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Hurco Stock Gains Post Q4 Earnings Despite Lower Sales and Wider Loss

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Shares of Hurco Companies, Inc. (HURC - Free Report) have gained 2.7% since the company reported its earnings for the quarter ended Oct. 31, 2025. This compares to the S&P 500 Index’s 0.8% rise over the same time frame. Over the past month, the stock gained 9.6% compared with the S&P 500’s 2.5% rise.

HURC’s Earnings Snapshot

For the fourth quarter of fiscal 2025, Hurco reported sales and service fees of $45.5 million, down 15% year over year from $53.7 million, while the net loss widened to $3 million, or $0.47 per diluted share, from a net loss of $1.4 million, or $0.23 per share, in the year-ago period. Gross profit declined 36.4% to $7.7 million from $12.2 million, with gross margin compressing to 17% from 23% year over year.

For the full fiscal year, sales and service fees decreased 4% to $178.6 million from $186.6 million. HURC posted a net loss of $15.1 million, or $2.34 per diluted share, compared with $16.6 million, or $2.56 per share, in fiscal 2024.

Segmentally, the Americas recorded a 22% decline in fiscal fourth-quarter revenues, Europe saw an 8% drop, and Asia Pacific revenues fell 25%, reflecting lower machine shipments across most regions.

Hurco’s Other Key Business Metrics

Order trends remained mixed. Fourth-quarter fiscal 2025 orders totaled $46.5 million, down 9% year over year from $51.1 million, while full-year orders declined 14% to $171.3 million from $198.3 million. The Americas was a relative bright spot in the quarter, posting a 4% increase in orders, supported by stronger demand for Hurco and Takumi machines. In contrast, Europe and the Asia Pacific experienced order declines of 13% and 39%, respectively, driven by softer customer demand in major markets such as Germany, France, China and India.

From a cost perspective, selling, general and administrative (SG&A) expenses fell 11.6% year over year in the fiscal fourth quarter to $11.2 million from $12.7 million, reflecting lower trade show spending and global cost reductions, although SG&A rose as a percentage of sales due to lower revenue.

Cash and cash equivalents increased to $48.7 million as of Oct. 31, 2025, from $33.3 million a year earlier, underscoring balance sheet strength.

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

Management characterized fiscal 2025 as a challenging year marked by macroeconomic headwinds and tariff-related cost pressures. Chief Executive Officer Greg Volovic highlighted that HURC’s largest markets, the United States and Germany, ended the year with their strongest quarter of orders and sales, reflecting an improving trend in the second half of the year. Volovic also emphasized disciplined execution, noting year-over-year cash growth of approximately $15 million and a nearly $3 million reduction in SG&A expenses, alongside continued investment in product innovation and leadership transitions in key regions.

Factors Influencing Hurco’s Headline Numbers

Lower sales volumes and an unfavorable mix shift weighed on profitability during the quarter. Gross margin erosion was attributed to reduced shipments of higher-performance 5-axis machines and a greater mix of lower-margin 3-axis machines, particularly in the Americas and Europe. Additionally, tariffs implemented in the second half of fiscal 2025 increased the cost of goods sold, further pressuring margins and limiting fixed-cost leverage. Currency movements provided modest support to reported sales and orders in Europe, but were insufficient to offset volume declines.

HURC’s Guidance and Outlook

The company did not issue formal quantitative guidance for fiscal 2026. However, management expressed confidence in Hurco’s positioning, citing a strong balance sheet, an enhanced management team and a diversified product portfolio. The commentary suggested cautious optimism as the company prepares to navigate ongoing industry cyclicality and macroeconomic uncertainty.

Hurco’s Other Developments

HURC did not disclose any acquisitions, divestitures or major restructuring activities during the quarter. Management’s strategic actions during the period were focused primarily on leadership transitions, cost control initiatives and operational discipline rather than transformational corporate activity.


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