Janus International Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues were $213.1 million for the quarter, a 2.8% decrease year-over-year compared to $219.3 million.
• Net loss was $13.3 million, or $(0.10) per diluted share, compared to net income of $15.2 million, or $0.11 per diluted share, in the prior year period.
• Adjusted Net Income was $10.8 million, with Adjusted Diluted EPS of $0.08.
• Adjusted EBITDA was $34.0 million, down 22.0% year-over-year from $43.6 million.
• Adjusted EBITDA Margin was 16.0%, a decrease of approximately 390 basis points year-over-year.
• Operating cash flow for the nine months ended October 3, 2026, was $94.6 million.
• Free cash flow for the nine months ended October 3, 2026, was $86.5 million.
• Free cash flow conversion of Adjusted Net Income for the trailing twelve-month period ended October 3, 2026, was 203%.
• Net Leverage was 2.9x as of October 3, 2026.
• Gross profit was $70.5 million for the quarter, down from $85.7 million in the prior year period.
• Operating expenses were $76.0 million for the quarter, including an $18.3 million impairment of goodwill and intangible assets.

Guidance and Future Outlook:

• Full-year 2026 Total Revenue guidance is updated to a range of $855 million to $865 million, representing a midpoint decline of 2.7% year-over-year.
• Full-year 2026 Inorganic Revenue guidance is updated to a range of $55 million to $60 million.
• Full-year 2026 Adjusted EBITDA guidance is updated to a range of $127 million to $133 million, representing a midpoint decline of 22.7% year-over-year.
• Management noted that market conditions remained dynamic with activity levels softer than anticipated.

Business Segments and Product Lines:

• Total Self-Storage revenues decreased 5.0% year-over-year.
• Self-Storage New Construction revenues decreased 1.6% year-over-year to $95.7 million.
• Self-Storage R3 revenues decreased 10.6% year-over-year to $51.2 million.
• Commercial and Other revenues increased 2.3% year-over-year to $66.2 million.
• The acquisition of Kiwi II Construction contributed $10.7 million to the New Construction sales channel.
• Nokē Smart Entry System connected devices totaled 524,000 at quarter end, up 19.4% year-over-year.

Market and Competitive Landscape:

• The self-storage industry remains highly competitive.
• Management cited general economic conditions, including capital and credit markets, inflation, supply chain constraints, and geopolitical conflicts as potential risks.

Risks and Challenges:

• Risks include the potential inability to successfully integrate and develop Kiwi II Construction into operations.
• Risks include the inability to realize expected benefits and efficiencies from cost-savings initiatives and restructuring activities.
• Risks include the possibility that the demand outlook for products may not be as strong as anticipated.
• Risks include litigation, complaints, adverse publicity, and cyber incidents.
• Risks include fluctuations in interest rates and changes in consumer practices due to slower economic growth.

Management Commentary and Tone:

• CEO Ramey Jackson stated that while long-term fundamentals remain intact, the company is taking actions to align its operating structure with current demand, improve efficiency, and strengthen the business.
• Management emphasized maintaining financial flexibility to create long-term shareholder value.

Other Key Points:

• The Company completed a voluntary prepayment of $30.0 million towards its First Lien Term Loan during the quarter.
• The Company repurchased approximately 5.0 million shares of common stock for a total of $25.3 million (including commissions and excise taxes) during the quarter.
• Year-to-date, the Company repurchased approximately 8.2 million shares of common stock for a total of $42.9 million (including commissions and excise taxes).
• The Company recorded an $18.3 million impairment of goodwill and intangible assets related to the write-down of goodwill at BETCO and Kiwi II reporting units and the write-down of certain indefinite-lived tradenames.
• The Company recorded $5.5 million in restructuring charges for the nine-month period, consisting of facility relocations, severance and hiring costs, and strategic business assessment projects.