Janus International Group, Inc. Q4 FY2025 earnings call

• 2025 was challenging with market constraints, but realized key wins like self - storage awards, Betco expansions, new portal and door launches, Asta achievements; strong liquidity and cash generation allowed capital allocation actions like prepayment and share repurchase. • 2026 strategic priorities: Penetrate self - storage market via acquisitions like Kiwi2, leverage R3 platform, expand international self - storage; increase commercial market share; drive access control technology adoption; pursue strategic acquisitions. • Fourth quarter financial details: Consolidated revenue, adjusted EBITDA, net income, cash flow details; completed Kiwi2 acquisition and optimized operational footprint in Arizona.

2025 full year: Revenue was $884.2 million and adjusted EBITDA was $168.2 million. Fourth quarter: Consolidated revenue was $226.3 million, down 1.9% y - o - y; self - storage business down 0.4%, new construction down 8.1%, R3 up 12.7%; international segment revenues increased to $26 million, up 33.3% y - o - y; commercial and other segments down 5% mainly due to softness in commercial sheet doors but strength in rolling steel and TMC. 2026 guidance: Revenue expected to be in range of $940 million - $980 million (8.6% midpoint increase from 2025); adjusted EBITDA expected in range of $165 million - $185 million (4% midpoint increase from 2025); North American organic self - storage revenues expected mid - single digits down; commercial sales channel expected to return to growth; international segment expected high single - digit revenue growth; Kiwi2's EBITDA to drag on overall margins in 2026 with back - end loaded synergies.

• 2026 revenue expected $940M - $980M, midpoint 8.6% increase from 2025. • Adjusted EBITDA expected $165M - $185M, midpoint 4% increase from 2025. • North American organic self - storage revenues mid - single digits down; commercial sales channel expected to grow in 2026; international segment expected high single - digit revenue growth. • Kiwi2's EBITDA to drag on 2026 margins with back - end loaded synergies; free cash flow conversion expected around higher end of 75% - 100% target range.

• Macro factors like tariffs, interest rates could cause actual results to differ from forward - looking statements. • Market conditions, especially North American new construction, may continue to be constrained. • International segment mix could impact margins. • Softness in commercial sheet doors poses risk to commercial and other segments.

Q: You've always described the core self - storage business as having two to three quarters of visibility. How does your visibility today compare to historic averages?

A: I think we still have similar visibility from what we've seen at two to three quarters based on the backlog that we have.

Q: What are the one or two key metrics your customers are looking for that would give them confidence to start to invest and build out new capacity once again?

A: It's 100% interest rate driven. The number one driver of self - storage is mobility around housing. When people start moving around, you're going to see a different operating environment.

Q: Could you give us a bit more color on the degree of headwind from the higher international mix in 4Q and what you have assumed in the guide on the margin line from an organic perspective? And then Maybe any thoughts on how long you expect these mixed headwinds to last?

A: I think if you saw what we printed for the quarter, you saw international continue to grow pretty strongly as it did for the full year. And if you look at their EBITDA margins, obviously it's improved year over year, but it's still significantly down versus our North America. If you look at going into next year, we're still seeing softness in our new construction in our Janus Core Americas business, which is a meaningfully higher margin rate. So, you know, we can't predict when that turn is going to be, but I think as long as we're going to see some of that pressure on the new construction piece in the Americas, we'll probably have some margin and mixed headwinds from that.

Q: Could you give us some color on the softness in commercial? And I just want to clarify on the guide, is it high single digits just for Asta or what are we thinking for the whole business?

A: For commercial, the way we're saying is that if you include everything together, it's in the high single - digit range, but not if you actually back out the TMC piece. So I think it's just looking at Kiwi in there, looking at the other pieces to balance it over. But I think if you look at it, the overall, if you look at the guide, we're probably mid - single - digit for commercial for the full year. Just additional color, a lot of the softness in commercial is coming from commercial sheet. We're actually seeing growth in our ASTA business, which we highlighted, you know, and have been consistent in terms of the messaging around architectural specifications effort. And, you know, we've certainly secured some work around the data center space, which is, you know, an exciting space to be in, and we've worked really hard to get specced. So we're excited about that and expect growth in the rolling steel business.

Q: You're roughly implying low single - digit organic revenue declines. If we strip out an assumption for Kiwi, one, is that accurate? And two, can you break down the components of that price and volume and then You mentioned commercial, but what are your assumptions for new versus R3 on the self - storage side as we sit today?

