HIGHWAY HOLDINGS REPORTS FISCAL FOURTH QUARTER AND FULL YEAR 2026 RESULTS

Rhea-AI Summary

Highway Holdings (Nasdaq: HIHO) reported fiscal fourth quarter and full year 2026 results for the period ended March 31, 2026, highlighting sharp declines in revenue and profitability driven by reduced orders at its Myanmar facility and tariff effects on some customers.

Fourth quarter net sales fell to $0.93 million from $1.5 million, with a net loss of $1.1 million, or $0.24 per basic share, versus a $315,000 loss a year earlier. For fiscal 2026, net sales declined to $4.8 million from $7.4 million, gross profit was $1.4 million with a 28% margin versus $2.5 million and 33%, and results swung to a $1.5 million net loss, or $0.33 per basic share, from $106,000 of net income in 2025.

The company recorded a largely non-cash $125,000 impairment on long-lived and right-of-use assets linked to adverse conditions and Myanmar political unrest. Highway Holdings completed the acquisition of Regent-Feinbau on March 1, 2026 to diversify its manufacturing base and reduce dependence on OEM customers. As of March 31, 2026, Highway Holdings reported cash of $4.4 million, working capital of $3.9 million and a current ratio of 2.2:1.

Positive

• Cash balance $4.4 million at March 31, 2026, or about $0.97 per basic share
• Working capital $3.9 million and current ratio of 2.2:1 at fiscal year-end 2026
• Regent-Feinbau acquisition completed March 1, 2026, adding European customers and diversified manufacturing capabilities
• Non-cash impairment charge $125,000 in fiscal 2026, much lower than $862,000 recorded in fiscal 2024
• Currency exchange gain $22,000 in fiscal 2026, aided by a weakened Kyat

Negative

• Fiscal 2026 net sales $4.8 million, down from $7.4 million in fiscal 2025
• Gross margin 28% in fiscal 2026 versus 33% in fiscal 2025
• Net loss $1.5 million in fiscal 2026 versus $106,000 net income in 2025
• Q4 2026 net sales $0.93 million, down from $1.5 million in the prior-year quarter
• Q4 2026 net loss $1.1 million, versus $315,000 loss a year earlier
• Customer concentration and Myanmar exposure led to sudden order reductions and asset impairments

News Explained

Including prior charges, impairment tied to the cited conditions reached nearly $1 million by March 31, 2026.

The July 15 release reports a substantially non-cash $125,000 impairment charge for fiscal 2026: $19,000 concerned long-lived assets and $106,000 concerned right-of-use assets.

The company says the new charge, together with $862,000 of fiscal 2024 impairment charges, brought impairment attributable to the cited business conditions to nearly $1 million.

Highway Holdings also says it does not hedge currency exchange rates and expects fluctuations in the RMB and Kyat to affect future results.

News Market Reaction – HIHO

-2.75%

-2.75% Session close to close

In the Jul 15 session, HIHO declined 2.75%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

Set against a history of earnings moves averaging -1.73%, a flat response would signal investors had...

Analysis

Set against a history of earnings moves averaging -1.73%, a flat response would signal investors had largely anticipated FY26 pressures already flagged in prior quarters. With short interest characterized as low, attention may center on customer concentration risk and progress post–Regent-Feinbau acquisition.

Key Figures

Q4 2026 net sales: $0.93 million Q4 2026 net loss per share: $0.24 FY26 net sales: $4.8 million +5 more

8 metrics

Q4 2026 net sales $0.93 million Fiscal 2026 fourth quarter, vs $1.5 million year-ago

Q4 2026 net loss per share $0.24 Fiscal 2026 fourth quarter basic loss per share

FY26 net sales $4.8 million Fiscal year 2026, vs $7.4 million in fiscal 2025

FY26 gross margin 28% Fiscal year 2026, vs 33% in fiscal 2025

FY26 net loss per share $0.33 Fiscal year 2026 basic loss per share, vs $0.02 diluted EPS in 2025

Impairment charge FY26 $125,000 Fiscal year 2026 long-lived and ROU asset impairment

Cash balance $4.4 million Cash at March 31, 2026 (~$0.97 per basic share)

Working capital $3.9 million Working capital at March 31, 2026; current ratio 2.2:1

