On this page of StockholderLetter.com we present the latest annual shareholder letter from HURCO COMPANIES INC — ticker symbol HURC. Reading current and past HURC letters to shareholders can bring important insights into the investment thesis.
2025 Annual Report
REPORT to Shareholders 2025 was a challenging, but pivotal, year for Hurco Companies. We faced continued headwinds from global trade tariffs and a sluggish start in some of our key markets. But in the second half of the year, we saw clear improvement in orders and sales in the United States and Germany, two of our largest markets. This uptick affirmed that the strategic adjustments we made earlier in the year were correct. Throughout 2025, our team responded with agility and determination, implementing measures to overcome the challenges and positioning the company for renewed growth. We enter 2026 with cautious optimism and a continued focus on short-term cost controls and long-term investments, innovation and vision. To further strengthen our foundation for growth, we made key leadership transitions in both the U.S. and Germany during 2025. In North America, we welcomed a new General Manager with nearly four decades of industry experience and a proven track record of operational excellence to lead our U.S. business. In Germany, we established a dynamic co-leadership structure by appointing an experienced executive alongside our long-time Managing Director, reinforcing our management team in that important region. These leadership enhancements bring fresh perspectives and a sharpened focus on execution and customer engagement. I am confident that these new leaders will help drive our next phase of growth and better serve our customers across both markets. We also undertook strategic cost-reduction initiatives to reinforce our financial stability in the face of economic volatility. By maintaining discipline in our spending, we reduced selling, general, and administrative expenses. At the same time, we improved our working capital management and operational efficiencies, which contributed to a significant increase in our cash balance year-over-year. These financial gains were achieved while preserving our critical investments in innovation and customer support. The result is a leaner organization that is financially stronger and well-prepared to capitalize on growth opportunities. Another significant achievement in 2025 was the implementation of a completely new global marketing strategy. We revamped our marketing approach to present a unified brand message and leverage digital channels more effectively, ensuring that Hurco s value proposition resonates across all of our regions. This initiative included refreshing our brand visuals and messaging, enhancing our online presence, and launching targeted campaigns to engage customers in key industries. Early feedback from customers and distributors has been positive. We expect this modernized marketing strategy to increase our global visibility, strengthen our brand equity, and ultimately support our sales efforts in the coming years. None of our achievements this year would have been possible without the dedication of our people.
Innovation remained at the core of Hurco s mission throughout 2025. We continued to push the boundaries of what our machine tools and software can do by integrating advanced technologies focused on boosting customer productivity. Our engineering teams made meaningful progress toward our vision for autonomous manufacturing by furthering AI integration within our control systems and software. I am excited to share that we are on track to launch a new AI-powered machine control system in 2026. This next-generation control will leverage machine learning and intelligent automation to make machining even more intuitive and efficient for our customers. We believe this system will set a new industry benchmark for smart, user-friendly CNC controls and exemplifies our unique ability as a vertically integrated company to seamlessly deploy cutting-edge advancements that deliver practical benefits on the shop floor. We have long believed that the future of manufacturing lies in the synergy between skilled operators and intelligent systems. As we execute our innovation roadmap, AI-driven feature recognition will significantly simplify CNC programming for operators. While fully autonomous manufacturing remains a long-term goal, each step in our roadmap is designed to deliver clear, practical, user-friendly solutions that provide immediate value and bring our customers cumulatively closer to that future. Our employees across the globe demonstrated extraordinary resilience, adaptability, and commitment in