The Q3 return to profitability, combined with strong order intake (25% YoY growth), confirms a cyclical recovery in the machine tool end-markets. Monitor the upcoming IMTS show (late Sept 2026) for new product announcements and further order acceleration. The stock may continue to re-rate if order momentum sustains and Europe shows signs of stabilization.
Price Chart
Executive Summary
Hurco reported Q3 2026 net income of $2.3M ($0.35/diluted share), a major turnaround from a $3.7M loss in Q3 2025. Revenue rose 3% to $47.3M, gross margin expanded 800bps to 28%, and orders grew 25% YoY to $51.4M. This marks the company's first profitable quarter after two years of losses, confirming a cyclical recovery is underway.
Key Financial Metrics
Key Facts
- Net income of $2,314,000 ($0.35/diluted) vs net loss of $3,693,000 ($0.58 loss) in Q3 2025 — a $6M swing to profitability.
- Gross margin expanded 800 bps to 28%, from 20% a year ago, driven by mix shift to higher-performance machines, pricing, and cost control.
- Orders increased 25% YoY to $51.4M, with Americas orders up 37% and Asia Pacific up 68%.
- Company has $52M cash, $167M working capital, and zero debt; a full valuation allowance on deferred tax assets remains.
- Revenue grew 3% to $47.3M, with Americas up 11% and Asia Pacific up 51%, partially offset by Europe down 12%.
- CEO cited plans to introduce next-generation control technology at IMTS later this month.
Financial Impact
Turn from a $0.58/share loss in Q3 2025 to $0.35/share profit; 800bps gross margin expansion; orders growth of 25% YoY to $51.4M
Risk Factors
- European sales remained weak, down 12% YoY, with continued weakness in Germany.
- Full valuation allowance on U.S., Italian, and Chinese deferred tax assets limits potential tax benefits.
- Machine tool industry is highly cyclical; a macro downturn could reverse the emerging recovery.
- Tariff refunds contributed to gross margin improvement; changes in tariff policy could impact future margins.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-105339 |
| Document: hurc-20260904x8k.htm | 0001104659-26-105339 |
| Document: 0001104659-26-105339-index-headers.html | 0001104659-26-105339 |
| Document: 0001104659-26-105339-index.html | 0001104659-26-105339 |
| Document: 0001104659-26-105339.txt | 0001104659-26-105339 |
| 8-K Data (Synthetic) | 0001104659-26-105339 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 7w ago | 8-K | $22.99 $22.37 | ▼ −2.70% | ▼ −3.30% | $21.12 (−8.13%) |
Sep 4, 2026 7w ago | Press Release | $22.99 $22.37 | ▼ −2.70% | ▼ −3.30% | $21.12 (−8.13%) |
Jun 11, 2026 19w ago | Institutional Cluster | $21.50 $22.76 | ▲ +5.86% | ▲ +3.97% | $21.12 (−1.77%) |
Jun 5, 2026 20w ago | 8-K | $21.13 $22.26 | ▲ +5.35% | ▲ +3.49% | $21.12 (−0.05%) |
Mar 6, 2026 33w ago | Press Release | $15.54 $15.50 | ▼ −0.26% | ▲ +1.79% | $21.12 (+35.91%) |
US Market Status
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