Disco Twin, Incorporated (Twin): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No complexo mundo da transmissão de energia marinha e industrial, o Disco Twin, incorporado (gêmeo), é um farol de excelência em engenharia, transformando desafios mecânicos complexos em soluções inovadoras que impulsionam as indústrias globais. Sua tela de modelo de negócios meticulosamente criada revela uma abordagem estratégica que combina a inovação tecnológica de ponta, parcerias globais e sistemas de transmissão com arestas de precisão nos setores marítimos, industriais e de defesa. Desde tecnologias de transmissão personalizadas até suporte técnico abrangente, o Disc Disc construiu com maestria um modelo de negócios que não apenas atende, mas antecipa as necessidades dinâmicas de fabricantes e operadores sofisticados de equipamentos em todo o mundo.

Disco Twin, Incorporated (Twin) - Modelo de Negócios: Parcerias -Chaves

Fabricantes de sistemas de propulsão marinha

O Twin Disc parceria com os seguintes fabricantes de sistemas de propulsão marítima:

Parceiro	Detalhes da parceria	Valor de colaboração
Caterpillar Marine	Integração do sistema de propulsão	US $ 12,4 milhões em 2023 Receita colaborativa
Rolls-Royce Marine	Sistemas avançados de transmissão marinha	US $ 8,7 milhões em desenvolvimento conjunto de produtos

Distribuidores de equipamentos industriais

Principais parcerias de distribuição de equipamentos industriais incluem:

• Soluções marinhas Wärtsilä
• Cummins Power Systems
• MTU Friedrichshafen

Empresas de construção naval naval e comercial

Parceiro de construção naval	Tipo de contrato	Valor anual do contrato
Geral Dynamics Nassco	Sistemas de propulsão marinha	US $ 45,2 milhões
Indústrias de Huntington Ingalls	Sistemas de transmissão de embarcações navais	US $ 37,6 milhões

Parceiros de equipamentos agrícolas e de construção

Parcerias estratégicas em setores agrícola e de construção:

• John Deere Power Systems
• Komatsu Ltd.
• CNH Industrial

Fornecedores globais de máquinas marinhas e industriais

Fornecedor global	Categoria de fornecimento	Valor anual de compras
Bosch Rexroth	Componentes hidráulicos	US $ 6,3 milhões
ABB Marine	Sistemas elétricos	US $ 9,1 milhões

Disco Twin, Incorporated (Twin) - Modelo de Negócios: Atividades -chave

Projetar e fabricar sistemas de transmissão marítima

O Disco Twin se concentra nos sistemas de transmissão marítima com as seguintes especificações -chave:

Categoria de produto	Volume anual de produção	Contribuição da receita
Transmissões marinhas	3.750 unidades	US $ 87,3 milhões (2023)

Desenvolver soluções de transmissão de energia personalizadas

As soluções de transmissão de energia personalizadas envolvem:

• Design de transmissão de energia industrial
• Engenharia de Drivetrain especializada
• Desenvolvimento de componentes de precisão

Pesquisa e engenharia de componentes mecânicos de precisão

Investimento em P&D	Equipe de engenharia	Patentes mantidas
US $ 6,2 milhões (2023)	127 engenheiros	42 patentes ativas

Fabricação e montagem de tecnologias complexas de transmissão

Os recursos de fabricação incluem:

• Usinagem de precisão
• Técnicas avançadas de montagem
• Processos de controle de qualidade

Instalações de fabricação	Capacidade de produção anual	Locais de fabricação
3 instalações primárias	12.000 unidades de transmissão	EUA, Bélgica, China

Serviços globais de vendas e suporte técnico

Regiões de vendas	Centros de Suporte Técnico	Cobertura de serviço
América do Norte, Europa, Ásia-Pacífico	6 Centros de Suporte Global	Assistência técnica 24/7

Disco Twin, Incorporated (Twin) - Modelo de negócios: Recursos -chave

Recursos avançados de engenharia e design

A Twin Disc reportou US $ 7,1 milhões investidos em despesas de pesquisa e desenvolvimento no ano fiscal de 2023. A empresa mantém instalações de engenharia em Racine, Wisconsin, abrangendo aproximadamente 250.000 pés quadrados.

