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%.
Self-Storage Growth Included Kiwi Contribution
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%.
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.
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.
Commercial Sheet Doors Weigh on Results
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.
Nokē Platform Passes 500,000 Installed Units
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.
Guidance Reduced as Demand Remains Muted
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.
Cash Flow and Capital Allocation
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.
About Janus International Group (NYSE:JBI)
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.