Previous Earnings Reports

5 past events · Latest: Dec 15 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Dec 15	Q2 FY26 earnings	Negative	-10.9%	Q2 and six‑month FY26 results showed sharp sales decline and net loss.
Sep 11	Q1 FY26 earnings	Negative	+2.3%	Q1 FY26 net sales and earnings slipped versus prior year but stayed profitable.
Jul 01	FY25 earnings	Positive	-4.6%	FY25 showed revenue growth, margin expansion and return to profitability.
Jan 21	Q3 FY25 earnings	Neutral	+0.3%	Mixed Q3 FY25 with softer quarter but solid nine‑month revenue and profit.
Oct 10	Q2 FY25 earnings	Positive	+4.3%	Strong Q2 FY25 revenue and gross profit growth with robust cash position.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases have more often coincided with downside in the shares, though reactions have been mixed across the last five reports.

Key Terms

gross margin, right-of-use assets, impairment charge, currency exchange gain, +2 more

6 terms

gross margin financial

"Gross profit for the fiscal year 2026 was $1.4 million with a gross margin of 28%"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

View in glossary

right-of-use assets financial

"certain long-lived and right-of-use ("ROU") assets were impaired due to adverse business conditions"

Right-of-use assets are the rights a company gains to use a physical space or equipment under a lease agreement. They are recorded as assets on the company's balance sheet, reflecting the value of future benefits from the leased item. For investors, these assets provide a clearer picture of a company's obligations and resources related to leasing arrangements, helping to assess its financial health and operational commitments.

impairment charge financial

"the Company recorded a substantially non-cash impairment charge of $125,000"

An impairment charge is an accounting write-down taken when a company determines an asset—like a building, patent, or investment—is worth less than its recorded value, similar to lowering the price tag on a used car when damage reduces its resale value. It matters to investors because it reduces reported profits and the company’s asset base, can signal business challenges or one-time losses, and may affect future earnings, creditworthiness, and valuation.

currency exchange gain financial

"The company reported a $22,000 currency exchange gain for the fiscal year 2026"

A currency exchange gain is the increase in value a company records when the exchange rate moves in its favor while converting foreign-currency assets, liabilities or transactions into its reporting currency. It shows up as extra income on financial statements when, for example, a foreign bank balance or invoice is worth more after the local currency weakens — like holding foreign cash that becomes more valuable when converted. Investors watch it because it can change reported profits, cash flow and balance-sheet totals even when underlying business activity hasn’t changed, affecting comparisons across periods.

working capital financial

"Total current assets at March 31, 2026, were $7.1 million, with working capital of $3.9 million"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

current ratio financial

"working capital of $3.9 million and a current ratio of 2.2:1"

The current ratio measures a company’s short-term ability to pay upcoming bills by comparing assets that can be turned into cash within a year (like cash, inventory, and receivables) to obligations due within the same period. Investors use it like a household budget check — a ratio above 1 suggests the company has more short-term resources than immediate debts, while a very low or very high ratio can signal liquidity risk or inefficient use of assets.

View in glossary

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HONG KONG, July 15, 2026 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO, the "Company" or "Highway Holdings") today reported results for the fiscal fourth quarter and fiscal year ended March 31, 2026. The Company notes its financial results reflect the negative impact on the Company's business of two of its major customers significantly reducing orders that had been manufactured at its Myanmar facility due to Myanmar's political instability, along with the effects of tariffs on some of our customers.  In response, the Company is focused on diversifying its OEM business by adding more customers with the long-term intention of reducing its reliance on the OEM business, and views its Regent-Feinbau acquisition as the first step in that direction.

For the fiscal 2026 fourth quarter, net sales were $0.93 million compared to $1.5 million in the year ago period, reflecting the negative impacts cited above, which led to a sudden reduction in sales and inventory imbalance at the Company's customers and a material decline in new orders.  Gross profit was $246,000 compared to $305,000 in the year ago period. Net loss for the fiscal 2026 fourth quarter was $1.1 million, or $0.24 per basic share, compared to a net loss of $315,000, or $0.07 per basic share in the year ago period.

Net sales for the fiscal year 2026 were $4.8 million compared to $7.4 million for the fiscal year 2025, reflecting the above noted negative impact. Gross profit for the fiscal year 2026 was $1.4 million with a gross margin of 28%, compared to $2.5 million and 33% for the fiscal year 2025. Net loss for the fiscal year 2026 was $1.5 million, or $0.33 per basic share, compared with net income of $106,000, or $0.02 per diluted share, in the fiscal year 2025.

