Janus International Group (NYSE:JBI) reported first-quarter results that topped management’s internal expectations despite what executives described as a still-challenging macroeconomic backdrop, with softness continuing in North American self-storage new construction and parts of the commercial door market.
Chief Executive Officer Ramey Jackson said overall demand remained subdued, but the company stayed focused on execution, safety and customer service. Janus posted first-quarter revenue of $222.7 million and adjusted EBITDA of $33 million. The company also repurchased approximately 2.9 million shares for $15.7 million during the quarter and ended the period with $65 million remaining under its share repurchase authorization.
Revenue Rises, but Margins Narrow
Chief Financial Officer Anselm Wong said consolidated revenue increased 5.8% year over year to $222.7 million. Inorganic revenue totaled $18.1 million, reflecting contributions from the company’s acquisition of Kiwi II Construction.
By sales channel, self-storage revenue increased 8.7%, with new construction up 10.9% and R3 — Janus’ repair, replace and renovation business — up 5.3%. Wong said new construction growth was driven by Kiwi and strength in international markets, which offset continued softness in North America. On an organic basis, new construction revenue declined 9.9% from the prior year.
International revenue rose 28.8% to $27.3 million, supported by new construction activity and market share gains. Revenue in the commercial and other segment declined 0.5%, as weakness in commercial sheet doors was partly offset by growth in rolling steel and freight terminal projects.
Adjusted EBITDA declined 14.1% from the prior-year quarter to $33 million, with adjusted EBITDA margin falling about 340 basis points to 14.8%. Wong attributed the decline primarily to geographic segment and sales channel mix. Adjusted net income was $1.7 million, compared with $17.7 million in the prior-year period, and adjusted earnings per share were $0.01.
Janus generated $36.2 million in cash from operating activities and $33.4 million in free cash flow during the quarter. The company ended the period with $183.8 million in total liquidity, including $112 million in cash and equivalents. Long-term debt totaled $551 million, and net leverage was 2.7 times, within the company’s target range of 2 times to 3 times.
Guidance Reaffirmed for 2026
Janus reaffirmed its 2026 outlook, continuing to expect full-year revenue of $940 million to $980 million and adjusted EBITDA of $165 million to $185 million. Wong said the guidance assumes no improvement in market conditions and includes approximately $90 million to $100 million from the Kiwi II Construction acquisition.
The company expects North America organic self-storage revenue to decline by mid-single digits from 2025, mainly because of continued softness in new construction. Commercial revenue is expected to return to growth, driven by the company’s ASTA business, while international revenue is expected to grow at a high-single-digit rate.
Wong said adjusted EBITDA margin is expected to be 18.2% at the midpoint of guidance, with margins still affected by geographic and sales channel mix. Kiwi II is expected to be a drag on overall margins in 2026. He added that cash flow remains strong and that Janus expects free cash flow conversion of adjusted net income to be near the high end of its 75% to 100% target range.
Company Highlights GROW Strategy
Jackson outlined Janus’ strategic priorities under the acronym “GROW”: greater penetration of self-storage, ramping adoption of smart security solutions, outperforming in the commercial market and winning through strategic acquisitions.
The Kiwi II Construction acquisition is intended to expand Janus’ content in self-storage facilities, particularly in exterior solutions and design-build capabilities for institutional customers on the West Coast and in Florida. Jackson said early integration efforts are progressing as planned and noted collaboration opportunities between Kiwi, BETCO and Janus’ core business.
Janus is also leaning on its R3 business as consolidation continues in the self-storage industry. Jackson said larger operators acquiring and integrating assets are focused on standardization, upgrades and operational efficiency, areas where Janus believes it is positioned to serve as a long-term partner. During the quarter, the company launched Rapid Replace, a mobile app designed to streamline quotes and orders for self-storage door replacements.
Nokē Platform Continues to Expand
Jackson said smart security remains a central pillar of the company’s long-term growth strategy. At the end of the first quarter, Janus had 477,000 installed NokÄ“ Smart Entry units, up 24.2% year over year.
The company also launched Nokē Infinitē, an on-door dual-technology smart locking system that combines Bluetooth with near-field communication power harvesting. Jackson said the system is designed to allow secure access even after its five-year battery life is exceeded, reducing operational risk and maintenance costs for self-storage operators. The company expects Nokē Infinitē to be available for factory installation on roll-up and swing doors beginning in the third quarter.
During the question-and-answer session, management said the new product is an upgrade to Nokē ONE and is suited for quicker wireless installation, particularly in retrofit applications. Executives said Nokē Infinitē complements the hardwired Nokē Ion system and broadens the use cases for the Nokē platform.
Demand Remains Mixed Across End Markets
In response to analyst questions, Jackson said demand trends had not changed significantly from the prior quarter. North American new construction remains pressured by interest rates, liquidity constraints and housing market mobility. He described R3 as a “bright spot,” supported by self-storage consolidation and related modernization needs.
On the commercial side, Jackson said commercial sheet doors remain pressured by weakness in the pre-engineered metal building market. However, he said the rolling steel door business, including ASTA, is benefiting from architectural specification initiatives and market share gains, with data centers cited as an area of opportunity.
Management also addressed cost trends, saying steel prices are rising and that Janus has the contractual ability to adjust pricing based on input costs. Executives said fuel surcharges are already being used to offset higher fuel costs. On tariffs, management said most of the steel Janus purchases is domestic, limiting direct exposure, though some competitors may face impacts depending on specific steel-related product categories.
Jackson closed by saying Janus remains focused on disciplined execution, customer support, operational optimization and investment in areas with durable demand. “Supported by our strong balance sheet and consistent cash generation, I remain confident Janus is well equipped to build upon our industry leadership position,” he said.
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.
