Hurco Companies (HURC) investor relations material

Executive summary

• Sales and service fees rose 4% year-over-year for the nine months ended July 31, 2026, driven by increased shipments of higher-performance machines in the Americas and Asia Pacific, and growth in Milltronics and Takumi brands in the Americas.

• The company operates in a cyclical, international market, with 45% of revenues from Europe and 14% from Asia Pacific, and has focused on cost reductions and inventory management amid global uncertainty.

• Orders increased 24% year-over-year for the nine-month period, with strong demand and growth in all regions.

• Achieved net income of $2.3M ($0.35/share) in Q3 FY2026, reversing a net loss of $3.7M ($-0.58/share) in Q3 FY2025.

• Gross margin expanded by 800 basis points to 28% in Q3, driven by cost control, higher sales volumes, and favorable product mix.

Financial highlights

• Third quarter sales and service fees were $47.3 million, up 3% year-over-year; gross profit was $13.2 million (28% margin), up from $9.1 million (20% margin) in the prior year.

• Operating income for the quarter was $2.3 million (5% of sales), compared to a $1.7 million loss in the prior year; net income was $2.3 million, or $0.35 per share, versus a $3.7 million loss ($0.58 per share) last year.

• For the nine months, sales and service fees reached $137.8 million (up 4%), gross profit was $31.5 million (23% margin), and operating loss narrowed to $1.7 million from $6.8 million.

• Cash and cash equivalents were $52.1 million at quarter-end, up from $48.7 million at the prior fiscal year-end; working capital was $166.7 million.

• Q3 SG&A expenses were $10.9 million (23% of sales), flat as a percentage of sales year-over-year.

Outlook and guidance

• Management continues to focus on cost control, capital allocation, and investment in new technologies and product development.

• Plans to introduce next-generation proprietary control technology at IMTS in Chicago.

• The company is seeking new acquisitions and growth opportunities while maintaining a strong balance sheet and liquidity.

• Strong cash position and no debt support continued investment for long-term growth.