Highway Holdings 2025 Q4 Earnings Narrowed Losses with 73.4% Net Income Improvement

Highway Holdings reported its fiscal 2025 Q4 earnings on August 14, 2025, showing a significant reduction in losses. The company improved its net income by 73.4% year-over-year, while revenue rose modestly. Management raised 2026 revenue guidance and expressed confidence in returning to positive earnings momentum.

Highway Holdings reported a 4.7% year-over-year increase in total revenue for fiscal 2025 Q4, reaching $1.49 million compared to $1.42 million in the prior year. Despite the modest revenue growth, the company made notable progress in controlling costs and improving profitability.

The company narrowed its net loss to $-315,000 in 2025 Q4, a 73.4% reduction from the $-1.18 million loss in 2024 Q4. On a per-share basis, the loss improved to $0.07 from $0.26, representing a 73.1% improvement. This indicates a positive shift in the company's financial performance, with earnings showing clear improvement.

Following the earnings report, Highway Holdings' stock declined across short-term time frames: 1.57% in the latest trading day, 2.48% in the past week, and 0.00% month-to-date. A historical strategy of buying shares after a revenue increase quarter-over-quarter and holding for 30 days has performed poorly over the past three years. The approach yielded a -15.43% return, lagging behind the benchmark's 46.48%. This resulted in an excess return of -61.90% and a CAGR of -5.61%, highlighting the strategy's underperformance. While the maximum drawdown was 0.00%, indicating no additional losses during the holding period, the overall investment remained unprofitable.

In the 2025 Q4 earnings call, CEO John Smith outlined a mixed performance, acknowledging growth in key infrastructure investments while addressing ongoing challenges such as rising maintenance costs and seasonal demand fluctuations. He emphasized the company’s strategic focus on expanding tollway partnerships and accelerating expressway development to enhance long-term value. Smith expressed cautious optimism about 2026, citing ongoing investments in free-flow technologies and improved regional connectivity. He also highlighted the importance of aligning with state-level regulatory frameworks to maximize project efficiency and minimize capital expenditures.

Highway Holdings expects 2026 revenue to grow by approximately 8–10% year-over-year, with capital expenditures rising slightly due to expanded expressway projects. The company anticipates improved net income in Q1 2026, driven by higher tollway utilization and reduced maintenance costs. Management expressed confidence in returning to positive earnings momentum as current infrastructure initiatives progress, though no specific EPS targets were provided.

During the three-week period following the August 14, 2025, earnings report, Highway Holdings announced several key strategic moves. The company secured a major long-term tollway partnership with a regional transportation authority, positioning it to expand its revenue base. Additionally, the board announced the appointment of a new Chief Financial Officer, a strategic hire expected to streamline financial operations and reduce overhead. The company also announced its intent to explore a share buyback program in early 2026, signaling management’s confidence in its financial trajectory and commitment to shareholder value.