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Here are 1-2 brief analogies for Hurco Companies (HURC):

• Like **John Deere**, but instead of making tractors and farm equipment, they make highly precise, computer-controlled machines for metalworking factories and workshops.
• Think of them as the **Snap-on Tools** for high-tech manufacturing, providing the advanced, specialized machinery that factories use to precisely cut and shape metal parts.

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• CNC Vertical Machining Centers: These machines precisely mill, drill, and tap parts using a vertically oriented spindle for diverse manufacturing applications.
• CNC Horizontal Machining Centers: Designed for efficient milling, drilling, and tapping, these machines operate with a horizontally oriented spindle, often for larger or heavier parts.
• CNC 5-Axis Machining Centers: Offering advanced capabilities, these machines provide simultaneous motion on five axes to produce highly complex, multi-sided components with superior accuracy.
• CNC Turning Centers: These machines rotate workpieces against a cutting tool to create precise cylindrical, conical, or spherical shapes, essential for various turned components.

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Major Customers of Hurco Companies (HURC)

Hurco Companies (HURC) primarily sells its computerized machine tools and related products to other companies, specifically to manufacturing businesses, rather than to individuals.

Based on Hurco's public filings, including its latest 10-K report for the fiscal year ended October 31, 2023, the company does not have any single "major customer" that accounts for 10% or more of its consolidated net sales. This indicates that Hurco serves a highly fragmented and diverse customer base, with no significant customer concentration.

The company's customers are typically small to medium-sized manufacturing companies across a wide range of industries that utilize Hurco's CNC (Computer Numerical Control) machine tools for various metalworking and production processes. These customer companies primarily fall into categories such as:

• Aerospace manufacturing companies
• Automotive industry suppliers
• Medical device manufacturers
• General machining and job shops (including tool & die shops, mold manufacturers, and precision component producers)

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Gregory S. Volovic, President and Chief Executive Officer

Gregory S. Volovic was appointed President and Chief Executive Officer in March 2021. He joined Hurco in 2005 as Executive Vice President of Software Development and has held various roles including Executive Vice President of Operations, President, and Chief Operating Officer. Mr. Volovic has been instrumental in the company's growth, global expansion, strategic acquisitions, and technological investments. Prior to joining Hurco, he worked at Thomson, Inc. (formerly Vantiva Usa Shared Services, Inc. and RCA Records) in Indianapolis, holding Information Technology roles. He leads the company in strategic planning and acquisitions and oversees all operations. Mr. Volovic holds a Bachelor of Science in Electrical Engineering, a Master of Science in Computer Science, and an MBA. He also serves on the boards of Manufacturing Technology, Inc. (MTI), the Association for Manufacturing Technology (AMT), and French Oil Mill Machinery Company.

Sonja K. McClelland, Executive Vice President, Secretary, Treasurer, Chief Financial Officer, and Chief Strategy Officer

Sonja K. McClelland has served as Executive Vice President since 2017, and as Treasurer and Chief Financial Officer since March 2014. She has been an executive officer of Hurco since 2004. Ms. McClelland joined Hurco in September 1996 and has held various finance and accounting positions, including Corporate Accounting Manager, Division Controller, Corporate Controller, Assistant Secretary, and Principal Accounting Officer. Before her tenure at Hurco, she worked as an Audit Senior at Arthur Andersen LLP. Ms. McClelland possesses extensive experience in corporate accounting and finance, manufacturing operations, investor relations, strategic planning, and acquisitions and divestitures. She earned a Bachelor's degree in Accounting from Ball State University. In 2015, she was recognized as a "Woman of Influence."

Michael Doar, Executive Chairman of the Board

Michael Doar transitioned to the role of Executive Chairman of the Board in March 2021. He previously served as Chairman of the Board and Chief Executive Officer from November 2001 to March 2021. Mr. Doar has been a director of Hurco since 2000 and joined the company in November 2001. Before Hurco, he held various management positions with Ingersoll Milling Machine Company from 1989 to 2001. As Executive Chairman, he focuses on growth and acquisition plans, board governance, and high-level strategic initiatives. Under his leadership as CEO, Hurco's annual revenues grew from under $100 million to over $300 million.

Jonathon Wright, General Counsel and Corporate Secretary

Jonathon Wright serves as an executive officer of Hurco and is the General Counsel and Corporate Secretary. In this capacity, he manages all aspects of the global legal function for the Hurco company group and also serves as an officer, director, or executive director for many of its wholly-owned subsidiaries and international divisions. Prior to joining Hurco in 2016, Mr. Wright worked as an attorney in private practice, specializing in corporate law, mergers and acquisitions, capital formation, and complex commercial transactions. He holds six degrees from Indiana University, including a J.D. and M.B.A.

HaiQuynh Jamison, Corporate Controller and Principal Accounting Officer

HaiQuynh Jamison is the Corporate Controller and Principal Accounting Officer at Hurco Companies. She has been with Hurco since 2006 and has held various financial management roles within the company, including Director of Financial Reporting and Policy, Division Controller for Hurco North America, and Corporate Accounting Manager. Before her time at Hurco, Ms. Jamison was an auditor with international accounting firms Ernst & Young and PricewaterhouseCoopers. She is a certified public accountant and holds a bachelor's degree in Business Administration from the University of Notre Dame.

