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Date

Thursday, November 6, 2025 at 10:00 a.m. ET

Call participants

  • Chief Executive Officer — Ramey Jackson
  • Chief Financial Officer — Anselm Wong
  • Head of Investor Relations — Sara Macioch

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Risks

  • Guidance Revision — Anselm Wong stated, "we now anticipate EBITDA margin to come down from our original guidance, primarily driven by geographic and product mix."
  • Commercial and Other Segment Decline — Commercial and Other segment revenue decreased 20.1%, with about 70% of the decline from TMC business contraction related to project timing and weakness in the LTL trucking industry.
  • R3 Growth Lag — Anselm Wong said, "acceleration is not happening as fast as we would have liked."

Takeaways

  • Revenue -- $219.3 million, a decrease of 4.7% year over year, with roughly 60% of the decline from price and 40% from volume changes.
  • Adjusted EBITDA -- $43.6 million, an increase of 1.2%, resulting in an adjusted EBITDA margin of 19.9%, up approximately 120 basis points on a non-GAAP basis.
  • Self-Storage Segment -- Revenue grew 3.7%, with new construction up 5.5% and R3 channel up 0.7%, driven by international strength offsetting North American softness.
  • International Segment -- Revenue reached $28.3 million, representing a 32.9% increase due to new construction growth.
  • Commercial and Other Segment -- Revenue declined by 20.1%, with TMC accounting for about 70% or roughly $11 million of the segment decline due to project timing and weak LTL demand.
  • NOKE Smart Entry Adoption -- Installed units reached 439,000, up 35.9% year over year, reflecting traction in the company’s automation offerings.
  • Cost Savings Realization -- About 70% of the $10 million to $12 million annual pretax cost savings target achieved to date.
  • Free Cash Flow -- $8.3 million in the quarter, with free cash flow conversion of adjusted net income at 171% on a trailing twelve-month basis.
  • Liquidity and Debt -- Total liquidity at $156.2 million, including $178.9 million cash and equivalents; long-term debt at $554 million; net leverage at 2.3 times, within the 2–3 times target range.
  • Share Repurchase Activity -- 82,000 shares repurchased for $800,000; $80.5 million authorization remaining at quarter end.
  • 2025 Guidance Update -- Revenue guidance set at $870 million to $880 million and adjusted EBITDA guidance set at $164 million to $170 million, both on an adjusted (non-GAAP) basis, implying a midpoint margin of 19.1%.
  • Credit Rating Upgrade -- S&P elevated the company’s rating from B+ to BB- with a stable outlook after quarter-end.
  • Tariff Exposure -- Annualized impact expected to be $6 million to $8 million on an unmitigated basis, but management is mitigating through alternative sourcing and productivity actions.
  • Capital Expenditures -- $6.7 million during the quarter, supporting ongoing innovation and expanded offerings.
  • Backlog and R3 Pipeline -- Backlog and quoting activity remain stable, with no notable change in customer budget plans for R3 spend.

Summary

Janus International Group (JBI 7.54%) reported a year-over-year revenue decline primarily from pricing and volume challenges, while adjusted EBITDA improved due to cost reductions and favorable margin mix impacts. Management attributed the majority of decreased commercial revenue to TMC project delays and cited persistent softness in the North American commercial segment. International expansion drove segment growth, highlighted by accelerating adoption of NOKE smart entry solutions. Revised 2025 guidance reflects lower expected EBITDA margins due to geographic and product mix, but anticipated strong free cash flow conversion, robust liquidity, and a recent S&P credit upgrade reinforced management's confidence in capital allocation flexibility. The company underscored ongoing innovation, pipeline stability, and resilience against tariffs through sourcing diversification and productivity efforts.

  • Jackson described customer pipeline activity as "very strong," indicating potential for market acceleration when macroeconomic conditions improve.
  • Wong confirmed roughly 70% of projected annual cost savings have been realized and additional efficiencies are being identified.
  • Institutional self-storage operators continue development pace, while non-institutional customers maintain construction-ready sites but await more favorable macroeconomic signals.
  • Steel input costs remain stable, with current procurement practices securing pricing into next year.
  • NOKE ION's features, including low-voltage operation and modular compatibility, are helping increase adoption across all door product lines.
  • Most of the near-term decline in commercial revenue is attributed to project timing, rather than permanent market deterioration, with some deferred TMC jobs expected to shift into 2026.