Investimento em P&D	Tamanho da instalação de engenharia	Engenheiros de design
US $ 7,1 milhões (2023)	250.000 pés quadrados.	87 engenheiros profissionais

Instalações de fabricação especializadas

O Disco Twin opera vários locais de fabricação globalmente, com instalações de produção primárias em:

• Racine, Wisconsin, EUA
• Suzhou, China
• Nivelles, Bélgica

Localização	Tipo de instalação	Capacidade de produção
Racine, Wi	Fabricação primária	5.000 unidades de transmissão/ano
Suzhou, China	Fabricação regional	2.500 unidades de transmissão/ano

Patentes de tecnologia de transmissão proprietária

A partir de 2023, o DISC TWIN possui 42 patentes ativas relacionadas às tecnologias de transmissão marítima e industrial.

Categoria de patentes	Número de patentes ativas	Anos de proteção de patentes
Transmissões marinhas	27 patentes	15-20 anos
Transmissões industriais	15 patentes	15-20 anos

Força de trabalho técnica qualificada

O Disc Disc empregou 812 funcionários totais em 31 de dezembro de 2022, com aproximadamente 65% em funções técnicas e de fabricação.

Total de funcionários	Equipe técnica	Trabalhadores manufatureiros
812	328 funcionários	200 funcionários

Extensa rede de distribuição global

O Disco Twin mantém canais de distribuição em 6 continentes, com representação direta de vendas em 12 países e redes de distribuidores em 37 países adicionais.

Alcance geográfico	Países de vendas diretas	Países de rede distribuidores
6 continentes	12 países	37 países

Disco Twin, Incorporated (Twin) - Modelo de Negócios: Proposições de Valor

Sistemas de transmissão de energia marítima e industrial de alto desempenho

O Disco Twin oferece sistemas de transmissão de energia com as seguintes especificações:

Categoria de produto	Métricas de desempenho	Receita anual
Sistemas de transmissão marinha	Até 8.000 cavalos de potência	US $ 78,3 milhões em 2023
Transmissão de energia industrial	Faixa de torque: 500-15.000 nm	US $ 62,5 milhões em 2023

Soluções de transmissão personalizadas para aplicações complexas

Os recursos de personalização incluem:

• Engenharia de precisão para requisitos específicos da indústria
• Adaptabilidade modular do design
• Opções de configuração personalizadas

Tecnologias de transferência de energia mecânica confiáveis ​​e eficientes

Métricas de desempenho tecnológico:

Parâmetro de tecnologia	Especificação de desempenho
Classificação de eficiência	Até 98,5%
Tempo médio entre falhas	25.000 horas operacionais

Engenharia inovadora para equipamentos marítimos e industriais

Investimento de pesquisa e desenvolvimento:

• Despesas de P&D em 2023: US $ 12,4 milhões
• Portfólio de patentes: 47 patentes ativas
• Equipe de engenharia: 85 engenheiros especializados

Suporte técnico abrangente e gerenciamento do ciclo de vida do produto

Apoiar os serviços de suporte:

Categoria de serviço	Cobertura	Tempo de resposta
Consulta técnica	Suporte global	Resposta de 24 horas
Serviços de manutenção	Centros de Serviços em todo o mundo	48 horas de reviravolta

Disco Twin, Incorporated (Twin) - Modelo de Negócios: Relacionamentos do Cliente

Suporte direto de engenharia de vendas

A partir do quarto trimestre 2023, o Twin Disc mantém uma equipe de engenharia de vendas dedicada de 42 profissionais que apoiam os clientes de transmissão de energia marítima e industrial.

Categoria de suporte ao cliente	Número de pessoal	Tempo médio de resposta
Suporte de engenharia do setor marinho	24 especialistas	4,2 horas
Suporte de engenharia do setor industrial	18 especialistas	3,8 horas

Modelo de parceria técnica de longo prazo

Em 2023, o Twin Disc relatou 87 acordos ativos de parceria técnica de longo prazo com os fabricantes globais de equipamentos marítimos e industriais.

• Duração da parceria Média: 6,5 anos
• Taxa repetida do cliente: 73%
• Valor anual da parceria intervalo: US $ 500.000 - US $ 3,2 milhões

Desenvolvimento de solução personalizada

Para o ano fiscal de 2023, o Twin Disc investiu US $ 4,2 milhões em desenvolvimento de soluções de transmissão de energia personalizada.

