Janus International 2025 Q2 Earnings Below Expectations as Net Income Falls 25%

Janus International (JBI) reported its fiscal 2025 Q2 earnings on August 7, 2025, with results falling below expectations. The company reaffirmed its full-year 2025 guidance despite a 25% year-over-year drop in net income, signaling a mixed outlook amid ongoing economic challenges and soft demand in the self-storage market.

Revenue
Total revenue for the second quarter declined by 8.2% to $228.1 million, compared to $248.4 million in the same period last year. This drop was primarily driven by a 14.8% decrease in self-storage revenue, partially offset by a 6.7% increase in commercial and other revenues. Within the self-storage segment, new construction revenue fell to $93.9 million (41.2% of total sales), while R3 (residential and commercial) revenue dropped to $52.9 million (23.2% of total sales). Commercial and other sales reached $81.3 million, representing 35.6% of total revenue. The acquisition of TMC, completed in May 2024, contributed $3.8 million to commercial and other revenues in a partial quarter.

Earnings/Net Income
Janus International’s net income dropped by 25% to $20.7 million in the second quarter of 2025, or $0.15 per diluted share, compared to $27.6 million, or $0.19 per diluted share, in the same period in 2024. Adjusted net income, which excludes certain non-cash and non-recurring items, fell 21.9% to $28.2 million. Adjusted earnings per share decreased by 20% to $0.20. Despite these declines, the company has maintained profitability for five consecutive years, reflecting its resilient business model.

Price Action
The stock price of Janus International gained 4.85% on the latest trading day and rose 14.82% over the most recent full trading week. Over the past month, the stock surged 10.44%, outpacing broader market trends.

Post-Earnings Price Action Review
A strategy of purchasing Janus International shares following the earnings report and holding for 30 days yielded a -19.87% return, significantly underperforming the benchmark, which returned 49.40% during the same period. This resulted in an excess return of -69.27% and a compound annual growth rate of -7.19%, underscoring the strategy’s poor performance. While the holding period appears to have limited further losses (maximum drawdown of 0.00%), the Sharpe ratio of -0.16 and a volatility of 45.60% indicate a high-risk, low-reward proposition for investors.

CEO Commentary
Ramey Jackson, CEO of Janus International, emphasized that the company delivered results above expectations despite ongoing macroeconomic headwinds. He highlighted a market recovery in commercial and international segments, stable backlog and pipeline, and strong cash generation and disciplined capital allocation. Jackson noted that the self-storage business faced a 14.8% decline in new construction due to economic uncertainty, while R3 sales were impacted by reduced big box retail activity. Looking ahead, Jackson expressed optimism about long-term fundamentals, including recurring life events and aging self-storage infrastructure, and outlined strategic investments in digital innovation, brand expansion, and structural manufacturing to drive growth. Additionally, the appointment of Jason Williams as President of Janus Core is expected to enhance product development and leadership capabilities.

Guidance
Anselm Wong reaffirmed full-year 2025 guidance, with revenue projected to range between $860 million and $890 million and adjusted EBITDA expected to fall between $175 million and $195 million. Improved margins are anticipated in the second half of the year, with free cash flow conversion expected to exceed the target range of 75% to 100%. The company plans to pursue both organic and inorganic growth in the commercial and international segments, with new construction remaining soft and third-quarter revenue expected to outpace the fourth.

Additional News
On August 7, 2025, Janus International Group reported second-quarter financial results for 2025. The company achieved a total revenue of $228.1 million, net income of $20.7 million, or $0.15 per diluted share, and adjusted earnings per share of $0.20. Adjusted EBITDA was reported at $49.0 million with an adjusted EBITDA margin of 21.5%. Additionally, the company deployed $10.1 million into share repurchases and reaffirmed full-year revenue and adjusted EBITDA guidance. The acquisition of TMC in May 2024 contributed $3.8 million in commercial and other revenues, reflecting the partial quarter impact of the acquisition. The company’s CEO, Ramey Jackson, expressed confidence in the company’s strong balance sheet and ability to navigate current market challenges while maintaining a focus on long-term value creation for shareholders.