Industry glossary

  • R3: Refers to renovation, replacement, and remodeling business activities targeting existing self-storage facilities.
  • TMC: Turnkey Metal Construction, Janus’s design/build commercial segment serving the industrial doors and structures market.
  • NOKE: Janus’s proprietary smart entry system integrating electronic locks and digital access solutions for storage and commercial doors.
  • LTL: Less-than-truckload, a freight shipping industry segment cited as having volume weakness affecting certain Janus end-markets.
  • REIT: Real Estate Investment Trust; mentioned in reference to institutional self-storage operators leading development activity.

Full Conference Call Transcript

Ramey Jackson, and our Chief Financial Officer, Anselm Wong. We hope that you have seen our earnings release issued this morning. We have also posted a presentation in support of this call, which can be found in the Investors section of our website at janusintl.com. Before we begin, I would like to remind you that today's call may include forward-looking statements. Any statement made describing our beliefs, plans, strategies, expectations, projections, and assumptions are forward-looking statements. The company's actual results may differ from those anticipated by such forward-looking statements for a variety of reasons, including, but not limited to, tariffs, interest rates, and other macroeconomic factors, many of which are beyond our control.

Please see our recent filings with the Securities and Exchange Commission, which identify the principal risks and uncertainties that could affect our business prospects and future results. We assume no obligation to update publicly any forward-looking statements, and any forward-looking statement made by us during this call is based only on information currently available to us and speaks only as of the date when it is made. In addition, we will be discussing or providing certain non-GAAP financial measures today, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted EPS, and net leverage. Please see our release and filings for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measure.

Sara Macioch: On today's call, Ramey will provide an overview of our business, and Anselm will continue with a discussion of our financial results and 2025 guidance before Ramey shares some closing thoughts, and we open up the call for your questions. At this point, I will turn the call over to Ramey.

Ramey Jackson: Thank you, Sara, and good morning, everyone. We appreciate you all joining our call today. I'd like to highlight a few key themes as I begin my prepared remarks. First, our team continues to execute in an operating environment that remains challenging. Second, we have confidence in the long-term fundamentals of our end markets we serve, reinforced by the stability of our backlog and pipeline. Finally, we believe our flexible financial profile and solid cash generation underpin the resiliency of our business model, allowing us to adapt to changing market conditions. For the third quarter of 2025, Janus International Group, Inc. delivered total revenue of $219.3 million, down 4.7% from 2024.

Adjusted EBITDA was $43.6 million, up 1.2% compared to the prior year. Anselm will expand further upon drivers of these results.

Ramey Jackson: Moving along to a discussion of our sales channels, total self-storage saw a revenue increase of 3.7% on the new construction side. This was driven by strength in our international segment, which more than offset continued softness in the North American market. The R3 sales channel benefited from strength in the door replacement renovation activity. Our commercial and other sales channel decreased 20.1%, primarily driven by declines in our TMC business due to project timing as well as weakness in the LTL trucking industry stemming from broader economic impacts. TMC accounted for approximately 70% of the decline in revenue in the quarter.

As we have noted before, the TMC business can be somewhat lumpy and will ebb and flow throughout the year. Additionally, we continue to experience overall market softness for commercial sheet doors and other areas of our commercial business, including rolling steel and our multiyear effort to get specified for certain architectural requirements.

Ramey Jackson: Adoption of our NOKE Smart Entry system continues to progress, with 439,000 installed units at quarter end, representing an increase of 35.9% year over year. The latest addition in our line of NOKE Smart Entry products, NOKE ION, has been well received by the industry. The smart locking solution is low voltage powered, can be customized, with enhanced features like LED lights and motion sensors, and is designed and optimized for all Janus self-storage and commercial door products for both new construction and retrofits. We're pleased with the performance of this business and in particular, the acceleration of interest from large institutional customers.

