Sep 4, 2026, 10:31 AM ETIndustrials

Hurco Companies, Inc. — Third Quarter Fiscal Year 2026 Earnings Summary

HURCHURCO COMPANIES INC

Financial Performance

Net income for the third quarter ended July 31, 2026, was $2,314,000 ($0.35 per diluted share), compared to a net loss of $3,693,000 ($(0.58) per diluted share) in the same period of fiscal 2025.
Net loss for the first nine months of fiscal 2026 was $3,526,000 ($(0.55) per diluted share), compared to a net loss of $12,076,000 ($(1.87) per diluted share) in the prior year period.
Sales and service fees for the third quarter were $47,289,000, a 3% increase year-over-year, including an unfavorable currency impact of less than 1%.
Sales and service fees for the first nine months were $137,775,000, a 4% increase year-over-year, including a favorable currency impact of 2%.
Gross margin for the third quarter expanded 800 basis points to 28% from 20% in the prior year period.
Gross profit for the first nine months was $31,452,000 (23% of sales), compared to $25,231,000 (19% of sales) in the prior year period.
Selling, general, and administrative expenses were $10,889,000 (23% of sales) for the third quarter and $33,127,000 (24% of sales) for the first nine months, with increases attributed to currency translation and higher wages/benefits.
Cash and cash equivalents totaled $52,087,000 at July 31, 2026, compared to $48,713,000 at October 31, 2025.
Working capital was $166,717,000 at July 31, 2026, down from $173,055,000 at October 31, 2025.
The company reported no debt as of July 31, 2026.
Income tax expense for the third quarter was $432,000, compared to $567,000 in the prior year period.

Management stated the business direction has turned and intends to build on the momentum, though they do not declare the industry cycle over.
The company plans to introduce the next generation of proprietary control technology at IMTS in Chicago later in September 2026.
Management expressed confidence in investing in the future to build long-term shareholder value, citing strong financial strength.

Americas sales increased 11% in the third quarter and 12% for the first nine months, driven by shipments of Hurco 5-axis/larger vertical milling machines, Takumi lathes, and Milltronics toolroom lathes.
Europe sales decreased 12% in the third quarter and 8% for the first nine months, primarily due to decreased shipments of Hurco machines and LCM Precision Technology components, partially offset by Takumi vertical milling machines and ProCobots automation solutions.
Asia Pacific sales increased 51% in the third quarter and 30% for the first nine months, driven by Hurco vertical milling machines in China/Southeast Asia, Takumi vertical milling machines, and private labeled machine frames.
Orders for the third quarter were $51,368,000 (up 25% year-over-year), and orders for the first nine months were $154,995,000 (up 24% year-over-year).
Americas orders increased 37% in the third quarter and 40% for the first nine months.
European orders increased 6% in the third quarter and 7% for the first nine months.
Asia Pacific orders increased 68% in the third quarter and 41% for the first nine months.
Gross profit improvements were attributed to increased machine sales volume, a greater mix of higher-performance machines, price increases implemented in Q1 fiscal 2026, and tariff refund claims.

The company operates in the international industrial technology sector, selling CNC machine tools to the metal cutting and metal forming industry.
Customers include independent job shops, short-run manufacturing operations, and production-oriented manufacturers in aerospace, defense, medical, energy, transportation, and computer equipment sectors.
The company competes with larger companies that have greater financial resources.
Orders outpaced shipments across all regions for the first nine months of fiscal 2026.

The machine tool industry is cyclical, and uncertain economic conditions may adversely affect demand.
Risks include international operations, governmental actions, import/export restrictions, and tariff refund uncertainties.
Currency exchange rate fluctuations impact reported results.
Dependence on new product development and the ability to protect intellectual property assets.
Limited manufacturing and supply chain sources, and potential increases in raw material prices (steel and iron).
Risks related to data privacy, network security, technology obsolescence, and asset impairment.
A full valuation allowance has been recorded against Italian, U.S., and Chinese deferred tax assets.

CEO Greg Volovic noted that disciplined execution of strategic pricing and cost control over the past two years is now showing results.
Volovic stated that while tariff refunds helped, the fundamentals of the business are the larger contributor to profitability.
Management highlighted a stronger mix of 5-axis and higher-performance machine sales globally, reflecting customer demand for proprietary control technology.
The tone is confident regarding the company's financial strength ($52 million cash, $167 million working capital, no debt) and ability to invest in future growth.

The company has sales, application engineering support, and service subsidiaries in China, the Czech Republic, England, France, Germany, India, Italy, the Netherlands, Poland, Singapore, Taiwan, and the U.S.
Manufacturing operations are located in Taiwan, Italy, and the U.S.
The company's brands include Hurco and Milltronics (with proprietary controls) and Takumi (with third-party industrial controls).
Depreciation and amortization for the third quarter was $484,000, and capital expenditures were $1,034,000.
Days sales outstanding were 41 days at July 31, 2026, compared to 42 days at October 31, 2025.
Inventory turns remained at 1.0 for the period.
Shareholders' equity was $192,289,000 at July 31, 2026, compared to $198,787,000 at October 31, 2025.