Revenue remains highly erratic with a 44.3% year-over-year decline in 2026Q2, while the company struggles to achieve operating leverage, evidenced by a -45.9% operating margin in the same period.
| Metric | TTM | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Sales/Revenue | 6.14M | 7.41M | 6.32M | 10.24M | 12.37M | 9.17M | 12.56M | 14.28M | 19.17M | 19.6M | 22.93M | 22.37M | 22.94M | 21.93M | 25.37M | 31.15M | 21.74M | 33.73M | 33.16M | 31.47M | 25.84M | 27.68M | 25.36M | 20.37M | 19.43M | 18.19M | 22.5M | 25.2M | 17.8M |
| Revenue Growth % | -19.68% | 17.26% | -38.28% | -17.17% | 34.87% | -26.99% | -12.04% | -25.51% | -2.23% | -14.53% | 2.51% | -2.45% | 4.57% | -13.55% | -18.55% | 43.28% | -35.55% | 1.7% | 5.39% | 21.77% | -6.63% | 9.16% | 24.48% | 4.83% | 6.85% | -19.17% | -10.71% | 41.57% | - |
| Cost of Goods Sold | 4.34M | 4.94M | 4.61M | 7.1M | 8.6M | 6.46M | 8.4M | 10.7M | 12.42M | 14.03M | 17.01M | 16.66M | 17.48M | 17.03M | 20.25M | 24.6M | 17.04M | 27.02M | 28.09M | 25.23M | 21.6M | 22.55M | 20.26M | 16.49M | 16.05M | 13.83M | 16.5M | 18.7M | 13.2M |
| COGS % of Revenue | - | 66.68% | 72.98% | 69.33% | 69.51% | 70.47% | 66.93% | 74.92% | 64.82% | 71.59% | 74.15% | 74.45% | 76.23% | 77.64% | 79.81% | 78.99% | 78.38% | 80.12% | 84.7% | 80.18% | 83.58% | 81.47% | 79.91% | 80.94% | 82.59% | 76.04% | 73.33% | 74.21% | 74.16% |
| Gross Profit | 1.8M | 2.47M | 1.71M | 3.14M | 3.77M | 2.71M | 4.15M | 3.58M | 6.74M | 5.57M | 5.93M | 5.72M | 5.45M | 4.9M | 5.12M | 6.54M | 4.7M | 6.7M | 5.07M | 6.24M | 4.24M | 5.13M | 5.09M | 3.88M | 3.38M | 4.36M | 6M | 6.5M | 4.6M |
| Gross Margin % | 29.35% | 33.32% | 27.02% | 30.67% | 30.49% | 29.53% | 33.07% | 25.08% | 35.18% | 28.41% | 25.85% | 25.55% | 23.77% | 22.36% | 20.19% | 21.01% | 21.62% | 19.88% | 15.3% | 19.82% | 16.42% | 18.53% | 20.09% | 19.06% | 17.41% | 23.96% | 26.67% | 25.79% | 25.84% |
| Gross Profit Growth % | - | 44.61% | -45.62% | -16.68% | 39.27% | -34.82% | 16.01% | -46.9% | 21.04% | -6.04% | 3.69% | 4.86% | 11.17% | -4.24% | -21.76% | 39.26% | -29.89% | 32.12% | -18.63% | 46.97% | -17.29% | 0.71% | 31.22% | 14.72% | -22.35% | -27.37% | -7.69% | 41.3% | - |
| Operating Expenses | 3.13M | 3M | 2.48M | 3.62M | 3.2M | 3.32M | 3.41M | 4.33M | 4.8M | 4.81M | 4.41M | 4.45M | 4.66M | 4.55M | 4.89M | 4.85M | 4.37M | 5.82M | 7.35M | 5.85M | 5.17M | 4.99M | 4.22M | 3.72M | 3.63M | 4.46M | 4.7M | 5.1M | 3M |
| OpEx % of Revenue | - | 40.54% | 39.19% | 35.33% | 25.9% | 36.25% | 27.12% | 30.36% | 25.07% | 24.53% | 19.24% | 19.87% | 20.31% | 20.74% | 19.28% | 15.57% | 20.09% | 17.26% | 22.17% | 18.59% | 19.99% | 18.01% | 16.64% | 18.28% | 18.65% | 24.54% | 20.89% | 20.24% | 16.85% |
| Selling, General & Admin | 3.13M | 3M | 2.48M | 3.62M | 3.2M | 3.32M | 3.41M | 4.33M | 4.8M | 4.81M | 4.41M | 4.45M | 4.66M | 4.55M | 4.89M | 4.85M | 4.37M | 5.82M | 7.35M | 5.85M | 5.17M | 4.99M | 4.22M | 3.72M | 3.63M | 3.45M | 3.8M | 4.2M | 2.5M |
| SG&A % of Revenue | - | 40.54% | 39.19% | 35.33% | 25.9% | 36.25% | 27.12% | 30.36% | 25.07% | 24.53% | 19.24% | 19.87% | 20.31% | 20.74% | 19.28% | 15.57% | 20.09% | 17.26% | 22.17% | 18.59% | 19.99% | 18.01% | 16.64% | 18.28% | 18.65% | 18.98% | 16.89% | 16.67% | 14.04% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.01M | 900K | 900K | 500K |
| Operating Income | -1.33M | -535K | -769K | -477K | 567K | -616K | 747K | -755K | 1.94M | 761K | 1.52M | 1.27M | 793K | 355K | 230K | 1.7M | 333K | 881K | -2.28M | 386K | -922K | 145K | 875K | 159K | -241K | -105K | 1.3M | 1.4M | 1.6M |