We continue to see opportunities for further expansion as operators explore avenues to effectively manage their costs, prevent theft, and enhance tenant satisfaction. In the third quarter, Janus International Group, Inc. continued to invest in innovation and expand our offerings to drive long-term growth across our portfolio.

Ramey Jackson: Through our Betco brand, we announced a comprehensive expansion of our metal decking product line. This new range of custom metal decking systems provides design flexibility to meet the unique structural and architectural demands of self-storage development and redevelopment. We also launched a redesigned web portal for our NOKE Smart platform, marking another milestone in our ongoing commitment to delivering seamless enterprise-level experiences for self-storage owner-operators to run their facilities more effectively and efficiently. From a financial standpoint, our strong business model and cash flow generation should allow us to be opportunistic with regard to our capital allocation priorities.

During the quarter, we continued our share repurchase program and are consistently evaluating M&A opportunities, which remain a top capital allocation priority. Despite sustained high interest rates, we are encouraged by the fundamentals of our business and their capacity to drive long-term growth. The self-storage industry remains resilient, and continued consolidation presents growth opportunities for our R3 business. With an aging installed base and in the face of liquidity constraints, we believe facility owners will be encouraged to focus their capital allocation on existing properties. With positive industry tailwinds coupled with our significant scale and financial discipline, we believe we are well-positioned to deliver long-term shareholder value.

With that, I'll turn the call over to Anselm for a further review of our financial results and updates to our 2025 guidance. Anselm?

Anselm Wong: Thank you, Ramey, and good morning, everyone. As Ramey shared, our team has continued to focus on executing in a tempered operating environment. For the third quarter, consolidated revenue of $219.3 million declined 4.7% compared to the prior year quarter. In total, our self-storage business was up 3.7%. New construction increased 5.5%, and R3 was up 0.7% for the quarter. The growth in revenues for new construction was driven by strength in our international segment, which more than offset continued weakness in North America. The increase in R3 revenue was driven by increases in door replacement and renovation activity.

Anselm Wong: In the third quarter, our international segment saw total revenues increase to $28.3 million, up $7 million or 32.9% compared to the prior year, driven primarily by growth in new construction. For the quarter, revenue in our Commercial and Other segment declined by 20.1%. Approximately 70% of the decline in revenue was attributable to our TMC business due to project timing as well as overall weakness in the LTL industry resulting from tariff and economic impacts. As Ramey noted, the TMC business can fluctuate throughout the year depending on the timing of jobs that are completed.

While we continue to see softness in the commercial sheet door market, we are encouraged by the strength we are seeing both in rolling steel and the carport and sheds business. On a consolidated basis, the impact of revenues for the quarter was roughly 60% price and 40% volume.

Anselm Wong: Third quarter adjusted EBITDA of $43.6 million was up 1.2% compared to 2024. This resulted in an adjusted EBITDA margin of 19.9%, an increase of approximately 120 basis points from the prior year period. The increase in margins year over year is primarily attributable to the prior year being negatively impacted by adjustments to provision for credit losses, which was partially offset by volume declines and the impact of geographic segment and sales channel mix. We continue to see the benefits from our previously announced cost reduction program. As a reminder, we expect to realize approximately $10 million to $12 million in annual pretax cost savings by 2025.

For the third quarter, we produced adjusted net income of $22.6 million, up 1.3% compared to the prior year period, and adjusted EPS of $0.16. We generated cash from operating activities of $15 million and free cash flow of $8.3 million in the quarter. On a trailing twelve-month basis, this represents a free cash flow conversion of adjusted net income of 171%.

Anselm Wong: Capital expenditures in the quarter were $6.7 million. We ended the quarter with $156.2 million in total liquidity, including $178.9 million of cash and equivalents on the balance sheet. Our total outstanding long-term debt at quarter-end was $554 million, and net leverage was 2.3 times, within our target range of two to three times. These liquidity levels provide us ample financial flexibility and allow us to execute on our capital allocation priority. During the quarter, we repurchased approximately 82,000 shares for $800,000 as part of our share repurchase program.