For the year ended March 31, 2026, the Company determined that certain long-lived and right-of-use ("ROU") assets were impaired due to adverse business conditions, operating losses, political unrest in Myanmar, trade tensions and evolving global regulations. Accordingly, the Company recorded a substantially non-cash impairment charge of $125,000, consisting of $19,000 for long-lived assets and $106,000 for ROU assets, which compares to no impairment charge in the year ended March 31, 2025.

Roland Kohl, chairman, president and chief executive officer of Highway Holdings, said, "Fiscal 2026 was the most difficult year in Highway Holdings' history, and it will be a turnaround year. Despite the numerous unlucky events hitting the Company over the last four years, we take this as a learning lesson. The year exposed clear weaknesses in our customer concentration, geographic exposure, factory utilization and cost structure. Significantly, two important customers substantially ceased orders at our Myanmar facility after deciding to no longer use such facility because of Myanmar's political situation – one customer without prior warning – which led not only to the sharp sales reduction but also to the primarily non-cash impairment charge in the fourth quarter and full year 2026. This charge came in addition to the fiscal year 2024 impairment charges totaling $862,000, which included $335,000 for long-lived assets and $527,000 for ROU assets, bringing the aggregate to nearly US$1 million attributable to the same underlying factors. We responded by protecting liquidity, reducing our operating base where necessary and taking decisive steps to reposition the company. Our focus now is to turn those actions into measurable operating progress."

"The acquisition of Regent-Feinbau on March 1, 2026 gives Highway Holdings a stronger and more diversified manufacturing platform, with European customer relationships, deeper technical capabilities and exposure to demanding automotive, commercial vehicle, aerospace and industrial markets. We view the acquisition of Regent-Feinbau as a strategic reset and a significant catalyst for the Company's ultimate rebound. We are continuing our merger and acquisition activities and are actively searching for companies with product production as a long term add on solution to reduce our dependency on the OEM business, which exposed us to the immediate helplessness we experienced in regard to the actions of our OEM customers. This was a lasting lesson learned."

The company reported a $22,000 currency exchange gain for the fiscal year 2026 compared with a $124,000 currency exchange gain in the fiscal year 2025. The currency exchange gain in the current year was mainly due to the weakened Kyat. The Company does not engage in currency exchange rate hedging, and the fluctuations in the exchange rate of the RMB and Kyat are expected to affect the Company's future results.

The Company's cash balance at March 31, 2026 was approximately $4.4 million, or approximately $0.97 per basic share. Total current assets at March 31, 2026, were $7.1 million, with working capital of $3.9 million and a current ratio of 2.2:1

About Highway Holdings

Highway Holdings is an international manufacturer of a wide variety of high-quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative office is located in Hong Kong and its manufacturing facilities are located in Germany, Yangon, Myanmar and Shenzhen, China.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company's revenues, operations, markets, products and prices, the political situation in Myanmar, relations between the U.S. and China, and other factors discussed in the company's various filings with the Securities and Exchange Commission, including without limitation, the company's annual reports on Form 20-F.

 (Financial Tables Follow)

Consolidated Statement of Income HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES Consolidated Statement of Income (Dollars in thousands, except per share data)
	Three Months Ended				Year Ended
	March 31, (Unaudited)				March 31, (Audited)
	2026		2025		2026		2025
Net sales	$931		$1,487		$4,805		$7,412
Cost of sales	685		1,182		3,439		4,942
Gross profit	246		305		1,366		2,470
Selling, general and administrative expenses	1,262		957		3,548		3,005
Impairment of property, plant and equipment	19		-		19		-
Impairment of  right of use assets	106		-		106		-
Operating income/(loss)	(1,141)		(652)		(2,307)		(535)
Non-operating items
Exchange gain/(loss), net	8		(20)		22		124
Interest income	31		56		159		203
Gain on disposal of assets	-		333		75		333
Other income	5		6		21		22
Total non-operating income / (expenses)	44		375		277		682
Share of profits / (loss) of equity investee	-		-		-		-
Net income/(loss) before income tax and non-controlling Interest	(1,097)		(277)		(2,030)		147
Income taxes	(2)		(38)		486		(38)
Net  income/(loss) before non-controlling interests	(1,099)		(315)		(1,544)		109
Profit / (loss) attributable to non-controlling Interests	2		0		20		(3)
Net income/(loss) attributable to Highway Holdings Limited shareholders	($1,097)		($315)		($1,524)		$106
Net income/(loss) per share:
Basic	($0.24)		($0.07)		($0.33)		$0.02
Diluted	($0.24)		($0.07)		($0.33)		$0.02
Weighted average number of shares outstanding:
Basic	4,551		4,402		4,554		4,402
Diluted	4,551		4,402		4,554		4,402

