Hurco Companies (HURC) Q2 2025 earnings summary

Executive summary

• Sales and service fees for the first six months of fiscal 2025 decreased 3% year-over-year to $87.3 million; Q2 sales were $40.9 million, down 10% year-over-year, mainly due to lower sales in Europe and the Americas, partially offset by Asia Pacific growth.

• Orders for the six months declined 11% to $83.8 million, with Q2 orders down 1% year-over-year; Americas and Europe saw notable declines, while Asia Pacific orders grew 28% for six months and 74% in Q2.

• Operating loss for the six months was $5.2 million, nearly flat year-over-year, reflecting cost savings and lower fixed costs; Q2 operating loss was $3.1 million, improved from $3.4 million prior year.

• Net loss for the six months was $8.4 million ($1.29/share), up from $5.6 million prior year, impacted by $3.7 million in non-cash tax valuation allowances; Q2 net loss was $4.1 million ($0.62/share), up from $3.9 million.

• Cash and cash equivalents increased to $43.8 million as of April 30, 2025, up from $33.3 million at October 31, 2024.

Financial highlights

• Six-month sales and service fees: $87.3 million, down 3% year-over-year; Q2 sales: $40.9 million, down 10% from prior year.

• Gross profit for six months: $16.1 million (18% of sales), down from $17.7 million (20%); Q2 gross profit: $7.8 million (19% margin), up from 18% prior year.

• SG&A expenses for six months: $21.3 million (24% of sales), down from $23.0 million (25%); Q2 SG&A: $10.9 million (27% of sales), down from $11.5 million.

• Cash flow from operations for six months: $11.3 million, compared to $(0.7) million prior year.

• Working capital at April 30, 2025: $175.9 million, down from $180.8 million at October 31, 2024.

Outlook and guidance

• Management suspended the regular quarterly cash dividend to enhance financial flexibility and focus on strengthening the balance sheet and reinvesting in core business and R&D.

• Management cited significant uncertainty in global markets, especially in forecasting international and domestic sales.

• Focus remains on cost control, cash flow, and product development to position for recovery when market momentum returns.

• The company believes its liquidity and borrowing capacity are adequate to fund global operations and strategic initiatives over the next twelve months and beyond.