Hurco Reports Profit in Third Quarter Results for Fiscal Year 2026
Hurco turned a quarterly profit on higher margins and strong order growth while year-to-date results remain in a loss position and Europe lags.
Rhea-AI Summary
Hurco (HURC) reported a third‑quarter 2026 net income of $2.3 million, or $0.35 per diluted share, versus a net loss of $3.7 million, or $(0.58) per share, a year earlier.
Third‑quarter sales and service fees were $47.3 million, up 3%, while sales for the first nine months rose 4% to $137.8 million. Gross margin expanded to 28% from 20%, driven by higher volumes, improved mix toward higher‑performance and 5‑axis machines, prior cost controls, and some tariff refunds. Orders increased 25% in the quarter and 24% year‑to‑date, outpacing shipments, with strong growth in the Americas and Asia Pacific offsetting lower European sales.
For the first nine months, Hurco still posted a net loss of $3.5 million, improved from a $12.1 million loss a year earlier. The company ended the quarter with $52.1 million in cash, $166.7 million of working capital, and no debt, and plans to introduce the next generation of its proprietary control technology at IMTS in Chicago.
Positive
- Returned to profitability: Q3 2026 net income of $2.3 million versus a $3.7 million loss in Q3 2025.
- Gross margin expansion: Q3 margin rose to 28% from 20%, an 800 basis point improvement.
- Order growth: Q3 orders of $51.4 million rose 25%; nine‑month orders of $155.0 million rose 24% year over year.
- Regional growth: Q3 sales in Asia Pacific up 51% and Americas up 11%; nine‑month Asia Pacific sales up 30% and Americas up 12%.
- Improved year‑to‑date results: nine‑month net loss narrowed to $3.5 million from $12.1 million in the prior‑year period.
- Strong balance sheet: $52.1 million in cash, $166.7 million working capital, and no debt as of July 31, 2026.
Negative
- Year‑to‑date still unprofitable: nine‑month 2026 net loss of $3.5 million despite Q3 profitability.
- European weakness: Q3 Europe sales down 12% and nine‑month sales down 8% year over year.
- SG&A costs higher: nine‑month selling, general, and administrative expenses rose to $33.1 million from $32.0 million.
- Tax asset valuation allowances: full valuation allowance recorded against Italian, U.S., and Chinese deferred tax assets.
- Working capital decline: working capital decreased to $166.7 million from $173.1 million since October 31, 2025.
News Explained
As of
Market Reaction – HURC
Following this news, HURC has gained 0.09%, reflecting a mild positive market reaction. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $22.82.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 05 | Q2 earnings report | Positive | +23.4% | Loss narrowed, sales rose, margins improved, and orders surged across regions. |
| Mar 06 | Q1 earnings report | Negative | -6.5% | Net loss persisted despite higher orders, improved gross margin, and stronger Americas demand. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Historical earnings events aligned with subsequent 24-hour moves: improved Q2 results preceded 23.42%, while Q1 losses preceded -6.55%.
Key Terms
basis points financial
valuation allowance financial
deferred tax assets financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
INDIANAPOLIS, Sept. 04, 2026 (GLOBE NEWSWIRE) -- Hurco Companies, Inc. (Nasdaq: HURC) today reported results for the third fiscal quarter ended July 31, 2026. Hurco recorded net income of
Sales and service fees for the third quarter of fiscal year 2026 were
Greg Volovic, Chief Executive Officer, stated, "Just last quarter we said our disciplined execution of strategic pricing and tighter cost control through the down cycle was beginning to show, and we were working our way back to profitable quarters. This quarter, we were profitable. Gross margin for the third quarter of this fiscal year expanded 800 basis points to
