Core Insights - Hurco Companies, Inc. (HURC) experienced a stock increase of 2.7% following its earnings report for the quarter ended October 31, 2025, outperforming the S&P 500 Index's 0.8% rise during the same period [1] Financial Performance - For Q4 fiscal 2025, Hurco reported sales and service fees of $45.5 million, a 15% decline from $53.7 million year-over-year, with a net loss widening to $3 million or $0.47 per diluted share from a loss of $1.4 million or $0.23 per share in the previous year [2] - Gross profit fell 36.4% to $7.7 million from $12.2 million, leading to a gross margin decrease to 17% from 23% year-over-year [2] - For the full fiscal year, sales and service fees decreased 4% to $178.6 million from $186.6 million, with a net loss of $15.1 million or $2.34 per diluted share compared to a loss of $16.6 million or $2.56 per share in fiscal 2024 [3] Segment Performance - In Q4, the Americas saw a 22% decline in revenues, Europe experienced an 8% drop, and Asia Pacific revenues fell 25%, attributed to lower machine shipments across most regions [3] - Fourth-quarter orders totaled $46.5 million, down 9% year-over-year from $51.1 million, while full-year orders declined 14% to $171.3 million from $198.3 million [4] - The Americas reported a 4% increase in orders, while Europe and Asia Pacific faced declines of 13% and 39%, respectively, due to weaker demand in key markets [4] Cost Management - Selling, general and administrative (SG&A) expenses decreased by 11.6% year-over-year in Q4 to $11.2 million from $12.7 million, although SG&A rose as a percentage of sales due to lower revenue [5] - Cash and cash equivalents increased to $48.7 million as of October 31, 2025, from $33.3 million a year earlier, indicating balance sheet strength [5] Management Commentary - Management described fiscal 2025 as challenging due to macroeconomic headwinds and tariff-related cost pressures, but noted that the U.S. and Germany ended the year with their strongest quarter of orders and sales [6] - CEO Greg Volovic highlighted a year-over-year cash growth of approximately $15 million and a nearly $3 million reduction in SG&A expenses, alongside continued investment in product innovation [6] Profitability Factors - Lower sales volumes and an unfavorable mix shift negatively impacted profitability, with gross margin erosion attributed to reduced shipments of higher-performance machines and a greater mix of lower-margin products [7] - Tariffs implemented in the second half of fiscal 2025 increased the cost of goods sold, further pressuring margins [7] Outlook - The company did not provide formal quantitative guidance for fiscal 2026 but expressed confidence in its positioning, citing a strong balance sheet and a diversified product portfolio [9] - Management suggested cautious optimism as the company prepares to navigate ongoing industry cyclicality and macroeconomic uncertainty [9] Strategic Developments - No acquisitions, divestitures, or major restructuring activities were disclosed during the quarter, with management focusing on leadership transitions, cost control initiatives, and operational discipline [10]

分组1 - Middle Coast Investing reported a strong performance in 2025, with the S&P 500 showing a 21.2% annualized return over the past three years, indicating signs of slowing growth [1] - In Q4 2025, the US Portfolios returned 2.7%, outperforming the S&P 500's 2.3%, while European Portfolios declined by -0.4% [1] - The firm's Core U.S. portfolios returned 1.9%, matching the Russell 2000, while the S&P 600 and Nasdaq returned 1.3% and 2.6% respectively [1] 分组2 - Hurco Companies, Inc. (NASDAQ:HURC) is highlighted as a small industrial technology company specializing in computer numerical controlled (CNC) machines [3] - As of January 13, 2026, Hurco's stock closed at $16.86, with a one-month return of 14.31%, but a 52-week loss of 5.70% [2] - Hurco has a market capitalization of $108.15 million and was held by 8 hedge fund portfolios at the end of Q3 2025, an increase from 6 in the previous quarter [4] 分组3 - Despite acknowledging Hurco's potential, the firm suggests that certain AI stocks may offer greater upside potential and less downside risk [4] - The firm provides a report on undervalued AI stocks that could benefit from Trump-era tariffs and the onshoring trend [4]

Market conditions continue to be a slog for Hurco ( HURC ), as this small manufacturer of machine tools for largely small/mid-sized manufacturing customers continues to see weak demand amid significant uncertainty and caution among its customers. Although there are some signsAnalyst’s Disclosure:I/we have a beneficial long position in the shares of HURC, MSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compen ...

