JBI

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 10 a.m. ET Senior Director, Investor Relations-Sara E. Macioch Chief Executive Officer-Ramey Pierce Jackson Chief Financial Officer-Anselm Wong Operator: Thank you for your continued patience. Your meeting will be shortly. If you need assistance at any time, please press 0. And a member from our team will be happy to help you. Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press 0. And a member of our team will be happy to help you. Thank you. Hello and welcome to the Janice International Group Second Quarter 26 Earnings Conference Call. All participants are in a listen-only mode and a question and answer session will follow the formal presentation. If you should require operator assistance during the conference, you may press As a reminder, this call is being recorded. I would now like to turn the call over to your host, Ms. Sara E. Macioch, Senior Director, Investor Relations of Janus. Please go ahead. Sara E. Macioch: Thank you, operator, and thank you all for joining our earnings conference call. I am joined today by our Chief Executive Officer, Ramey Pierce 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. Our remarks in the press release, presentation and on this call contain forward looking statements regarding the company's business, strategy, operations and financial performance. Please review the forward looking statements section in today's press release and in our SEC filings for various factors that could cause our actual results to differ materially from our forward looking statements and projections. The company expressly disclaims any obligation to update or revise publicly any forward looking statements whether as a result of new information, future events, or otherwise. Additionally, non GAAP financial measures will be referenced in this call. A reconciliation of these measures to the most directly comparable GAAP financial measure can be found in our earnings press release and presentation. On today's call, Ramey will provide an overview of our business, Anselm will continue with a discussion of our financial results and 2026 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 Pierce Jackson: Thanks, Sara, and good morning, everyone. Thank you all for joining our call today. Second quarter results reflected a continuation of the macroeconomic trends we have discussed throughout the year. As the operating environment remained challenging across many of the markets we serve. While we remain focused on execution and serving our customers, these factors had a greater impact on demand than we anticipated. As a result, total revenue totaled $233.5 million and adjusted EBITDA was $40.2 million Based on our year to date performance and current visibility, we are revising our full year guidance. Demand levels across our core business have not trended as we expected. And we believe it is appropriate to reflect that reality in our outlook. While we have updated our expectations to reflect current market conditions, our conviction in our strategy remains unchanged. We remain focused on executing against the priorities that we believe will strengthen the business and create long term value. Let me take a few minutes to discuss our progress on those initiatives. As a reminder, we refer to our strategic framework as grow: greater penetration of self storage, ramping adoption of smart security solutions, outperforming in the commercial market, and winning through strategic accretive acquisitions. Beginning with greater penetration of self storage, market conditions remain challenging during the quarter, predominantly in North America new construction. Where project activity and customer investment levels continue to be constrained. Particularly among our smaller customers. We continue to expand and refine our product offering in order to adapt to our customers' changing needs, including our R3 business, international presence, and design build capabilities allowing us to deliver more comprehensive solutions. Integration of our Kiwi II Construction acquisition remains on track. Jason will speak further to our expectations for the business this year shortly. Next, ramping our smart security solutions through our Nokē SmartEntry platform, during the quarter, we reached a significant milestone of surpassing 500 thousand installed Nokē units. This achievement reflects years of investment and execution and marks an important inflection point for the platform. As we have discussed in prior periods, scale has always been a critical component of the Nokē strategy. Reaching this stage marks an important step in that journey and supports our ongoing efforts to improve profitability and drive greater recurring revenue over time. Adoption of Nokē continues to increase. Reinforcing the meaningful value in solutions that help our customers improve operational efficiencies, enhance security, and streamline facility management. As we continue to advance our product road map, we have been encouraged by the initial interest in Nokē Infinity. Our on door dual technology smart locking system we announced earlier this year. We expect Nokē Infinity will be available for factory install on both roll up and swing doors beginning in fourth quarter. The third priority of our growth strategy is increasing our share of the market for commercial doors. While commercial sheet door demand remains soft, we are seeing benefits from our expanded distribution footprint and architectural specification initiatives. Our efforts in the data center space also continue to progress. We are exploring new product capabilities and continuing to position ourselves as a strategic manufacturing partner for OEMs. Our final priority is winning through disciplined M&A. Strategic acquisitions remain an important component of our strategy. And we continue to evaluate opportunities that enhance our capabilities. Expand our solutions offering, and support long term value creation. Combined with our scalable operating platform, this disciplined approach enables us to pursue growth while maintaining a relatively low capital intensity business model. And strong cash flow generation. As we look ahead, we will continue to focus on what we can control. Executing with discipline, supporting our customers while adapting to their changing needs, optimizing our operations, and advancing our strategic priorities. While market conditions remain challenging, our revised guidance reflects our best assessment of the current demand levels and positions us to execute against expectations that we believe are achievable. With that, I will now turn the call over to Anselm for a more detailed review of our results and to discuss our revised 2026 guidance. Anselm? Anselm Wong: Thank you, Ramey, and good morning, everyone. Ramey spoke to our strategy and results at a high level. And I will focus my remarks on financial performance in the second quarter and our updated 2026 guidance. For the second quarter, consolidated revenue of $203.5 million increased 2.4% as compared to the prior year. Inorganic revenues for the quarter were $19.2 million reflecting contributions from Kiwi II Construction. At the sales channel level, our self storage business was up 15.4% New construction up 20.3% while R3 is up 6.6% for the quarter. The increase in revenues for new construction was driven by contributions from Kiwi II Construction, and strength in our international business, which offset continued softness in North America. On an organic basis, new construction revenues were flat compared to the prior year, The increase in R3 revenue was driven by increases in door replacements and redevelopment activity as well as increased conversion and expansion activity. In the second quarter, total revenues in our international segment increased to $31.1 million up 9.5% compared to the prior year period driven by growth in new construction and market