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The key risks to Hurco Companies (HURC) primarily stem from the cyclical nature of its business, competitive pressures, and cybersecurity threats.

1. Cyclical Nature of the Business: Hurco Companies manufactures and sells computerized machine tools, which are considered capital goods, making its business highly cyclical. The company is currently experiencing a significant cyclical downturn in the machine tool industry, reflected in declining revenues and negative net results. A prolonged slump in manufacturing or delays by manufacturers in purchasing new equipment due to an expected economic downturn could further negatively impact the business.

2. Competitive Pressures: Hurco faces competitive pressures within the machine tool industry. This competition includes larger companies that often possess greater financial resources, which could affect Hurco's market share and profitability.

3. Cybersecurity Threats: Hurco is subject to ongoing risks from cybersecurity threats. These threats could materially affect the company's business strategy, results of operations, or financial condition.

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The increasing adoption and technological advancement of industrial metal additive manufacturing (3D printing) poses an emerging threat. As metal 3D printing technologies mature in terms of speed, material capabilities, and cost-effectiveness, they offer an alternative method for producing metal components that traditionally required subtractive machining. This trend could potentially reduce the demand for new computer numeric control (CNC) machine tools, which are Hurco's primary product, particularly for complex, low-to-medium volume, or specialized parts, thereby eroding a segment of Hurco's target market.

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Hurco Companies Inc.: Addressable Markets for CNC Machine Tools and Metalworking Solutions

Global CNC Machine Tools Market

• The U.S. CNC Machine Market is projected to be valued at USD 10.2 billion in 2025, reaching USD 23.8 billion in 2034 at a CAGR of 9.9%.
• The European CNC Machine Market is projected to reach approximately USD 1.9 billion in 2025.
• The Asia Pacific region accounted for the largest share in the CNC machines market, with a value of USD 25.7 billion in 2023. This region is projected to record the highest CAGR due to robust economic growth and rapid industrialization. China alone is projected to grow at a CAGR of 6.3% from 2024 to 2030.

Global Metalworking Market

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Hurco Companies (HURC) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:

1. Advancements in AI-Driven Control Systems and Software: Hurco is focusing on integrating artificial intelligence into its next-generation control systems. These innovations, showcased at IMTS 2024, include features like ChatCNC™ and AI feature recognition, which are designed to significantly reduce programming time and enhance the efficiency and precision of CNC machine operations. The company continues to invest in research and development to enhance its proprietary control software, UltiMotion, and explore IoT integration and AI in control systems for adaptive machining and process optimization.
2. Expansion of Automation Solutions with ProCobots: Hurco is increasing its focus on integrated robotic solutions through its ProCobots division. This includes the launch of the ProCobots ProFeeder for Hurco lathes and strategic partnerships with robotics companies like Universal Robots and Kawasaki Robotics. These automation solutions aim to address prevalent labor shortages in manufacturing and enhance productivity by seamlessly integrating collaborative robotic systems with Hurco's CNC machines.
3. Targeted New Product Introductions and Portfolio Expansion: Hurco is expanding its product portfolio with new machine tools designed for specialized applications. This includes the introduction of the Hurco TM8MYi lathe, the Takumi UA400 machining center, and Milltronics' first true 5-axis mill, the VM250IL-5X. Additionally, the Takumi brand is launching a new graphical user interface tailored for the die and mold industry, and the Milltronics brand is debuting a new vertically-integrated machine control system (INSPIRE+ platform). These new offerings cater to the increasing demand for high-precision and complex part manufacturing.
4. Growth in Key Geographic Markets and Reshoring Trends: The company has observed notable sales growth in specific regions, with the Americas seeing a 9% increase in Q1 2025 sales and 10% in Q3 2025, and Asia Pacific experiencing an 18% increase in Q1 2025 sales and 48% in Q3 2025, alongside a 74% growth in orders in Q2 2025. Hurco is strategically expanding its presence in high-growth manufacturing regions, including increased customer demand in China and India, and is poised to benefit from ongoing manufacturing reshoring and nearshoring trends in North America and Europe.

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Share Repurchases

• Hurco Companies initiated a share repurchase program on January 6, 2023, authorizing up to $25.0 million in repurchases.
• This program was subsequently extended through November 10, 2026.
• As of July 31, 2025, the company had repurchased approximately $5.3 million worth of shares, with about $19.7 million remaining authorized for future repurchases.

Share Issuance

• On March 10, 2022, shareholders approved an increase of 850,000 shares to the aggregate number of shares issuable under the 2016 Equity Incentive Plan.
• On January 7, 2025, 75,119 shares of time-based restricted stock were granted to executive officers under the 2016 Equity Plan, vesting in thirds over three years.

Outbound Investments

• Management expressed intent to evaluate potential acquisitions for long-term growth.

Capital Expenditures

• Capital expenditures for the first three months of fiscal year 2025 totaled $0.6 million.
• These expenditures were primarily allocated to software development costs and capital improvements in existing facilities.
• In the third quarter of fiscal year 2025, capital expenditures amounted to $470,000.