Financial Performance - In fiscal year 2025, Hurco reported sales and service fees of $178.6 million, a decrease of $8.0 million, or 4%, compared to fiscal year 2024[15]. - The company experienced a net loss of $15.1 million, or $2.34 per diluted share, for fiscal year 2025, compared to a net loss of $16.6 million, or $2.56 per diluted share, for fiscal year 2024[15]. - Gross profit for fiscal year 2025 was $33.0 million, or 18% of sales, down from $37.7 million, or 20% of sales, in fiscal year 2024, primarily due to lower sales volume and increased costs from tariffs[200]. - Operating loss for fiscal year 2025 was $10.3 million, or 6% of sales, compared to an operating loss of $8.3 million, or 4% of sales, for fiscal year 2024[202]. - Orders for fiscal year 2025 were $171.3 million, a decrease of $27.0 million, or 14%, compared to fiscal year 2024, with a favorable currency impact of $1.8 million, or less than 1%[196]. - Backlog as of October 31, 2025, decreased to $34.3 million from $40.8 million as of October 31, 2024, primarily due to decreased customer demand[199]. - Cash and cash equivalents as of October 31, 2025, were $48.7 million, an increase from $33.3 million as of October 31, 2024, primarily due to reductions in inventories and accounts receivable[206]. - Working capital as of October 31, 2025, was $173.1 million, down from $180.8 million as of October 31, 2024, driven by decreases in inventories and accounts receivable[207]. - Selling, general, and administrative expenses for fiscal year 2025 were $43.2 million, or 24% of sales, compared to $46.0 million, or 25% of sales, in fiscal year 2024[201]. Revenue Sources - Computerized machine tools accounted for 80% of total revenues in fiscal year 2025, generating $142.3 million, down from $147.6 million in fiscal year 2024[20]. - Service parts contributed 14% to total revenues in fiscal year 2025, amounting to $25.1 million, compared to $27.6 million in fiscal year 2024[20]. - Approximately 62% of the company's revenues in fiscal year 2025 were derived from customers outside the Americas, highlighting the global market reach[93]. - In fiscal year 2025, approximately 51% of revenues were generated from customers in Europe, with 11% from the Asia Pacific region[180]. - Approximately 62% of the company's revenues in fiscal year 2025 were derived from sales to customers located outside of the Americas[114]. Market and Competitive Landscape - The demand for machine tools has fluctuated due to global economic and regulatory conditions, impacting shipment volumes in key markets[15]. - The company competes with larger machine tool producers, emphasizing proprietary software and features to enhance productivity and ease of use[96][98]. - Economic uncertainty may lead to reductions in customer capital expenditures and longer sales cycles, negatively impacting the company's business[111]. - The company competes with larger firms that have greater financial resources, making it challenging to maintain competitiveness[120]. Strategic Initiatives - The company has made five acquisitions since 2013, enhancing product offerings and improving machine tool accuracy and precision[14]. - Hurco's strategy includes market expansion to reach more customers globally, with a focus on product diversity and penetration across various industries[14]. - The company actively seeks acquisitions to expand its product offerings, which involve risks such as integration difficulties and diversion of management's attention[130]. - The company has introduced non-Hurco branded products to diversify its offerings and reduce the impact of geographic cyclicality in the machine tool market[86]. Product Development and Innovation - The DCX series offers four sizes of machining centers designed for large parts and molds, with 2- and 3-meter models featuring two spindle sizes and 3- and 4-meter models available as five-axis machines[38]. - The TM product line includes 2-axis turning models in four sizes, with the TM-M series enhancing productivity through motorized tooling, allowing secondary operations while parts are held in the chuck[39]. - The next generation VC 500 5-axis machine is set to launch in early 2026, featuring improved automation integration and ergonomics, aligning with market needs[42]. - The Milltronics INSPIRE+ control console, launched in 2024, enhances cutting precision and surface finish, compatible with G & M Code programs[43]. - The new TRL toolroom flatbed lathes and X5 five-axis integrated machines were introduced in fiscal year 2024, expanding Milltronics' product offerings[53]. - The Takumi UVC600 five-axis machine features a 600mm cantilever table and a 15,000rpm direct drive spindle for high accuracy and complex parts production[66]. - Software options for Hurco computerized machine tools include Advanced Verification Graphics and Solid Model Import, enhancing programming efficiency and accuracy[69]. - The VM product line consists of attractively-priced vertical machining centers available in four sizes, designed for job shops and general machining applications[46]. - The HMX Series high-speed horizontal machining centers are capable of up to 1G acceleration and include twin pallets for maximizing cutting time[64]. - The DXF Transfer software option enhances operator productivity by eliminating manual data entry, allowing direct transfer of AutoCAD® drawing files into the control software[71]. - UltiMonitor, a web-based tool, enables customers to monitor and receive notifications about their Hurco machines from any internet-accessible location, improving operational efficiency[72]. - The Tool and Material Library option streamlines tool data management, saving time and preventing tool crash conditions by storing information centrally[74]. - Simultaneous Five-Axis Contouring software allows for concurrent motion on all axes, increasing productivity and enabling complex geometries with a single setup[79]. Operational Risks and Challenges - The company faces significant risks due to fluctuations in global economic conditions, which have adversely affected its results of operations and financial condition[110]. - Tariffs imposed by the U.S. government on foreign goods have increased operating costs and could require significant costs to transition to alternative manufacturers or suppliers[112]. - The company is exposed to exchange rate fluctuations, as approximately 62% of revenues are invoiced in foreign currencies, primarily the Euro, Pound Sterling, Chinese Yuan, and Indian Rupee[119]. - The company relies on its wholly owned subsidiaries and third-party suppliers for production, and any unplanned interruptions could materially affect its business and financial condition[127]. - The company must comply with complex foreign and U.S. laws, and violations could result in significant penalties and adversely affect its operations[116]. - Fluctuations in the prices of raw materials, especially steel and energy, could adversely affect the company's sales, costs, and profitability[128]. - The company faces risks related to mergers and acquisitions, including potential failure to integrate acquired companies, which could adversely affect business and financial condition[131]. - Compliance with data privacy and security laws is critical, with potential penalties for violations that could significantly impact operating results[135]. - Cybersecurity threats are a significant risk, and while the company has not experienced material incidents, ongoing risks could affect business strategy and financial condition[157]. - The company has implemented a comprehensive cybersecurity strategy, including advanced safeguards and an incident response plan to mitigate risks[155]. - Public health emergencies, such as pandemics, have disrupted operations and could continue to adversely affect business and financial results[139]. - The company continues to monitor and assess the impact of evolving data protection laws in various jurisdictions, which may impose substantial compliance costs[134]. Human Resources and Corporate Structure - As of October 31, 2025, the company employed approximately 651 full-time employees, with 30% in the Americas and 70% in other global regions, focusing on advanced manufacturing[101]. - The company’s executive team includes experienced professionals with backgrounds in technology and finance, contributing to effective risk management[159]. - The company has a strong focus on cybersecurity risk management, overseen by the Audit Committee and senior management[159]. - The company has a history of profitability and a strong balance sheet, which it relies on to navigate market cyclicality[181]. - The company’s facilities are well maintained and adequate for current and future needs, with leases expiring between January 2026 and July 2032[160]. - The company sells products through approximately 160 independent agents and distributors globally, with a significant presence in major machine tool consuming markets[183]. - The company’s corporate headquarters in Indianapolis, Indiana, spans 165,000 square feet, while its manufacturing facility in Taichung, Taiwan, covers 370,100 square feet[160].

