Hurco Q4 Sales Drop with Wider Loss as Orders Rise, Margins Hit 15-Year Low
Hurco reported fiscal Q4 2025 sales fell and net loss widened year-over-year, though U.S. and Germany order volumes rose sequentially. Customer trading down to less sophisticated machines drove gross margins to their lowest level in at least 15 years, with near-term demand still sluggish despite signs of improvement for 2026.
1. Q4 Earnings Show Mixed Performance
Hurco reported fiscal Q4 sales of $65.4 million, down 12% year-over-year, while its net loss widened to $4.8 million from $2.5 million in the prior-year quarter. Despite the top-line decline, the company saw a sequential uptick in order activity, with U.S. orders rising 15% and German orders up 10% compared with Q3. Management attributed the sales shortfall to continued caution among small- and mid-sized manufacturers, but noted that the stronger backlog in its two largest markets provides a firmer foundation for Q1 shipment guidance.
2. End-Market Trends and Margin Pressure
Hurco’s customers have been trading down to entry-level CNC machines, driving average selling prices lower and pushing gross margin down to 25%, the lowest level in at least 15 years. Order intake remains concentrated in markets with shorter lead times, reflecting buyers’ reluctance to commit to complex, high-end systems. While overall order volumes are still below cycle peaks, management expects an inflection in demand in late 2026 as macro uncertainty eases and capital expenditure plans resume across industrial end-markets.