Highway Holdings Reports $373K Net Loss in Q2 FY2026

Written by Emily J. Thompson, Senior Investment Analyst

Source: PRnewswire

Updated: Dec 15 2025

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Should l Buy HIHO?

Source: PRnewswire

Sales Decline: Highway Holdings reported net sales of $1.18 million in Q2 FY2026, a 44% decrease from $2.11 million in the same quarter last year, directly impacting the company's revenue and overall financial health.
Widening Net Loss: The company recorded a net loss of $373,000 in Q2, translating to a diluted loss of $0.08 per share, compared to a net income of $231,000 in the prior year, highlighting the adverse effects of customer production restructuring on business performance.
Gross Margin Decline: Gross profit for Q2 was $301,000, with a gross margin of 25.5%, significantly down from 39.4% year-over-year, reflecting the direct impact of reduced sales on profitability.
Strong Cash Position: As of September 30, 2025, the company had total assets of $8.37 million and cash and cash equivalents exceeding $5.6 million, indicating relative stability in liquidity despite operational challenges.

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About HIHO

Highway Holdings Ltd is a holding company mainly engaged in the offering of end-to end manufacturing solutions. The Company is mainly engaged in the design and manufacturing of stamping tools, injection molding parts, brushless DC motor. The Company is also mainly engaged in the production of automation equipment, cleaning equipment. In addition, the Company is engaged in the manual assembly.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Dow Jones Index Gains Over 100 Points as Durable Goods Orders Decline 2.2%

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Highway Holdings Acquires 51% of Regent-Feinbau for Strategic Growth

Dec 23 2025PRnewswire

Letter of Intent Signed: Highway Holdings has signed a letter of intent with LeMALe to acquire 51% of German Regent-Feinbau primarily for cash and some unregistered shares, targeting completion by March 2026, which aims to reinvigorate its OEM business and replace lost customer revenue due to COVID challenges.
Significant Market Potential: The Chinese automotive market is projected to reach $660 billion with a growth rate exceeding 2%, and with sheet metal components comprising about 8% to 12% of vehicles, this acquisition opens up approximately $50 billion annual market opportunities for Highway Holdings, enhancing its competitive edge in this sector.
Enhanced Technical Capabilities: The acquisition will enable Highway Holdings to offer thick sheet metal cutting, bending, and welding capabilities, addressing a critical gap in its service offerings and allowing direct engagement with local customers in China, thereby increasing market penetration.
Strong Financial Foundation: With no debt and approximately $5.3 million in cash and cash equivalents, equating to about $1.20 per share, the company is well-positioned to support the acquisition and future M&A strategies, reinforcing its growth trajectory.

Highway Holdings Acquires 51% of Regent-Feinbau for Strategic Growth

Dec 23 2025Newsfilter

Letter of Intent Signed: Highway Holdings has signed a letter of intent with LeMaLe to acquire 51% of German Regent-Feinbau primarily for cash and unregistered shares, targeting completion by March 2026 to enhance its competitiveness in the automotive market.
Significant Market Potential: The Chinese automotive market is valued at approximately $660 billion, with a projected growth rate exceeding 2% over the next five years, and Regent-Feinbau's expertise will enable Highway Holdings to penetrate this rapidly expanding market.
Enhanced Technical Capabilities: The acquisition will allow Highway Holdings to offer new capabilities in thick sheet metal cutting, bending, and welding, filling a critical gap in its metal components portfolio and attracting more customers to increase market share.
Strong Financial Foundation: Highway Holdings boasts approximately $5.3 million in cash and cash equivalents with virtually no debt, providing a robust financial base to support this acquisition and future M&A strategies.

Highway Holdings intends to purchase a 51% stake in Regent-Feinbau Adermann GmbH.

Dec 23 2025SeekingAlpha

Acquisition Announcement: Highway Holdings (HIHO) has signed a letter of intent to acquire 51% of German-based Regent-Feinbau Adermann GmbH, primarily through cash and some unregistered shares.
Conditions for Completion: The acquisition is expected to close by the end of March 2026, pending due diligence, negotiation of a definitive purchase agreement, and fulfillment of customary closing conditions.
Market Reaction: Following the announcement, Highway Holdings (HIHO) shares rose by 1.81% in premarket trading.
Additional Information: The article also mentions Seeking Alpha’s Quant Rating on Highway Holdings and provides financial information about the company.