the face of both external challenges and internal changes. They embraced new strategies, drove innovation, and never wavered in their focus on serving our customers. I am personally grateful for their hard work and passion. As we look ahead to 2026, we are confident that the initiatives and improvements we achieved in 2025 have set the stage for a return to growth. Our innovation pipeline remains strong, with new solutions poised to enhance productivity and profitability for our customers. At the same time, we remain vigilant and realistic about the external challenges that may persist, including economic uncertainties and the ongoing impact of tariffs. By staying true to our strategy and focusing on innovation, operational efficiency, and customer success, we are well positioned to adapt and thrive in the years to come. ON BEHALF OF THE BOARD OF DIRECTORS AND THE ENTIRE HURCO LEADERSHIP TEAM, I want to express my sincere gratitude to our employees for their passion and dedication and to our shareholders, for your continued confidence and support. Together, we navigated a challenging year, but I believe we have laid a strong foundation for Hurco s future. I am excited to build on this progress as we embark on 2026, and I am confident we will continue to innovate, grow, and deliver value to our customers and shareholders in the years ahead. Gregory S. Volovic President and Chief Executive Officer
GLOBAL Locations Hurco Companies has its origins and current headquarters in Indianapolis, Indiana as well as manufacturing, sales and support locations in Europe, Asia and North America. This footprint is further supported by a dedicated and driven distributor network. Together, we ensure that our customers have what they need to build their businesses and their reputations. CHINA FRANCE INDIA USA UNITED KINGDOM SINGAPORE USA USA ITALY THE NETHERLANDS POLAND GERMANY TAIWAN
USA MACHINERY SALES CO. A division of Hurco North America Serving Southern California HURCO COMPANIES, INC. Indianapolis, IN Hurco North America Serving the USA, Canada, Mexico and South America TAKUMI USA, PROCOBOTS Serving the USA MILLTRONICS Serving the USA Indianapolis, IN OUR Brands MIND OVER METAL - Hurco CNC machines are powered by proprietary technology that increases customer productivity and profitability. We provide customers with reliable machine tools equipped with sophisticated technologies that simplify complex processes. The integrated Hurco control is the most versatile in the industry, supporting both industry standard programming and conversational programming. BRAUN MACHINERY A division of Hurco North America Serving Western Michigan UNITED KINGDOM HURCO EUROPE LTD. United Kingdom, Ireland, Africa, the Middle East and Scandinavia ITALY HURCO S.R.L. LCM PRECISION TECHNOLOGY S.R.L. BEYOND EXPECTATIONS - Milltronics CNC machines are equipped with an interactive computer control system that is compatible with G-codes and M-codes generated from CAD/CAM software and conversational visual-aid programming. The Milltronics brand includes product lines of general purpose CNC mills and lathes. The Milltronics line is designed for excellent value with more standard features for the price versus other brands. GERMANY HURCO WERKZEUGMASCHINEN GmbH Germany, Austria, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Latvia, Lithuania, Macedonia, Montenegro, the Netherlands, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Switzerland, Turkey and Ukraine POLAND HURCO SP. z o.o. THE NETHERLANDS HURCO B. V. INDIA HURCO INDIA PRIVATE LTD. Serving India, Pakistan, Bangladesh and Sri Lanka SINGAPORE HURCO S.E. ASIA PTE. LTD. Serving Australia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam TAIWAN TAKUMI PRECISION CO., LTD. HURCO MANUFACTURING LTD. Manufacturing and assembly of Hurco, Milltronics and Takumi machine tools HURCO AUTOMATION LTD. Manufacturing and assembly of Hurco and Milltronics controls CHINA NINGBO HURCO TRADING CO., LTD. Shanghai NINGBO HURCO TECHNOLOGY CO. LTD. Ningbo WHEN PRECISION MATTERS - Takumi CNC machines are designed and built for high-efficiency milling and high-level precision. Equipped with control systems such as Fanuc and Heidenhain , we have adapted the world s most used controls to our rugged, durable machines to help manufacturers achieve higher productivity through speed, accuracy and reliability.
 • shareholder letter icon 1/28/2026 Letter Continued (Full PDF)
 • stockholder letter icon 1/23/2023 HURC Stockholder Letter
 • stockholder letter icon 1/29/2024 HURC Stockholder Letter
 • stockholder letter icon 1/29/2025 HURC Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon HURC Benford's Law Stock Score = 91


