Jerash (US) (JRSH) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $39.6 million, down from $40.9 million year-over-year, mainly due to shipment delays from port disruptions and switching operations from Haifa Port to Aqaba Port.

• Net income reached $324,000 ($0.03/share), reversing a $1.4 million loss in the prior year quarter, driven by improved logistics, lower costs, and reduced stock-based compensation.

• Gross profit rose 31.2% to $6.1 million, with gross margin improving to 15.4% from 11.3% year-over-year, reflecting better production planning and logistics.

• U.S. sales declined 13% due to port disruptions and new tariffs, while sales to China and Hong Kong rose significantly.

• Production capacity expanded by 15% with new Amman facilities, fully booked through February 2026, and further expansion at Al-Hasa expected to add 5%-10% capacity in early 2026.

Financial highlights

• Revenue: $39.6 million (down 3% year-over-year).

• Gross profit: $6.1 million (up 31% year-over-year); gross margin: 15.4% (up from 11.3%).

• Operating income: $959,000 (vs. $829,000 loss prior year).

• Net income: $324,000 ($0.03/share), up from $1.4 million loss ($0.11/share) year-over-year.

• Cash and restricted cash: $7.5 million as of June 30, 2025; net working capital: $34.6 million.

Outlook and guidance

• Q2 2026 revenue projected at $40 million–$42 million, with gross margin expected at 15%–16%.

• Facilities are fully booked through February 2026, with ongoing expansion plans and additional capacity from Al-Hasa in early 2026.

• Management expects cash on hand and operating cash flow to be sufficient for working capital needs over the next 12 months.

• Capital expenditures projected at $1.3 million for fiscal 2026 and $7.8 million for fiscal 2027.

• Longer-term, larger-scale expansion plans are under consideration but deferred due to regional and tariff uncertainties.