What can we expect from JRSH's Q4 2025 earnings forecast?

**Jerash Holdings' Q4 2025 Earnings Forecast Outlook**:

1. **Revenue Growth**: Jerash Holdings anticipates a strong revenue growth of 50-53% for Q4 2025 compared to the same period last year. This forecast is supported by several factors:
- **Capacity Expansion**: The company is expanding its manufacturing facilities, which is expected to increase production capacity by 15% by June 2025 and an additional 5%-10% by the end of 2025. This expansion is likely to contribute to the revenue growth.
- **Diversified Customer Base**: Jerash Holdings is focusing on diversifying its customer base, which has led to additional trial orders from major brands. This diversification is expected to provide a stable and growing customer base, supporting continued revenue growth.
- **Geopolitical Advantages**: The company's strategic location in Jordan, with tariff-free manufacturing, is a competitive advantage that is attracting international apparel brands. This advantage is likely to contribute to the company's ability to capture a larger market share and increase revenue.
2. **Gross Margin Stability**: Despite the expected revenue growth, Jerash Holdings has projected gross margins to stabilize between 15-16% for Q4 2025. This indicates that while the company is expecting significant revenue growth, it is also managing its cost structure to maintain profitability.
3. **Logistics Challenges**: However, the company has faced challenges due to geopolitical disruptions at Israel’s Haifa Port, which have caused delays in shipments. These logistics challenges could impact the timing of revenue recognition for Q4 2025. Nonetheless, the company has reported improved logistics conditions and expects to account for delayed shipments from Q3 2025 in the current quarter.
4. **Financial Position**: Jerash Holdings has a strong financial position with cash and restricted cash amounting to $14.8 million and net working capital of $34.8 million. This financial strength is likely to support the company's expansion plans and maintain its operations during any potential logistical disruptions.

In conclusion, Jerash Holdings is poised for a strong Q4 2025 performance, driven by expected revenue growth, stable gross margins, and strategic expansions. While logistical challenges present some risks, the company's financial strength and diversified customer base are likely to mitigate these impacts and support continued growth.