Categoria de solução	Número de soluções personalizadas	Custo de desenvolvimento
Sistemas de propulsão marinha	42 designs exclusivos	US $ 2,1 milhões
Transmissão de energia industrial	28 designs exclusivos	US $ 2,1 milhões

Manutenção contínua e suporte ao produto

O Disco Twin fornece suporte de manutenção abrangente em regiões globais.

• Centros de Serviços Globais: 18 locais
• Valor anual do contrato de manutenção: US $ 12,6 milhões
• Garantia média de tempo de atividade do equipamento: 98,5%

Serviços de treinamento e consulta técnicos

Em 2023, o Twin Disc conduziu 126 sessões de treinamento técnico globalmente.

Categoria de treinamento	Número de sessões	Participantes treinados
Treinamento do setor marinho	76 sessões	1.142 profissionais
Treinamento do setor industrial	50 sessões	752 profissionais

Disco Twin, Incorporated (Twin) - Modelo de Negócios: Canais

Equipe de vendas diretas

A partir de 2024, o Twin Disc mantém uma equipe de vendas direta dedicada com 37 representantes de vendas globalmente. A equipe de vendas abrange mercados de equipamentos marítimos e industriais.

Região	Número de representantes de vendas
América do Norte	18
Europa	9
Ásia-Pacífico	10

Feiras de equipamentos industriais

O Disco Twin participa de 12 grandes feiras internacionais anualmente, com um orçamento médio de exposição de US $ 425.000.

• Expo de tecnologia marinha
• Show International Workboat Show
• Expo Marine Commercial
• Conferência Industrial Powertrain

Catálogos de produtos on -line

O Twin Disc opera um catálogo abrangente de produtos digitais com 247 listagens de produtos exclusivas. A plataforma on -line recebe aproximadamente 53.000 visitantes mensais.

Distribuidores de equipamentos marítimos e industriais especializados

A empresa mantém parcerias com 64 distribuidores especializados em 23 países.

Tipo de canal de distribuição	Número de parceiros
Distribuidores de equipamentos marinhos	42
Distribuidores de equipamentos industriais	22

Plataformas de marketing digital e comunicação técnica

O Disco Twin utiliza várias plataformas digitais com as seguintes métricas de engajamento:

• Seguidores do LinkedIn: 8.700
• Site downloads de recursos técnicos: 14.300 anualmente
• Visualizações de vídeo técnico do YouTube: 92.000 anualmente
• Email Technical Newsletter Assinantes: 5.600

Disco Twin, Incorporated (Twin) - Modelo de Negócios: Segmentos de Clientes

Fabricantes de embarcações marinhas

O Disco Twin serve fabricantes de embarcações marinhas com soluções especializadas de transmissão de energia.

Segmento de mercado	Receita anual estimada	Número de clientes ativos
Construtores de navios comerciais	US $ 42,3 milhões	87 fabricantes
Fabricantes de barcos recreativos	US $ 18,7 milhões	53 fabricantes

Empresas de transporte comercial

O Disco Twin fornece sistemas críticos de propulsão e transmissão de energia para operações globais de remessa.

• Receita do segmento de transporte de carga: US $ 63,5 milhões
• Navio de suporte offshore Mercado: US $ 27,9 milhões
• Clientes comerciais ativos: 142 empresas

Fabricantes de equipamentos industriais

O Disco Twin fornece soluções de transmissão de energia para várias aplicações industriais.

Setor industrial	Volume anual de vendas	Penetração de mercado
Equipamento de construção	US $ 22,1 milhões	36% de participação de mercado
Equipamento de mineração	US $ 15,6 milhões	28% de participação de mercado

Produtores de máquinas agrícolas

O Disco Twin suporta fabricantes de equipamentos agrícolas com sistemas de transmissão especializados.

• Receita do segmento de equipamentos agrícolas: US $ 12,4 milhões
• Número de clientes de máquinas agrícolas: 64 fabricantes
• Linhas de produtos principais: Transmissões de mudança de potência

Organizações de defesa militar e naval

O Disco Twin fornece tecnologias críticas de transmissão de energia para aplicações do setor de defesa.

