HURCO COMPANIES INC SEC 10-Q Report

Hurco Companies Inc., a leading provider of industrial automation equipment, has released its latest Form 10-Q report, highlighting significant improvements in financial performance and operational metrics. The company, known for its innovative computerized machine tools, has shown resilience and strategic growth in key markets despite ongoing challenges.

Financial Highlights

Sales and Service Fees: Hurco reported sales and service fees of $45.8 million, marking a 7% increase compared to the same period last year. This growth includes a favorable currency impact of 3%.

Gross Profit: The gross profit for the period was $9.1 million, representing 20% of sales. This is an improvement from the prior year's $7.8 million, which was 18% of sales. The increase is attributed to a higher concentration of machine sales in Europe and lower fixed costs.

Operating (Loss) Income: The company reported an operating loss of $(1.7) million, an improvement from the $(2.5) million loss in the prior year period. This reduction in operating loss is due to cost savings and a higher concentration of machine sales in Europe.

Net (Loss) Income: Hurco's net loss was $(3.7) million, a significant improvement from the $(9.6) million loss in the prior year period. This reduction is largely due to a lower valuation allowance against U.S. deferred tax assets, resulting in a significant reduction in income tax expense.

(Loss) Income Per Common Share - Basic and Diluted: The loss per common share was $(0.58), compared to $(1.47) in the prior year period, reflecting the improved net income performance.

Business Highlights

Revenue Segments: Hurco operates in a single segment, industrial automation equipment, primarily selling computerized machine tools such as vertical machining centers and turning centers. The company's product portfolio includes three brands: Hurco, Milltronics, and Takumi. Hurco is known for technology innovation, Milltronics for value-based offerings, and Takumi for high-speed, high-efficiency performance.

Geographical Performance: During the nine months of fiscal 2025, approximately 51% of Hurco's revenues came from Europe, 38% from the Americas, and 11% from the Asia Pacific region. Sales in the Americas increased by 3% due to higher shipments of Hurco and Milltronics machines. European sales decreased by 3%, impacted by lower shipments in France and Germany. However, sales in the Asia Pacific region increased by 7%, driven by Takumi machine sales.

Sales Units: The increase in sales was driven by higher shipments of lathes, tool room machines, and vertical machining centers in the Americas, as well as Takumi machines in the Asia Pacific region.

Future Outlook: Hurco anticipates continued challenges in the European market due to decreased demand in Germany, the United Kingdom, and France. However, the company expects growth opportunities in the Asia Pacific region, particularly with Takumi machines. Hurco is also focused on maintaining cost efficiencies and managing currency exchange risks through derivative instruments.

SEC Filing: HURCO COMPANIES INC [ HURC ] - 10-Q - Sep. 05, 2025