Summary of Janus International Group (JBI) 2025 Conference Call Industry Overview - The discussion primarily revolves around the self-storage industry and the impact of macroeconomic factors such as interest rates and liquidity on the market [1][3][5]. Key Points and Arguments 1. **Impact of Interest Rates**: - Potential rate cuts could positively affect both institutional customers and end consumers, particularly in the mid-market segment [1][3]. - A significant reduction of 75 to 100 basis points in interest rates is necessary to stimulate market activity [4]. - Current inactivity in the storage market is attributed to high deposit requirements from banks, which have increased from 20% to 30-50% [6]. 2. **Market Participation**: - The self-storage market currently sees participation mainly from larger operators, with smaller operators largely inactive [8]. - Larger companies are strategically acquiring smaller operators, taking advantage of their liquidity challenges [10][11]. 3. **Competitive Landscape**: - Janus International is positioned as a stable player in the market, with customers expressing concerns about the viability of smaller competitors offering lower prices [12][15]. - The company maintains a premium pricing strategy due to its higher quality products, which customers prefer despite lower offers from competitors [15]. 4. **Procurement and Steel Pricing**: - Janus has a strong procurement strategy for steel, allowing them to hedge prices effectively, unlike smaller competitors who buy on the volatile spot market [18][19]. - The company is currently hedged for steel purchases about five to six months in advance [21]. 5. **Mergers and Acquisitions**: - Janus is exploring acquisition opportunities, particularly in Europe, while being cautious about distressed assets until market conditions stabilize [26][27]. - The company aims to expand its international presence, particularly in growing storage markets outside the Americas [27]. 6. **Performance in Europe**: - The European market has faced challenges, with low single-digit margins previously, but recent management changes have led to improvements [29][30]. - The new management is focused on customer engagement and product adjustments to regain market share [30]. 7. **Commercial Market Dynamics**: - The commercial market is segmented, with steady growth in the rolling steel segment, while the carport and shed market has seen a post-pandemic decline [37][39]. - Janus is investing in expanding its offerings in the carport market to provide a comprehensive solution for customers [40][41]. 8. **Self-Storage Business Outlook**: - Despite current demand challenges, backlogs remain stable, and there are no significant project cancellations [46]. - The company is well-positioned to ramp up operations quickly when demand increases, leveraging its established market presence [55]. 9. **Nokia Product Line**: - The Nokia product line is expected to reach breakeven with a target of 500,000 connected devices, with current numbers at 409,000 [60]. - The new Nokia Ion product has received positive feedback for its improved connectivity and reliability, addressing previous customer concerns [62][66]. 10. **Profit Margins and Future Potential**: - Once the Nokia business reaches scale, it is projected to achieve gross margins of around 90% on the recurring revenue side, significantly enhancing profitability [69][72]. Additional Important Insights - The self-storage industry is currently characterized by cautious optimism, with operators preparing for a potential rebound in demand while managing existing projects [54]. - Janus International's strategic focus on quality and customer relationships positions it favorably against smaller, less stable competitors [12][15].

Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $228.1 million, a decrease of 8.2% compared to Q2 2024 [8][16] - Adjusted EBITDA for the quarter was $49 million, down 24% year-over-year, resulting in an adjusted EBITDA margin of 21.5%, a decrease of approximately 450 basis points from the prior year [20] - Adjusted net income was $28.2 million, a decrease of 21.9% from the previous year, with adjusted EPS at $0.20 [21] Business Line Data and Key Metrics Changes - The Self Storage segment saw a revenue decline of 14.8%, primarily due to decreased new construction activity [8][16] - The R3 sales channel experienced a 14% decrease, attributed to declines in big box retail conversion and expansion activity [16] - The International segment's revenue increased to $28.4 million, up 58% year-over-year, driven by higher volumes as demand normalizes post-recession [17][18] - The Commercial and Other segment increased by 6.7%, with organic growth of 1.7%, supported by the TMC acquisition and recovery in demand for rolling steel doors and carports [19] Market Data and Key Metrics Changes - The North American self-storage business faced softness, but this was partially offset by recovery in international markets [9] - The company noted that over 60% of self-storage facilities in the U.S. are over 20 years old, indicating potential for capital allocation towards existing properties [14] Company Strategy and Development Direction - The company continues to focus on digital innovation, brand expansion, and structural manufacturing to drive long-term growth [11] - The leadership team is being strengthened, with new appointments aimed at enhancing strategic execution [11] - The company is confident in the long-term fundamentals of the self-storage industry, driven by recurring life events [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather macroeconomic challenges and highlighted the stability of the backlog and pipeline [7][14] - The company reaffirmed its 2025 guidance for revenue between $860 million and $890 million and adjusted EBITDA between $175 million and $195 million [22][23] - Management noted that while new construction remains soft, the commercial sales channel and international sales are expected to recover [23] Other Important Information - The company repurchased 1.2 million shares for $10.1 million during the quarter, with an additional $75 million share repurchase authorization approved by the Board [13][22] - The estimated potential expense impact related to tariffs for 2025 is expected to be in the low single-digit millions, with ongoing annual impacts projected to be between $6 million and $8 million [12][13] Q&A Session Summary Question: Insights on self-storage mix and R3 performance - Management noted that customers are currently favoring new construction projects over R3 conversions, despite a growing backlog for R3 [26][27] Question: Expectations for Q3 performance - Management indicated that Q3 could be slightly above Q2 based on visibility into new construction projects, but remains cautious due to market uncertainties [28][29] Question: Drivers of commercial revenue rebound - The rebound in commercial revenue is attributed to product diversification, architectural specification efforts, and the performance of the TMC acquisition [34][35] Question: Progress with Nokia adoption - Management highlighted ongoing interest from larger institutional customers in the Nokia ION product, which offers cost-saving benefits [36] Question: Pricing and margin expectations for the second half - Management expects pricing to improve in the second half, contributing to better margins as steel costs decrease and cost-saving measures take effect [40][43] Question: Replacement and renovation activity in R3 - The increase in replacement and renovation activity is driven by both new business wins and customers needing to reinvest in their assets [47][48] Question: Backlog and pipeline stability - Management confirmed that the backlog and pipeline remain stable, with share gains and an increasing R3 pipeline contributing to this stability [54][55]