| Operating Margin % | -21.62% | -7.22% | -12.17% | -4.66% | 4.59% | -6.72% | 5.95% | -5.29% | 10.11% | 3.88% | 6.61% | 5.68% | 3.46% | 1.62% | 0.91% | 5.45% | 1.53% | 2.61% | -6.87% | 1.23% | -3.57% | 0.52% | 3.45% | 0.78% | -1.24% | -0.58% | 5.78% | 5.56% | 8.99% |
| Operating Income Growth % | - | 30.43% | -61.22% | -184.13% | 192.05% | -182.46% | 198.94% | -138.96% | 154.66% | -49.8% | 19.28% | 60.28% | 123.38% | 54.35% | -86.44% | 409.31% | -62.2% | 138.69% | -689.9% | 141.87% | -735.86% | -83.43% | 450.31% | 165.98% | -129.52% | -108.08% | -7.14% | -12.5% | - |
| EBITDA | -653K | 74K | -11K | 664K | 1.66M | 384K | 1.97M | -494K | 2.26M | 1.03M | 1.83M | 1.66M | 1.35M | 941K | 900K | 2.36M | 968K | 1.66M | -1.45M | 1.32M | 168K | 1.29M | 1.99M | 1.29M | 827K | 906K | 2.2M | 2.3M | 2.1M |
| EBITDA Margin % | -10.63% | 1% | -0.17% | 6.48% | 13.46% | 4.19% | 15.66% | -3.46% | 11.78% | 5.24% | 7.99% | 7.44% | 5.89% | 4.29% | 3.55% | 7.59% | 4.45% | 4.93% | -4.36% | 4.21% | 0.65% | 4.67% | 7.84% | 6.33% | 4.26% | 4.98% | 9.78% | 9.13% | 11.8% |
| EBITDA Growth % | 2.39% | 772.73% | -101.66% | -60.1% | 333.33% | -80.47% | 497.98% | -121.89% | 119.77% | -43.97% | 10.16% | 23.26% | 43.46% | 4.56% | -61.91% | 144.11% | -41.79% | 214.93% | -209.21% | 688.69% | -87.01% | -34.93% | 54.15% | 55.86% | -8.72% | -58.82% | -4.35% | 9.52% | - |
| D&A (Non-Cash Add-back) | 0 | 609K | 758K | 1.14M | 1.1M | 1M | 1.22M | 261K | 319K | 266K | 317K | 393K | 557K | 586K | 670K | 667K | 635K | 782K | 830K | 939K | 1.09M | 1.15M | 1.11M | 1.13M | 1.07M | 1.01M | 900K | 900K | 500K |
| EBIT | -653K | 147K | -1.14M | -313K | 568K | -600K | 896K | -694K | 2.07M | 761K | 1.51M | 1.28M | 768K | 420K | 394K | 1.78M | 457K | 816K | -1.72M | 884K | 249K | 45K | 875K | 159K | -241K | -105K | 1.3M | 1.4M | 1.6M |
| Net Interest Income | 197K | 203K | 248K | 87K | 11K | 16K | 65K | 33K | 16K | 8K | 10K | 18K | 16K | 5K | -20K | -54K | -41K | -106K | -125K | -81K | -68K | -96K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 197K | 203K | 248K | 87K | 11K | 16K | 65K | 33K | 16K | 8K | 10K | 18K | 17K | 14K | 4K | 3K | 6K | 35K | 100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1K | 9K | 24K | 57K | 47K | 141K | 225K | 242K | 134K | 110K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 675K | 682K | -370K | 164K | 1K | 16K | 149K | 61K | 134K | 0 | -9K | 6K | -26K | 56K | 140K | 55K | 77K | -206K | 331K | 256K | 1.04M | -210K | 208K | 376K | 68K | -144K | 100K | 100K | -200K |
| Pretax Income | -653K | 147K | -1.14M | -313K | 568K | -600K | 896K | -694K | 2.07M | 761K | 1.51M | 1.28M | 767K | 411K | 370K | 1.75M | 410K | 675K | -1.95M | 642K | 115K | -65K | 1.08M | 535K | -173K | -249K | 1.4M | 1.5M | 1.4M |
| Pretax Margin % | -10.63% | 1.98% | -18.02% | -3.06% | 4.59% | -6.54% | 7.13% | -4.86% | 10.81% | 3.88% | 6.57% | 5.71% | 3.34% | 1.87% | 1.46% | 5.62% | 1.89% | 2% | -5.87% | 2.04% | 0.45% | -0.23% | 4.27% | 2.63% | -0.89% | -1.37% | 6.22% | 5.95% | 7.87% |
| Income Tax | -123K | 38K | -161K | -20K | 101K | -146K | 209K | -26K | 512K | 236K | 243K | 134K | 172K | -37K | 186K | 123K | 10K | -35K | 28K | 48K | 73K | 86K | 100K | 50K | 58K | 16K | 100K | 200K | 200K |