share gains. For the quarter, revenue in our Commercial and Other segment decreased by 21.2%. The decline was primarily driven by continued softness in demand for commercial sheet doors. Second quarter adjusted EBITDA of $40.2 million, down 18% compared to the second quarter of 2025. This resulted in an adjusted EBITDA margin of 17.2%. A decrease of approximately 430 basis points from the prior year period. The decrease in margins year over year is primarily attributable to the impacts of geographic segment and product mix. For the second quarter, we produced adjusted net income of $23.9 million compared to adjusted net income of $28.2 million in the prior year period. Adjusted EPS for the quarter was $0.17. We generated cash from operating activities of $24.4 million and free cash flow of $21.6 million in the quarter. On a trailing 12 month basis, this represents a free cash flow conversion of adjusted net income of 129%. Capital expenditures in the quarter were $2.8 million. We ended the quarter with $205.3 million in total liquidity including $127 million of cash and equivalents on the balance sheet. Our total outstanding long term debt at quarter end was $550 million and net leverage was 2.7x within our target range of 2x to 3x. Our liquidity levels allow us flexibility in our capital deployment, During the quarter, we repurchased approximately 367 thousand shares of our common stock for a total of $1.9 million. Year to date, we have repurchased approximately 3.2 million shares of common stock for a total of $17.6 million. We had $63 million remaining on our share repurchase authorization at quarter end. Now moving to our 2026 guidance. As Ramey noted, we continue to face a challenging operating environment. With demand trends remaining more muted than expected. In light of current market realities, we have adjusted our expectations for the year to the environment we are seeing today and to align with what we believe is a prudent and achievable set of expectations. We have yet to see the macro environment stabilize as we anticipate entering the year, which has contributed to slower activity across portions of our core business. Reflecting ongoing inflationary pressures and stagnant housing demand across North America. As a result, we now expect full year revenue in the range of $925 million to $945 million Additionally, due to delays and extended project timelines on certain projects originally anticipated to be completed this year, we are adjusting our expectations for inorganic revenue from Kiwi II Construction to be approximately $80 million to $90 million. We now expect North America organic self-storage revenues to be down high single digits compared to 2025 driven mostly by continued softness and new construction. In our commercial sales channel, we now anticipate revenues to be roughly flat On the international side, we expect high single digit revenue growth. From a profitability standpoint, we continue to manage costs and remain focused on operational efficiency, while optimizing our footprint to better align with current demand. While lower forecasted volumes, negative mix, and inflationary pressures across the supply chain have put pressure on margins year to date, we anticipate the benefits from these actions will result in a sequentially stronger back half. As a result, 2026 adjusted EBITDA is now expected to be in the range of $150 million to $170 million This reflects an adjusted EBITDA margin of 17.1% at the midpoint. We continue to anticipate being around the higher end of the free cash flow conversion of adjusted net income target range of 75% to 100%. Our updated guidance reflects current market conditions and our best assessment of demand trends for the remainder of the year. Importantly, we continue to generate strong cash flow. Maintain a healthy balance sheet, and invest in the strategic initiatives that we believe will drive long term growth and shareholder value. Please refer to the presentation we have posted for additional details on the key planning assumptions for 2026. Thank you all for your time. I will now turn the call over to Ramey for his closing remarks. Ramey? Ramey Pierce Jackson: Thank you, Anselm. Janus continues to hold a strong position in an attractive industry. But it is clear that current market conditions remain challenging. Importantly, we continue to make meaningful progress against our strategic priorities. Surpassing 500 thousand installed Nokē units marks an important milestone for the platform. And demonstrates continued adoption of the technology enabled solutions across the self storage industry. While new construction activity, particularly in North America, remains constrained, and we expect market conditions to remain challenging in the near term, we are encouraged to see improving sentiment from some of our larger customers. The long term fundamentals of self storage remain favorable. Industry occupancy levels remain healthy. Household utilization continues to grow. And ongoing consolidation among operators continues to support investment facility upgrades. Modernization and operational efficiency. Although we cannot control the macroeconomic environment, we can control how we respond. We remain focused on serving our customers, optimizing our operations, managing our costs with discipline, and allocating capital responsibly. Supported by a strong balance sheet and healthy cash generation, we believe we are well positioned to emerge even stronger when market conditions improve. In closing, I want to thank our team, customers, and shareholders for your support. We appreciate your participation on today's call. Operator, we would now like to open up the lines for Q and A, please. Operator: Thank you. Press star 1 on your keypad now. To leave the queue at any time, please press star 2. Once again, that is star 1 to ask a question. Our first question today comes from Phil Ng with Jefferies. Your line is open. Phil Ng: Hey, guys. Appreciate all the color. If I look at your new construction business in 2Q, frankly, if you strip out Kiwi, organic sales were kind of flattish. I guess, can I kick things off? Anselm, anything to revise outlook the guidance we are forecasting a weaker demand environment. it is feels like it is more new construction. Maybe some of the projects getting pushed out in Kiwi, but can you expand a little you know, what you are seeing and how trends kind of progress each quarter going to July and August? Anselm Wong: Yeah. The markets, like we said, it is it is just similar to first half we are expecting into the second half. And what we saw just unfortunately in our billings business, Kiwi, we saw some project push outs, and that is why we kinda revised that piece of it. But that seems to be the similar trend that we have seen across the board in terms of just, that push-out delays that we are seeing on those projects. The good thing is that what we reviewed is that there is not been cancellations. it is just been a timing push out. Phil Ng: Okay. But the weakness in you can did it progressively get worse into quarter? I mean, Kiwi aside, it sounds like it is more timing related. But what about the construction on your No. Anselm Wong: it is about the same. I-- What do you say? Yeah. New construction is relatively the same like we said. I think the biggest thing you saw was commercial just, you know, not getting the upturn that we were expecting that we would get. Okay. Phil Ng: Was my next question. Right? Commercial has generally been pretty benign, and this was the big drawdown down 20-21%. Is this timing related? Is this like, what is driving the big shortfall on commercial side of things? Ramey Pierce Jackson: Yeah. I will take that 1. Morning, Phil. it is Ramey. I think the biggest yeah. The biggest drag on our commercial revenue is specifically the commercial sheet doors. Which predominantly are installed in pre engineered metal