HURCO Returns to Profit as Orders Jump 25% in Fiscal Q3
The CNC machine tool maker earned $0.35 a share against a year-ago loss, with gross margin up 800 basis points to 28% and orders up 24% year to date.
Hurco Companies (HURC) swung back to profit in its fiscal third quarter ended July 31, 2026, reporting net income of $2.31 million, or $0.35 per diluted share, against a net loss of $3.69 million, or $(0.58) per share, a year earlier. Sales and service fees rose 3% to $47.3 million, while new orders climbed 25% to $51.4 million, outpacing shipments.
The margin story drove the turnaround. Gross profit was $13.2 million, or 28% of sales, up from $9.1 million, or 20%, an expansion of 800 basis points. Management attributed most of the gain to higher machine volumes, a richer mix of 5-axis and higher-performance machines, and price increases taken in the first quarter of fiscal 2026, with a smaller contribution from tariff refund claims filed with U.S. Customs and Border Protection.
CEO Greg Volovic said the company's disciplined execution of strategic pricing and tighter cost control through the down cycle had finally shown up in the results. He added that Hurco is not declaring the cycle over, but believes the direction of our business has turned.
Regionally, third-quarter sales in the Americas rose 11% to $18.8 million and Asia Pacific jumped 51% to $7.2 million, while Europe fell 12% to $21.3 million on lower shipments of Hurco machines and of components made by Italian subsidiary LCM. Order intake was positive everywhere: Americas up 37%, Asia Pacific up 68% and Europe up 6%.
For the first nine months, Hurco still posted a net loss of $3.53 million, or $(0.55) per share, narrowed from a loss of $12.08 million, or $(1.87). Nine-month sales were $137.8 million, up 4%, and orders totalled $155.0 million, up 24%.
Operating costs were broadly flat, with SG&A at $10.9 million, or 23% of sales, roughly unchanged year over year. The company continues to carry a full valuation allowance against its Italian, U.S. and Chinese deferred tax assets, and recorded $432,000 of tax expense in the quarter.
The balance sheet ended the quarter with $52.1 million in cash, up from $48.7 million at the October 2025 fiscal year end, $166.7 million of working capital and no debt. Volovic said Hurco will use that position to introduce the next generation of its proprietary control technology at the IMTS show in Chicago later this month.
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