Jerash Holdings (US) (JRSH) Q2 Earnings call transcript Nov 12, 2025

In Jerash Holdings' Fiscal 2025 Second Quarter Earnings Call, executives shared a positive outlook on the company's financial performance and strategic expansion plans. With revenue growth of nearly 21% compared to the previous year's second quarter, Jerash Holdings showcased a solid foundation for future success.

Geopolitical Stability and Customer Confidence Drive Growth

Jerash Holdings attributed its strong financial performance to the stability of its operating environment in Jordan and the confidence of global customers in its manufacturing capabilities. The return of normalcy in export trade routes and favorable free trade agreements have significantly contributed to the company's growth, with purchase orders for export shipments to the U.S. and Europe steadily increasing.

Expanding Capacity to Support Future Growth

Looking ahead, Jerash Holdings is exploring opportunities to expand its manufacturing capacity to accommodate the increasing demand for its high-quality garments. The company aims to build a new factory on a piece of land it has owned for several years, which could potentially double its production capacity. The expansion plans are part of a broader three-year growth strategy, with a focus on attracting new global brands and diversifying its product mix.

Financial Highlights and Future Outlook

Financially, Jerash Holdings reported a 31.4% increase in gross profit and a 30% to 35% anticipated revenue growth for the full fiscal year 2025. The company's cash and restricted cash stood at $17.9 million, while net working capital was $35.2 million. Jerash Holdings also announced a regular quarterly dividend of $0.05 per share, reflecting its financial stability and confidence in its future growth prospects.

Addressing Challenges and Opportunities

During the call, executives discussed challenges such as high interest expenses and geopolitical instability in regions like Bangladesh. However, they also highlighted opportunities for growth, such as the ongoing trend of companies seeking manufacturing partners outside of Asia and the potential for increased business from Bangladesh as manufacturers look to diversify their operations.

Investor Confidence and Future Prospects

The earnings call saw a strong showing of investor confidence, with key shareholders expressing optimism about the company's turnaround and future prospects. Jerash Holdings' strategic expansion plans, robust financial performance, and competitive advantages in manufacturing outside of Asia position the company well for continued growth in the coming quarters.

Conclusion

Jerash Holdings' Fiscal 2025 Second Quarter Earnings Call provided a comprehensive overview of the company's financial performance and strategic expansion plans. With a solid foundation in place and a clear focus on growth, Jerash Holdings is well-positioned to capitalize on the opportunities in the global garment manufacturing industry.