buildings. And that end market has obviously, has headwinds. And so that was really the biggest drag on the miss there. But when you think about the category, our rolling steel product is continuing to grow continuing to perform well. We mentioned our strategic strategies around architectural specifications. That was super important and has been ongoing for over a year, and that is starting to pay off. We are we are kind of obviously in the data center space, which is in growth mode, so we are excited about that. But to answer your question on the miss, it is really it is the commercial sheet door product specifically. Phil Ng: Okay. And sorry to sneak 1 more in. R3 has been actually it is been a bright spot, and it is been a bright spot for a few quarters. Ramey, perhaps on that front, I suspect all the M and A activity from some of your larger weak customers have contributed to that. Just curious. How's the outlook looking for R3 in the back half? Is there gonna be a smooth, handoff from 1 large deal to that, or just give us a little more context on what you are seeing on the R3 side? As we look out to the back half this year? Ramey Pierce Jackson: Yeah. there is a lot there. I think to your point around consolidation, look, that certainly plays an important role in the investment, but that is not, you know, 100% where we are seeing the uptick in R3. Think about you know, mostly institutional customers, and they are just right-sizing and shoring up their facilities during this during this downtime. So we mentioned that conversions and expansions are is a growing piece of the business, and that is what we are seeing. So pretty happy with the progress there and the way that is trending on the backlog and pipeline as it relates to R3. We just have to continue to refine our products to make sure that we are in the right spot for obviously, this ever changing market. But we are pretty pleased with the R3 initiative. Phil Ng: Okay. Appreciate the color, guys. Thank you. Operator: Our next question will come from Jeffrey David Hammond with KeyBanc Capital Markets. Your line is open. David Tarantino: Hey, good morning, everyone. This is David Tarantino on for Jeffrey. Maybe just starting on the margins, could you just give us a little bit more color on the lower margin outlook? Is this just simply on the lower volumes? And then maybe give us some color on kind of the key buckets that support second half improvement versus the first half? Anselm Wong: Sure. Thanks, David. If you think about the margin just the volume the sales volume drop is really the big change that impacted the rate there. The sec the first half to second half improvement, and you obviously saw it in Q2, is a lot of the optimization that we have been talking about. If you look at the factory consolidations and optimizations, we have been just looking at the volume in and aligning the resources to fit with the volumes that we are seeing there. We are also looking at the back office, looking at just in general, we should be doing all the time, which we are doing all the time. And now we are finally starting to see some of that benefit come through. The other last big bucket is, as you saw, steel prices have been going up. And we have been monitoring that, managing that well, and, you know, making sure that we maintain our, you know, commercial actions to offset that piece of it. So that is why those--all those big buckets together walk you through the second half improvement. David Tarantino: Okay. Great. And then maybe following up on the new construction market, it looks like Kiwi is tracking a bit lower. So maybe could you confirm whether kind of the core business is also maybe tracking a bit lower? And kind of maybe give us some details on what you are seeing and pipeline of construction activity here that is maybe informing kind of the color on NA tracking maybe a bit weaker than you expected? Anselm Wong: Yeah. The core business is tracking about similar. So I do not think there is been a really a big change for the core self-storage piece. Yeah. I think Kiwi is the more the--the bigger piece where we saw the timing on some of the timing of projects push out, and that is what the kind of bigger thing. And, like, you just need a reminder. The big piece of the adjustment of the forecast is more is more related to the commercial sheet door piece that we know, we talked about earlier. David Tarantino: Okay. Great. that is helpful. Thanks, guys. Thanks. Operator: Thank you. Our next question will come from John Lovallo with UBS. Your line is open. Matt Johnson: Hey. Good morning, guys. This is Matthew Johnson on for John. Appreciate the time here. Yeah. If we could just talk about yeah. Hi. If we could talk about gross margin in the quarter, I think it was down, I do not know, somewhere around 56 basis points year over year. Which was down a bit more relative to the first quarter. I know you guys called out, I think it was some product and some geographic mix impacting that. But I guess could you guys just maybe talk a little bit about how we should think about the drivers in terms of mix versus Kiwi versus price cost versus just anything else in there? Anselm Wong: Yeah. Price as you saw in the quarter was minimal for this quarter as we had, you know, said earlier in the last call. I think if you look at it, the biggest issue was just the mix. So obviously, our smaller businesses that have a smaller, lower gross margin profile than, say, our big business, Janus Core, As you saw Janus Core, you saw the growth in the other ones, and that is you know, what accounts for that margin decline. Year over year as some of the smaller businesses are growing. Matt Johnson: Appreciate that. Now I guess my second question, if we could just put a finer point on the outlook for Kiwi here. I think you guys lowered the sales outlook by about 10 million. I think it is about 11% I think last quarter, you guys had said that Kiwi had a pretty strong backlog coming into the year, which gave them pretty good visibility for 2026. It sounds like there were some delays, but I guess could you just talk a little bit about what kind of what you saw with those delays? what is driving the expected ramp in Kiwi sales in the back half, and maybe any color you can give on how the backlog for Kiwi looks now? Anselm Wong: Yeah. I think the backlog is still pretty strong, like we said. there is been no change to the total backlog that we are seeing. Think the biggest thing we just saw is just, you know, some of our customers are just, you know, time getting their facilities that were brought online to get those up to speed first. Before they start on some of these other projects that are in the pipeline. So I think it is you will see a little more step up there But, again, I think it is just more balancing of these are large projects, and we always, you know, say that it is hard to predict when they do start. But the good thing is we review them all and the projects are still intact. Matt Johnson: Appreciate it. Thanks, guys. Thank you. Operator: Our next question will come from Dan Moore with CJS Securities. Your line is open. Will: Hey. This is Will on for Dan. A lot of my questions have been answered. Keep it short. Just can you talk about your expectations for working capital and free cash flow for the remainder of the year? And then what are your near term priorities for capital allocation? How are you thinking about the desire to deleverage versus further M and A and share repurchases? Anselm Wong: Sure. Thanks for the question. I think, look, working capital has been fairly steady. I think we have continued to look at optimizing it. And I think if you think about cash flow, our guide is saying we will be in the higher end of the conversion percentage as we have shown in the first half. So pretty good cash flow that we are expecting for the second half as well. I think in terms of capital