Janus International Group (NYSE:JBI) outlined a year of constrained end markets and high interest rates while pointing to strategic wins, cost actions, and an acquisition intended to broaden its self-storage offering during its fourth-quarter and full-year 2025 earnings call. Management also introduced 2026 guidance that assumes no improvement in market conditions, with growth expected to come largely from the recently announced Kiwi II Construction acquisition.
2025 results reflected macro pressure, with focus on execution and liquidity
Chief Executive Officer Ramey Jackson said 2025 was “a challenging year” as markets remained constrained by macroeconomic concerns and sustained high interest rates. For the full year, the company reported $884.2 million in revenue and $168.2 million in adjusted EBITDA.
Management also emphasized capital allocation flexibility during 2025, supported by cash generation and liquidity. Jackson said the company made a voluntary $40 million prepayment on its first lien term loan in the first quarter and repurchased 1.9 million shares for $16 million during the year. The company ended 2025 with $80.5 million remaining under its share repurchase authorization and received an S&P credit rating upgrade in October, according to management.
Fourth-quarter trends: revenue down, EBITDA up; mix continued to matter
Chief Financial Officer Anselm Wong said fourth-quarter consolidated revenue was $226.3 million, down 1.9% from the prior-year period. Total self-storage revenue was down 0.4%, with new construction down 8.1% and R3 up 12.7% for the quarter. Wong attributed the decline in new construction to weaker demand in North America from non-institutional customers, partially offset by strength in the international segment, while the increase in R3 was driven by door replacement and renovation activity.
The international segment posted fourth-quarter revenue of $26.0 million, up $6.5 million, or 33.3%, driven by growth in new construction, market share gains, and positive foreign exchange, Wong said. Commercial and other segment revenue declined 5%, primarily due to softness in commercial sheet doors, partially offset by strength in rolling steel and TMC.
Wong said the revenue impact in the quarter was roughly 90% price and 10% volume. Fourth-quarter adjusted EBITDA increased 7.5% year-over-year to $37.2 million, with adjusted EBITDA margin of 16.4%, up about 140 basis points. He noted the prior-year period was negatively impacted by adjustments to provision for credit losses and an additional warranty reserve, partially offset in the current year by volume declines and mix.
The company posted adjusted net income of $15.6 million in the quarter, down 15.2% year-over-year, and adjusted EPS of $0.11. Operating cash flow was $24.8 million, and free cash flow was $19.2 million. Wong said trailing 12-month free cash flow conversion of adjusted net income was 137%.
Cost actions and operational footprint changes
Wong said the company achieved its previously announced cost reduction target of $10 million in annual pre-tax cost savings in 2025 and continues to evaluate efficiency opportunities. He added that in early 2026 the company completed an expansion at its Surprise, Arizona facility, enabling it to combine two Houston facilities and streamline its operational footprint. Wong said the move would not affect product offerings, quality standards, or customer service levels.
Balance sheet update and financing actions
Janus ended the quarter with $260.5 million in total liquidity, including $194.4 million of cash and equivalents. Total outstanding long-term debt at year-end was $551 million, and net leverage was 2.1x, according to Wong. Following the Kiwi II Construction acquisition, the company expects net leverage to remain within its target range of 2x to 3x.
Wong also noted that in February the company repriced its first lien term loan, reducing the interest rate by 50 basis points from SOFR plus 250 to SOFR plus 200, which he said lowers the cost of capital and enhances financial flexibility.
2026 guidance assumes constrained markets; Kiwi II adds revenue but pressures margin
Management introduced 2026 guidance calling for revenue of $940 million to $980 million and adjusted EBITDA of $165 million to $185 million. Jackson said the revenue range implies an 8.6% increase at the midpoint from 2025, while adjusted EBITDA implies a 4% increase at the midpoint.
Wong said the revenue outlook includes about $90 million to $100 million of inorganic revenue from the Kiwi II Construction acquisition and that guidance does not include embedded assumptions for improving market conditions. Key assumptions discussed on the call included:
- North American organic self-storage revenue expected to be down mid-single digits versus 2025, primarily due to continued softness in new construction.
- International expected to deliver high single-digit revenue growth.
- Commercial expected to return to growth in 2026, with Wong referencing the ASTA business as a driver; on the call, management also described commercial performance as roughly mid-single digit for the full year within the broader mix.
At the midpoint, the adjusted EBITDA guide implies an 18.2% margin, Wong said. However, management cautioned that margins will continue to be influenced by geographic and sales channel mix. Wong said Kiwi II’s EBITDA margin is expected to be a drag on consolidated margins in 2026, with synergies from the acquisition expected to be back-end loaded during the year. In Q&A, management indicated Kiwi II’s EBITDA margin would be in the low teens initially due to integration costs, with potential to reach the high teens longer term.
For cash flow, Wong said the company expects to be around the higher end of its 75% to 100% free cash flow conversion target range (as a percentage of adjusted net income) in 2026.
During Q&A, management said it still has roughly two to three quarters of visibility based on backlog, consistent with historical levels. Jackson reiterated that interest rates and housing mobility remain central to a recovery in self-storage new construction demand, and said the company is focused on being positioned to benefit when conditions improve.
On Nokē Smart Entry, Jackson said installed units reached 458,000 at year-end, up 25.5% year-over-year. He added the company expects to reach 500,000 units during 2026 and said scaling beyond that level would help improve profitability, while declining operating costs and improved security are resonating with customers.
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.
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