A: That's about right, Ruben, is that we're looking at organic decline in the core business. The biggest piece, as we described, was really in that new construction America piece. That piece is going to continue to be a drag in terms of what we're seeing in the environment today. So that's what brings down the the revenue year - over - year for the organic piece. And in terms of price versus volume? Yeah, price right now, if you look at what we described, is that we had more price in the second half of 2025. That'll roll into the first half of this year. So I think if you think about a similar type of price range impact in the first half, barring anything that happens with steel in the back half.

Q: The outlook, you're not assuming much of an improvement here, which seems more than reasonable. But, Rami, you talked about, you know, what's going to drive volumes perhaps reaccelerating its housing turnover, right, housing mobility. So we could look at that from existing home sales and certainly rates coming down, all good guys. So just kind of help us unpack, you know, what's the lag if we look at that turnover inflecting? How does that impact your business where it's R3, a new construction? And then the other piece you guys have teased out in the past on rates was really more, You know, for your non - institutional customers, maybe credit's been more challenged and less mortgage rates. It's more, I guess, shorter - term rates and maybe their ability to kind of be able to pursue more projects. Any color on that front if the credit markets have loosened up a little bit?

A: That's a great question. I don't know that I can answer a lot of that. But what I can say from a confidence perspective, when things start to turn and things feel better, you'll see increased activity and investment. As we sit today, the mom and pops are essentially on the sideline. And that's a big, you know, that's 70% of the market. And so any momentum we can get with that segment will certainly have incremental value, you know. So when you think about R3, obviously acquisitions matter. And I think we're hearing from the REITs that this should be a good year for acquisitions, which should bode well for R3. can't predict the interest rate and what's going to get people moving around, have no earthly idea. You guys probably know that better than me, but we're just focused on being in the right position to when this thing turns around to take advantage of it. Um, and just sticking to our, you know, our corporate strategy and making sure that, that we're lean and we're focused on being able to optimize everything and take advantage of what the market has to offer.

Q: The outlook, you're not assuming much of an improvement here, which seems more than reasonable. But, Rami, you talked about, you know, what's going to drive volumes perhaps reaccelerating its housing turnover, right, housing mobility. So we could look at that from existing home sales and certainly rates coming down, all good guys. So just kind of help us unpack, you know, what's the lag if we look at that turnover inflecting? How does that impact your business where it's R3, a new construction? And then the other piece you guys have teased out in the past on rates was really more, You know, for your non - institutional customers, maybe credit's been more challenged and less mortgage rates. It's more, I guess, shorter - term rates and maybe their ability to kind of be able to pursue more projects. Any color on that front if the credit markets have loosened up a little bit?

A: That's a great question. I don't know that I can answer a lot of that. But what I can say from a confidence perspective, when things start to turn and things feel better, you'll see increased activity and investment. As we sit today, the mom and pops are essentially on the sideline. And that's a big, you know, that's 70% of the market. And so any momentum we can get with that segment will certainly have incremental value, you know. So when you think about R3, obviously acquisitions matter. And I think we're hearing from the REITs that this should be a good year for acquisitions, which should bode well for R3. can't predict the interest rate and what's going to get people moving around, have no earthly idea. You guys probably know that better than me, but we're just focused on being in the right position to when this thing turns around to take advantage of it. Um, and just sticking to our, you know, our corporate strategy and making sure that, that we're lean and we're focused on being able to optimize everything and take advantage of what the market has to offer.

Q: I appreciate the time. First off, I guess sales in the quarter were a bit stronger than we were expecting. I think they're above the top end of the outlook as well. While EBITDA was closer to the midpoint, so margin was a bit lower than we were expecting, I guess. I think you mentioned it a little bit in the prepared remarks, but were there any mixed impacts to call out, particularly on the gross margin side? And then kind of how should we think about the trajectory of gross margin as we move into 26?

A: As we said earlier, I think it's just the trend of the mix of, you know, a North American business being down a bit more than the other BUs that we have. And as you know, the margin rate is a lot different. You saw International, like I said earlier, continue to be strong in the quarter, and obviously their margin rate is lower than the america so that's really that trend that we saw and that's what we get indicated that's going into um 26 in our guide that makes sense.

Q: I guess if i could also just uh follow up there i guess within the context of the 26 outlook how should we think about sales and ebitda on the first quarter and how impactful was uh adverse weather in january A: I think if you look at the trend, obviously the trend we've talked about continues into Q1 where new construction in America is a bit softer. Obviously, there's a little weather impact that we've seen as well. So I would expect a slower start for the year.