Shares of Hurco Companies, Inc. HURC have gained 26.8% since the company reported results for the quarter ended April 30, 2026, significantly outperforming the S&P 500 Index, which declined 4.2% over the same period. The stock has also delivered strong momentum over the past month, rising 30.2% against a 2.3% decline for the broader market benchmark.
Hurco’s Earnings Snapshot
Hurco reported second-quarter fiscal 2026 sales and service fees of $47.6 million, up 16.5% from $40.9 million in the year-ago quarter. Net loss narrowed to $2.4 million, or $0.37 per diluted share, from $4.1 million, or $0.62 per diluted share, a year earlier.
By geography, sales in the Americas increased 35% to $20.7 million, while Asia-Pacific revenues surged 81% to $7.1 million. Europe remained weak, with sales declining 8% to $19.8 million.
For the first six months of fiscal 2026, revenues increased 3.7% to $90.5 million, while the net loss narrowed to $5.8 million, or $0.91 per share, from $8.4 million, or $1.29 per share, in the prior-year period.
HURC’s Orders Growth Signals Improving Demand
A notable highlight of the quarter was a sharp acceleration in orders. New orders rose 41% year over year to $61.6 million, driven by broad-based strength across all major regions. Orders in the Americas climbed 63% to $27.6 million, Europe increased 17% to $24.7 million and Asia-Pacific advanced 66% to $9.4 million.
For the first six months of fiscal 2026, orders increased 24% to $103.6 million. Management attributed the growth largely to stronger demand for Hurco and Takumi 5-axis and higher-performance vertical milling machines. Demand was particularly strong in the U.K., Germany, France, China and India.
Hurco Companies, Inc. Price, Consensus and EPS Surprise
Hurco Companies, Inc. price-consensus-eps-surprise-chart | Hurco Companies, Inc. Quote
Hurco’s Margin Expansion and Operating Improvements
Gross profit increased 31.9% to $10.3 million from $7.8 million a year earlier, while gross margin expanded 300 basis points to 22% of sales from 19%. The improvement reflected higher machine sales volumes and a greater mix of higher-performance products. HURC also benefited modestly from pricing actions implemented in 2026 and tariff refund claims, although those gains were partially offset by incremental tariffs.
Selling, general and administrative (SG&A) expenses edged up 2.1% to $11.1 million from $10.9 million, primarily because of unfavorable foreign-currency translation. However, as a percentage of revenue, SG&A improved to 23% from 27%, reflecting stronger operating leverage. Operating loss narrowed significantly to $0.8 million from $3.1 million in the prior-year quarter.
HURC’s Management Commentary
Chief executive officer Greg Volovic described the quarter as the result of more than two years of disciplined execution during a prolonged downturn in the machine tool industry. Volovic highlighted the company’s strongest quarterly order intake in many years and pointed to growing customer adoption of 5-axis and higher-performance vertical milling machines. According to Volovic, investments in proprietary WinMax control technology, the Takumi platform and automation solutions contributed to the improved product mix, while disciplined pricing and tighter cost controls helped expand margins and reduce losses.
Hurco’s Financial Position and Liquidity
Hurco ended the quarter with cash and cash equivalents of $50.1 million, up from $48.7 million as of Oct. 31, 2025. Working capital totaled $166.9 million as of April 30, 2026, compared with $173.1 million as of Oct. 31, 2025, reflecting lower inventory levels and higher customer deposits. HURC remained debt-free at quarter’s end, providing financial flexibility despite ongoing market uncertainty.
Customer deposits increased to $7.8 million from $4.8 million at fiscal year-end, while inventories declined to $137.2 million from $142.9 million during the same period.
HURC’s Guidance
Hurco did not provide formal financial guidance for the upcoming quarters. Management indicated that while demand trends have strengthened, the company remains cautious and intends to continue managing through potential market volatility while positioning itself to benefit if improving order trends prove sustainable.
Hurco’s Other Developments
The company reported no acquisitions, divestitures or restructuring actions during the quarter. Hurco entered into a new secured revolving credit and letter-of-credit facility with Bank of America in January 2026, providing up to $20 million of borrowing capacity through Dec. 31, 2026. However, HURC had no borrowings outstanding as of April 30, 2026.
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This article originally published on Zacks Investment Research (zacks.com).
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