Hurco Companies's biggest risks in the FY2024 10-K
- International markets dominate revenue with 61% from outside the Americas and major manufacturing facilities overseas.
- Heavy reliance on raw materials like steel and iron exposes profitability to cost volatility.
- Global economic cyclicality directly drives fluctuations in machine tool demand and operating results.
The risks most specific to Hurco Companies
- Risks Related to Our Industry and International Operations
The cyclical nature of our business causes fluctuations in our operating results
The machine tool industry is highly cyclical, causing abrupt demand changes and significant sales fluctuations that harm operating results.
- Risks Related to Our Industry and International Operations
Our international operations pose additional risks that may adversely impact sales and earnings
Approximately 61% of fiscal year 2024 revenues came from outside the Americas, and main manufacturing facilities are overseas.
- Risks Related to Our Industry and International Operations
Fluctuations in the exchange rates between the U.S. dollar and any of several foreign currencies can increase our costs and decrease our revenues
Foreign currency exchange rate fluctuations between the U.S. dollar and the Euro, Pound Sterling, and Chinese Yuan impact costs and revenues.
- Operational and Strategic Risks
Disruptions in our manufacturing operations or the supply of materials and components could adversely affect our business, results of operations and financial condition
Manufacturing operations depend entirely on subsidiaries HML, NHML, Milltronics, and LCM located in Taiwan, China, the U.S., and Italy.
- Operational and Strategic Risks
Fluctuations in the price of raw materials and other inputs, especially steel, iron, and energy, could adversely affect our sales, costs, and profitability
Products require high iron and steel content, making profitability vulnerable to raw material and energy price volatility and tariffs.
- Operational and Strategic Risks
Acquisitions could disrupt our operations and harm our operating results
Growth strategies involving acquisitions of companies, technologies, or personnel carry integration risks and potential liabilities.
- Financial, Credit, and Liquidity Risks
Due to future changes in technology, changes in market demand, or changes in market expectations, portions of our inventory may become obsolete or excessive
Technological evolution and shifting market demand can render portions of inventory obsolete or excessive.
All 18 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Industry and International Operations
- 01The cyclical nature of our business causes fluctuations in our operating results
- 02Material adverse developments in global economic conditions, or the occurrence of certain other world events, could negatively affect demand for our products and harm our business
- 03Our international operations pose additional risks that may adversely impact sales and earnings
- 04Fluctuations in the exchange rates between the U.S. dollar and any of several foreign currencies can increase our costs and decrease our revenues
- 05We compete with larger companies that have greater financial resources, and our business could be harmed by competitors’ actions
Operational and Strategic Risks
- 06Our competitive position and prospects for growth may be diminished if we are unable to develop and introduce new and enhanced products on a timely basis that are accepted in the market
- 07Our continued success depends on our ability to protect our intellectual property
- 08Disruptions in our manufacturing operations or the supply of materials and components could adversely affect our business, results of operations and financial condition
- 09Fluctuations in the price of raw materials and other inputs, especially steel, iron, and energy, could adversely affect our sales, costs, and profitability
- 10The unanticipated loss of current members of our senior management team and other key personnel may adversely affect our operating results
- 11Acquisitions could disrupt our operations and harm our operating results
- 12incur large acquisition and integration costs, immediate write-offs, and restructuring and other related expenses; and
- 13Failure to comply with data privacy and security laws and regulations could adversely affect our operating results and business
- 14If our network and system security measures are breached and unauthorized access is obtained to our data, to our employees’, customers’, or vendors’ data, or to our critical information technology systems, we may incur legal and financial exposure and liabilities
- 15Public health emergencies or outbreaks of epidemics, pandemics, or contagious diseases have disrupted, and could continue to disrupt, our operations and materially and adversely affect our business, financial condition, and results of operations
Financial, Credit, and Liquidity Risks
- 16Due to future changes in technology, changes in market demand, or changes in market expectations, portions of our inventory may become obsolete or excessive
- 17Assets have become, and may become further, impaired, requiring us to record a significant charge to earnings
- 18We may experience negative or unforeseen tax consequences
Other Hurco Companies 10-Ks
- FY2025 10-K risk factors20 risks2 new1 reworded
U.S. trade tariffs and retaliatory measures threaten manufacturing costs and supply chain transitions. The new January 2026 credit agreement with Bank of America imposes strict leverage and operational covenants. Foreign currency exposure expanded to include the Indian Rupee alongside existing currencies.
Filed Jan 09, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.