HURC Shareholder/Stockholder Letter Transcript:

2025 Annual Report

REPORT to Shareholders
2025 was a challenging, but pivotal, year for Hurco Companies. We faced continued
headwinds from global trade tariffs and a sluggish start in some of our key markets.
But in the second half of the year, we saw clear improvement in orders and sales in the
United States and Germany, two of our largest markets. This uptick affirmed that the
strategic adjustments we made earlier in the year were correct. Throughout 2025, our
team responded with agility and determination, implementing measures to overcome
the challenges and positioning the company for renewed growth.
We enter 2026 with cautious optimism and a continued focus
on short-term cost controls and long-term investments,
innovation and vision.
To further strengthen our
foundation for growth, we made
key leadership transitions in both the
U.S. and Germany during 2025. In
North America, we welcomed a new
General Manager with nearly four
decades of industry experience and
a proven track record of operational
excellence to lead our U.S. business.
In Germany, we established a
dynamic co-leadership structure by
appointing an experienced executive
alongside our long-time Managing
Director, reinforcing our management
team in that important region.
These leadership enhancements
bring fresh perspectives and a
sharpened focus on execution
and customer engagement. I am
confident that these new leaders
will help drive our next phase
of growth and better serve our
customers across both markets.
We also undertook strategic
cost-reduction initiatives to
reinforce our financial stability
in the face of economic volatility.
By maintaining discipline in our
spending, we reduced selling, general,
and administrative expenses. At the
same time, we improved our working
capital management and operational
efficiencies, which contributed to
a significant increase in our cash
balance year-over-year. These
financial gains were achieved while
preserving our critical investments
in innovation and customer support.
The result is a leaner organization
that is financially stronger and
well-prepared to capitalize on
growth opportunities.
Another significant achievement
in 2025 was the implementation
of a completely new global
marketing strategy. We revamped
our marketing approach to present a
unified brand message and leverage
digital channels more effectively,
ensuring that Hurco   s value
proposition resonates across all of
our regions. This initiative included
refreshing our brand visuals and
messaging, enhancing our online
presence, and launching targeted
campaigns to engage customers in
key industries. Early feedback from
customers and distributors has been
positive. We expect this modernized
marketing strategy to increase our
global visibility, strengthen our brand
equity, and ultimately support our
sales efforts in the coming years.
None of our achievements this year would have been
possible without the dedication of our people.

Innovation remained at the core
of Hurco   s mission throughout
2025. We continued to push the
boundaries of what our machine
tools and software can do by
integrating advanced technologies
focused on boosting customer
productivity. Our engineering
teams made meaningful progress
toward our vision for autonomous
manufacturing by furthering AI
integration within our control
systems and software. I am excited
to share that we are on track
to launch a new AI-powered
machine control system in 2026.
This next-generation control will
leverage machine learning and
intelligent automation to make
machining even more intuitive and
efficient for our customers. We
believe this system will set a new
industry benchmark for smart,
user-friendly CNC controls and
exemplifies our unique ability as a
vertically integrated company to
seamlessly deploy cutting-edge
advancements that deliver practical
benefits on the shop floor.
We have long believed that the
future of manufacturing lies in the
synergy between skilled operators
and intelligent systems. As we
execute our innovation roadmap,
AI-driven feature recognition
will significantly simplify CNC
programming for operators. While
fully autonomous manufacturing
remains a long-term goal, each
step in our roadmap is designed to
deliver clear, practical, user-friendly
solutions that provide immediate
value and bring our customers
cumulatively closer to that future.
Our employees across the globe
demonstrated extraordinary
resilience, adaptability, and
commitment in the face of both
external challenges and internal
changes. They embraced new
strategies, drove innovation,
and never wavered in their focus
on serving our customers. I am
personally grateful for their hard
work and passion.
As we look ahead to 2026, we are
confident that the initiatives and
improvements we achieved in 2025
have set the stage for a return to
growth. Our innovation pipeline
remains strong, with new solutions
poised to enhance productivity and
profitability for our customers. At
the same time, we remain vigilant
and realistic about the external
challenges that may persist,
including economic uncertainties
and the ongoing impact of tariffs.
By staying true to our strategy and
focusing on innovation, operational
efficiency, and customer success,
we are well positioned to adapt and
thrive in the years to come.
ON BEHALF OF THE BOARD OF
DIRECTORS AND THE ENTIRE HURCO
LEADERSHIP TEAM,
I want to express
my sincere
gratitude to our
employees for
their passion
and dedication
and to our
shareholders,
for your
continued
confidence and
support.
Together, we navigated a challenging year, but
I believe we have laid a strong foundation for Hurco   s
future. I am excited to build on this progress as we
embark on 2026, and I am confident we will continue
to innovate, grow, and deliver value to our customers
and shareholders in the years ahead.
Gregory S. Volovic
President and Chief Executive Officer