Mr. Volovic continued, “We know this industry is cyclical, and we are not declaring the cycle over, but we believe the direction of our business has turned, and we intend to build on it. We will carry that momentum into IMTS in Chicago later this month, where we plan to introduce the next generation of our proprietary control technology to customers from around the world. With
The following table sets forth net sales and service fees by geographic region for the third fiscal quarter and nine months ended July 31, 2026, and 2025 (dollars in thousands):
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| July 31, | July 31, | ||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | 2026 | 2025 | $ Change | % Change | ||||||||||||
| Americas | $ | 18,778 | $ | 16,901 | $ | 1,877 | 11 | % | $ | 56,174 | $ | 50,370 | $ | 5,804 | 12 | % | |||
| Europe | 21,336 | 24,166 | (2,830 | ) | (12 | )% | 61,697 | 67,388 | (5,691 | ) | (8 | )% | |||||||
| Asia Pacific | 7,175 | 4,739 | 2,436 | 51 | % | 19,904 | 15,329 | 4,575 | 30 | % | |||||||||
| Total | $ | 47,289 | $ | 45,806 | $ | 1,483 | 3 | % | $ | 137,775 | $ | 133,087 | $ | 4,688 | 4 | % | |||
Sales in the Americas for the third quarter of fiscal year 2026 increased by
European sales for the third quarter of fiscal year 2026 decreased by
Asian Pacific sales for the third quarter and first nine months of fiscal year 2026 increased by
Orders for the third quarter of fiscal year 2026 were
The following table sets forth new orders booked by geographic region for the third fiscal quarter and nine months ended July 31, 2026, and 2025 (dollars in thousands):
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| July 31, | July 31, | ||||||||||||||||
| 2026 | 2025 | $ Change | % Change | 2026 | 2025 | $ Change | % Change | ||||||||||
| Americas | $ | 21,287 | $ | 15,557 | $ | 5,730 | 37 | % | $ | 66,140 | $ | 47,145 | $ | 18,995 | 40 | % | |
| Europe | 21,401 | 20,274 | 1,127 | 6 | % | 65,028 | 60,730 | 4,298 | 7 | % | |||||||
| Asia Pacific | 8,680 | 5,165 | 3,515 | 68 | % | 23,827 | 16,906 | 6,921 | 41 | % | |||||||
| Total | $ | 51,368 | $ | 40,996 | $ | 10,372 | 25 | % | $ | 154,995 | $ | 124,781 | $ | 30,214 | 24 | % | |
Orders in the Americas for the third quarter and first nine months of fiscal year 2026 increased by
European orders for the third quarter and first nine months of fiscal year 2026 increased by
Asian Pacific orders for the third quarter and first nine months of fiscal year 2026 increased by
Gross profit for the third quarter of fiscal year 2026 was
Selling, general, and administrative expenses for the third quarter of fiscal year 2026 were
Income tax expense for the third quarter of fiscal year 2026 was
Cash and cash equivalents totaled
Hurco Companies, Inc. is an international, industrial technology company that sells its three brands of computer numeric control (“CNC”) machine tools to the worldwide metal cutting and metal forming industry. Two of the Company’s brands of machine tools, Hurco and Milltronics, are equipped with interactive controls that include software that is proprietary to each respective brand. The Company designs these controls and develops the software. The third brand of CNC machine tools, Takumi, is equipped with industrial controls that are produced by third parties, which allows the customer to decide the type of control added to the Takumi CNC machine tool. The Company also produces high-value machine tool components and accessories and provides automation solutions that can be integrated with any machine tool. The end markets for the Company's products are independent job shops, short-run manufacturing operations within large corporations, and manufacturers with production-oriented operations. The Company’s customers manufacture precision parts, tools, dies, and/or molds for industries such as aerospace, defense, medical equipment, energy, transportation, and computer equipment. The Company is based in Indianapolis, Indiana, with manufacturing operations in Taiwan, Italy, and the U.S., and sells its products through direct and indirect sales forces throughout the Americas, Europe, and Asia. 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. Web Site: www.hurco.com.