Financial Performance - Q2 2025 - Total revenue was $228.1 million[19], a decrease of 8.2%[21] - Adjusted EBITDA was $49.0 million[19], a decrease of 24.0%[21], representing a 21.5% margin[21] - Net income was $20.7 million, compared to $27.6 million in Q2 2024[19] - Adjusted diluted EPS was $0.20[21] - Free cash flow was $44.6 million[19] Financial Performance - Year-to-Date 2025 - Total revenue was $438.6 million[26], a decrease of 12.8%[26] - Adjusted EBITDA was $87.4 million[26], a decrease of 33.2%[26], representing a 19.9% margin[26] - Adjusted diluted EPS was $0.33[26] - Free cash flow was $86.5 million[26] Revenue Breakdown - Self-Storage accounted for 64.4% of revenue[18] - New Construction revenue was $93.9 million, down 15.2% year-over-year[33] - Restore, Rebuild & Replace ("R3") revenue was $52.9 million, down 14.0% year-over-year[33] - Commercial & Other revenue was $81.3 million, up 6.7% year-over-year, with organic growth of 1.7%[33] - International revenue was $28.4 million, up 57.8% year-over-year[19] Capital Allocation - The company repurchased 1.2 million shares of common stock for $10.1 million[19] - The Board of Directors approved a $75.0 million expansion of the existing share repurchase authorization[19] 2025 Guidance - Revenue is estimated to be between $860 million and $890 million[48] - Adjusted EBITDA is estimated to be between $175 million and $195 million[48]

Group 1 - Janus International Group, Inc. reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, but down from $0.21 per share a year ago, representing an earnings surprise of +33.33% [1] - The company posted revenues of $228.1 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.04%, although this is a decrease from year-ago revenues of $248.4 million [2] - Janus International Group shares have increased approximately 18.1% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] Group 2 - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Janus International Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $226.6 million, and for the current fiscal year, it is $0.65 on revenues of $881 million [7] Group 3 - The outlook for the Building Products - Miscellaneous industry, where Janus International Group operates, is currently in the bottom 37% of over 250 Zacks industries, which may impact the stock's performance [8]

[Second Quarter 2025 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Overview) This section provides an overview of Janus International Group's second quarter 2025 financial performance, including key highlights, CEO commentary, and company description [Key Financial Highlights](index=1&type=section&id=1.1%20Key%20Financial%20Highlights) Janus International Group reported a decrease in total revenue and net income for Q2 2025 compared to Q2 2024, primarily due to softness in the self-storage business, yet deployed $10.1 million into share repurchases and reaffirmed its full-year 2025 guidance | Metric | Q2 2025 (million) | Q2 2024 (million) | Change ($ million) | Change (%) | | :-------------------------- | :---------------- | :---------------- | :----------------- | :--------- | | Total Revenue | $228.1 | $248.4 | ($20.3) | (8.2)% | | Net Income | $20.7 | $27.6 | ($6.9) | (25.0)% | | Diluted EPS | $0.15 | $0.19 | ($0.04) | (21.1)% | | Adjusted Net Income* | $28.2 | $36.1 | ($7.9) | (21.9)% | | Adjusted EPS* | $0.20 | $0.25 | ($0.05) | (20.0)% | | Adjusted EBITDA* | $49.0 | $64.5 | ($15.5) | (24.0)% | | Adjusted EBITDA Margin* | 21.5% | 26.0% | (4.5)% | | - Repurchased approximately **1.2 million shares** of common stock for **$10.1 million**, with **$81.3 million** remaining capacity on the share repurchase authorization[1](index=1&type=chunk)[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) CEO Ramey Jackson highlighted strong Q2 results despite a dynamic operating environment, noting softness in domestic self-storage due to elevated interest rates but positive trends in commercial and international markets, while reaffirming full-year 2025 guidance based on a strong balance sheet and robust cash flow - Domestic self-storage business experienced softness due to elevated interest rates and macroeconomic uncertainty[3](index=3&type=chunk) - Positive trends observed in the commercial business and international markets[3](index=3&type=chunk) - Reaffirmed full-year 2025 revenue and Adjusted EBITDA outlook, citing solid year-to-date results and market visibility[3](index=3&type=chunk) [Company Description](index=2&type=section&id=1.3%20Company%20Description) Janus International Group, Inc. is a leading global manufacturer and supplier of turn-key building solutions for the self-storage, commercial, and industrial sectors, offering products such as roll-up and swing doors, hallway systems, relocatable storage units, and facility/door automation technologies - Janus International Group is a leading global manufacturer and supplier of turn-key self-storage, commercial, and industrial building solutions[6](index=6&type=chunk) - Product offerings include roll-up and swing doors, hallway systems, relocatable storage units, and facility and door automation technologies[6](index=6&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) This section provides Janus International Group's reaffirmed full-year 2025 financial guidance for revenue and Adjusted EBITDA [Full-Year 2025 Guidance](index=2&type=section&id=2.1%20Full-Year%202025%20Guidance) Janus