Jerash (US) (JRSH) Q2 2025 earnings summary

Executive summary

• Revenue for fiscal Q2 2025 rose 21% year-over-year to $40.2 million, driven by increased shipments to major U.S. customers and new accounts, with factories fully booked through the first half of calendar 2025.

• Net income for Q2 surged 80% to $665,000–$0.7 million, or $0.05 per share, mainly due to higher gross profit and lower income tax expenses.

• Geopolitical stability in Jordan and normalized export trade routes since mid-August have benefited profitability and operational continuity.

• The company is attracting new global brands, expanding its product mix, and planning for potential manufacturing capacity expansion to support future growth.

• For the six months ended September 30, 2024, revenue increased 19% to $81.2 million, but the company posted a net loss of $702,000, primarily due to higher logistics and production costs.

Financial highlights

• Fiscal Q2 2025 revenue rose 21% to $40.2 million from $33.4 million year-over-year.

• Gross profit increased 31.4% to $7.1 million, with gross margin up to 17.5%-18% from 16.1% a year ago.

• Operating income reached $1.1 million, up from $888,000 in the prior year quarter.

• Net income for Q2 was $665,000–$0.7 million, with EPS rising to $0.05 from $0.03 year-over-year.

• Cash and restricted cash stood at $17.9 million as of September 30, 2024.

Outlook and guidance

• Q3 revenue is expected to increase by 35%-38% year-over-year; full-year 2025 revenue is anticipated to grow by 30%-35%.

• Gross margin for fiscal 2025 is targeted at approximately 14%-15%, subject to logistics charges and product mix.

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

• Capital expenditures are projected at $4.1 million and $8.8 million for fiscal years ending March 31, 2025 and 2026, respectively, to enhance production capacity.

• Planning potential manufacturing capacity expansion to support future growth.