Financial Performance - Hurco reported a net loss of $3,041,000, or $0.47 per diluted share, for Q4 FY 2025, compared to a net loss of $1,442,000, or $0.23 per diluted share, in Q4 FY 2024[1]. - Net loss for the fiscal year 2025 was $(15,117,000), slightly improved from $(16,608,000) in fiscal year 2024[19]. - Basic loss per share for Q4 2025 was $(0.47), compared to $(0.23) in Q4 2024[19]. - Operating loss for Q4 2025 was $(3,458,000), compared to a loss of $(491,000) in Q4 2024, reflecting an operating margin of (8)%[19][20]. Sales and Revenue - Sales and service fees for Q4 FY 2025 were $45,467,000, a decrease of $8,235,000, or 15%, compared to Q4 FY 2024, with a favorable currency impact of $882,000[2]. - Sales in the Americas for Q4 FY 2025 decreased by 22% compared to Q4 FY 2024, primarily due to a change in the mix of machine model shipments[4]. - European sales for Q4 FY 2025 decreased by 8%, with a favorable currency impact of 4%[5]. - Asian Pacific sales for Q4 FY 2025 decreased by 25%, primarily due to decreased sales in India and China[6]. - Sales and service fees for Q4 2025 were $45,467,000, a decrease of 15.3% from $53,702,000 in Q4 2024[19]. Profitability - Gross profit for Q4 FY 2025 was $7,749,000, or 17% of sales, down from $12,186,000, or 23% of sales, in Q4 FY 2024[12]. - Gross profit for Q4 2025 was $7,749,000, down 36.5% from $12,186,000 in Q4 2024, resulting in a gross margin of 17%[19][20]. Expenses - Selling, general, and administrative expenses for Q4 FY 2025 were $11,207,000, or 25% of sales, compared to $12,677,000, or 24% of sales, in Q4 FY 2024[13]. Assets and Equity - Cash and cash equivalents totaled $48,713,000 as of October 31, 2025, compared to $33,330,000 as of October 31, 2024[15]. - Total current assets decreased to $225,078,000 in Q4 2025 from $228,577,000 in Q4 2024[22]. - Shareholders' equity decreased to $198,787,000 as of October 31, 2025, down from $207,172,000 in 2024[22]. Capital Expenditures and Tax - Capital expenditures for fiscal year 2025 were $3,021,000, an increase from $2,876,000 in fiscal year 2024[20]. - The effective tax rate for fiscal year 2025 was 6%, compared to (29)% in fiscal year 2024[20]. Management Focus - Hurco's management team is focused on execution, customer engagement, and growth, positioning the company for long-term growth in FY 2026[3]. Operational Efficiency - Days sales outstanding improved to 42 days in Q4 2025 from 49 days in Q4 2024[20].