International Group reaffirmed its full-year 2025 financial guidance for both revenue and Adjusted EBITDA, indicating confidence in its business outlook despite current market conditions | Metric | Range (Millions) | | :-------------- | :--------------- | | Revenue | $860 - $890 | | Adjusted EBITDA | $175 - $195 | - The company has excluded a quantitative reconciliation for Adjusted EBITDA guidance due to the 'unreasonable efforts' exception under Regulation S-K[5](index=5&type=chunk) [Corporate Information and Disclosures](index=2&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides details on the conference call, forward-looking statements, non-GAAP financial measures, and investor/media contacts [Conference Call Details](index=2&type=section&id=3.1%20Conference%20Call%20Details) Janus International Group hosted a conference call and webcast on August 7, 2025, to discuss its second-quarter results, with details provided for live access and archived replay - Conference call and webcast held on Thursday, August 7, 2025, at 10:00 a.m. Eastern Time[7](index=7&type=chunk) - Live webcast and archived replay available on the Investors section of the Company's website[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=3.2%20Forward-Looking%20Statements) This section outlines the nature of forward-looking statements, including the 2025 financial outlook, detailing various risks and uncertainties that could cause actual results to differ materially from projections, and emphasizing that these statements are based on current expectations and are not guarantees of future performance - Statements regarding the **2025 financial outlook** and demand for Janus's products are considered forward-looking[8](index=8&type=chunk) - Risks include the competitive nature of the self-storage industry, litigation, tariffs, cyber incidents, and the effectiveness of the share repurchase program[8](index=8&type=chunk)[9](index=9&type=chunk) - The company disclaims any obligation to update or revise forward-looking statements, except as required by law[9](index=9&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=3.3%20Non-GAAP%20Financial%20Measures%20Explanation) Janus International Group utilizes non-GAAP financial measures like Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS to supplement GAAP information, providing additional insights into operating performance and aiding strategic decisions, while defining these measures and highlighting their limitations, emphasizing they should not be considered in isolation - Non-GAAP measures (e.g., Adjusted EBITDA, Adjusted Net Income, Adjusted EPS) are used to evaluate operating performance, generate future plans, and make strategic decisions[11](index=11&type=chunk) - Adjusted EBITDA is defined as net income excluding interest expense, income taxes, depreciation, amortization, and other non-operational, non-recurring items[11](index=11&type=chunk) - Limitations include the exclusion of non-cash expenses (depreciation/amortization), interest expense, income tax provisions, and potential incomparability with other companies' non-GAAP measures[14](index=14&type=chunk) [Investor and Media Contacts](index=12&type=section&id=3.4%20Investor%20and%20Media%20Contacts) Contact information is provided for investor relations and media inquiries at Janus International Group - Investor Contact: Sara Macioch, Senior Director, Investor Relations, IR@janusintl.com[32](index=32&type=chunk) - Media Contact: Suzanne Reitz, Vice President of Marketing, Marketing@Janusintl.com[32](index=32&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Janus International Group's unaudited consolidated statements of operations, balance sheets, and cash flows for the reported periods [Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=4.1%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For the three months ended June 28, 2025, total revenues decreased by 8.2% year-over-year, leading to a 25.0% decrease in net income, while for the six months ended June 28, 2025, total revenues decreased by 12.8% and net income decreased by 46.0% compared to the prior year period Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended June 28, 2025 (million) | Three Months Ended June 29, 2024 (million) | Six Months Ended June 28, 2025 (million) | Six Months Ended June 29, 2024 (million) | | :------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $228.1 | $248.4 | $438.6 | $502.9 | | Gross Profit | $93.2 | $109.0 | $175.1 | $219.4 | | Income From Operations | $36.0 | $51.6 | $61.3 | $107.1 | | Net Income | $20.7 | $27.6 | $31.5 | $58.3 | | Diluted EPS | $0.15 | $0.19 | $0.22 | $0.40 | - Product revenues decreased by **13.5%** for the three months and **18.2%** for