Certain statements in this news release are forward-looking statements that involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, among others, the cyclical nature of the machine tool industry; uncertain economic conditions, which may adversely affect overall demand, in the Americas, Europe and Asia Pacific markets; the risks of our international operations; governmental actions, initiatives and regulations, including import and export restrictions, duties and tariffs, including an inability to receive any refunds of tariffs paid in previous periods, and changes to tax laws; the effects of changes in currency exchange rates; competition with larger companies that have greater financial resources; our dependence on new product development; the need and/or ability to protect our intellectual property assets; the limited number of our manufacturing and supply chain sources; increases in the prices of raw materials, especially steel and iron products; the effect of the loss of members of senior management and key personnel; our ability to integrate acquisitions; acquisitions that could disrupt our operations and affect operating results; failure to comply with data privacy and security regulations; breaches of our network and system security measures; possible obsolescence of our technology and the need to make technological advances; impairment of our assets; negative or unforeseen tax consequences; uncertainty concerning our ability to use tax loss carryforwards; changes in the SOFR rate; the impact of public health epidemics and pandemics on the global economy, our business and operations, our employees and the business, operations and economies of our customers and suppliers; and other risks and uncertainties discussed more fully under the caption “Risk Factors” in our filings with the Securities and Exchange Commission. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: Sonja K. McClelland
Executive Vice President, Treasurer, & Chief Financial Officer
317-293-5309
| Hurco Companies, Inc. | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| July 31, | July 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| Sales and service fees | $ | 47,289 | $ | 45,806 | $ | 137,775 | $ | 133,087 | |||||||
| Cost of sales and service | 34,106 | 36,694 | 106,323 | 107,856 | |||||||||||
| Gross profit | 13,183 | 9,112 | 31,452 | 25,231 | |||||||||||
| Selling, general and administrative expenses | 10,889 | 10,762 | 33,127 | 32,041 | |||||||||||
| Operating income (loss) | 2,294 | (1,650 | ) | (1,675 | ) | (6,810 | ) | ||||||||
| Interest expense | 25 | 4 | 61 | 66 | |||||||||||
| Interest income | 86 | 58 | 199 | 239 | |||||||||||
| Investment income | 95 | 13 | 204 | 186 | |||||||||||
| Other income (expense), net | 296 | (1,543 | ) | (525 | ) | (2,499 | ) | ||||||||
| Income (loss) before taxes | 2,746 | (3,126 | ) | (1,858 | ) | (8,950 | ) | ||||||||
| Provision for income taxes | 432 | 567 | 1,668 | 3,126 | |||||||||||
| Net income (loss) | $ | 2,314 | $ | (3,693 | ) | $ | (3,526 | ) | $ | (12,076 | ) | ||||
| Income (loss) per common share | |||||||||||||||
| Basic | $ | 0.35 | $ | (0.58 | ) | $ | (0.55 | ) | $ | (1.87 | ) | ||||
| Diluted | $ | 0.35 | $ | (0.58 | ) | $ | (0.55 | ) | $ | (1.87 | ) | ||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 6,476 | 6,463 | 6,456 | 6,474 | |||||||||||
| Diluted | 6,497 | 6,463 | 6,456 | 6,474 | |||||||||||
| OTHER CONSOLIDATED FINANCIAL DATA | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| July 31, | July 31, | ||||||||||||||
| Operating Data: | 2026 | 2025 | 2026 | 2025 | |||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| Gross margin | 28 | % | 20 | % | 23 | % | 19 | % | |||||||
| SG&A expense as a percentage of sales | 23 | % | 23 | % | 24 | % | 24 | % | |||||||
| Operating income (loss) as a percentage of sales | 5 | % | -4 | % | -1 | % | -5 | % | |||||||
| Pre-tax income (loss) as a percentage of sales | 6 | % | -7 | % | -1 | % | -7 | % | |||||||
| Effective tax rate | 16 | % | -18 | % | -90 | % | -35 | % | |||||||
| Depreciation and amortization | $ | 484 | $ | 642 | $ | 1,570 | $ | 2,000 | |||||||
| Capital expenditures | $ | 1,034 | $ | 932 | $ | 2,372 | $ | 2,288 | |||||||
| Balance Sheet Data: | 7/31/2026 | 10/31/2025 | |||||||||||||
| Working capital | $ | 166,717 | $ | 173,055 | |||||||||||
| Days sales outstanding | 41 | 42 | |||||||||||||
| Inventory turns | 1.0 | 1.0 | |||||||||||||
| Capitalization | |||||||||||||||
| Total debt | -- | -- | |||||||||||||
| Shareholders' equity | 192,289 | 198,787 | |||||||||||||
| Total | $ | 192,289 | $ | 198,787 | |||||||||||
| Hurco Companies, Inc. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In thousands, except share and per share data) | |||||||
| July 31, | October 31, | ||||||
| 2026 | 2025 | ||||||
