Hurco Reports Third Quarter Results For Fiscal Year 2025

INDIANAPOLIS, Sept. 05, 2025 (GLOBE NEWSWIRE) -- Hurco Companies, Inc. (Nasdaq: HURC) today reported results for the third fiscal quarter ended July 31, 2025. Hurco recorded a net loss of $3,693,000, or $0.58 per diluted share, for the third quarter of fiscal year 2025, compared to a net loss of $9,596,000, or $1.47 per diluted share, for the corresponding period in fiscal year 2024. These net losses for the third quarter of fiscal years 2025 and 2024 included non-cash tax valuation allowances of $1,639,000 and $8,158,000, respectively, recorded in provision for income taxes. For the nine months of fiscal year 2025, Hurco reported a net loss of $12,076,000, or $1.87 per diluted share, compared to a net loss of $15,166,000, or $2.33 per diluted share, for the corresponding period in fiscal year 2024. These net losses for the nine months of fiscal years 2025 and 2024 included non-cash tax valuation allowances of $5,294,000 and $8,158,000, respectively, recorded in provision for income taxes. Sales and service fees for the third quarter of fiscal year 2025 were $45,806,000, an increase of $3,155,000, or 7%, compared to the corresponding prior year period, and included a favorable currency impact of $1,379,000, or 3%, when translating foreign sales to U.S. dollars for financial reporting purposes. Sales and service fees for the nine months of fiscal year 2025 were $133,087,000, an increase of $205,000, or less than 1%, compared to the corresponding prior year period, and included a favorable currency impact of $1,156,000, or less than 1%, when translating foreign sales to U.S. dollars for financial reporting purposes. The following table sets forth net sales and service fees by geographic region for the third fiscal quarter and nine months ended July 31, 2025, and 2024 (dollars in thousands): Three Months Ended Nine Months Ended July 31, July 31, 2025 2024$ Change% Change 2025 2024$ Change% ChangeAmericas$16,901$15,389$1,51210% $50,370$48,986$1,384 3%Europe 24,166 24,068 980% 67,388 69,538 (2,150)(3)%Asia Pacific 4,739 3,194 1,54548% 15,329 14,358 971 7%Total$45,806$42,651$3,1557% $133,087$132,882$205 0% Greg Volovic, Chief Executive Officer, stated, “While capital purchase decisions remain somewhat cautious due to macroeconomic uncertainty, I am encouraged by the progress we made this quarter. We increased our gross profit and reduced our operating costs to improve our overall financial results compared to the prior year. We delivered 10% sales growth in the Americas and nearly 50% growth in Asia Pacific and strengthened our balance sheet, resulting in over $44 million in cash and cash equivalents as of July 31, 2025. These improvements reflect the value of our product portfolio, the discipline of our teams, and the growing confidence we are seeing from customers as they begin to navigate advancements in trade agreements and changes in tax legislation. With a healthy cash position and ongoing investments in technology, we believe Hurco is well positioned to return to profitability and deliver long-term value for our shareholders.” Sales in the Americas for the third quarter and nine months of fiscal year 2025 increased by 10% and 3%, respectively, compared to the corresponding periods in fiscal year 2024, primarily due to increased shipments of Hurco and Milltronics machines. The increase in Hurco and Milltronics machine sales was primarily attributable to increased shipments of lathes, tool room machines and vertical machining centers. European sales for the third quarter of fiscal year 2025 increased by less than 1%, compared to the corresponding period in fiscal year 2024, and included a favorable currency impact of 5%, when translating foreign sales to U.S. dollars for financial reporting purposes. European sales for the nine months of fiscal year 2025 decreased by 3%, compared to the corresponding period in fiscal year 2024, and included a favorable currency impact of 2%, when translating foreign sales to U.S. dollars for financial reporting purposes. The year-over-year decreases in European sales in both periods was primarily attributable to a decreased volume of shipments of Hurco and Takumi machines in France and Germany, as well as a decreased volume of shipments of electro-mechanical components and accessories manufactured by our