| Effective Tax Rate % | 18.84% | 25.85% | 14.14% | 6.39% | 17.78% | 24.33% | 23.33% | 3.75% | 24.71% | 31.01% | 16.12% | 10.49% | 22.43% | -9% | 50.27% | 7.02% | 2.44% | -5.19% | -1.44% | 7.48% | 63.48% | -132.31% | 9.23% | 9.35% | -33.53% | -6.43% | 7.14% | 13.33% | 14.29% |
| Net Income | -535K | 106K | -959K | -294K | 443K | -461K | 686K | -630K | 1.55M | 527K | 1.25M | 1.15M | 596K | 448K | 184K | 1.65M | 420K | 768K | -1.92M | 594K | 42K | -152K | 982K | 485K | -231K | -265K | 1.3M | 1.3M | 1.2M |
| Net Margin % | -8.71% | 1.43% | -15.17% | -2.87% | 3.58% | -5.03% | 5.46% | -4.41% | 8.09% | 2.69% | 5.45% | 5.14% | 2.6% | 2.04% | 0.73% | 5.3% | 1.93% | 2.28% | -5.79% | 1.89% | 0.16% | -0.55% | 3.87% | 2.38% | -1.19% | -1.46% | 5.78% | 5.16% | 6.74% |
| Net Income Growth % | -5.94% | 111.05% | -226.19% | -166.37% | 196.1% | -167.2% | 208.89% | -140.65% | 194.12% | -57.87% | 8.78% | 92.95% | 33.04% | 143.48% | -88.85% | 292.86% | -45.31% | 139.98% | -423.4% | 1314.29% | 127.63% | -115.48% | 102.47% | 309.96% | 12.83% | -120.38% | 0% | 8.33% | - |
| Net Income (Continuing) | -530K | 109K | -978K | -293K | 467K | -454K | 687K | -668K | 1.56M | 525K | 1.26M | 1.14M | 595K | 448K | 184K | 1.6M | 400K | 710K | -1.97M | 594K | 42K | -152K | 982K | 485K | -231K | -265K | 1.3M | 1.3M | 1.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -7K | -2K | -7K | 12K | 0 | 17K | 10K | 11K | 49K | 39K | 62K | 49K | 49K | 0 | 0 | 0 | -50K | 93K | 151K | 0 | 0 | 3K | 2K | 1K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.12 | 0.02 | -0.22 | -0.07 | 0.11 | -0.12 | 0.18 | -0.17 | 0.41 | 0.14 | 0.33 | 0.30 | 0.16 | 0.12 | 0.05 | 0.44 | 0.11 | 0.20 | -0.50 | 0.16 | 0.01 | -0.05 | 0.30 | 0.17 | -0.08 | -0.09 | 0.44 | 0.41 | 0.55 |
| EPS Growth % | -0.77% | 110.95% | -205.56% | -165.45% | 191.67% | -166.67% | 205.88% | -141.46% | 192.86% | -57.58% | 10% | 87.5% | 33.33% | 140% | -88.64% | 300% | -45% | 140% | -412.5% | 1500% | 121.46% | -115.53% | 76.47% | 313.84% | 13.96% | -121% | 7.32% | -25.45% | - |
| EPS (Basic) | - | 0.02 | -0.22 | -0.07 | 0.11 | -0.12 | 0.18 | -0.17 | 0.41 | 0.14 | 0.33 | 0.30 | 0.16 | 0.12 | 0.05 | 0.44 | 0.11 | 0.21 | -0.50 | 0.16 | 0.01 | -0.05 | 0.32 | 0.17 | -0.08 | -0.09 | 0.46 | 0.44 | 0.60 |
| Diluted Shares Outstanding | 4.6M | 4.4M | 4.37M | 4.07M | 4.19M | 4.01M | 3.91M | 3.8M | 3.8M | 3.8M | 3.8M | 3.79M | 3.79M | 3.78M | 3.79M | 3.78M | 3.76M | 3.77M | 3.81M | 3.69M | 3.54M | 3.26M | 3.26M | 2.9M | 2.9M | 2.87M | 2.95M | 3.17M | 2.86M |
| Basic Shares Outstanding | 4.6M | 4.4M | 4.37M | 4.07M | 4.03M | 4.01M | 3.91M | 3.71M | 3.8M | 3.8M | 3.8M | 3.79M | 3.78M | 3.78M | 3.78M | 3.77M | 3.75M | 3.74M | 3.81M | 3.64M | 3.46M | 3.26M | 3.03M | 2.9M | 2.9M | 2.87M | 2.83M | 2.95M | 2.86M |
| Dividend Payout Ratio | - | 464.15% | - | - | 128.44% | - | 43.29% | - | 66.52% | 213.66% | 109.03% | 65.91% | 95.3% | 75.89% | 575% | 36.55% | 26.9% | - | - | 216.84% | 3307.14% | - | 24.13% | - | - | - | 7.69% | - | 16.67% |
Operating Scale Insufficiency
As evidenced by the most recent quarterly data, HIHO's revenue trajectory remains highly erratic, with a 44.3% year-over-year decline in 2026Q2, suggesting that the company struggles to maintain consistent order flow from its core industrial and office equipment OEM customer base.
The sharp fluctuations in quarterly revenue indicate a lack of long-term contract visibility, leaving the firm vulnerable to the cyclicality of its Japanese and European clients. This instability complicates production planning and suggests that the company's niche manufacturing model has yet to achieve the recurring revenue profile necessary for predictable growth.
