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what it is
Hurco sells computerized metal-cutting machines and the software that tells those machines what to do.
how it gets paid
Last year Hurco Companies made $179M in revenue. Hurco brand machines was the main engine at $81M, or 45% of sales.
why growth slowed
Revenue fell 4.3% last year. The 18.5% gross margin mattered most because low volume is painful.
what just happened
Latest quarter revenue fell to $43M, and Hurco still lost money with EPS at -$0.54.
At a glance
B balance sheet — gets the job done, barely
15/100 earnings predictability — expect surprises
2.0% return on capital — nothing to write home about
-$2.56 fy2024 eps est
$187M fy2024 rev est
xvary composite: 52/100 — below average
What they do
Hurco sells computerized metal-cutting machines and the software that tells those machines what to do.
Hurco wins by selling the machine and the control system together. If your shop trains operators on one interface, switching means retraining people and risking downtime. That stickiness lets a 688-employee company support three brands worldwide and stay relevant in a niche market.
How they make money
$179M
annual revenue · their business grew -4.3% last year
Hurco brand machines
$81M
6.0%
Milltronics machines
$34M
5.0%
Takumi machines
$29M
3.0%
Control systems and software
$18M
2.0%
Parts, service, and other
$17M
0.0%
The products that matter
computerized milling systems
Vertical Machining Centers
core machine-tool line
these sit inside a $179M revenue business with just 18.5% gross margin. if factory spending stays soft, this line does not have a high-margin buffer to protect it.
cycle exposed
computerized turning systems
Turning Centers
same customer wallet
these sell into the same manufacturing budget that produced a $3.5M quarterly net loss for the company. same customers. same capex hesitation.
orders matter
Key numbers
5.8%
operating margin
Jargon: operating margin → profit after running the business → so what: Hurco is losing money before interest and taxes on every sales dollar.
$8M
long-term debt
Debt is only $8 million, or 8% of capital, so your main problem here is weak earnings, not a balance-sheet emergency.
$179M
annual revenue
This is a very small industrial company. A single bad demand cycle can hit a big chunk of a $179 million revenue base.
2.0%
return on capital
Jargon: return on capital → profit earned on money invested in the business → so what: 2.0% is weak for a machine maker.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $8M (8% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for HURC right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest quarter revenue fell to $43M, and Hurco still lost money with EPS at -$0.54.
Annual revenue dropped 4.3% to $179 million, and the latest quarter fell 8% vs. prior year. Gross margin was 18.5%, which is too thin to absorb weak factory demand.
$43M
revenue
$0.54
eps
18.5%
gross margin
the number that mattered
The 18.5% gross margin mattered most because low volume is painful, but low volume with thin product profit is how a down cycle turns into persistent losses.
source: company earnings report, 2026
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What could go wrong
the top risk is machine-tool demand staying weak for longer.
med
factory capex does not come back
hurco sells equipment customers can delay. annual revenue already fell 4.3% to $179M, and the company still lost $3.5M last quarter.
if orders stay soft, losses can keep outrunning the balance sheet patience you are paying for.
med
low margin leaves little cushion
an 18.5% gross margin means there is not much space between slower sales and operating pain. this is not a software business with room to absorb a slump.
small revenue misses can keep turning into net losses instead of just slower growth.
med
trade friction and overseas weakness
the annual report cited headwinds from global trade tariffs, and management also faces demand pressure outside the U.S. that can make an already cyclical business even choppier.
higher costs or weaker international orders would hit a $179M revenue base that already lacks much margin for error.
you own a cyclical small cap with negative earnings. the thesis works only if orders recover before patience runs out.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
gross margin above 18.5%
this is the number that tells you whether pricing and mix are improving. if margin cannot lift from 18.5%, the recovery stays fragile.
calendar
q2 fy2026 earnings
due around june 2026. you want to see whether quarterly sales can build on the current $42.5M base instead of sliding again.
trend
manufacturing demand indicators
hurco follows factory spending. if broader industrial activity stays flat, the company usually feels it a quarter later.
risk
tariff and regional demand commentary
management already flagged trade tariffs as a headwind. listen for whether that pressure is easing or becoming a more permanent cost problem.
Analyst rankings
earnings predictability
15 / 100
very low predictability. in human-speak, analysts do not trust the next few quarters to be smooth.
balance sheet quality
B
good enough to absorb some pain. not good enough to make the cycle irrelevant.
risk rank
3
middle of the pack for overall risk. safer than the weakest names, but still far from a bunker stock.
source: institutional data
Institutional activity
institutional ownership data for HURC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$15
current price
n/a
target midpoint · n/a from current
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