Janus International Group, Inc.

Hello and welcome to the Janus International Group Second Quarter 2026 Earnings Conference Call. All participants are in a listen-only mode, and a question and answer session will follow the formal presentation. If you should require operator assistance during the conference, you may press star zero on your telephone keypad. As a reminder, this call is being recorded. I would now like to turn the call over to your host, Ms. Sara Macioch. Senior Director, Investor Relations of Janus. Please go ahead.

Thank you, Operator, and thank you all for joining our earnings conference call. I am joined today by our Chief Executive Officer, Ramey Jackson, and our Chief Financial Officer, Anselm Wong. We hope that you have seen our earnings release issued this morning. We have also posted a presentation in support of this call, which can be found in the investor section of our website at JanusINTL.com. Our remarks in the press release, presentation, and on this call contain forward-looking statements regarding the company's business, strategy, operations, and financial performance. Please review the forward-looking statements section in today's press release and in our SEC filings for various factors that could cause our actual results to differ materially from our forward-looking statements and projections. The company expressly disclaims any obligation to update or revise publicly any forward-looking statements whether as a result of new information, future events, or otherwise. Additionally, non-GAAP financial measures will be referenced in this call. A reconciliation of these measures to the most directly comparable GAAP financial measure can be found in our earnings press release and presentation. On today's call, Ramey will provide an overview of our business. Anselm will continue with a discussion of our financial results and 2026 guidance before Ramey shares some closing thoughts and we open up the call for your questions. At this point, I will turn the call over to Ramey.

Thanks, Sarah, and good morning, everyone. Thank you all for joining our call today. Second quarter results reflected a continuation of the macroeconomic trends we have discussed throughout the year, as the operating environment remained challenging across many of the markets we serve. While we remain focused on execution and serving our customers, these factors had a greater impact on demand than we anticipated. As a result, total revenue totaled $233.5 million and adjusted EBITDA was $40.2 million. Based on our year-to-date performance and current visibility, we are revising our full-year guidance. Demand levels across our core business have not trended as we expected, and we believe it's appropriate to reflect that reality in our outlook. While we have updated our expectations to reflect current market conditions, our conviction and strategy remains unchanged. We remain focused on executing against the priorities that we believe will strengthen the business and create long-term value. Let me take a few minutes to discuss our progress on those initiatives. As a reminder, we refer to our strategic framework as GROW, Greater Penetration of Self-Storage, Granting Adoption of Smart Security Solutions, Outperforming in the Commercial Market, and Winning through Strategic Accretive Acquisitions. Beginning with greater penetration of self-storage, market conditions remain challenging during the quarter, predominantly in North American new construction, where project activity and customer investment levels continue to be constrained, particularly among our smaller customers. We continue to expand and refine our product offering in order to adapt to our customers' changing needs, including our R3 business, international presence, and design-build capabilities, allowing us to deliver more comprehensive solutions. Integration of our QE2 construction acquisition remains on track. Anselm will speak further to our expectations for the business this year shortly. Next, ramping our smart security solutions through our Nokia Smart Entry platform, during the quarter, we reached a significant milestone of surpassing 500,000 installed Nokia units. This achievement reflects years of investment and execution and marks an important inflection point for the platform. As we have discussed in prior periods, scale has always been a critical component of the NOKI strategy. Reaching this stage marks an important step in that journey and supports our ongoing efforts to improve profitability and drive greater recurring revenue over time. Adoption of NOKI continues to increase, reinforcing the meaningful value in the solutions that help our customers improve operational efficiencies, enhance security, and streamline facility management. As we continue to advance our product roadmap, we have been encouraged by the initial interest in Nokia Infinity, our on-door dual technology smart locking system we announced earlier this year. We expect Nokia Infinity will be available for factory install on both roll-up and swing doors beginning in the fourth quarter. The third priority of our growth strategy is increasing our share in the market for commercial doors. While commercial sheet door demand remains soft, We are seeing benefits from our expanded distribution footprint and architectural specification initiatives. Our efforts in the data center space also continues to progress. We are exploring new product capabilities and continuing to position ourselves as a strategic manufacturing partner for OEMs. Our final priority is winning through discipline M&A. Strategic acquisitions remain an important component of our strategy. and we continue to evaluate opportunities that enhance our capabilities, expand our solutions offering, and support long-term value creation. Combined with our scalable operating platform, this disciplined approach enables us to pursue growth while maintaining a relatively low capital intensity business model and strong cash flow generation. As we look ahead, we will continue to focus on what we can control. Anselm,