| ASSETS | (unaudited) | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 52,087 | $ | 48,713 | |||
| Accounts receivable, net | 26,845 | 27,928 | |||||
| Inventories | 136,616 | 142,931 | |||||
| Derivative assets | 251 | 263 | |||||
| Prepaid and other assets | 6,905 | 5,243 | |||||
| Total current assets | 222,704 | 225,078 | |||||
| Property and equipment: | |||||||
| Land | 1,046 | 1,046 | |||||
| Building | 7,381 | 7,381 | |||||
| Machinery and equipment | 23,993 | 26,061 | |||||
| Leasehold improvements | 4,273 | 4,569 | |||||
| 36,693 | 39,057 | ||||||
| Less accumulated depreciation and amortization | (29,536 | ) | (31,083 | ) | |||
| Total property and equipment, net | 7,157 | 7,974 | |||||
| Non-current assets: | |||||||
| Software development costs, less accumulated amortization | 9,393 | 8,090 | |||||
| Intangible assets, net | 346 | 627 | |||||
| Operating lease - right of use assets, net | 9,455 | 11,560 | |||||
| Deferred income taxes | 744 | 794 | |||||
| Investments | 9,037 | 9,005 | |||||
| Other assets | 1,184 | 1,170 | |||||
| Total non-current assets | 30,159 | 31,246 | |||||
| Total assets | $ | 260,020 | $ | 264,298 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 29,207 | $ | 26,074 | |||
| Customer deposits | 7,537 | 4,788 | |||||
| Derivative liabilities | 1,818 | 3,084 | |||||
| Operating lease liabilities | 4,124 | 4,374 | |||||
| Accrued payroll and employee benefits | 7,467 | 7,474 | |||||
| Accrued income taxes | 989 | 1,472 | |||||
| Accrued expenses | 3,774 | 3,790 | |||||
| Accrued warranty expenses | 1,071 | 967 | |||||
| Total current liabilities | 55,987 | 52,023 | |||||
| Non-current liabilities: | |||||||
| Deferred income taxes | 37 | 38 | |||||
| Operating lease liabilities | 5,716 | 7,560 | |||||
| Deferred credits and other | 5,991 | 5,890 | |||||
| Total non-current liabilities | 11,744 | 13,488 | |||||
| Commitment and contingencies | - | - | |||||
| Shareholders' equity: | |||||||
| Preferred stock: no par value per share, 1,000,000 shares authorized; no shares issued | - | - | |||||
| Common stock: no par value, $.10 stated value per share, 12,500,000 shares authorized; 6,675,629 and 6,569,224 shares issued and 6,476,322 and 6,402,396 shares outstanding, as of July 31, 2026 and October 31, 2025, respectively | 648 | 640 | |||||
| Additional paid-in capital | 62,213 | 60,850 | |||||
| Retained earnings | 142,779 | 146,305 | |||||
| Accumulated other comprehensive loss | (13,351 | ) | (9,008 | ) | |||
| Total shareholders' equity | 192,289 | 198,787 | |||||
| Total liabilities and shareholders' equity | $ | 260,020 | $ | 264,298 | |||
FAQ
What were Hurco (HURC) third quarter 2026 earnings?
For the third quarter of fiscal 2026, Hurco reported net income of $2,314,000, or $0.35 per diluted share, compared with a net loss of $3,693,000, or $(0.58) per diluted share, in the corresponding quarter of fiscal 2025.
How did Hurco (HURC) revenue perform in Q3 and the first nine months of fiscal 2026?
Third‑quarter 2026 sales and service fees were $47,289,000, up 3% year over year. For the first nine months, sales and service fees were $137,775,000, a 4% increase versus the same period in fiscal 2025, including a 2% favorable currency impact.
How did Hurco (HURC) gross margin change in the third quarter of 2026?
Hurco’s gross profit in Q3 2026 was $13,183,000, representing a 28% gross margin, up from 20% in Q3 2025. The company attributes this to higher machine volumes, a richer mix of higher‑performance machines, prior pricing actions, cost control, and some tariff refunds.
What were Hurco (HURC) order levels by region in Q3 2026?
Total third‑quarter 2026 orders were $51,368,000, up 25% year over year. Orders rose 37% in the Americas to $21,287,000, 6% in Europe to $21,401,000, and 68% in Asia Pacific to $8,680,000, despite minor unfavorable currency effects in some regions.
How did Hurco (HURC) perform by geographic region in terms of sales in fiscal 2026?
In Q3 2026, sales in the Americas increased 11% to $18,778,000, Europe declined 12% to $21,336,000, and Asia Pacific rose 51% to $7,175,000. For the first nine months, Americas sales grew 12%, Europe fell 8%, and Asia Pacific increased 30% year over year.
What is Hurco (HURC) year-to-date profitability for fiscal 2026?
For the first nine months of fiscal 2026, Hurco reported a net loss of $3,526,000, or $(0.55) per diluted share. This compares with a net loss of $12,076,000, or $(1.87) per diluted share, in the same period of fiscal 2025, reflecting improved but still negative year‑to‑date earnings.
What is Hurco (HURC) cash position and debt level as of July 31, 2026?
As of July 31, 2026, Hurco had cash and cash equivalents of $52,087,000 and working capital of $166,717,000. The company reported having no debt, indicating a debt‑free balance sheet at the end of the third quarter.