Highway Holdings returns to operating profitability with 29% revenue growth in Q1 fiscal 2027

• Highway Holdings (NASDAQ:HIHO) reported Q1 fiscal 2027 revenue of $2 million, a 29.2% increase year-over-year.
• The company's shares surged over 13% to near $0.88 following the announcement of its return to operating profitability.
• Management highlighted stabilization in OEM operations and ongoing diversification strategies following the loss of a major customer.

Highway Holdings (NASDAQ:HIHO) reported first-quarter fiscal 2027 revenue of approximately $2 million, representing a 29.2% increase compared to the same period last year.

The company's gross profit rose 58.4% year-over-year to $835,000.

This growth was driven by a significant expansion in gross margin, which increased by approximately 800 basis points to reach 42%.

Operationally, the company posted an operating income of $59,000 for the quarter, a sharp turnaround from the prior-year operating loss of $138,000.

Management attributed this improvement to a better product mix and disciplined cost control.

Following the earnings release, Highway Holdings shares jumped more than 13% to trade near $0.88 in the market.

Net income attributable to shareholders increased by 78.7% to $109,000, or $0.02 per diluted share.

This bottom-line growth occurred despite a drop in non-operating income, which fell from $134,000 to $26,000 due to the absence of a prior-year property-disposal gain.

Selling, general, and administrative (SG&A) expenses rose 16.7% to $776,000.

However, as a percentage of total sales, SG&A declined to 38.8%, reflecting improved operational leverage on the higher revenue base.

The company closed the quarter ended June 30, 2026, with a solid liquidity profile, including $3.9 million in cash and $4 million in working capital.