Q3 2026 Jerash Holdings (US) Inc Earnings Call Transcript
Key Points
- Jerash Holdings (US) Inc (JRSH) reported an 18% increase in revenue for the fiscal 2026 third quarter, reaching $41.8 million.
- Gross profit increased by 31% to $7 million, with a gross profit margin improvement to 16.9% from 15.2% in the previous year.
- The company announced the acquisition of a 184,000 sq ft manufacturing building in Amman, Jordan, which is expected to increase manufacturing capacity by at least 40%.
- Jerash Holdings is diversifying its customer base and product mix, which supports more stable year-round production and reduces seasonality impacts.
- The company is collaborating with the Jordan Ministry of Labor to develop additional facilities in rural towns, expected to add 5% to 10% to total production capacity.
- Operating expenses increased to $5.1 million, primarily due to higher sales volumes and increased recruitment costs.
- Net cash used in operating activities was approximately $3.5 million for the nine months ended December 31, 2025, compared to $581,000 in the same period in fiscal 2025.
- The company is taking on long-term debt to finance the $5 million renovation and equipment costs for the new facility, with an 8% interest rate.
- There is ongoing pricing pressure from major customers due to global tariff situations, affecting profit margins.
- The company faces potential geopolitical risks in the region, which could impact operations and logistics.
Greetings and welcome to the Jerash Holdings fiscal 2026 third quarter financial results call. (Operator Instructions)
Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Roger Pondel, Investor Relations. Sir, you may begin.
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Thank you, operator, and hello everyone. Good morning. Welcome to Jerash Holdings' fiscal 2026 third-quarter conference call. I'm Roger Pondel with PondelWilkinson, Jerash Holdings' investor relations firm.
On the call today from the company are the Chairman and Chief Executive Officer, Sam Choi; the Chief Financial Officer, Gilbert Lee; Eric Tang, who leads the company's operations in Jordan; and Ringo Ng, the company's Head of Marketing.
Before I turn the call over to Sam, I want to remind our listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking
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