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Hurco Stock Gains Following Q3 Earnings Showing Narrower Losses

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Shares of Hurco Companies, Inc. (HURC - Free Report) have gained 4.9% since the company reported its earnings for the quarter ended July 31, 2025. This compares with the S&P 500 Index’s growth of 0.3% during the same period. Over the past month, however, Hurco’s stock has lost 3.6% against the S&P 500’s gain of 2.9%.

HURC’s Earnings Snapshot

Hurco posted a net loss of $3.7 million, or $0.58 per diluted share, for the third quarter of fiscal 2025, narrowing from a loss of $9.6 million, or $1.47 per share, in the year-ago period. Revenue rose 7.4% year over year to $45.8 million from $42.7 million, supported by favorable foreign currency translation and strong contributions from the Americas and Asia Pacific.

By geography, Americas sales advanced 9.8%, Europe remained flat and Asia Pacific surged 48.4%. The improvement was driven by stronger demand for Hurco and Milltronics machines in the Americas and higher sales of Takumi machines in the Asia Pacific. Europe, however, showed weakness due to lower demand in Germany and France despite gains in the U.K. and Italy.

Gross margin expanded to 20% from 18% a year earlier, reflecting improved cost management and a better mix of machine sales.

Hurco’s Other Key Business Metrics

Orders softened notably, falling 22.4% year over year to $40.9 million in the quarter, with weakness evident in all regions. Americas orders fell 11.7%, Europe declined 28.5% and Asia Pacific dropped 24.5%. Gross profit improved 16.2% to $9.1 million from $7.8 million, while selling, general and administrative expenses rose 3.7% to $10.8 million from $10.4 million, partly due to currency effects. Despite the revenue and margin gains, operating loss stood at $1.7 million, narrower than the $2.5 million loss in the prior year.

Cash and cash equivalents were $44.5 million as of July 31, 2025, up from $33.3 million at the end of fiscal 2024, giving the company a stronger liquidity position. Working capital, however, slipped slightly to $176.8 million as of July 31, 2025, from $180.8 million as of Oct. 31, 2024.

Hurco Companies, Inc. Price, Consensus and EPS Surprise

Hurco Companies, Inc. Price, Consensus and EPS Surprise

Hurco Companies, Inc. price-consensus-eps-surprise-chart | Hurco Companies, Inc. Quote

HURC’s Management Commentary

CEO Greg Volovic highlighted that the company’s discipline in controlling costs and growing sales in the Americas and Asia Pacific drove improved results. Volovic emphasized Hurco’s healthy cash balance of $44.5 million, which provides flexibility for technology investments and strategic initiatives. He also pointed to signs of customer confidence amid evolving trade agreements and tax legislation.

Factors Influencing Hurco’s Headline Numbers

Regional divergence shaped the quarter. Strong shipments of Hurco and Milltronics machines, particularly lathes, tool room equipment, and vertical machining centers, drove growth in the Americas. In the Asia Pacific, Takumi machine sales contributed to nearly 50% growth. Conversely, European performance was hindered by softer demand in France and Germany and reduced shipments of electro-mechanical components by subsidiary LCM, partially offset by gains in the U.K. and Italy.

The decline in new orders highlighted lingering macroeconomic caution. Reduced demand in Germany, the U.K., France and China weighed heavily on bookings, despite growth in Takumi orders across other parts of Asia.

HURC’s Guidance

Hurco did not provide specific quantitative guidance. However, management reiterated confidence in returning to profitability over time, citing a combination of strong liquidity, ongoing investments in technology and disciplined expense management.

Hurco’s Other Developments

Hurco continued to repurchase shares under its $25 million program, extended through Nov. 10, 2026. In the quarter, the company repurchased 104,472 shares for nearly $2 million. Cumulatively, Hurco has repurchased roughly $5.3 million worth of stock since the program’s inception, leaving about $19.7 million authorized for future repurchases. Management also noted that reinstating dividend payments may be considered once profitability resumes, alongside exploring potential acquisitions for long-term growth.


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