With the additional $75 million share repurchase authorization approved by our Board of Directors earlier this year, the company had $80.5 million remaining under the share repurchase authorization at the end of the third quarter. Subsequent to quarter-end, we are also pleased that S&P upgraded our credit rating from B+ to BB-, with a stable outlook. This recognition reflects our resilient business model, balanced approach to capital allocation, and consistent cash flow generation and profitability.

Anselm Wong: Now going to our 2025 guidance, based on our year-to-date results, current visibility into our backlog and end markets, and business trends and conditions as of today, we are updating our full-year 2025 guidance for revenues and adjusted EBITDA. We expect revenues to be in the range of $870 million to $880 million, and adjusted EBITDA to be in the range of $164 million to $170 million, reflecting an adjusted EBITDA margin of 19.1% at the midpoint.

While we anticipate revenues in the fourth quarter to be largely in line with the third quarter, and the midpoint of the guide remains intact, we now anticipate EBITDA margin to come down from our original guidance, primarily driven by geographic and product mix. We continue to anticipate the free cash flow conversion of adjusted net income will be above the target range of 75% to 100% for 2025.

Anselm Wong: Please refer to the presentation we have posted for additional details on our key planning assumptions for 2025. Thank you all for your time. I will now turn the call over to Ramey for his closing remarks. Ramey?

Ramey Jackson: Thank you, Anselm. Our team has continued to focus on factors we can control in a dynamic environment. Supported by our balance sheet and cash flow foundation, we will continue to develop our innovative suite of solutions to further build upon our industry leadership position and invest for future growth. We believe we will be well-positioned in our industry when an inflection point in the operating environment does occur. Looking ahead, we will continue to execute on our strategic plan as we look to drive long-term value creation for all of our stakeholders. In closing, I'd like to express my appreciation to our team, customers, and our shareholders for your support. Thank you again for participating in today's call.

Operator, we would now like to open up the lines for Q&A, please.

Operator: Absolutely. Please press the star and one keys on your telephone keypad. Keep in mind, you can remove yourself from the question queue at any time by pressing star and two. We'll take our first question today from Dan Moore with CJS Securities. Please go ahead. Your line is open.

Will Gildea: Hi, this is Will on for Dan. Just looking at the guidance, revenue's unchanged, but EBITDA is lower by 10% at the midpoint. So we're looking for something in the 19% margin range versus, you know, 21%. Can you add some more color and help us rank order, bucket the delta between mix, higher input costs, including tariffs, and other factors? Thank you.

Anselm Wong: Sure. The biggest thing was really product mix and then the kind of segment mix where the sales came from. If you actually noticed when you put the queue, you'll see the international sales are up meaningfully. So there's a lower margin to our North America business. The majority is there. Tariffs are really not material and neither was input cost.

Will Gildea: Thank you. Very helpful. And then looking at your backlogs and quoting activity, particularly from your core R3 customers, what does it tell you regarding their plans and budgets for growth and R3-related spend as we look into 2026?

Ramey Jackson: I wouldn't say there's anything that's changed from last quarter, where we saw it was fairly stable.

Operator: We'll take our next question from Jeff Hammond with KeyBanc. Please go ahead. Your line is open.

David Tarantino: Hey, good morning, everyone. This is David Tarantino on for Jeff. Morning. Maybe starting with commercial, could you give us some more color on the weakness in TMC? How much is timing versus the softness in the end markets? And then maybe around the unchanged midpoint in the overall sales guide, how should we think about the assumptions between the end markets? And what's your confidence that this was more down to timing and should improve moving forward?

Anselm Wong: Yeah. As we said about TMC, it's really there's two things; there's that a lot of their projects are pretty large projects that get impacted by weather, you back to the decision by the customer. So it's really hard to predict kinda what quarter certain projects land in because of those decision points. So a lot of it, I would say, was a push out of, at least from a visibility point of a project that we were aware of. Second, I think if you know that the LTL market, and the customers there, it has been softer due to the reduced volume of transactions due to the tariffs.

So we are seeing a little of that push back in terms of opportunities there because of that. But in general, you know, most of our TMC business is R and R. So at some point, you're gonna have to do some of the repairs. So I think there's just some timing that we expect for some of the projects that are being pushed out.

