New York, July 20, 2026, 18:10 (EDT)
Shares of Highway Holdings Limited NASDAQ:HIHO finished up 19.7% at $0.93 on Monday. The stock was last seen trading at $1.27 in after-hours dealings as of 18:10 EDT, following the close of the regular U.S. session. Quarterly revenue climbed 29.2%, and the company posted a return to operating profit.
The announcement did not provide a breakdown of sales for Regent-Feinbau and Highway’s ongoing activities. As a result, investors cannot assess the underlying organic growth of the legacy business.
Highway reported that at the time of purchase, Regent’s yearly sales averaged approximately $2.7 million. Divided quarterly, this equates to about $675,000 per quarter. That figure is 49% greater than Highway’s own year-over-year sales increase of $452,000. The comparison does not factor in seasonal variations and does not represent company guidance.
The first quarter results were reported as outlined below.
| Measure | Q1 fiscal 2027 | Q1 fiscal 2026 | Change |
|---|---|---|---|
| Net sales | $1.999 million | $1.547 million | up 29.2% |
| Gross profit | $835,000 | $527,000 | up 58.4% |
| Gross margin | 41.8% | 34.1% | rose by 7.7 percentage points |
| Operating result | $59,000 profit | $138,000 loss | increase of $197,000 |
| Net income attributable | $109,000 | $61,000 | up 78.7% |
Highway took a 51% controlling interest in Regent on March 1. The June quarter marked the first full period for Regent within the group’s accounts. The company did not disclose standalone revenue or operating profit figures for Regent.
Chief Executive Roland Kohl stated, “The first quarter marked clear progress in our turnaround.” He noted that ongoing OEM activities remained stable throughout the quarter. PR Newswire
Gross margin increased by 7.7 percentage points to 41.8%, up from 34.1%. SG&A expenses accounted for 38.8% of sales, compared to 43.0% in the prior year. Revenue outpaced growth in overhead costs.
During the quarter, cash declined by $553,000 from March 31, finishing June at $3.856 million. Over the same timeframe, receivables and inventory increased together by $343,000.
Monday saw trading volume reach 26.57 million shares, roughly 5.7 times the total shares outstanding. The regular closing price of $0.93 held 7% under the $1 minimum set by Nasdaq. Nasdaq mandates 10 straight trading days with closing bids at or higher than that benchmark.
Highway stated on July 15 that fiscal 2026 sales declined 35% to $4.8 million. The company posted an annual net loss of roughly $1.5 million. Order reductions from two key customers tied to the Myanmar plant were cited. Shares finished Friday at close to $0.78.
During the July 21-24 period, the next test is whether official closing bids meet the mark. Four sessions that qualify do not fulfill Nasdaq’s 10-day cure rule. However, the streak could commence anytime ahead of the September 14 deadline.
Risks are still significant. The float is limited, with trading volume on Monday exceptionally elevated. Issues around Nasdaq compliance, Myanmar involvement, reliance on key customers, and Regent integration are still substantial.