wholly-owned subsidiary, LCM Precision Technology S.r.l. (“LCM”), offset by increased sales of Hurco machines in the United Kingdom and Italy as well as the favorable impact of currency translation of foreign sales to U.S. dollars for financial reporting purposes. Asian Pacific sales for the third quarter of fiscal year 2025 increased by 48%, compared to the corresponding prior year period, and included a favorable currency impact of 4%, when translating foreign sales to U.S. dollars for financial reporting purposes. Asian Pacific sales for the nine months of fiscal year 2025 increased by 7%, compared to the corresponding prior year period, and included an unfavorable currency impact of less than 1%, when translating foreign sales to U.S. dollars for financial reporting purposes. The year-over-year increases in Asian Pacific sales in both periods were primarily due to increased sales of Takumi vertical, bridge mill, horizontal, and 5-axis machines in the Asian Pacific region. Orders for the third quarter of fiscal year 2025 were $40,996,000, a decrease of $11,819,000, or 22%, compared to the corresponding period in fiscal year 2024, and included a favorable currency impact of $1,224,000, or 2%, when translating foreign orders to U.S. dollars. Orders for the nine months of fiscal year 2025 were $124,781,000, a decrease of $22,444,000, or 15%, compared to the corresponding period in fiscal year 2024, and included a favorable currency impact of $922,000, or less than 1%, when translating foreign orders to U.S. dollars. The following table sets forth new orders booked by geographic region for the third fiscal quarter and nine months ended July 31, 2025, and 2024 (dollars in thousands): Three Months Ended Nine Months Ended July 31, July 31, 2025 2024$ Change% Change 2025 2024$ Change% ChangeAmericas$15,557$17,625($2,068)(12)% $47,145$55,490($8,345)(15)%Europe 20,274 28,349 (8,075)(28)% 60,730 75,757 (15,027)(20)%Asia Pacific 5,165 6,841 (1,676)(24)% 16,906 15,978 928 6%Total$40,996$52,815($11,819)(22)% $124,781$147,225($22,444)(15)% Orders in the Americas for the third quarter of fiscal year 2025 decreased by 12%, compared to the corresponding period in fiscal year 2024, primarily due to reduced demand for Hurco and Milltronics machines. Orders in the Americas for the nine months of fiscal year 2025 decreased by 15%, compared to the corresponding period in fiscal year 2024, primarily due to decreased customer demand for Hurco and Takumi machines, as well as reduced demand for OEM machines sold by our wholly-owned domestic distributors. European orders for the third quarter of fiscal year 2025 decreased by 28%, compared to the corresponding prior year period, and included a favorable currency impact of 4%, when translating foreign orders to U.S. dollars. European orders for the nine months of fiscal year 2025 decreased by 20%, compared to the corresponding prior year period, and included a favorable currency impact of 1%, when translating foreign orders to U.S. dollars. The year-over-year decreases in orders for both periods were driven primarily by decreased customer demand for Hurco and Takumi machines in Germany, the United Kingdom and France, as well as for accessories manufactured by LCM. Asian Pacific orders for the third quarter of fiscal year 2025 decreased by 24%, compared to the corresponding prior year period, and included a favorable currency impact of 1%, when translating foreign orders to U.S. dollars. The decrease in orders was primarily due to a reduced volume of Hurco machine orders in China. Asian Pacific orders for the nine months of fiscal year 2025 increased by 6%, compared to the corresponding prior year period, and included an unfavorable currency impact of less than 1%, when translating foreign orders to U.S. dollars. The increase in orders for the nine months of fiscal year 2025 compared to the prior year period was due mainly to an increased volume of Takumi machine orders throughout the Asian Pacific region where our customers are located, partially offset by decreased Hurco machine orders in China. Gross profit for the third quarter of fiscal year 2025 was $9,112,000, or 20% of sales, compared to $7,843,000, or 18% of sales, for the corresponding prior year period. The quarter-over-quarter increase in gross profit as a percentage of sales was primarily due to a higher