Core Insights - Hurco Companies, Inc. reported a net loss of $3,041,000, or $0.47 per diluted share, for Q4 FY 2025, compared to a net loss of $1,442,000, or $0.23 per diluted share, in Q4 FY 2024. For the full fiscal year 2025, the net loss was $15,117,000, or $2.34 per diluted share, an improvement from a net loss of $16,608,000, or $2.56 per diluted share, in FY 2024 [1][2][20]. Financial Performance - Sales and service fees for Q4 FY 2025 were $45,467,000, a decrease of $8,235,000, or 15%, compared to Q4 FY 2024. For FY 2025, sales and service fees totaled $178,554,000, down $8,030,000, or 4%, from FY 2024 [2][20]. - Gross profit for Q4 FY 2025 was $7,749,000, or 17% of sales, compared to $12,186,000, or 23% of sales, in Q4 FY 2024. For FY 2025, gross profit was $32,980,000, or 18% of sales, down from $37,743,000, or 20% of sales, in FY 2024 [12][21]. - Selling, general, and administrative expenses for Q4 FY 2025 were $11,207,000, or 25% of sales, compared to $12,677,000, or 24% of sales, in Q4 FY 2024. For FY 2025, these expenses were $43,248,000, or 24% of sales, down from $46,029,000, or 25% of sales, in FY 2024 [14][21]. Geographic Sales Breakdown - Sales in the Americas for Q4 FY 2025 decreased by 22% to $18,234,000, and for FY 2025, sales decreased by 5% to $68,604,000. The decline was attributed to a change in the mix of machine model shipments [4][20]. - European sales for Q4 FY 2025 decreased by 8% to $23,475,000, and for FY 2025, sales decreased by 4% to $90,863,000. The decrease was primarily due to reduced shipments of Hurco 5-axis vertical machines [5][6][20]. - Asian Pacific sales for Q4 FY 2025 decreased by 25% to $3,758,000, while for FY 2025, sales decreased by 1% to $19,087,000, mainly due to decreased sales in India and China [7][20]. Orders and Demand - Orders for Q4 FY 2025 were $46,509,000, a decrease of $4,568,000, or 9%, compared to Q4 FY 2024. For FY 2025, orders totaled $171,290,000, down $27,012,000, or 14%, from FY 2024 [8][20]. - Orders in the Americas for Q4 FY 2025 increased by 4% to $22,003,000, while for FY 2025, they decreased by 10% to $69,148,000. The increase in Q4 was driven by higher demand for Hurco and Takumi machines [9][10][20]. - European orders for Q4 FY 2025 decreased by 13% to $20,839,000, and for FY 2025, they decreased by 18% to $81,569,000, primarily due to decreased demand in key markets [10][20]. Cash and Working Capital - Cash and cash equivalents as of October 31, 2025, totaled $48,713,000, an increase from $33,330,000 as of October 31, 2024. Working capital decreased to $173,055,000 from $180,788,000 [16][21].