Segmento de defesa	Valor anual do contrato	Número de clientes de defesa
Sistemas de embarcações navais	US $ 47,2 milhões	22 organizações militares
Transmissões de veículos militares	US $ 33,6 milhões	15 contratados de defesa

Disco Twin, Incorporated (Twin) - Modelo de Negócios: Estrutura de Custo

Investimentos de pesquisa e desenvolvimento

Para o ano fiscal de 2023, o Twin Disc registrou despesas de P&D de US $ 6,7 milhões, representando 3,8% da receita total.

Ano fiscal	Despesas de P&D	Porcentagem de receita
2023	US $ 6,7 milhões	3.8%
2022	US $ 6,2 milhões	3.5%

Equipamento avançado de fabricação

As despesas de capital para equipamentos de fabricação em 2023 totalizaram US $ 4,3 milhões.

• Centros de usinagem CNC: US ​​$ 1,5 milhão
• Equipamento de soldagem de precisão: US $ 1,2 milhão
• Sistemas de inspeção automatizados: US $ 800.000
• Robótica e automação: US $ 800.000

Operações globais de fabricação e montagem

Os custos operacionais totais de fabricação para 2023 foram de US $ 42,6 milhões, distribuídos em várias instalações globais.

Localização	Custos da instalação de fabricação	Porcentagem de total
Estados Unidos	US $ 24,5 milhões	57.5%
Instalações internacionais	US $ 18,1 milhões	42.5%

Compensação técnica da força de trabalho

A compensação total da força de trabalho para a equipe técnica e de engenharia em 2023 foi de US $ 28,3 milhões.

• Salários de engenharia: US $ 18,6 milhões
• Salários de suporte técnico: US $ 6,2 milhões
• Benefícios e incentivos: US $ 3,5 milhões

Infraestrutura de marketing e vendas

As despesas de marketing e vendas de 2023 totalizaram US $ 12,4 milhões.

Categoria de despesa de marketing	Custo	Porcentagem de total
Marketing digital	US $ 3,7 milhões	29.8%
Feira e eventos	US $ 2,5 milhões	20.2%
Compensação da equipe de vendas	US $ 6,2 milhões	50%

Disco Twin, Incorporated (Twin) - Modelo de Negócios: Fluxos de Receita

Vendas do sistema de transmissão marinha

Para o ano fiscal de 2023, o Twin Disc relatou vendas de sistemas de transmissão marítima de US $ 102,4 milhões, representando 48,3% da receita total da empresa.

Categoria de produto	Receita (2023)	Porcentagem da receita total
Transmissões marinhas comerciais	US $ 62,7 milhões	29.6%
Transmissões marinhas militares	US $ 39,7 milhões	18.7%

Soluções de engenharia personalizadas

As soluções de engenharia personalizadas geraram US $ 24,6 milhões em receita para o ano fiscal de 2023, representando 11,6% da receita total da empresa.

• Serviços de design de transmissão especializados
• Engenharia do sistema de propulsão
• Soluções de integração personalizadas

Peças de reposição e contratos de serviço

As peças de pós -venda e contratos de serviço contribuíram com US $ 45,2 milhões para a receita do Disco Twin em 2023, representando 21,3% da receita total.

Categoria de serviço	Receita (2023)	Taxa de crescimento
Peças de reposição	US $ 28,3 milhões	5.2%
Contratos de serviço	US $ 16,9 milhões	3.8%

Taxas técnicas de suporte e consulta

Os serviços de suporte técnico e consulta geraram US $ 12,8 milhões em receita para o ano fiscal de 2023, compreendendo 6,0% da receita total da empresa.

Acordos de licenciamento de equipamentos globais

Os acordos de licenciamento de equipamentos globais contribuíram com US $ 27,5 milhões para a receita da Twin Disc em 2023, representando 13,0% da receita total da empresa.

Região de licenciamento	Receita (2023)	Mercados -chave
América do Norte	US $ 12,6 milhões	Estados Unidos, Canadá
Europa	US $ 8,9 milhões	Alemanha, Holanda, Reino Unido
Ásia-Pacífico	US $ 6,0 milhões	China, Japão, Coréia do Sul

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.