 

HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES Consolidated Balance Sheet (In thousands, except per share data)
	March 31,	March 31,
	2026	2025
Current assets:
Cash and cash equivalents	$4,409	$5,972
Accounts receivable, net of doubtful accounts	1,023	1,022
Inventories	1,452	1,146
Prepaid expenses and other current assets	253	430
Total current assets	7,137	8,570
Property, plant, and equipment, net	389	94
Intangible assets, net	532	-
Goodwill	260	-
Operating lease right-of-use assets, net	2,424	784
Long-term deposits	179	11
Long-term loan receivable	75	95
Investments in equity method investees	-	-
Total assets	$10,996	$9,554
Current liabilities:
Accounts payable	$437	$613
Operating lease liabilities, current	844	623
Accrual expenses and other current liabilities	1,509	1,274
Current portion of long-term loan payable	162	-
Income tax payable	162	486
Dividend payable	81	81
Total current liabilities	3,195	3,077
Long term liabilities:
Operating lease liabilities, non-current	1,742	187
Deferred tax liabilities	190	-
Long term accrued expenses	26	23
Non current portion of long-term loan payable	407	-
Total liabilities	5,560	3,287
Shareholders' equity:
Preferred shares, $0.01 par value	-	-
Common shares, $0.01 par value	46	44
Additional paid-in capital	12,417	12,178
Accumulated deficit	(6,961)	(5,437)
Accumulated other comprehensive loss	(610)	(516)
Non-controlling interest	544	(2)
Total equity	5,436	6,267
Total liabilities and shareholders' equity	$10,996	$9,554

View original content:https://www.prnewswire.com/news-releases/highway-holdings-reports-fiscal-fourth-quarter-and-full-year-2026-results-302826128.html

SOURCE Highway Holdings Limited

FAQ

How did Highway Holdings (HIHO) perform financially in fiscal year 2026?

Highway Holdings reported a net loss of $1.5 million on net sales of $4.8 million in fiscal 2026. According to Highway Holdings, this compares with $7.4 million in sales and $106,000 of net income in fiscal 2025, reflecting weaker demand and impairments.

What drove the revenue decline for Highway Holdings (HIHO) in fiscal 2026?

Highway Holdings attributed its 2026 revenue decline mainly to two major customers significantly reducing orders from its Myanmar facility and tariff effects on some customers. According to Highway Holdings, these factors caused sudden sales reductions, inventory imbalances at customers and a material drop in new orders.

What is the impact of the Regent-Feinbau acquisition on Highway Holdings (HIHO)?

Highway Holdings acquired Regent-Feinbau on March 1, 2026, adding a more diversified manufacturing platform with European customer relationships. According to Highway Holdings, this deal broadens technical capabilities and end markets and is viewed as a strategic reset to lessen dependence on OEM business.

What were Highway Holdings’ (HIHO) key fourth quarter 2026 results?

For the fiscal 2026 fourth quarter, Highway Holdings reported net sales of $0.93 million and a net loss of $1.1 million, or $0.24 per basic share. According to Highway Holdings, this compares with $1.5 million in sales and a $315,000 net loss a year earlier.

How strong is Highway Holdings’ (HIHO) balance sheet as of March 31, 2026?

As of March 31, 2026, Highway Holdings reported cash of $4.4 million, or about $0.97 per basic share. According to Highway Holdings, total current assets were $7.1 million, working capital was $3.9 million and the current ratio stood at 2.2:1.

What impairment charges did Highway Holdings (HIHO) record in fiscal year 2026?

Highway Holdings recorded a substantially non-cash $125,000 impairment in fiscal 2026 on certain long-lived and right-of-use assets. According to Highway Holdings, this reflected adverse business conditions, Myanmar political unrest, operating losses, trade tensions and evolving global regulations, versus no such charge in fiscal 2025.

How did foreign exchange affect Highway Holdings (HIHO) results in fiscal 2026?

Highway Holdings reported a $22,000 currency exchange gain in fiscal 2026, mainly from a weakened Kyat. According to Highway Holdings, this compares with a $124,000 exchange gain in fiscal 2025, and the company does not use hedging, so RMB and Kyat movements may affect future results.