allocation, honestly, you know, CapEx is a, you know, small for our business in general, so it will stay relatively small. there is not any major investments that are coming up from that point of view from the operations that are needed. And I will see the other 2, you know, choices If you think of our debt, our debt is, you know, has another couple of years until a probable refinance issue. So there is not a big push on that piece of it. I think the last lever in terms of share buyback, obviously, at current prices are very attractive for us, and you will see, you know, us to continue that action that we have seen in, you know, the first half. Will: Thank you. Thanks. Operator: Thank you. Our next question comes from Reuben Garner with The Benchmark Company. Your line is open. Reuben Garner: Thank you. Good morning, guys. Just wondering if you could, most of my questions have been answered. I just have 1. Can you elaborate on the cost actions you are taking? We look like there were some kind of lower SG&A maybe than we expected in this past quarter. But was that a start or from the start in some of the cost actions you have taken to address the lower demand? Is that where we would see it, as the year winds down? Thanks, guys. Anselm Wong: Yeah. So, Rumi, I think it is along the lines we have always said. We are always optimizing the entire business, not just the operation, but everything. So what you are seeing is just us continue to look at, hey, where's the volume is, where the revenue is, and let's take the right prudent action to manage cost for the company. So it is not just 1 area. it is across the board. Operator: Thank you. This concludes our question and answer session. I will now turn the meeting back over to Ramey Pierce Jackson. Ramey Pierce Jackson: For closing remarks. Okay. Thank you all for joining us today. We appreciate your support of Janice and look forward to updating you on our progress. Have a great day. Operator: Thank you. That brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. 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Janus’ second quarter results were met with a negative market reaction, as revenue growth was below Wall Street’s expectations. Management pointed to persistent macroeconomic headwinds, particularly in North American new construction markets and commercial sheet door demand, which remained soft. CEO Ramey Pierce Jackson described the operating environment as “challenging across many of the markets we serve,” emphasizing that customer investment levels and project activity were more constrained than anticipated. The company also highlighted progress in its smart security platform and international segment, but these positives were not enough to offset overall demand weakness. Is now the time to buy JBI? Find out in our full research report (it’s free). Revenue: $233.5 million vs analyst estimates of $239.5 million (2.4% year-on-year growth, 2.5% miss) Adjusted EPS: $0.17 vs analyst estimates of $0.16 (6.3% beat) Adjusted EBITDA: $40.2 million vs analyst estimates of $42.97 million (17.2% margin, 6.4% miss) The company dropped its revenue guidance for the full year to $935 million at the midpoint from $960 million, a 2.6% decrease EBITDA guidance for the full year is $160 million at the midpoint, below analyst estimates of $170.5 million Operating Margin: 8.8%, down from 15.8% in the same quarter last year Market Capitalization: $697.2 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Phil Ng (Jefferies) asked about the drivers behind flattish organic sales in new construction and whether project delays were worsening. CFO Anselm Wong replied that project push-outs, not cancellations, were the primary issue, and trends remained consistent into the second half. Phil Ng (Jefferies) followed up on commercial segment softness, questioning the sharp revenue drop. CEO Ramey Pierce Jackson attributed the decline to weak demand for commercial sheet doors, especially in pre-engineered metal building markets. Phil Ng (Jefferies) also asked about the outlook for the R3 business. Jackson explained that institutional customers were using downtime to upgrade facilities, with ongoing conversion and expansion activity supporting a healthy backlog. David Tarantino (KeyBanc Capital Markets) inquired about margin pressures and the drivers of sequential improvement. Wong pointed to volume declines as the main factor, while emphasizing that optimization efforts were beginning to show benefits. Matt Johnson (UBS) requested details on gross margin drivers, specifically the impact of product and geographic mix versus pricing. Wong clarified that lower-margin businesses grew faster than the core, and product mix was the main reason for margin compression. In the coming quarters, our team will watch (1) the pace of project execution and any signs of stabilization in North American construction demand, (2) the impact of operational efficiency measures on margins, and (3) adoption rates of Nokē Infinity and other smart security offerings. Updates on international growth and the ability to maintain a healthy backlog amid macro uncertainty will also be critical indicators of Janus’ progress. Janus currently trades at $5.11, down from $5.37 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Janus International Group, Inc. (NYSE:JBI) shares fell sharply in pre-market trading on Tuesday after the self-storage and commercial building solutions company issued full-year guidance below Wall Street expectations, overshadowing a second-quarter earnings beat. Adjusted earnings per share came in at $0.17 for the quarter ended July 4, 2026, beating the analyst consensus of $0.15 by $0.02. Revenue increased 2.4% year on year to $233.5 million from $228.1 million, but fell short of the $238.78 million consensus estimate. Janus shares were down 14.53% before the opening bell following the results. The company’s updated 2026 outlook emerged as the main pressure point for the stock. Janus now expects full-year revenue of between $925 million and $945 million. The midpoint of $935 million is below the analyst consensus of $956.5 million. Adjusted EBITDA is forecast at between $150 million and $170 million for the year. At the $160 million midpoint, that would represent a 4.9% decline from the previous year. “Although our results in the second quarter came in slightly below our expectations, we continue to make progress against our strategic priorities,” said CEO Ramey Jackson. “While the operating environment remains challenging, we are focused on executing with discipline, supporting our customers, and creating long-term value for our shareholders.” Performance varied considerably across Janus’ businesses during the quarter. Self-storage revenue increased 15.4% year on year, supported by a 20.3% rise in new construction revenue and 6.6% growth in R3 revenue. The recently acquired Kiwi II Construction business contributed $19.2 million to new construction sales. That strength was partially offset by commercial and other revenue, which declined 21.2%. The mixed segment performance indicates that momentum in Janus’ core self-storage operations is being diluted by weaker conditions elsewhere in the portfolio. Adjusted EBITDA declined 18.0% to $40.2 million during the second quarter, despite the modest increase in overall revenue. Adjusted EBITDA margin fell approximately 430 basis points to 17.2%, highlighting the profitability pressure behind the company’s cautious full-year outlook. Cash generation remained positive. Janus reported $60.6 million of operating cash flow for the first six months of the year and free cash flow of $55.0 million. The company also repurchased approximately 367,000 shares for $1.9 million during the quarter. For investors, the earnings beat and continued self-storage growth provide some support, but the market reaction shows greater concern about the weaker revenue outlook and declining EBITDA. The key question for the remainder of 2026 will be whether growth in self-storage and contributions from Kiwi II can offset weakness in commercial markets and stabilise margins. Janus International Group stock price

