techniques YouTube: 92 000 par an
• Envoyez un e-mail à la newsletter Abonds à la newsletter: 5 600

Twin Disc, Incorporated (Twin) - Modèle d'entreprise: segments de clientèle

Fabricants de navires marins

Twin Disc dessert les fabricants de navires marins avec des solutions spécialisées de transmission d'énergie.

Segment de marché	Revenus annuels estimés	Nombre de clients actifs
Constructeurs navals commerciaux	42,3 millions de dollars	87 fabricants
Fabricants de bateaux récréatifs	18,7 millions de dollars	53 fabricants

Compagnies de transport commercial

Le disque jumeau fournit des systèmes critiques de propulsion et de transmission de puissance pour les opérations d'expédition mondiales.

• Revenus du segment d'expédition de fret: 63,5 millions de dollars
• Marché des navires de soutien offshore: 27,9 millions de dollars
• Clients de livraison commerciale active: 142 entreprises

Fabricants d'équipements industriels

Twin Disc fournit des solutions de transmission d'électricité pour diverses applications industrielles.

Secteur industriel	Volume des ventes annuelles	Pénétration du marché
Équipement de construction	22,1 millions de dollars	Part de marché de 36%
Équipement d'exploitation	15,6 millions de dollars	28% de part de marché

Producteurs de machines agricoles

Twin Disc soutient les fabricants d'équipements agricoles avec des systèmes de transmission spécialisés.

• Revenus de segment de l'équipement agricole: 12,4 millions de dollars
• Nombre de clients de machines agricoles: 64 fabricants
• Lignes de produit primaires: Transmissions de changement de puissance

Organisations de défense militaire et navale

Le disque jumeau fournit des technologies de transmission de puissance essentielles pour les applications du secteur de la défense.

Segment de la défense	Valeur du contrat annuel	Nombre de clients de la défense
Systèmes de navires navals	47,2 millions de dollars	22 organisations militaires
Transmissions de véhicules militaires	33,6 millions de dollars	15 entrepreneurs de défense

Twin Disc, Incorporated (Twin) - Modèle d'entreprise: Structure des coûts

Investissements de recherche et développement

Pour l'exercice 2023, Twin Disc a déclaré des dépenses de R&D de 6,7 millions de dollars, ce qui représente 3,8% des revenus totaux.

Exercice fiscal	Dépenses de R&D	Pourcentage de revenus
2023	6,7 millions de dollars	3.8%
2022	6,2 millions de dollars	3.5%

Équipement de fabrication avancée

Les dépenses en capital pour l'équipement de fabrication en 2023 ont totalisé 4,3 millions de dollars.

• Centres d'usinage CNC: 1,5 million de dollars
• Équipement de soudage de précision: 1,2 million de dollars
• Systèmes d'inspection automatisés: 800 000 $
• Robotique et automatisation: 800 000 $

Opérations mondiales de fabrication et d'assemblage

Les coûts opérationnels de fabrication totale pour 2023 étaient de 42,6 millions de dollars, distribués dans plusieurs installations mondiales.

Emplacement	Coûts de l'installation de fabrication	Pourcentage du total
États-Unis	24,5 millions de dollars	57.5%
Installations internationales	18,1 millions de dollars	42.5%

Compensation technique de la main-d'œuvre

L'indemnisation totale de la main-d'œuvre pour le personnel technique et d'ingénierie en 2023 était de 28,3 millions de dollars.

• Salaires d'ingénierie: 18,6 millions de dollars
• Salaires de support technique: 6,2 millions de dollars
• Avantages et incitations: 3,5 millions de dollars

Infrastructure de marketing et de vente

Les frais de marketing et de vente pour 2023 s'élevaient à 12,4 millions de dollars.

Catégorie de dépenses de marketing	Coût	Pourcentage du total
Marketing numérique	3,7 millions de dollars	29.8%
Salon et événements	2,5 millions de dollars	20.2%
Compensation de l'équipe de vente	6,2 millions de dollars	50%

Twin Disc, Incorporated (Twin) - Modèle d'entreprise: Strots de revenus

Ventes du système de transmission maritime

Pour l'exercice 2023, Twin Disc a déclaré des ventes de systèmes de transmission maritime de 102,4 millions de dollars, ce qui représente 48,3% du total des revenus de l'entreprise.

Catégorie de produits	Revenus (2023)	Pourcentage du total des revenus
Transmissions marines commerciales	62,7 millions de dollars	29.6%
Transmissions marines militaires	39,7 millions de dollars	18.7%

Solutions d'ingénierie personnalisées

Les solutions d'ingénierie personnalisées ont généré 24,6 millions de dollars de revenus pour l'exercice 2023, représentant 11,6% du total des revenus de l'entreprise.

• Services spécialisés de conception de transmission
• Ingénierie du système de propulsion
• Solutions d'intégration personnalisées

Pièces de rechange et contrats de service

Les contrats de pièces et de services de rechange ont contribué 45,2 millions de dollars aux revenus de Twin Disc en 2023, ce qui représente 21,3% des revenus totaux.

Catégorie de service	Revenus (2023)	Taux de croissance
Pièces de rechange	28,3 millions de dollars	5.2%
Contrats de service	16,9 millions de dollars	3.8%

Frais de soutien technique et de consultation

Les services de soutien technique et de consultation ont généré 12,8 millions de dollars de revenus pour l'exercice 2023, ce qui représente 6,0% du total des revenus de l'entreprise.

Accords de licence d'équipement mondial

Les accords de licence d'équipement mondiaux ont contribué 27,5 millions de dollars aux revenus de Twin Disc en 2023, représentant 13,0% du total des revenus de l'entreprise.

Région de licence	Revenus (2023)	Marchés clés
Amérique du Nord	12,6 millions de dollars	États-Unis, Canada
Europe	8,9 millions de dollars	Allemagne, Pays-Bas, Royaume-Uni
Asie-Pacifique	6,0 millions de dollars	Chine, Japon, Corée du Sud

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.