Hurco Companies, Inc. reported a decline in financial performance for the first quarter of fiscal year 2026, with sales and service fees totaling $42.9 million, down 8% from $46.4 million in the same period last year. The decrease was attributed primarily to reduced shipments of Milltronics vertical milling machines and Hurco machines in key markets such as the United Kingdom, Germany, China, and India. Despite the overall decline in sales, the company experienced a 5% increase in orders, reflecting a growing demand for Hurco and Takumi machines in the Americas and India.

The company's gross profit for the quarter was $7.9 million, representing 19% of sales, compared to $8.3 million, or 18% of sales, in the prior year. This slight increase in gross profit margin was driven by a favorable sales mix of higher-performance machines. However, Hurco's operating loss widened to $3.2 million from $2.1 million a year earlier, primarily due to lower shipment volumes. Selling, general, and administrative expenses rose to $11.1 million, or 26% of sales, reflecting increased employee benefits costs and unfavorable currency impacts.

In terms of strategic developments, Hurco entered a new credit agreement with Bank of America on January 5, 2026, providing a secured revolving credit and letter of credit facility of up to $20 million. This agreement replaces the previous credit facility that expired at the end of 2025. The company has also suspended its regular quarterly cash dividend to enhance financial flexibility and focus on reinvestment in core business operations and product development.

Operationally, Hurco's workforce remained stable, with a slight decrease in the number of shares outstanding from 6.459 million to 6.425 million. The company continues to manage its inventory levels, which decreased to $141.7 million from $142.9 million, and has maintained a strong cash position of $48.0 million. Looking ahead, Hurco aims to leverage its strong balance sheet to navigate market volatility and pursue growth opportunities, including potential acquisitions and investments in new technologies. The company remains cautious about the cyclical nature of the machine tool industry and the impact of global economic conditions on demand.

About HURCO COMPANIES INC

Hurco Companies, Inc. designs, manufactures, and sells CNC machine tools, including vertical and turning centers, for the metal cutting industry. Its products feature proprietary control systems and software that enhance productivity, accuracy, and ease of operation. Serving global markets across aerospace, automotive, medical, and energy sectors, Hurco emphasizes innovation, automation, and customer support to maintain competitive advantage in a cyclical industry.

This description was generated via AI from an annual report. Updated 9 months ago.

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