TEMPLE, Ga., August 11, 2026--(BUSINESS WIRE)--Janus International Group, Inc. (NYSE: JBI) ("Janus" or the "Company"), a leading global manufacturer and provider of turnkey self-storage, commercial, and industrial building solutions, today announced financial results for its fiscal second quarter ended July 4, 2026. Second Quarter 2026 Highlights Revenues of $233.5 million, up 2.4% year-over-year. Net income of $10.7 million, or $0.08 per diluted share. Adjusted Net Income* (defined as net income plus the corresponding tax-adjusted add-backs shown in the Reconciliation of Net Income to Adjusted Net Income tables below) of $23.9 million; Adjusted Diluted EPS* of $0.17. Adjusted EBITDA* of $40.2 million, down 18.0% year-over-year. Adjusted EBITDA Margin* (defined as Adjusted EBITDA divided by Total Revenues) was 17.2%, down approximately 430 basis points year-over-year. Nokē Smart Entry System installed units totaled 501,000 at quarter end, up 22.5% year-over-year. Second Quarter 2026 Results Second quarter revenue increased 2.4% year-over-year. Total Self-Storage revenues increased 15.4%, as New Construction revenues increased 20.3%, and R3 revenues increased 6.6%. Commercial and Other revenues decreased 21.2%. The acquisition of Kiwi II Construction contributed $19.2 million to the New Construction sales channel. For the six-month period ended July 4, 2026, operating cash flow was $60.6 million, and free cash flow* was $55.0 million. For the trailing twelve-month period ended July 4, 2026, free cash flow conversion of adjusted net income* was 129%. During the quarter, the Company repurchased approximately 367,000 shares of common stock for a total of $1.9 million (including commissions and excise taxes). Management Commentary Ramey Jackson, Chief Executive Officer, stated, "Although our results in the second quarter came in slightly below our expectations, we continue to make progress against our strategic priorities. Most notably, during the quarter we surpassed 500,000 installed Nokē units, a milestone that represents years of investment and execution and marks an important inflection point for the platform. While the operating environment remains challenging, we are focused on executing with discipline, supporting our customers, and creating long-term value for our shareholders." 2026 Financial Outlook Based on the Company’s current business outlook, Janus is updating its full year 2026 guidance as follows: The estimates set forth above were prepared by the Company’s management and are based upon a number of assumptions. See "Forward-Looking Statements." Please note that the Company has not provided the most directly comparable GAAP financial measure, or a quantitative reconciliation thereto, for the Adjusted EBITDA and Inorganic Revenue forward-looking guidance for 2026 under the "unreasonable efforts" exception in Item 10(e)(1)(i)(B) of Regulation S-K. See "Non-GAAP Financial Measures" below for additional information. About Janus International Group Janus International Group, Inc. (www.JanusIntl.com) is a leading global manufacturer and provider of turnkey self-storage, commercial and industrial building solutions, including: roll-up and swing doors, hallway systems, single- and multi-story steel buildings, building components, relocatable storage units, and smart security and locking technologies. The Janus team operates out of several U.S. and international locations. Conference Call and Webcast The Company will host a conference call and webcast to review results and conduct a question-and-answer session on Tuesday, August 11, 2026, at 10:00 a.m. Eastern time. The live webcast and archived replay of the conference call can be accessed on the Investors section of the Company’s website at www.janusintl.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-800-245-3047 or 1-203-518-9765, respectively. Upon dialing in, please request to join the Janus International Group Second Quarter 2026 Earnings Conference Call. To access the replay of the call, dial 1-844-512-2921 (Domestic) and 1-412-317-6671 (International) with pass code 11161999. Forward-Looking Statements Certain statements in this communication, including the estimated guidance provided under "2026 Financial Outlook" herein, may be considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this communication are forward-looking statements, including, but not limited to any statements regarding Janus’s belief regarding the demand outlook for Janus’s products. When used in this communication, words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "target," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would," "will," and other similar words and expressions or the negative of such terms or other similar expressions identify forward-looking statements. The forward-looking statements contained in this communication are based on our current expectations and beliefs concerning future developments and their potential effects on us. We cannot assure you that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Some factors that could cause actual results to differ materially from forward-looking statements or historical performance: (i) risks of the self-storage industry; (ii) the highly competitive nature of the self-storage industry and Janus’s ability to compete therein; (iii) litigation, complaints, and/or adverse publicity; (iv) general economic conditions, including the capital and credit markets, and adverse macroeconomic conditions, including unemployment, inflation, supply chain constraints, tariffs and trade restrictions, geopolitical conflicts, fluctuating interest rates, changes in consumer practices due to slower economic growth, and regional or global liquidity constraints; (v) cyber incidents or directed attacks that could result in information theft, data corruption, operational disruption, and/or financial loss; (vi) risks relating to our share repurchase program; (vii) the risk that we will not be able to successfully integrate and develop Kiwi II Construction into our operations; (viii) inability to realize expected benefits and efficiencies from our cost-savings initiatives and restructuring activities; and (ix) the risk that the demand outlook for Janus’s products may not be as strong as anticipated. There can be no assurance that the events, results, trends or guidance regarding financial outlook identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Janus is not under any obligation and expressly disclaims any obligation, to update, alter, or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Janus and is not intended to form the basis of an investment decision in Janus. All subsequent written and oral forward-looking statements concerning Janus or other matters and attributable to Janus or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above and under the heading "Risk Factors" in Janus’s most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as updated from time to time in amendments and its subsequent filings with the SEC. Non-GAAP Financial Measures Janus uses measures of performance that are not required by or presented in accordance with GAAP in the United States. Non-GAAP financial performance measures are used to supplement the financial information presented on a GAAP basis. These non-GAAP financial measures should not be considered in isolation or as a substitute for the relevant GAAP measures and should be read in conjunction with information presented on a GAAP basis. