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HIGHWAY HOLDINGS REPORTS FIRST QUARTER FISCAL 2026 RESULTS

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HONG KONG, Sept. 12, 2025 /PRNewswire/ — Highway Holdings Limited (Nasdaq: HIHO) today reported financial results for the first quarter of fiscal year 2026 ended June 30, 2025.

Net sales for the first quarter of fiscal year 2026 were $1.55 million compared to $1.88 million in the first quarter of fiscal year 2025. Net income for the first quarter of fiscal year 2026 was $61,000, or net income of $0.01 per diluted share, compared with net income of $98,000, or net income of $0.02 per diluted share in the first quarter of fiscal year 2025.

Roland Kohl, chairman, president and chief executive officer of Highway Holdings, commented, “As an OEM supplier, our fortunes are closely tied to the performance of our customers. Following the COVID pandemic, which saw over-ordering, high inventories followed by strong reductions in demand, many of our customers until today have not yet recovered. Since we are heavily dependent on them, our business was also negatively impacted. Furthermore, recent uncertainties from increased tariffs imposed by the U.S. globally, the threat of additional new tariffs, and the conflicts in Ukraine and the Middle East have created market instability and have further added significant challenges.  

“Despite these headwinds, we have maintained a solid financial position, which provides us the strength and flexibility to navigate this difficult environment as we seek a path back to sustainable growth. Despite reduced demand from existing customers, we are encouraged to see unexpected interest in new business from former customers. For example, we recently received a small order for our proprietary CO₂ cleaning machines, which had no sales activity for several years. The new interest in our cleaning machines follows governmental efforts by the Chinese government to replace toxic cleaning solvents with alternative non-environmental damaging cleaning solutions. This is a promising development that could be the beginning of a new product line and additional business. Furthermore, we also received renewed interest from a previous gaming console customer who, after a two-year pause, would like to ramp-up product production.”

“We are working relentlessly to diversify beyond the constraints of our OEM model, pursuing strategic actions that we believe will ultimately free us from the stranglehold of past business cycles. While the path forward involves challenges, we are confident in our ability to adapt, capitalize on new opportunities, and emerge stronger. Our focus remains on building a company that, in the long-term, is more resilient, more innovative, and better positioned to deliver long-term value.”

Gross profit and profit margins for the first quarter of fiscal year 2026 decreased to $527,000, or 34%, compared with $661,000 and 35%, respectively, in the first quarter of fiscal year 2025, primarily due to decreased sales.

Selling, general and administrative expenses for the first quarter of fiscal year 2026 slightly increased by 1% to $665,000 in the first quarter 2026 from $658,000 in the year ago period due to inflationary increases.  

The Company recognized a $4,000 currency exchange gain in the first quarter of fiscal year 2026, compared to $38,000 in the first quarter of fiscal year 2025.  The Company also earned $43,000 in interest and had an $82,000 gain on the disposal of a small underutilized real property in the first quarter of 2026, as the Company continues to benefit from a relatively high interest rate.  The Company does not engage in foreign currency hedging activities.

The Company ended the first quarter of fiscal year 2026 in a solid financial position with $5.82 million of cash and cash equivalents, which exceeded its combined short- and long-term liabilities by $3.06 million. At June 30, 2025, the Company had a working capital balance of $5.7 million, with a current ratio of 3.2:1, and total shareholders’ equity of $6.4 million, compared to $6.3 million as of March 31, 2025.

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 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 the prospects of its proprietary CO₂ cleaning machines and new orders for gaming consoles, economic, competitive, governmental, political and technological factors affecting the company’s revenues, operations, markets, products and prices, the remaining impact of the worldwide COVID-19 pandemic, 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)

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HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES

Consolidated Statement of Income

(In thousands of U.S. dollars, except for shares and per share data)

Quarter Ended

June 30

2025
(unaudited)

2024

(unaudited)

Net sales

$1,547

$1,879

Cost of sales

1,020

1,218

Gross profit

527

661

 

Selling, general and administrative expenses

 

665

 

658

Operating income (loss)

(138)

3

Non-operating income (expense):

Exchange gain (loss), net

4

38

Interest income

Gain (loss) on disposal of assets                           

43

82

45

Other income (expense)

5

7

Total non-operating income (expenses)

134

90

Net income (loss) before income taxes

(4)

93

Income taxes

61

Net income

57

93

Less: net gain/(loss) attributable to non-controlling interests

(4)

(5)

Net income attributable to Highway Holdings Limited’s

$61

$98

Shareholders

 

Net income (loss) per share – Basic

$0.01

$0.02

Net income (loss) per share – Diluted

 

$0.01

$0.02

Weighted average number of shares outstanding:

Basic

4,445

4,506

Diluted

 

4,445

 

4,506

 

HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES

Consolidated Balance Sheet

(In thousands of U.S. dollars, except for shares and per share data)

June 30

March 31

2025
(unaudited)

2025
(audited)

Current assets:

 

Cash and cash equivalents

$5,816

$5,972

Accounts receivable, net of doubtful accounts

1,039

1,022

Inventories

956

1,146

Prepaid expenses and other current assets

458

430

Total current assets

8,269

8,570

Goodwill, net

Property, plant and equipment, net

126

94

Operating lease right-of-use assets

622

784

Long-term deposits

12

11

Long-term loan receivable

95

95

Total assets

9,124

9,554

Current liabilities:

Accounts payable

$472

$613

Operating lease liabilities, current

468

623

Accrued expenses and other liabilities

1,108

1,274

Income tax payable

423

486

Dividend payable

81

81

Total current liabilities

2,552

3,077

Operating lease liabilities, non-current

184

187

Long term accrued expenses

23

23

Total liabilities

2,759

3,287

Shareholders’ equity:

Preferred shares, $0.01 par value

Common shares, $0.01 par value

46

44

Additional paid-in capital

12,201

12,178

Accumulated deficit

(5,378)

(5,437)

Accumulated other comprehensive (loss) / income

(498)

(516)

Non-controlling interest

(6)

(2)

Total shareholders’ equity

6,365

6,267

Total liabilities and shareholders’ equity

$9,124

$9,554

 

 

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