Revenue declines amid weaker machine shipments
For Q1 FY2026, Hurco reported:
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Sales and service fees: $42.9 million, down 8% YoY from $46.4 million.
The decline was driven primarily by lower shipments of machine tools across several regions.
Revenue by geography
| Region | Q1 FY2026 | Q1 FY2025 | YoY Change |
|---|---|---|---|
| Americas | $16.7M | $18.1M | -8% |
| Europe | $20.5M | $21.6M | -5% |
| Asia Pacific | $5.7M | $6.7M | -15% |
| Total | $42.9M | $46.4M | -8% |
Regional declines were attributed to:
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Lower shipments of Milltronics vertical milling machines in the Americas
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Reduced demand for Hurco VM machines and lathes in Europe
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Lower shipments of Hurco machines in China and India.
Earnings improve despite operating loss
Hurco reported continued losses but with improved bottom-line performance compared with last year.
Q1 FY2026 results
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Net loss: $3.47 million
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Diluted EPS (GAAP): $(0.54)
Q1 FY2025 comparison
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Net loss: $4.32 million
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EPS: $(0.67).
The improvement reflects operational cost controls and margin improvements.
Profitability and margin performance
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Gross profit: $7.94 million, compared with $8.29 million last year
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Gross margin: 19%, up from 18% in the prior-year quarter.
Margin expansion was driven by:
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Higher mix of Hurco and Takumi higher-performance machines
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Improved leverage of fixed manufacturing costs.
However, operating profitability remained under pressure:
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Operating loss: $3.17 million
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Operating margin: -7%, compared with -5% in the prior year.
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Operating expenses increase
Operating costs rose during the quarter:
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SG&A expenses: $11.1 million
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SG&A as % of sales: 26%, up from 22% last year.
The increase was largely due to:
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Currency translation impacts
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Higher employee benefit costs.
Orders rise despite revenue decline
New orders showed improvement during the quarter.
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Orders: $42.0 million, up 5% YoY.
Orders by geography
| Region | Q1 FY2026 | Q1 FY2025 | YoY Change |
|---|---|---|---|
| Americas | $17.3M | $14.6M | +18% |
| Europe | $19.0M | $19.4M | -2% |
| Asia Pacific | $5.7M | $6.1M | -6% |
| Total | $42.0M | $40.1M | +5% |
The increase was driven primarily by stronger demand for Hurco and Takumi machines in the U.S. market.
Balance sheet remains strong
Hurco continues to maintain a solid financial position.
Balance sheet highlights (Jan 31, 2026):
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Cash and cash equivalents: $48.0 million
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Working capital: $169.5 million
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Total debt: None
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Shareholders’ equity: $195.0 million.
The company’s strong liquidity provides flexibility to navigate cyclical downturns in the machine tool industry.
Management commentary
CEO Greg Volovic noted improving demand trends in the United States:
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Orders have increased despite higher tariffs
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Cost reductions are helping improve margins
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The company remains focused on strengthening its balance sheet and operational efficiency.
Management expects that the pickup in U.S. orders could signal a broader recovery in global machine tool markets during 2026.
Key takeaways
1. Revenue still pressured by weak machine shipments
Lower sales volumes across all regions weighed on revenue.
2. Margin improvement shows cost discipline
Gross margin expansion indicates better product mix and cost control.
3. Orders signal potential demand recovery
A 5% increase in orders, particularly in the U.S., suggests early signs of market stabilization.
4. Strong balance sheet supports resilience
With no debt and $48M in cash, Hurco remains well positioned to weather cyclical downturns.
Bottom line
Hurco’s Q1 FY2026 results reflect continued weakness in global machine tool demand, with revenue declining year over year. However, improved margins, rising orders, and a strong balance sheet suggest the company may be approaching the early stages of a cyclical recovery in the industrial equipment market.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet news channel.