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, Free Cash Flow Conversion of Adjusted Net Income, and Net Leverage Ratio are non-GAAP financial measures used by Janus to evaluate its operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, Janus believes these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Janus’s operating results in the same manner as its management and board of directors and in comparison with Janus’s peer group companies. In addition, these non-GAAP financial measures provide useful measures for period-to-period comparisons of Janus’s business, as they remove the effect of certain non-recurring events and other non-recurring charges, such as acquisitions, and certain variable or non-recurring charges. Adjusted EBITDA is defined as net income excluding interest expense, income taxes, depreciation expense, amortization, and other non-operational, non-recurring items. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by total revenue. Adjusted Net Income is defined as net income as adjusted for the corresponding tax-adjusted add-backs shown in the Adjusted EBITDA reconciliation. Adjusted Diluted EPS is defined as Adjusted Net Income divided by the diluted weighted average number of shares outstanding. Free Cash Flow is calculated by subtracting capital expenditures from cash provided by operating activities. Free Cash Flow Conversion of Adjusted Net Income is calculated as free cash flow divided by Adjusted Net Income. Net Leverage Ratio is defined as the ratio of our consolidated senior secured indebtedness reduced by cash to our trailing four-quarter consolidated Adjusted EBITDA. Please note that the Company has not provided the most directly comparable GAAP financial measure, or a quantitative reconciliation thereto, for the Adjusted EBITDA and Inorganic Revenue forward-looking guidance for 2026 included in this communication in reliance on the "unreasonable efforts" exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. Providing the most directly comparable GAAP financial measure, or a quantitative reconciliation thereto, cannot be done without unreasonable effort due to the inherent uncertainty and difficulty in predicting certain non-cash, material and/or non-recurring expenses or benefits, legal settlements or other matters, and certain tax positions. Because these adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control, the Company is also unable to predict their probable significance. The variability of these items could have an unpredictable, and potentially significant, impact on our future GAAP financial results, and amounts excluded from these non-GAAP measures in future periods could be significant. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, Free Cash Flow Conversion of Adjusted Net Income, and Net Leverage Ratio should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP measures rather than the nearest GAAP equivalent of Adjusted EBITDA and Adjusted Net Income. These limitations include that the non-GAAP financial measures: exclude depreciation and amortization, and although these are non-cash expenses, the assets being depreciated may be replaced in the future; do not reflect interest expense, or the cash requirements necessary to service interest on debt, which reduces cash available; do not reflect the provision for or benefit from income tax that may result in payments that reduce cash available; exclude non-recurring items (i.e., the extinguishment of debt); and may not be comparable to similar non-GAAP financial measures used by other companies, because the expenses and other items that Janus excludes in the calculation of these non-GAAP financial measures may differ from the expenses and other items, if any, that other companies may exclude from these non-GAAP financial measures when they report their operating results. Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260811722954/en/ Contacts Investor Contact Sara MaciochSenior Director, Investor Relations770-562- [email protected] Media Contact Christine [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the revenue shortfall to a more challenging operating environment than anticipated, particularly within the North American new construction and commercial sheet door markets. The self-storage segment saw growth driven by the Kiwi II Construction acquisition and international strength, which helped offset organic softness in domestic new construction. Commercial and Other revenue declined 21.2% primarily due to weak demand for commercial sheet doors used in pre-engineered metal buildings, despite growth in the rolling steel product line. The R3 (Restore, Rebuild, Replace) business remains a strategic bright spot, benefiting from institutional customers right-sizing facilities and increased conversion and expansion activity. Nokē SmartEntry reached a 500,000-unit installation milestone, which management views as a critical scale inflection point for improving profitability and recurring revenue. Adjusted EBITDA margins were pressured by geographic and product mix shifts, as growth in lower-margin business units outweighed the performance of the core Janus business. Full-year revenue guidance was lowered to $925 million to $945 million to reflect stagnant housing demand and ongoing inflationary pressures in North America. Inorganic revenue expectations for Kiwi II Construction were reduced to $80 million to $90 million due to project timing delays, though management noted the total backlog remains intact without cancellations. Management anticipates a sequentially stronger second half for margins, driven by factory consolidations, back-office optimizations, and commercial actions to offset rising steel costs. The Nokē Infinity on-door locking system is expected to be available for factory installation starting in the fourth quarter, supporting the technology adoption strategy. Capital allocation priorities remain focused on share repurchases at current price levels and disciplined M&A, supported by a healthy free cash flow conversion target of 75% to 100%. The company is actively optimizing its footprint and resources to align with current demand levels, specifically targeting factory and operational efficiencies. Steel price volatility remains a monitored headwind, with management implementing commercial actions to maintain margin stability. Project timelines for large-scale construction remain difficult to predict, leading to the timing-related adjustments in the inorganic revenue forecast. Net leverage remains at 2.7x, within the target range of 2x to 3x, providing liquidity for strategic initiatives despite the macro environment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the decline was almost entirely due to commercial sheet doors in the pre-engineered metal building market. They highlighted that rolling steel products and data center initiatives continue to perform well and remain growth areas. R3 growth is driven by institutional customers shoring up facilities during the downturn rather than just M&A consolidation. Management expressed confidence in the R3 pipeline, noting that conversions and expansions are a growing portion of the mix. The guidance reduction for Kiwi was attributed to timing push-outs as customers wait for existing facilities to reach speed before starting new projects. Management emphasized that these are not cancellations and the underlying project pipeline remains healthy. Improvement will stem from realizing the benefits of factory consolidations and resource alignment initiated earlier in the year. Management is also focused on offsetting steel inflation through pricing and commercial discipline.

