Twin Disc reported QQ1 2025 revenue of $72.9 million, up 14.7% year over year, driven by the Casa Hoye acquisition and strong demand in the marine and propulsion segment. On a pro forma basis, excluding the BCS disposition in 2024, revenue was up approximately 18% YoY. Marine and propulsion sales rose 22.9% YoY, aided by Casa’s contribution and broader market activity, while the industrial segment surged 61.3% YoY on the back of Casa and improving end-market demand. The company posted a net loss of $2.8 million or $0.20 per diluted share, with EBITDA of $1.79 million (about 2.45% of revenue) and a negative operating margin of 0.23%. Gross margin expanded modestly to 26.5% (from 26.2%), as incremental volume offset by product mix headwinds from reduced oilfield shipments into China. Free cash flow was negative at approximately $6.7 million, reflecting higher year-end accruals and inventory build tied to demand expectations and Casa integration, with cash and equivalents at $16.7 million and net debt around $27.6 million. Backlog reached historical levels, with six-month backlog increasing sequentially and year over year, aided by a $3.4 million FX contribution and an inventory portion of backlog at 99.7%. Management underscored a long-term strategic pivot toward fully electric and hybrid solutions, ongoing Casa integration savings, and continued investments in R&D and geographic diversification. While near-term headwinds persist—soft construction and agricultural markets in 2025, and Asia-Pacific softness in land-based transmissions—the company expects improvement as Casa integrates and volumes scale, with free cash flow returning toward a positive level for the remainder of the year (targeting roughly 60% of EBITDA in FCF).