GLOBAL Locations
Hurco Companies has its origins and current headquarters in
Indianapolis, Indiana   as well as manufacturing, sales and support
locations in Europe, Asia and North America. This footprint is further
supported by a dedicated and driven distributor network. Together,
we ensure that our customers have what they need to build their
businesses and their reputations.
CHINA
FRANCE
INDIA
USA
UNITED KINGDOM
SINGAPORE
USA
USA
ITALY
THE NETHERLANDS
POLAND
GERMANY
TAIWAN

USA
MACHINERY SALES CO.
A division of Hurco North America
Serving Southern California
HURCO COMPANIES, INC.
Indianapolis, IN
Hurco North America
Serving the USA, Canada,
Mexico and South America
TAKUMI USA, PROCOBOTS
Serving the USA
MILLTRONICS
Serving the USA
Indianapolis, IN
OUR Brands
MIND OVER METAL - Hurco CNC machines are powered by proprietary technology that
increases customer productivity and profitability. We provide customers with reliable
machine tools equipped with sophisticated technologies that simplify complex processes.
The integrated Hurco control is the most versatile in the industry, supporting both industry
standard programming and conversational programming.
BRAUN MACHINERY
A division of Hurco North America
Serving Western Michigan
UNITED KINGDOM
HURCO EUROPE LTD.
United Kingdom, Ireland, Africa,
the Middle East and Scandinavia
ITALY
HURCO S.R.L.
LCM PRECISION TECHNOLOGY S.R.L.
BEYOND EXPECTATIONS - Milltronics CNC machines are equipped with an interactive
computer control system that is compatible with G-codes and M-codes generated from
CAD/CAM software and conversational visual-aid programming. The Milltronics brand
includes product lines of general purpose CNC mills and lathes. The Milltronics line is
designed for excellent value with more standard features for the price versus other brands.
GERMANY
HURCO WERKZEUGMASCHINEN GmbH
Germany, Austria, Belarus,
Bosnia-Herzegovina, Bulgaria,
Croatia, the Czech Republic, Hungary,
Latvia, Lithuania, Macedonia, Montenegro,
the Netherlands, Portugal, Romania,
Russia, Serbia, Slovakia, Slovenia,
Switzerland, Turkey and Ukraine
POLAND
HURCO SP. z o.o.
THE NETHERLANDS
HURCO B. V.
INDIA
HURCO INDIA PRIVATE LTD.
Serving India, Pakistan, Bangladesh
and Sri Lanka
SINGAPORE
HURCO S.E. ASIA PTE. LTD.
Serving Australia, Indonesia, Malaysia,
Myanmar, Philippines, Singapore, South
Korea, Taiwan, Thailand and Vietnam
TAIWAN
TAKUMI PRECISION CO., LTD.
HURCO MANUFACTURING LTD.
Manufacturing and assembly of Hurco,
Milltronics and Takumi machine tools
HURCO AUTOMATION LTD.
Manufacturing and assembly of Hurco
and Milltronics controls
CHINA
NINGBO HURCO TRADING CO., LTD.
Shanghai
NINGBO HURCO TECHNOLOGY CO. LTD.
Ningbo
WHEN PRECISION MATTERS - Takumi CNC machines are designed and built for high-efficiency
milling and high-level precision. Equipped with control systems such as Fanuc   and Heidenhain  ,
we have adapted the world   s most used controls to our rugged, durable machines to help
manufacturers achieve higher productivity through speed, accuracy and reliability.



shareholder letter icon 1/28/2026 Letter Continued (Full PDF)
 

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