Hurco Companies (HURC) investor relations material

Executive summary

• Sales and service fees for Q1 FY2026 declined 8% year-over-year to $42.87 million, with all major regions and product categories down except service parts, which rose 17%.

• Operating loss widened to $3.17 million from $2.09 million year-over-year, driven by lower volumes and higher SG&A expenses.

• Net loss was $3.47 million ($0.54 per diluted share), improved from $4.32 million ($0.67 per share) in Q1 FY2025.

• Orders increased 5% year-over-year to $41.98 million, reflecting improved demand in the Americas and India, partially offset by declines in Europe and China.

• Gross margin improved to 19% from 18% due to a favorable sales mix, cost reductions, and better leverage of fixed costs.

Financial highlights

• Gross profit was $7.94 million (19% of sales), down from $8.3 million year-over-year.

• SG&A expenses increased to $11.11 million (26% of sales) from $10.38 million (22% of sales), impacted by currency and higher employee benefits.

• Cash and cash equivalents stood at $48.01 million at quarter-end, with working capital of $169.51 million.

• No debt outstanding under any credit facilities as of January 31, 2026.

• Operating loss as a percentage of sales was -7%, compared to -5% in the prior year.

Outlook and guidance

• Management continues to focus on cost control, inventory management, and capital allocation to navigate industry cyclicality and anticipates a potential recovery in 2026.

• The regular quarterly cash dividend remains suspended to preserve financial flexibility.

• Current liquidity and credit facilities are considered sufficient to fund operations and strategic initiatives over the next twelve months.