Despite significant top-line volatility, HIHO has maintained a gross margin profile that occasionally exceeds 30%, which, according to historical financial statements, implies that the company retains some technical pricing power within its specialized metal stamping and electronic assembly niche.
The ability to preserve gross margins during periods of low volume suggests that the company's specialized tooling and engineering expertise provide a degree of protection against pure commodity pricing. However, these margins are insufficient to offset the fixed cost burden, indicating that the current revenue scale is fundamentally misaligned with the company's operational footprint.
Based on reported figures, HIHO's operating leverage is currently non-existent, as the company recorded a -45.9% operating margin in 2026Q2, demonstrating that SG&A expenses are not scaling down in proportion to the significant revenue contractions observed in recent periods.
The persistent inability to achieve positive operating income suggests that the company's corporate overhead is too heavy for its current revenue base. Investors should monitor whether management can rationalize these fixed costs, as the current structure appears to require a much higher volume of throughput to reach a break-even point.
Analysis of the income statement reveals that net income frequently diverges from operating performance, with 2026Q1 showing a positive net margin of 3.9% despite an operating loss, suggesting that interest income or currency gains are currently subsidizing the core manufacturing business.
This reliance on non-operating items to bolster the bottom line warrants caution, as it obscures the underlying health of the manufacturing operations. The quality of earnings appears low, as the reported net income is not a reflection of operational efficiency but rather a byproduct of the company's substantial cash reserves.
While the company maintains a fortress balance sheet, the persistent operating losses suggest that the business model may be structurally impaired, as the high fixed-cost base continues to erode shareholder value despite the company's niche engineering capabilities.
Short-term observers may focus on the risk that the company is effectively a 'melting ice cube,' where the cash pile is slowly consumed by operating losses. Without a clear catalyst for revenue expansion or a drastic reduction in SG&A, the current valuation may be overly optimistic regarding the long-term viability of the manufacturing segment.
Quick answers to the most common questions about buying HIHO stock.
For fiscal year 2025, Highway Holdings Limited (HIHO) reported total revenue of $7.4M. This represents a 58.4% decline compared to $17.8M in 1997.
Highway Holdings Limited (HIHO) is profitable, generating $0.1M in net income for the fiscal year ending 2025 with a net profit margin of 1.4%.
Highway Holdings Limited (HIHO) reported an operating income of $-0.5M, resulting in an operating profit margin of -7.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Highway Holdings Limited (HIHO) generated $2.5M in gross profit for the year, representing a gross profit margin of 33.3%. This demonstrates the company's core pricing power and production efficiency.