Interested in Janus International Group, Inc.? Here are five stocks we like better. Q2 revenue rose 2.4% to $233.5 million, helped by the Kiwi II Construction acquisition, but adjusted EBITDA fell 18% to $40.2 million as margins declined to 17.2% amid weak demand and unfavorable mix. Self-storage revenue increased 15.4%, though organic North American new-construction revenue was flat, while commercial and other revenue dropped 21.2% because of continued weakness in commercial sheet doors. Janus cut its 2026 outlook to $925 million–$945 million in revenue and $150 million–$170 million in adjusted EBITDA, citing delayed Kiwi projects, muted construction demand and macroeconomic pressures; the company expects cost controls and factory consolidations to support a stronger second half. Janus International Group (NYSE:JBI) reported second-quarter revenue growth but lower profitability as soft demand in North American self-storage construction and commercial sheet doors continued to pressure results. The company also reduced its full-year outlook, citing muted demand, project delays and persistent macroeconomic headwinds. Second-quarter revenue totaled $233.5 million, up 2.4% from the prior-year period. The increase included $19.2 million of inorganic revenue from Kiwi II Construction, which Janus acquired to expand its construction capabilities. Adjusted EBITDA declined 18% year over year to $40.2 million, while adjusted EBITDA margin fell about 430 basis points to 17.2%. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “Second quarter results reflected a continuation of the macroeconomic trends we have discussed throughout the year, as the operating environment remained challenging across many of the markets we serve,” Chief Executive Officer Ramey Jackson said. “These factors had a greater impact on demand than we anticipated.” Janus said revenue in its self-storage business rose 15.4% during the quarter. New-construction revenue increased 20.3%, while repair, restore and replace, or R3, revenue rose 6.6%. → 3 Dividend Champion Utilities for a Market That Can't Sit Still New-construction growth reflected the Kiwi II Construction contribution and strength in the company’s international business, which offset continued softness in North America. On an organic basis, however, new-construction revenue was flat from a year earlier. Jackson said North American new-construction activity remained constrained, particularly among smaller customers, as project activity and customer investment levels stayed under pressure. The company said the integration of Kiwi II Construction remains on track. → Is Wingstop's Growth Story Losing Steam? Management said certain Kiwi projects expected to be completed this year have been delayed or pushed out, though the company has not seen cancellations. Chief Financial Officer Anselm Wong said Kiwi’s backlog remains strong and that the projects are still intact, but customers are taking more time to bring existing facilities online before starting other planned projects. R3 activity was supported by higher door replacements, redevelopment work, and increased facility conversion and expansion projects. During the question-and-answer session, Jackson said R3 growth is not solely tied to consolidation among self-storage operators. He said institutional customers have also been investing to “rightsize” and strengthen their facilities during the current slowdown. Revenue in Janus’ commercial and other segment fell 21.2% from the prior-year quarter, primarily because of continued weak demand for commercial sheet doors. Jackson said these doors are predominantly used in pre-engineered metal buildings, an end market facing headwinds. He added that the company’s rolling steel product line continued to grow and perform well. Janus is also pursuing architectural specifications and opportunities in data centers, where it is exploring new product capabilities and seeking to position itself as a manufacturing partner for original equipment manufacturers. International revenue rose 9.5% to $31.1 million, driven by new-construction growth and market-share gains. For the full year, Janus expects international revenue to grow at a high-single-digit rate. The company said its Nokē Smart Entry platform surpassed 500,000 installed units during the quarter. Jackson described the threshold as a significant milestone for the smart-security platform, which Janus believes can support profitability improvements and recurring revenue over time. Janus also said it has seen initial interest in Nokē Infinitē, its on-door dual-technology smart locking system. The company expects Nokē Infinitē to be available for factory installation on both roll-up and swing doors beginning in the fourth quarter. Janus now expects 2026 revenue of $925 million to $945 million and adjusted EBITDA of $150 million to $170 million. At the midpoint, the adjusted EBITDA forecast implies a 17.1% margin. The company expects North American organic self-storage revenue to decline by a high-single-digit percentage from 2025, largely because of continued new-construction softness. Commercial sales are expected to be roughly flat for the year. Janus also lowered its forecast for inorganic revenue from Kiwi II Construction to approximately $80 million to $90 million, reflecting delayed and extended timelines for certain projects. Wong said lower expected volumes, unfavorable mix and supply-chain inflation have pressured margins. However, the company expects a sequentially stronger second half as it benefits from factory consolidations, operational optimization, back-office cost management and commercial actions intended to offset higher steel prices. “The big piece of the adjustment in the forecast was more related to the commercial sheet door piece,” Wong said during the call, adding that the core self-storage business has been tracking at a broadly similar level. Janus generated $24.4 million in operating cash flow and $21.6 million in free cash flow during the quarter. On a trailing 12-month basis, free cash flow conversion of adjusted net income was 129%. Capital expenditures were $2.8 million. The company ended the quarter with $205.3 million of total liquidity, including $127 million in cash and equivalents. Long-term debt totaled $550 million, and net leverage was 2.7 times, within Janus’ target range of two to three times. During the quarter, Janus repurchased about 367,000 shares for $1.9 million. Year to date, it has repurchased about 3.2 million shares for $17.6 million and had $63 million remaining under its repurchase authorization at quarter-end. Wong said the company expects to remain near the high end of its 75% to 100% free-cash-flow conversion target range. He said capital expenditures should remain relatively low, while share repurchases remain an attractive use of capital at current prices. Janus International Group, Inc is a global provider of specialized storage and security products for self-storage, commercial, industrial and residential applications. The company designs, engineers and manufactures a broad range of building components focused on perimeter security and facility access solutions. Janus serves customers through dealer networks, direct sales offices and distribution partners across multiple end markets. Core product offerings include steel roll-up doors and sectional overhead doors, perimeter fencing and automated gate systems, parking security products and climate-controlled modular storage buildings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Janus International Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $233.5 million, up 2.4% year-over-year. Inorganic Revenue: $19.2 million from Kiwi II Construction. Self-Storage Revenue: Up 15.4%. New Construction Revenue: Up 20.3%, driven by Kiwi II and international strength; flat on an organic basis. R3 Revenue: Up 6.6%. International Revenue: $31.1 million, up 9.5%. Commercial and Other Revenue: Down 21.2%. Adjusted EBITDA: $40.2 million, down 18% year-over-year. Adjusted EBITDA Margin: 17.2%, down approximately 430 basis points. Adjusted Net Income: $23.9 million, compared to $28.2 million in the prior year. Adjusted EPS: $0.17. Cash from Operating Activities: $24.4 million. Free Cash Flow: $21.6 million. Capital Expenditures: $2.8 million. Total Liquidity: $205.3 million, including $127 million in cash and equivalents. Total Long-Term Debt: $550 million. Net Leverage: 2.7x. Share Repurchases: Approximately 367,000 shares for $1.9 million in the quarter; 3.2 million shares for $17.6 million year-to-date. 2026 Revenue Guidance: $925 million to $945 million. 