Ramey Jackson: Yeah. Just to close, I mean, we remain excited about the TMC business. It's a really good business and a good industry, so we're very optimistic about the growth profile of that business.

David Tarantino: And is it fair to think within the unchanged midpoint of the sales guide that maybe commercial is a little bit lower and self-storage higher? Am I thinking about that correctly?

Anselm Wong: If you look, if you do the implied, you'll see it's a little lower for both of them just to get to the implied Q4. But I don't think commercial will be as bad as this Q3 in terms of decline.

David Tarantino: Okay. Great. And then maybe in self-storage, can you dig into what's driving the strength in international, and maybe how we expect that moving forward? And then maybe can you just give us some color on what you're seeing on the ground in North America and how that's played out relative to your guys' expectations?

Ramey Jackson: Yeah. Can start. Look. I mean, there are certain pockets internationally that are undergoing extreme growth mode. We kinda revised our go-to-market strategy moving forward, and it matters in terms of being in the countries that you serve. And so that's playing out, and we're excited about that. In addition to that around the international business, our NOKE adoption is becoming more standard. So we're seeing a lot of acceleration, as with door and hallway sales being standard with our NOKE offering. And then on the self-storage piece of it in North America, no change from the past few quarters. The institutional operators are accelerating development. They're using this opportunity to gain market share.

And then the non-institutional are pretty much on the sidelines. But one positive thing that we are seeing with non-institutional is they have a lot of construction-ready sites, so they're at a good point to when the macro turns, they'll be able to accelerate development as well. And then on the R3 side, you know, same thing. Consolidation matters, M&A matters to us in terms of R3 revenue from a rebranding perspective. And unit mix optimization, being able to right-size the sites, continues to drive R3.

Operator: We'll take our next question from John Lovallo with UBS. Please go ahead. Your line is open.

Spencer Kaufman: Hey, guys. Good morning. This is Spencer Kaufman on for John. Thank you for the questions. The first one, I think if we were to kind of back out or back into the impact from TMC, I think it would be like an $11 million impact in the quarter. I guess one, is that roughly what it was? And then two, are you expecting to sort of recover that in the fourth quarter? Or does this kind of get pushed into 2026?

Anselm Wong: Yeah. That's about the approximate value if you imply it. Alright. It's gonna be a push as you expect because there's, you know, certain jobs we can only do in certain amounts in the quarter. So there's definitely a push into Q4 and subsequently into 2026.

Spencer Kaufman: Okay. Got it. And, you know, I think typically, sales in the first quarter are a little bit softer than the rest of the quarters, which usually leads to lower EBITDA margins sequentially. Is that how you guys are sort of thinking about 1Q at this point? Or are there any unusual items kind of similar to what happened in 4Q 2024 to 1Q 2025?

Anselm Wong: Yeah. We haven't disclosed anything yet, obviously, on 2026. So I think I'd say at this point, we'll probably refer to our next quarter earnings call to really discuss that.

Spencer Kaufman: Okay. Fair enough. If I could just squeeze one more in. Just on the tariff side, recognizing it's pretty small for you guys, I think that haven't really changed the outlook for sort of the annualized impact of $6 million to $8 million on an unmitigated basis. But if I look in the slide deck, I think you guys may have omitted in the footnote this part about securing the alternative sourcing for components and that you anticipate that productivity and commercial actions will offset a lot of that exposure. Is there anything to read into as to why that's not in the slide deck anymore?

Anselm Wong: No. We're still doing the same thing like we said. We're mitigating and looking for alternative sources. We've already done some of the actions to do that. So I don't think it's implying anything. We're still on track for that.

Operator: We'll take our next question from Philip Ng with Jefferies. Please go ahead. Your line is open.

Philip Ng: Hey, guys. Appreciate all the color. I guess, first, on your self-storage business in the US, appreciating TMC is lumpy in nature, but sounds like a lot of the growth is coming from the international business. So when you guys had to unpack the North American self-storage business, is it kinda unfolding like what you expected, particularly in the back half of this year?

Anselm Wong: Yeah. It's unfolding probably. The only thing I would say is that the R3, as we talked about, acceleration is not happening as fast as we would have liked. Obviously, we don't predict that timing. It was our best guess in terms of that piece. But I think the balance of it is coming as we expected in new construction, but it's just the R3 piece is a bit slower in terms of growing it where we would have thought it would be.

