Jerash (US) (JRSH) investor relations material

Company overview and growth trajectory

• Operates eight state-of-the-art garment manufacturing facilities in Jordan, serving global premium brands and expanding capacity to 24 million pieces annually.

• Benefited from free trade agreements with the U.S., EU, and U.K., enabling duty-free exports and market diversification beyond the U.S.

• Expanded into PPE production during COVID-19 and invested in ESG initiatives and worker housing.

• Workforce exceeds 6,300, with a 70% foreign worker cap and strong government support for the sector.

• Strategic location and global supply chain shifts away from Asia have increased demand from major brands.

Recent performance and financial highlights

• Fiscal year 2026 marked a turnaround, with revenue rising to $166 million and gross margin above 17%.

• Q4 2026 saw over 40% sequential growth, with second-half sales surpassing the first half due to new customer orders.

• Fiscal years 2024 and 2025 were loss-making due to war, tariffs, and logistics issues, but 2026 returned to profitability.

• Maintains a strong balance sheet and secure credit facilities, despite increased cash use for business expansion.

• Ongoing investments in automation and facility expansion aim to support further growth.

Customer base, product mix, and strategic direction

• Manufactures for brands like The North Face, New Balance, Hugo Boss, Adidas, and Walmart suppliers.

• Product mix includes 25% outerwear jackets (higher margin), with significant orders for pants and shorts.

• Diversification of customer and product mix has balanced capacity utilization and reduced seasonality.

• New large-volume customer Hansol (Walmart supplier) has improved efficiency and reduced reliance on smaller, varied orders.

• Ended joint venture with Busana, focusing instead on direct relationships with new, high-volume clients.