Jerash (US) (JRSH) investor relations material

Executive summary

• Revenue for the fiscal 2026 third quarter increased 18% year-over-year to $41.8 million, driven by higher shipments to major export markets, especially the U.S., and a new customer in Korea.

• Net income for the quarter rose to $1.2 million from $6,000 in the prior year, reflecting improved gross margin and lower tax expenses.

• Announced acquisition of a manufacturing facility in Amman, Jordan, expected to increase production capacity by at least 40% upon renovation, as part of a five-year growth strategy.

• Ongoing diversification of customer base and product mix to support stable, year-round production and reduce seasonality.

• For the nine months ended December 31, 2025, revenue rose 5.8% to $123.4 million, with net income of $2.0 million compared to a net loss of $696,000 in the prior year.

Financial highlights

• Gross profit margin for the quarter improved to 16.9% from 15.2% year-over-year, aided by favorable product mix and economies of scale.

• Operating income nearly tripled to $1.9 million from $708,000 in the prior year quarter.

• Cash and restricted cash totaled $13.2 million as of December 31, 2025; net working capital was $36.4 million.

• Operating expenses for the quarter increased to $5.1 million, mainly from higher export and recruitment costs.

• Basic and diluted EPS for the quarter were $0.09, compared to $0.00 in the prior year.

Outlook and guidance

• Revenue for the fiscal 2026 fourth quarter is expected to increase by 23%-26% year-over-year, with gross margin targeted at 14%-16%.

• Management projects capital expenditures of $7.8 million in FY26 and higher in subsequent years to support expansion.

• Ramadan timing may cause some shipment delays into the following quarter.

• Cash and cash equivalents, along with operating cash flow, are expected to be sufficient to meet working capital needs for the next 12 months.