Philip Ng: And that's mostly in the institutional side of things or non-institutional side where it's been a little more?

Anselm Wong: Yeah. Institutional in large REITs.

Philip Ng: Alright. That's helpful. And in terms of the color that you shared earlier about how, Ramey, you shared about how a lot of your non-institutional customers have construction-ready sites. How quickly can they react? I mean, I guess, what should we be monitoring that from the outside looking at what would be indicative of perhaps things picking up? Is it rates coming down, liquidity improving, consumer confidence? Just kinda help us think through what are the nuggets that we should be looking at from the outside. And if those things unfold, how quickly could that translate to your volumes?

Ramey Jackson: Yeah. That's hard to predict. Great question, by the way. But all the above, I mean, in terms of the macro, liquidity matters, interest rates, I mean, the ten-year treasury keeps bouncing around. But I think more than anything is the confidence is what we're hearing. For a stronger tomorrow in the macro, but what we've seen, we've mentioned several times on these calls that the activity in the pipeline remains very strong. And so that gives us optimism that our customers will be ready to dive in as quickly as that's something that hasn't happened in previous downturns.

Usually, you know, when things slow down, everything slows, but that has not been the case in terms of the amount of work that we're doing on the design side of it and the quoting in the pipeline. So we're really optimistic that once things do turn, that it will accelerate. And on the timing, it's hard to tell. What I do know is I would classify a lot of these sites as shovel-ready, they have the property, it's just a matter of getting construction started.

Philip Ng: Let's say if they decided to move today, just in terms of the construction cycle when your products come in, is that six months after? Are you pretty early in that construction cycle in terms of the process?

Ramey Jackson: Yes. It really depends on the mix. I mean, a large part of our go-to-market strategy has been end-to-end building solutions. So as not only the door and hallways. And so with that being said, the projects that we're actually doing the buildings on will start a lot quicker. But, you know, three to six months is probably a good number for that.

Philip Ng: And I'll sneak one more in, Ramey. From a raw material standpoint, how are you guys set up? Because I believe you purchased all of your steel domestically. So you don't really have that steel tariff piece, but steel prices are certainly still higher. Had a lot of cost hedged out for good parts of this year. So when you look at 2026, I suspect your cost is gonna go up. Have you started bidding work at these elevated prices and are you able to pass it through?

Ramey Jackson: Yeah. It's actually the opposite. I'll let Anselm speak to the way.

Anselm Wong: Yeah. If you look at the Phil, if you look at the steel price, I think there was that trend to go up, but then because there has not been the demand for it, it's actually held pretty low. So if you look at it right now, and obviously, you know how we buy steel is that we've already bought steel going into next year. It's been fairly stable, surprisingly, in terms of where the steel price has been. So I wouldn't expect a large change at this point for the early parts of next year.

Philip Ng: Okay. Alright. Thank you so much.

Operator: We'll take our next question from Reuben Garner with Benchmark. Please go ahead. Your line is open.

Reuben Garner: Thanks. Good morning, everybody.

Anselm Wong: Good morning.

Reuben Garner: So you've got the $10 to $12 million in cost initiatives that you've had in place this year. How much of that has been realized so far? How much will carry into next year? And I guess if we don't start to see some significant changes in demand, are there more things that you can do to reduce the cost structure or is this the kind of situation where you'd likely ride it out because you're, you know, optimistic about the long-term dynamics in the industry?

Anselm Wong: No. I think if you look at the costing, we're on track already. You saw what we posted. We're about 70% of savings already. So we should be in that range. We talked about the 10 to 12 for the year. In terms of further cost, I think we're always looking. So Ramey and I are always pushing the business to look at opportunities. I would say there's definitely more opportunity there. We're already working on a few just in preparation if the demand still stays low. So there's definitely more opportunity.

Reuben Garner: Okay. And then, it looked like your inventory picked up as a percentage of revenue don't know if it's just a one-off. Was there anything unique there? Will it would be expected to kind of go back down in the fourth quarter and beyond?