Twin Disc (TWIN) Noble Capital Markets Virtual Equity Conference summary

Key business highlights and strategy

• Backlog and demand remain historically strong across all product groups, with Europe as the largest market segment.

• Strategic focus on margin expansion and cash flow has enabled recent acquisitions, notably Katsa Oy and Veth Propulsion.

• Transitioning product lines to hybrid and fully electric solutions, aiming for leadership in hybrid electric off-highway and marine markets.

• Medium-term revenue target raised to $500 million by fiscal 2030, with a goal of maintaining gross margins at or above 30%.

• Active M&A pipeline, with a focus on industrial products and technology that can be leveraged across all business lines.

Differentiation and growth drivers

• Differentiation comes from advanced controls technology and a global support network, especially post-sale.

• Growth driven by increased content per unit as customers shift to hybrid/electric, and by targeted M&A to expand product and geographic reach.

• Focus on cost control, supply chain optimization, and operational efficiency to sustain and grow margins.

Capital allocation and acquisition strategy

• M&A remains the top capital allocation priority, with continued support for dividends and capital spending for efficiency.

• Acquisition targets include industrial metal products and technologies (e.g., controls, batteries) that fit strategic and cultural criteria.

• Preference for acquisitions based on long-standing relationships, facilitating smoother integration and cultural fit.