Market Overview - U.S. stock index futures showed little change ahead of a low-volume trading session post-Christmas holiday [2] - Precious metals such as silver, gold, and platinum reached new all-time highs, continuing their significant upward trend this year [2] Economic Data Releases - Key economic data releases to monitor in the final week of the year include: - Crude oil inventories data on Monday - FOMC meeting minutes on Tuesday - Initial jobless claims and Chicago PMI for December on Wednesday - S&P Global Manufacturing PMI for December on Friday [3] Earnings Reports - Upcoming earnings reports for next week include: - Wednesday: Coffee Holding (JVA), 1933 Industries (TGIFF) - Thursday: Park Aerospace (PKE), Lifecore Biomedical (LFCR) - Friday: Taylor Devices (TAYD), Hurco (HURC) [4] Volatility Watch - Energy Fuels (UUUU) and Applied Digital (APLD) are expected to experience a volatile trading week based on options volume - The most overbought stocks include Hycroft Mining Holding (HYMC), Amicus (FOLD), and Charlotte's Web (CWBHF) - The most oversold stocks include CVR Energy (CVI), Tile Shop (TTSH), and Lamb Weston (LW) [5]

Group 1 - Diamond Hill Capital's "Small Cap Strategy" reported a 7.93% return in Q3 2025, underperforming the Russell 2000 Index which gained over 12% [1] - The underperformance was attributed to the rally being driven by sectors not typically held in the portfolio [1] - The fund initiated a new position in Hurco Companies, Inc. (NASDAQ:HURC) during Q3 2025 after finding it challenging to identify new investment opportunities due to rising valuations [3] Group 2 - Hurco Companies, Inc. (NASDAQ:HURC) experienced a one-month return of -7.99% and a 52-week decline of 29.91%, closing at $16.40 per share with a market capitalization of $104.999 million on November 24, 2025 [2] - Hurco Companies, Inc. is not among the 30 most popular stocks among hedge funds, with 6 hedge fund portfolios holding the stock at the end of Q2 2025, unchanged from the previous quarter [4] - While acknowledging Hurco's potential, the company believes certain AI stocks present greater upside potential and lower downside risk [4]

Core Viewpoint - Hurco Companies, Inc. announces the retirement of Executive Chairman Michael Doar, effective after the 2026 Annual Meeting of Stockholders, while nominating him for re-election as a non-employee director and non-executive Chairman of the Board [1][2]. Company Overview - Hurco is an international industrial technology company that sells computer numeric control (CNC) machine tools to the global metal cutting and forming industry [3]. - The company operates three brands: Hurco, Milltronics, and Takumi, with proprietary interactive controls and software for the first two brands, while the third allows customers to choose their controls [3]. - Hurco's products serve various end markets, including aerospace, defense, medical equipment, energy, transportation, and computer equipment, catering to independent job shops and short-run manufacturing operations [3]. Leadership Transition - Michael Doar has been with Hurco since 2000, serving as CEO for 20 years before becoming Executive Chairman, contributing to the company's growth and industry relationships [2]. - The current leadership team, including CEO Greg Volovic and CFO Sonja McClelland, is expected to continue building on the company's strong foundation and technological advancements [3]. - The Board of Directors expresses confidence in the management team's ability to uphold Hurco's legacy of innovation and operational excellence [3].

Core Viewpoint - Hurco Companies (NASDAQ: HURC) is a CNC machine manufacturer trading at approximately half its tangible book value, with a market capitalization just above $100 million, indicating potential undervaluation in the market [1] Company Overview - Hurco Companies has no debt and possesses ample cash reserves, positioning it favorably for investment opportunities [1] - The company operates in the CNC machine manufacturing sector, which is critical for various industrial applications [1] Investment Focus - The investment strategy emphasizes deep value and special situations, particularly in the small-cap and micro-cap segments [1] - Areas of interest for investment include thrift conversions, community banks, and shipping, where value may be overlooked [1] Background of the Investor - The investor does not have a traditional finance background but has a philosophy education from UC Berkeley, which has influenced a skeptical approach to investing [1]