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

Highway has expanded its TFX platform with Lane Intelligence, a new capacity sourcing feature designed to help freight brokers identify carriers based on verified lane history and real-time availability. The tool addresses a long-standing issue in carrier search where results are often based on location patterns rather than actual delivery data or active capacity postings. By integrating verified pickup and delivery information, Lane Intelligence aims to ensure that brokers can make more informed sourcing decisions.

The platform utilizes three specific capacity indicators to rank carrier results. "Trucks Nearby" displays a verified truck near the load's origin in real time, while "Posted Truck" indicates carriers actively advertising available equipment on the specific lane. The third indicator, "Lane History," reveals how many times a carrier has successfully picked up and delivered on that lane within the past 120 days. These metrics are weighted according to the load's pickup timing, prioritizing current availability for immediate loads and proven history for future pickups.

"Brokers have been making sourcing decisions with incomplete information. Lane Intelligence puts verified lane data, real time availability and identity verification into one search, so the first call is the right call," said Mark Ford, Chief Capacity Officer at Highway. He emphasized that the feature is built on the largest carrier identity dataset in the freight industry.

Every carrier presented in Lane Intelligence results must pass three layers of Carrier Identity verification. This process confirms identity documents, ELD data, cargo insurance, and service area before a carrier appears in search results. This verification standard previously earned Highway recognition as a 2026 Fraud Fighters Award winner in the Solution Providers category from FreightWaves.

"Most tools hand brokers a list and let them sort it out. Lane Intelligence does the work before the list appears," said Michael Caney, Chief Commercial Officer at Highway. He noted that the carriers rising to the top of the results do so based on data analysis rather than arbitrary location signals.

Lane Intelligence is now available to TFX customers and connects directly to Offer Manager. This integration allows brokers to search, evaluate, and book carriers within a single workflow.