the six months ended June 28, 2025, while service revenues increased by **17.4%** and **14.9%** respectively[16](index=16&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=4.2%20Consolidated%20Balance%20Sheets) As of June 28, 2025, Janus International Group reported a slight increase in total assets and stockholders' equity compared to December 28, 2024, driven by higher cash and contract assets, while total liabilities decreased Consolidated Balance Sheets (Unaudited) | Metric | June 28, 2025 (million) | December 28, 2024 (million) | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $173.6 | $149.3 | | Total Current Assets | $397.8 | $385.5 | | Total Assets | $1,302.5 | $1,301.3 | | Total Current Liabilities | $152.4 | $136.8 | | Long-term debt, net | $543.2 | $583.2 | | Total Liabilities | $758.7 | $782.5 | | Total Stockholders' Equity | $543.8 | $518.8 | - Accounts receivable decreased from **$136.5 million** to **$114.4 million**, while contract assets increased from **$23.2 million** to **$28.9 million**[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=4.3%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 28, 2025, net cash provided by operating activities significantly increased to **$99.7 million** from **$59.6 million** in the prior year, while cash used in investing activities decreased due to no major acquisitions, and cash used in financing activities increased, primarily due to higher principal payments on long-term debt and common stock repurchases Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Six Months Ended June 28, 2025 (million) | Six Months Ended June 29, 2024 (million) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $99.7 | $59.6 | | Net cash used in investing activities | ($13.2) | ($70.4) | | Net cash used in financing activities | ($62.8) | ($50.7) | | Net increase (decrease) in cash | $24.3 | ($61.6) | | Cash, end of period | $173.6 | $110.1 | - Principal payments on long-term debt increased to **$43.0 million** from **$23.4 million** year-over-year[18](index=18&type=chunk) - Repurchase of common stock amounted to **$15.0 million** for the six months ended June 28, 2025[18](index=18&type=chunk) [Supplemental Financial Data and Reconciliations](index=8&type=section&id=Supplemental%20Financial%20Data%20and%20Reconciliations) This section provides detailed financial data by sales channel and reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures [Revenue by Sales Channel](index=8&type=section&id=5.1%20Revenue%20by%20Sales%20Channel) Janus International Group experienced a significant decline in Self-storage revenue for both the three and six months ended June 28, 2025, while Commercial and Other revenues showed growth, partially offsetting the decline Revenue by Sales Channel (Three Months Ended) | Sales Channel | June 28, 2025 (million) | % of Total Sales | June 29, 2024 (million) | % of Total Sales | Change ($ million) | Change (%) | | :------------------------ | :---------------------- | :--------------- | :---------------------- | :--------------- | :----------------- | :--------- | | Self-storage - new construction | $93.9 | 41.2% | $110.7 | 44.6% | ($16.8) | (15.2)% | | Self-storage - R3 | $52.9 | 23.2% | $61.5 | 24.8% | ($8.6) | (14.0)% | | Total self-storage | $146.8 | 64.4% | $172.2 | 69.3% | ($25.4) | (14.8)% | | Commercial and other | $81.3 | 35.6% | $76.2 | 30.7% | $5.1 | 6.7% | | Total revenues | $228.1 | 100.0% | $248.4 | 100.0% | ($20.3) | (8.2)% | Revenue by Sales Channel (Six Months Ended) | Sales Channel | June 28, 2025 (million) | % of Total Sales | June 29, 2024 (million) | % of Total Sales | Change ($ million) | Change (%) | | :------------------------ | :---------------------- | :--------------- | :---------------------- | :--------------- | :----------------- | :--------- | | Total self-storage | $290.3 | 66.2% | $359.4 | 71.5% | ($69.1) | (19.2)% | | Commercial and other | $148.3 | 33.8% | $143.5 | 28.5% | $4.8 | 3.3% | | Total revenues | $438.6 | 100.0% | $502.9 | 100.0% | ($64.3) | (12.8)% | - Inorganic revenue in the Commercial and Other sales channel totaled **$3.8 million** for Q2 2025, reflecting a partial quarter contribution from the TMC acquisition in May 2024[4](index=4&type=chunk) [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=9&type=section&id=5.2%20Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) The reconciliation shows a decrease in both EBITDA and Adjusted EBITDA for the three and six months ended June 28, 2025, compared to the prior year, with key adjustments including restructuring charges and acquisition expenses, and a notable decrease in loss on extinguishment and modification of debt Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Unaudited) | Metric | Three Months