Twin Disc, Inc. (NASDAQ: TWIN) stock gained ground Wednesday, on reporting results for the second quarter ended December 27, 2024.
Sales for the fiscal 2025 second quarter increased 23.2% year-over-year to $89.9 million, driven by a $10.0 million incremental benefit from Katsa Oy. On an organic basis, which excludes the impacts of acquisitions and foreign currency exchange, revenue increased 10.1%, due to strength in the Company’s Marine and Propulsion Systems and Industrial product segments.
Twin Disc delivered double-digit growth year-over-year in the European and North American regions. The distribution of sales across geographical regions shifted, with a greater proportion of sales coming from the European region, with a lower proportion of sales coming from the Asian Pacific region.
Gross profit increased 5.0% to $21.7 million compared to $20.7 million for the second quarter of fiscal 2024. Second quarter gross margin decreased approximately 420 basis points to 24.1% from the prior year period, reflecting the impact of a $1.6-million inventory write-down due to product rationalization association with the acquisition of Katsa Oy.
Said CEO John Batten, “The marine market remained stable, while Veth products continued to expand to record levels in response to strong demand and new orders within the North American market. Challenges in the Asian oil and gas markets persist, though we are beginning to see signs of stabilization. Meanwhile, the industrials segment has already started to recover, with improving order rates through the quarter.”
TWIN shares began Wednesday tacked on 42 cents, or 3.7%, to $11.67.
