Hurco Companies (HURC) investor relations material

Executive summary

• Sales and service fees rose 17% year-over-year to $47.6 million for the quarter ended April 30, 2026, driven by strong demand for 5-axis and vertical milling machines, especially in the Americas and Asia Pacific, with favorable currency impact, despite a decline in Europe.

• Orders surged 41% year-over-year to $61.6 million, reflecting robust customer demand across all regions and product lines.

• Operating loss narrowed to $0.8 million from $3.1 million in the prior year quarter, primarily due to higher sales volume and improved product mix.

• Gross profit margin improved to 22% from 19% year-over-year, benefiting from increased sales of higher-performance machines, price increases, and tariff refunds.

• Net loss for Q2 FY2026 was $2.4 million ($0.37/share), improved from $4.1 million ($0.62/share) in Q2 FY2025.

Financial highlights

• Quarterly sales and service fees: $47.6 million, up 17% year-over-year; six-month sales: $90.5 million, up 4%.

• Gross profit: $10.3 million (22% of sales), up from $7.8 million (19% of sales) last year.

• Operating loss: $0.8 million, improved from $3.1 million loss year-over-year.

• Net loss: $2.4 million, compared to $4.1 million loss in the prior year quarter; six-month net loss: $5.8 million, improved from $8.4 million.

• Cash and cash equivalents: $50.1 million as of April 30, 2026.

Outlook and guidance

• Management continues to focus on cost control, inventory management, and capital allocation to navigate cyclical industry conditions.

• No specific forward guidance provided, but the company expects to leverage its strong balance sheet and operating cash flow for ongoing investments and potential acquisitions.

• Management notes early signs of demand strength but remains cautious due to industry cyclicality, focusing on long-term value creation and operational flexibility.