Ended June 28, 2025 (million) | Three Months Ended June 29, 2024 (million) | Six Months Ended June 28, 2025 (million) | Six Months Ended June 29, 2024 (million) | | :------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $20.7 | $27.6 | $31.5 | $58.3 | | EBITDA* | $47.4 | $61.1 | $84.2 | $127.0 | | Adjusted EBITDA* | $49.0 | $64.5 | $87.4 | $130.8 | - Adjustments for Q2 2025 included **$0.8 million** in restructuring charges and **$0.8 million** in acquisition expenses[20](index=20&type=chunk) - Loss on extinguishment and modification of debt was **$0** for Q2 2025, down from **$1.7 million** in Q2 2024[20](index=20&type=chunk) [Reconciliation of Net Income to Adjusted Net Income](index=10&type=section&id=5.3%20Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) This reconciliation details the adjustments made to GAAP Net Income to arrive at non-GAAP Adjusted Net Income, including the tax effect of these adjustments, showing a decrease in Adjusted Net Income for both the three and six months ended June 28, 2025, compared to the prior year Reconciliation of Net Income to Adjusted Net Income (Unaudited) | Metric | Three Months Ended June 28, 2025 (million) | Three Months Ended June 29, 2024 (million) | Six Months Ended June 28, 2025 (million) | Six Months Ended June 29, 2024 (million) | | :------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $20.7 | $27.6 | $31.5 | $58.3 | | Net Income Adjustments | $1.6 | $3.4 | $3.2 | $3.8 | | Amortization | $8.2 | $8.0 | $16.5 | $15.5 | | Tax Effect on Net Income Adjustments | ($2.3) | ($2.9) | ($5.1) | ($4.9) | | Non-GAAP Adjusted Net Income | $28.2 | $36.1 | $46.1 | $72.7 | - Effective tax rates used for the three months ended June 28, 2025, and June 29, 2024, were **23.6%** and **25.6%**, respectively[25](index=25&type=chunk) [Adjusted EPS](index=10&type=section&id=5.4%20Adjusted%20EPS) Both GAAP and non-GAAP Adjusted EPS decreased for the three and six months ended June 28, 2025, reflecting the lower net income and adjusted net income compared to the prior year Adjusted EPS (Unaudited) | Metric | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Six Months Ended June 28, 2025 | Six Months Ended June 29, 2024 | | :------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP Basic EPS | $0.15 | $0.19 | $0.23 | $0.40 | | GAAP Diluted EPS | $0.15 | $0.19 | $0.22 | $0.40 | | Non-GAAP Adjusted Basic EPS* | $0.20 | $0.25 | $0.33 | $0.50 | | Non-GAAP Adjusted Diluted EPS* | $0.20 | $0.25 | $0.33 | $0.50 | - Weighted average diluted shares outstanding decreased from **146,435,123** in Q2 2024 to **140,004,090** in Q2 2025[27](index=27&type=chunk) [Free Cash Flow Conversion](index=11&type=section&id=5.5%20Free%20Cash%20Flow%20Conversion) Janus International Group demonstrated strong Free Cash Flow Conversion for the six months and trailing twelve months ended June 28, 2025, significantly increasing from the prior year periods, indicating improved cash generation relative to adjusted net income Free Cash Flow Conversion (Unaudited) | Metric | Six Months Ended June 28, 2025 (million) | Six Months Ended June 29, 2024 (million) | Trailing Twelve Months Ended June 28, 2025 (million) | Trailing Twelve Months Ended June 29, 2024 (million) | | :----------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------------------- | :----------------------------------------- | | Cash Flow from Operating Activities | $99.7 | $59.6 | $194.1 | $178.2 | | Free Cash Flow* | $86.5 | $49.3 | $171.1 | $158.5 | | Non-GAAP Adjusted Net Income* | $46.1 | $72.7 | $81.2 | $158.8 | | Free Cash Flow Conversion of Non-GAAP Adjusted Net Income* | 188% | 68% | 211% | 100% | - Purchases of property, plant and equipment increased to **$13.2 million** for the six months ended June 28, 2025, from **$10.3 million** in the prior year[28](index=28&type=chunk) [Non-GAAP Net Leverage Ratio](index=11&type=section&id=5.6%20Non-GAAP%20Net%20Leverage%20Ratio) The Non-GAAP Net Leverage Ratio for Janus International Group increased slightly to **2.3x** as of June 28, 2025, from **2.2x** at December 28, 2024, despite a reduction in Net Debt, primarily due to a decrease in trailing twelve-month Adjusted EBITDA Non-GAAP Net Leverage Ratio (Unaudited) | Metric | June 28, 2025 (million) | December 28, 2024 (million) | | :-------------------------------------- | :------------ | :---------------- | | Note payable - First Lien | $555.5 | $598.5 | | Less: Cash | $173.6 | $149.3 | | Net Debt* | $381.9 | $449.2 | | Adjusted EBITDA (Trailing Twelve Month periods ended)* | $165.1 | $208.5 | | Non-GAAP Net Leverage Ratio* | 2.3 | 2.2 | - Trailing Twelve months Adjusted EBITDA decreased from **$208.5 million** at December 28, 2024, to **$165.1 million** at June 28, 2025[30](index=30&type=chunk)[32](index=32&type=chunk)

