Hurco Companies, Inc. (NASDAQ:HURC) reported a larger loss for the fourth quarter of fiscal 2025 on Friday, as revenue dropped sharply year on year, with the machine tool manufacturer pointing to tariff pressures and a difficult macroeconomic backdrop throughout the year.
Shares were flat in premarket trading following the release.
Hurco posted a net loss of $0.47 per diluted share for the quarter, compared with a loss of $0.23 per share in the same period a year earlier. Quarterly revenue fell 15% to $45.5 million, down from $53.7 million in the prior-year quarter.
Despite the weaker quarterly results, the company said its two largest markets—the United States and Germany—closed the fiscal year with their strongest quarter for both orders and sales, reflecting improving momentum that emerged during the second half of the year.
“While this fiscal year was challenging given the headwinds from tariffs and the macro-economic conditions, we were committed to continuous improvement in our business strategy,” said Greg Volovic, Chief Executive Officer. “We increased cash by approximately $15 million year over year and reduced selling, general, and administrative expenses by nearly $3 million year over year, all while we continued to invest in innovative technologies.”
Regionally, sales in the Americas declined 22% in the fourth quarter, mainly due to changes in the mix of machine models shipped. Revenue in Europe fell 8%, while Asia-Pacific sales dropped 25% compared with the prior year.
Hurco’s gross margin narrowed to 17% from 23% a year earlier, reflecting lower sales volumes and the impact of higher tariffs on products imported into the United States.
At year end, the company reported cash and cash equivalents of $48.7 million, up from $33.3 million at the close of fiscal 2024, highlighting stronger cash generation and balance sheet management despite ongoing operational challenges.