Hurco Companies, Inc. reported net income of $2,314,000, or $0.35 per diluted share, for the third quarter of fiscal year 2026, which ended July 31, 2026. This marks a turnaround from the prior year, where the company recorded a net loss of $3,693,000, or $(0.58) per diluted share, for the same period. For the first nine months of fiscal 2026, Hurco reported a net loss of $3,526,000, or $(0.55) per diluted share, compared to a net loss of $12,076,000, or $(1.87) per diluted share, during the same period in fiscal 2025.
Sales and service fees for the third quarter of fiscal 2026 totaled $47.3 million, an increase of 3% compared to the prior year. For the first nine months, sales reached $137.8 million, a 4% increase. The company noted that currency fluctuations had a minor impact on these figures; the third quarter included an unfavorable currency impact of $20,000, while the nine-month period saw a favorable impact of $3.1 million.
Gross margin for the third quarter expanded to 28% of sales, an increase of 800 basis points from the prior year. This improvement was attributed to cost control measures, higher machine sales volumes in the U.S. and Asia Pacific, and a stronger mix of 5-axis and higher-performance machines. Orders for the third quarter increased 25% year-over-year to $51.4 million, with the Americas region seeing the largest growth at 37%. Orders for the first nine months increased 24% to $155.0 million.
At the end of the third quarter, Hurco held $52 million in cash and cash equivalents and $167 million in working capital, with no debt. The company noted that a full valuation allowance has been recorded against its deferred tax assets in Italy, the U.S., and China.