Group 1 - Janus International Group, Inc. (JBI) has shown strong year-to-date performance, returning about 22.3% since the start of the calendar year, significantly outperforming the average gain of 2.5% in the Construction sector [4] - The Zacks Consensus Estimate for JBI's full-year earnings has increased by 35.4% over the past quarter, indicating improved analyst sentiment and earnings outlook [4] - JBI currently holds a Zacks Rank of 2 (Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [3][4] Group 2 - Janus International Group, Inc. is part of the Building Products - Miscellaneous industry, which has seen an average loss of 3.7% this year, highlighting JBI's relative strength in performance [6] - In comparison, MasTec (MTZ), another Construction stock, has also outperformed the sector with a year-to-date increase of 26.3% and holds a Zacks Rank of 2 (Buy) [5][7] - The Building Products - Heavy Construction industry, to which MasTec belongs, is currently ranked 2 and has gained 17.2% year to date, indicating a strong performance within that segment [7]

Group 1 - Aecom Technology (ACM) is currently performing better than the average Construction sector, with a year-to-date return of approximately 2.8% compared to the sector's average return of -4.4% [4] - The Zacks Rank for Aecom Technology is 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 1% over the past quarter [3] - Aecom Technology is part of the Engineering - R and D Services industry, which has an average year-to-date loss of 1.2%, further highlighting ACM's relative performance [6] Group 2 - Janus International Group, Inc. (JBI) has also outperformed the Construction sector with a year-to-date return of 11.2% [4] - The consensus EPS estimate for Janus International Group has increased by 150% over the past three months, and it also holds a Zacks Rank of 2 (Buy) [5] - Janus International Group belongs to the Building Products - Miscellaneous industry, which has experienced a year-to-date decline of 10.9% [7]

Group 1 - Janus International Group, Inc. (JBI) shares have increased by 18.5% over the past four weeks, closing at $8.25, with a mean price target of $10.90 indicating a potential upside of 32.1% [1] - The mean estimate consists of five short-term price targets with a standard deviation of $2.97, where the lowest estimate is $7.50 (indicating a 9.1% decline) and the highest estimate is $14 (indicating a 69.7% increase) [2] - Analysts have shown strong agreement in revising earnings estimates higher, with the Zacks Consensus Estimate for the current year increasing by 35.4% over the last 30 days [11][12] Group 2 - JBI currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - The consensus price target, while not entirely reliable, suggests a positive direction for JBI's stock price movement [13] - Analysts' price targets can often be overly optimistic due to business incentives, which may lead to inflated estimates [8]

Core Viewpoint - Janus International Group, Inc. (JBI) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The trend of rising earnings estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is $0.15 per share, representing a decrease of 28.57% from the previous year, but the Zacks Consensus Estimate has increased by 25% over the last 30 days due to one upward revision [5]. - For the full year, the earnings estimate is $0.65 per share, indicating a 14.04% increase from the previous year, with a notable 35.42% increase in the consensus estimate over the past month [6][7]. Zacks Rank and Performance - Janus International Group currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock performance [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][8]. Stock Performance - The stock has gained 35.6% over the past four weeks, driven by solid estimate revisions, suggesting strong earnings growth prospects that may lead to further stock price increases [9].

Core Viewpoint - Janus International Group, Inc. (JBI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Stock Performance - The Zacks rating system is based on the changing earnings picture of a company, specifically tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [3][5]. - For Janus International Group, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices [6]. Earnings Estimate Revisions - Janus International Group is projected to earn $0.65 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 14% [9]. - Over the past three months, the Zacks Consensus Estimate for Janus International Group has surged by 150%, indicating strong upward revisions by analysts [9]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The upgrade of Janus International Group to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].