2026 Adjusted EBITDA Guidance: $150 million to $170 million. 2026 Adjusted EBITDA Margin Guidance: 17.1% at the midpoint. 2026 Inorganic Revenue Guidance: Approximately $80 million to $90 million from Kiwi II Construction. 2026 North America Organic Self-Storage Revenue Guidance: Down high single digits. 2026 Commercial Revenue Guidance: Roughly flat. 2026 International Revenue Guidance: High single-digit growth. Warning! GuruFocus has detected 3 Warning Sign with JBI. Is JBI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Surpassed 500,000 installed Noke units, a key milestone for the smart entry platform and recurring revenue growth. R3 business (door replacements, redevelopment, conversions) showed strong growth, up 6.6% in Q2, driven by institutional customers. International segment revenue grew 9.5% year-over-year, with strength in new construction and market share gains. Strong cash flow generation with free cash flow conversion of 129% on a trailing twelve-month basis. Healthy balance sheet with $205.3 million in total liquidity and net leverage of 2.7x, within target range. Continued share repurchases, with $17.6 million bought back year-to-date, reflecting confidence in the business. Progress in commercial market with growth in rolling steel products and data center initiatives. Cost optimization and factory consolidation efforts are expected to drive sequential margin improvement in the back half. Second quarter revenue of $233.5 million and adjusted EBITDA of $40.2 million fell short of expectations due to challenging macro conditions. Revised full-year 2026 guidance downward, with revenue now expected between $925 million and $945 million and adjusted EBITDA between $150 million and $170 million. North America organic self-storage revenues expected to decline high single digits in 2026, driven by continued softness in new construction. Commercial segment revenue declined 21.2% in Q2, primarily due to weak demand for commercial sheet doors. Adjusted EBITDA margin decreased 430 basis points year-over-year to 17.2%, impacted by product and geographic mix. Kiwi II Construction inorganic revenue guidance lowered to $80-$90 million due to project delays and extended timelines. Inflationary pressures and stagnant housing demand continue to weigh on core markets. New construction activity in North America remains constrained, with no immediate signs of stabilization. Q: Can you expand on what you're seeing in the new construction market and how trends progressed through the quarter into July and August, especially regarding project pushouts?A: Anselm Wong (CFO) explained that the market trends remained similar to the first half, with the primary issue being project pushouts rather than cancellations. He noted that the timing of these projects has been delayed, which was a key reason for the revised guidance. The company reviewed the projects and confirmed they remain intact, just delayed. Q: What is driving the big shortfall on the commercial side, which was down over 20%?A: Ramey Jackson (CEO) attributed the decline primarily to commercial sheet doors, which are predominantly installed in pre-engineered metal buildingsan end market facing significant headwinds. He noted that the rolling steel product continues to grow and perform well, and the company's architectural specification initiatives are starting to pay off, particularly in the data center space. However, the commercial sheet door product was the biggest drag on the miss. Q: Can you provide more color on the lower margin outlook and the key buckets that support the second-half improvement versus the first half?A: Anselm Wong (CFO) stated that the sales volume drop was the big change impacting margins. The second-half improvement is driven by factory consolidations and optimizations, aligning resources with current volumes, and back-office cost management. He also mentioned that steel prices have been rising, but the company is managing this well through commercial actions to offset the impact. Q: Is the core business tracking lower as well, and can you provide details on the construction activity pipeline?A: Anselm Wong (CFO) confirmed that the core self-storage business is tracking similarly without a big change. The larger adjustment was related to Kiwi II Construction, where project timing pushed out, and the commercial sheet door piece, which was the bigger factor in the forecast revision. Q: Can you discuss the drivers of the gross margin decline in the quarter, specifically regarding mix versus Kiwi II versus price cost?A: Anselm Wong (CFO) explained that price was minimal for the quarter. The biggest issue was mix, as smaller businesses with lower gross margin profiles grew faster than the core Janus business. This shift in revenue mix accounted for the year-over-year margin decline. Q: What drove the delays in Kiwi II sales, and how does the backlog look now?A: Anselm Wong (CFO) noted that the backlog remains strong with no change in total projects. The delays are due to customers taking time to bring newly completed facilities up to speed before starting on other pipeline projects. He emphasized that these are large projects, and predicting exact start times is difficult, but the projects are still intact. Q: What are your expectations for working capital and free cash flow for the remainder of the year, and what are your near-term capital allocation priorities?A: Anselm Wong (CFO) stated that the company expects to be at the higher end of the free cash flow conversion range, as demonstrated in the first half. Capital expenditures will remain small with no major investments needed. With debt not requiring refinancing for a couple of years, the focus is on share repurchases, which are attractive at current prices. Q: Can you elaborate on the cost actions being taken to address lower demand?A: Anselm Wong (CFO) explained that the company is continuously optimizing the entire business, not just operations. The actions involve looking at where volume and revenue are and taking appropriate pruning actions to manage costs across the board, which is reflected in the lower SG&A in the quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Janus International Group, Inc. (JBI) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +30.77%. A quarter ago, it was expected that this company would post earnings of $0.1 per share when it actually produced earnings of $0.01, delivering a surprise of -90%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Janus International Group, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $233.5 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.02%. This compares to year-ago revenues of $228.1 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Janus International Group shares have lost about 17.9% since the beginning of the year versus the S&P 500's gain of 13.3%. While Janus International Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Janus International Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $243.7 million in revenues for the coming quarter and $0.50 on $960 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Southland Holdings (SLND), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This infrastructure construction company is expected to post quarterly loss of $0.53 per share in its upcoming report, which represents a year-over-year change of -179%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Southland Holdings' revenues are expected to be $170 million, down 21.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Janus International Group, Inc. (JBI) : Free Stock Analysis Report Southland Holdings, Inc. (SLND) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research