Janus International (JBI) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Results Overview 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 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][4] CEO Commentary 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] - Positive trends observed in the commercial business and international markets[3] - Reaffirmed full-year 2025 revenue and Adjusted EBITDA outlook, citing solid year-to-date results and market visibility[3] Company Description 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] - Product offerings include roll-up and swing doors, hallway systems, relocatable storage units, and facility and door automation technologies[6] Financial Outlook This section provides Janus International Group's reaffirmed full-year 2025 financial guidance for revenue and Adjusted EBITDA Full-Year 2025 Guidance 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] Corporate Information and Disclosures This section provides details on the conference call, forward-looking statements, non-GAAP financial measures, and investor/media contacts Conference Call Details 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] - Live webcast and archived replay available on the Investors section of the Company's website[7] Forward-Looking Statements 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] - Risks include the competitive nature of the self-storage industry, litigation, tariffs, cyber incidents, and the effectiveness of the share repurchase program[8][9] - The company disclaims any obligation to update or revise forward-looking statements, except as required by law[9] Non-GAAP Financial Measures Explanation 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] - Adjusted EBITDA is defined as net income excluding interest expense, income taxes, depreciation, amortization, and other non-operational, non-recurring items[11] - 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] Investor and Media Contacts 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] - Media Contact: Suzanne Reitz, Vice President of Marketing, Marketing@Janusintl.com[32] Consolidated Financial Statements 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 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] Consolidated Balance Sheets 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] Consolidated Statements of Cash Flows 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] - Repurchase of common stock amounted to $15.0 million for the six months ended June 28, 2025[18] Supplemental Financial Data and Reconciliations This section provides detailed financial data by sales channel and reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures Revenue by Sales Channel Janus International Group experienced a significant decline in Self-storage revenue for both the three and six months ended June 28, 2025, while Commercial and Other revenues showed growth, partially offsetting the decline Revenue by Sales Channel (Three Months Ended) | Sales Channel | June 28, 2025 (million) | % of Total Sales | June 29, 2024 (million) | % of Total Sales | Change ($ 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] Reconciliation of Net Income to EBITDA and Adjusted EBITDA 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] - Loss on extinguishment and modification of debt was $0 for Q2 2025, down from $1.7 million in Q2 2024[20] Reconciliation of Net Income to Adjusted Net Income 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] Adjusted EPS 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] Free Cash Flow Conversion 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] Non-GAAP Net Leverage Ratio 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][32]