concentration of machine sales in Europe and lower fixed costs allocated to overhead related to cost savings implemented in the last twelve months. Gross profit for the nine months of fiscal year 2025 was $25,231,000, or 19% of sales, compared to $25,557,000, or 19% of sales, for the corresponding prior year period. Selling, general, and administrative expenses for the third quarter of fiscal year 2025 were $10,762,000, or 23% of sales, compared to $10,376,000, or 24% of sales, in the corresponding fiscal year 2024 period, and included an unfavorable currency impact of $276,000, or 3%, when translating foreign expenses to U.S. dollars for financial reporting purposes. The quarter-over-quarter increase in selling, general and administrative expenses was due mainly to the unfavorable impact of currency when translating foreign expenses to U.S. dollars for financial reporting purposes. Selling, general, and administrative expenses for the nine months of fiscal year 2025 were $32,041,000, or 24% of sales, compared to $33,352,000, or 25% of sales, in the corresponding fiscal year 2024 period, and included an unfavorable currency impact of $221,000, or less than 1%, when translating foreign expenses to U.S. dollars for financial reporting purposes. The year-over-year reduction in selling, general and administrative expenses for the nine months of fiscal year 2025 compared to the corresponding prior year period, reflected lower levels of discretionary spending and reduced employee health insurance costs. Income tax expense for the third quarter and nine months of fiscal year 2025 was $567,000 and $3,126,000, respectively, compared to $6,999,000 and $6,438,000 for the corresponding prior year periods. The year-over-year reductions in income tax expense for both periods were due mainly to lower valuation allowances recorded against our U.S. deferred tax assets, as well as changes in geographic mix of income and loss that include jurisdictions with differing tax rates. We recorded valuation allowances of $1,639,000 and $5,294,000 for the third quarter and nine months of fiscal year 2025, respectively, compared to a valuation allowance of $8,158,000 recorded for each of corresponding prior year periods. Because we have valuation allowances recorded against our U.S. and Chinese deferred tax assets, we did not record tax benefits for our U.S. and Chinese net losses for the third quarter and nine months of fiscal 2025. The valuation allowances recorded in the third quarter and nine months of fiscal year 2025 reflected a full valuation allowance of our U.S., Chinese, and Italian deferred tax assets and were recorded after evaluating changes to tax laws, statutory tax rates, and our cumulative three-year income (loss) levels for the U.S. and Italy for the nine months of fiscal year 2025. Cash and cash equivalents totaled $44,494,000 at July 31, 2025, compared to $33,330,000 at October 31, 2024. Working capital was $176,755,000 at July 31, 2025, compared to $180,788,000 at October 31, 2024. The decrease in working capital was primarily driven by decreases in accounts receivable, net and inventories and increases in accounts payable and derivative liabilities, partially offset by increases in cash and cash equivalents and derivative assets. On January 6, 2023, we announced approval of a share repurchase program in an aggregate amount of up to $25,000,000 and later extended this program through November 10, 2026. Repurchases under the program may be made in the open market or through privately negotiated transactions from time to time, subject to applicable laws, regulations, and contractual provisions. During the third quarter of fiscal 2025, we repurchased $1,999,820, or 104,472 common shares, under this program. As of July 31, 2025, we had repurchased $5,304,548, or 259,620 common shares, under this program since inception, leaving $19,682,471 available for future repurchases thereunder. Greg Volovic, Chief Executive Officer, stated, “We believe it is important to continue a balanced capital allocation strategy that prioritizes a strong balance sheet and available liquidity while recognizing the importance of accretive growth and shareholder value. We continue to invest in capital expenditures, make new investments in emerging technologies and research and development, and will evaluate reinstating dividend payments to our shareholders once we return to profitability. We also continue to evaluate potential acquisitions while remaining fiscally responsible and poised for long-term sustainable growth.” 