Hurco Companies Reports Decline in Sales and Increased Net Loss for Q2 and First Half of Fiscal 2025

Hurco Companies, Inc. reported a decline in financial performance for the second quarter and first half of fiscal 2025, as detailed in its latest 10-Q filing. For the three months ended April 30, 2025, the company generated sales and service fees of $40.9 million, a decrease of 10% from $45.2 million in the same period last year. The decline was attributed primarily to reduced shipments of Hurco and Takumi machines across all geographic regions, particularly in Europe and Asia Pacific. The company's gross profit for the quarter was $7.8 million, representing 19% of sales, compared to $8.0 million, or 18% of sales, in the prior year.

In the first six months of fiscal 2025, Hurco's sales and service fees totaled $87.3 million, down 3% from $90.2 million in the same period of fiscal 2024. The decrease was driven by a 5% decline in European sales, which accounted for approximately 50% of total revenues, and a 17% drop in orders from the Americas. The company reported a net loss of $4.1 million for the second quarter, compared to a loss of $3.9 million in the same quarter of the previous year. For the first half, the net loss was $8.4 million, compared to a loss of $5.6 million in the prior year.

Operationally, Hurco's workforce remained stable, with a slight decrease in employee headcount. The company continues to focus on its three brands of CNC machine tools—Hurco, Milltronics, and Takumi—while also expanding its product portfolio with non-Hurco branded products. The company has been actively managing its costs, resulting in a reduction in selling, general, and administrative expenses to $10.9 million for the second quarter, down from $11.5 million in the prior year. This reduction reflects lower discretionary spending and reduced sales commissions.

Looking ahead, Hurco remains cautious about market conditions, particularly in Europe and Asia Pacific, where demand has been weaker. The company is also navigating challenges related to currency fluctuations, as approximately 62% of its revenues are derived from international customers. Despite these challenges, Hurco is committed to enhancing its financial flexibility and has suspended its regular quarterly cash dividend to focus on strengthening its balance sheet and investing in core business areas. The company has approximately $50.8 million available under its credit facilities, providing a buffer for operational needs and potential strategic investments.