Highway Holdings reported a widened net loss for the quarter, with loss per share increasing to $(0.24) from $(0.07) in the same period last year. The company's financial performance reflects a significant deterioration in profitability and revenue compared to the prior year period. Sales declined by 37.39% to $931.000 thousand compared to $1.487 million a year ago, indicating a contraction in top-line growth.

Financial Performance

The company's bottom line showed a 242.86% decrease in loss per share, moving from a loss of $(0.07) to $(0.24). This decline highlights the increased pressure on the company's earnings. The reduction in sales volume was a primary driver of the widened losses, as revenue dropped substantially year-over-year.

Revenue Breakdown

The following table details the sales performance for the quarter compared to the same period last year:

The decrease in sales to $931.000 thousand from $1.487 million underscores the challenges faced by Highway Holdings in maintaining its revenue streams. The 37.39% drop points to a significant reduction in demand or operational scale during the quarter.

Highway Holdings Limited reported a net loss of $1.5 million for the fiscal year ended March 31, 2026, compared to a net income of $106,000 in the prior year, as reduced orders from major customers and political instability in Myanmar impacted operations. The company recorded a substantially non-cash impairment charge of $125,000, consisting of $19,000 for long-lived assets and $106,000 for right-of-use assets, due to adverse business conditions, operating losses, political unrest in Myanmar, trade tensions and evolving global regulations. Net sales for the fiscal year 2026 were $4.8 million, down from $7.4 million in the fiscal year 2025, while gross profit declined to $1.4 million from $2.5 million over the same period.

For the fiscal fourth quarter ended March 31, 2026, net sales were $0.93 million compared to $1.5 million in the year-ago period. Gross profit for the quarter was $246,000 compared to $305,000 in the prior year quarter. The 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.

Roland Kohl, chairman, president and chief executive officer of Highway Holdings, stated that fiscal 2026 was the most difficult year in the company's history. He noted that two important customers substantially ceased orders at the Myanmar facility due to the political situation, leading to a sharp sales reduction and the impairment charge. The company responded by protecting liquidity, reducing its operating base and taking steps to reposition the business.

The company completed the acquisition of Regent-Feinbau on March 1, 2026, which Kohl described as a strategic reset providing a stronger and more diversified manufacturing platform with European customer relationships. Highway Holdings is continuing its merger and acquisition activities to reduce dependency on the OEM business.

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, primarily due to the weakened Kyat. Highway Holdings does not engage in currency exchange rate hedging, and fluctuations in the exchange rate of the RMB and Kyat are expected to affect future results.

Financial Highlights