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, the U.S., and China, 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, England, France, Germany, India, Italy, the Netherlands, Poland, Singapore, the U.S., and Taiwan. 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 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 the COVID-19 pandemic and other 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. McClellandExecutive 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, 2025 2024 2025 2024 (unaudited) (unaudited)Sales and service fees$45,806 $42,651 $133,087 $132,882 Cost of sales and service 36,694 34,808 107,856 107,325 Gross profit 9,112 7,843 25,231 25,557 Selling, general and administrative expenses 10,762 10,376 32,041 33,352 Operating (loss) income (1,650) (2,533) (6,810) (7,795)Interest expense 4 159 66 426 Interest income 58 172 239 492 Investment income 13 59 186 126 Other (expense) income, net (1,543) (136) (2,499) (1,125) (Loss) income before taxes (3,126) (2,597) (8,950) (8,728)Provision (benefit) for income taxes 567 6,999 3,126 6,438 Net (loss) income ($3,693) ($9,596) ($12,076) ($15,166) (Loss) income per common share Basic($0.58) ($1.47) ($1.87) ($2.33) Diluted($0.58) ($1.47) ($1.87) ($2.33)Weighted average common shares outstanding Basic 6,463 6,513 6,474 6,505 Diluted 6,463 6,513 6,474 6,505 Dividends per share $- $- $- $0.32 OTHER CONSOLIDATED FINANCIAL DATA Three Months Ended Nine Months Ended July 31, July 31,Operating Data: 2025 2024 2025 2024 (unaudited) (unaudited) Gross margin 20% 18% 19% 19%SG&A expense as a percentage of sales 23% 24% 24% 25%Operating (loss) income as a percentage of sales -4% -6% -5% -6%Pre-tax (loss) income as a percentage of sales -7% -6% -7% -7%Effective tax rate -18% -270% -35% -74%Depreciation and amortization$642 $888 $2,000 $2,678 Capital expenditures$932 $735 $2,288 $2,046 Balance Sheet Data:7/31/2025 10/31/2024 Working capital$176,755 $180,788 Days sales outstanding 47 49 Inventory turns 1.0 1.0 Capitalization Total debt -- -- Shareholders' equity 203,672 207,172 Total$203,672 $207,172 Hurco Companies, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except share and per share data) July 31, October 31, 2025 2024 ASSETS(unaudited) Current assets: Cash and cash equivalents$44,494 $33,330 Accounts receivable, net 27,645 36,678 Inventories 147,538 153,037 Derivative assets 2,782 323 Prepaid and other assets 5,835 5,209 Total current assets 228,294 228,577 Property and equipment: Land 1,046 1,046 Building 7,381 7,381 Machinery and equipment 26,919 28,106 Leasehold improvements 4,644 4,667 39,990 41,200 Less accumulated depreciation and amortization (31,671) (32,404)Total property and equipment, net 8,319 8,796 Non-current assets: Software development costs, less accumulated amortization 7,684 7,044 Intangible assets, net 663 763 Operating lease - right of use assets, net 11,929 11,313 Deferred income taxes 641 1,349 Investments 8,821 8,216 Other assets 2,737 2,585 Total non-current assets 32,475 31,270 Total assets$269,088 $268,643 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable$27,343 $24,951 Customer deposits 4,453 4,308 Derivative liabilities 2,038 705 Operating lease liabilities 4,190 3,829 Accrued payroll and employee benefits 6,819 7,786 Accrued income taxes 1,622 866 Accrued expenses 4,113 4,258 Accrued warranty expenses 961 1,086 Total current liabilities 51,539 47,789 Non-current liabilities: Deferred income taxes 47 53 Accrued tax liability 29 537 Operating lease liabilities 8,116 7,852 Deferred credits and other 5,685 5,240 Total non-current liabilities 13,877 13,682 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; 6,569,682 and 6,548,838 shares issued and 6,402,396 and 6,435,624 shares outstanding, as of July 31, 2025 and October 31, 2024, respectively 640 644 Additional paid-in capital 60,781 61,500 Retained earnings 149,346 161,422 Accumulated other comprehensive loss (7,095) (16,394)Total shareholders' equity 203,672 207,172 Total liabilities and shareholders' equity$269,088 $268,643

Hurco Reports Third Quarter Results For Fiscal Year 2025

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