NN, Inc. (NASDAQ: NNBR) lifts 2026 outlook as margins improve on lower 2025 sales
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
NN, Inc. reported 2025 results showing lower sales but stronger profitability metrics. Net sales were $422.2 million, down from $464.3 million in 2024, largely due to exiting underperforming businesses and a prior divestiture. Despite this, adjusted EBITDA rose to $49.0 million, with margin improving to 11.6% from 10.4%, helped by plant rationalizations, lower headcount, and reduced depreciation.
The Power Solutions segment held sales roughly flat year over year while expanding adjusted operating margin, and Mobile Solutions deliberately shrank low-margin auto volumes but significantly improved adjusted operating income. For 2026, the company guides net sales to $445–$465 million, adjusted EBITDA to $50–$60 million, and targets $70–$80 million of new business wins, reflecting expectations for a return to organic growth as record volumes of new programs launch in higher-growth markets like electrical grid, data centers, defense, and medical.
Positive
- None.
Negative
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Insights
Margins and EBITDA improved in 2025 despite lower revenue, with 2026 guided to renewed growth.
NN, Inc. reduced 2025 net sales to
Power Solutions kept revenue roughly stable while expanding adjusted operating margin to
For
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 4, 2026
(Exact name of registrant as specified in its charter)
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Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c)) | |||||
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
| Emerging growth company. | |||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | |||||
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On March 4, 2026, NN, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the quarter and year ended December 31, 2025. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (the "Current Report").
Pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), the information furnished pursuant to Item 2.02 of this Current Report (including Exhibit 99.1) is deemed to have been furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
ITEM 7.01 REGULATION FD DISCLOSURE
On March 4, 2026, the Company posted a supplemental presentation to its website, https://investors.nninc.com/, which will be presented during its quarterly investor conference call on March 5, 2026, at 9:00 a.m. ET. The supplemental presentation is included as Exhibit 99.2 to this Current Report.
Pursuant to the rules and regulations of the SEC, the information furnished pursuant to Item 7.01 of this Current Report (including Exhibit 99.2) is deemed to have been furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
| Exhibit No. | Description of Exhibit | |||||||
| 99.1 | Press Release issued by NN, Inc., dated March 4, 2026 | |||||||
| 99.2 | Earnings Presentation, dated March 5, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | |||||
| Date: | March 4, 2026 | ||||
| NN, INC. | ||||||||
| By: | /s/ Christopher H. Bohnert | |||||||
| Name: | Christopher H. Bohnert | |||||||
| Title: | Senior Vice President and Chief Financial Officer | |||||||
 |  | ||||
FOR IMMEDIATE RELEASE
NN, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
NN delivers third consecutive year of successful transformation; completes majority of heavy spending
NN forecasts fourth year of improvement, and a return to organic net sales growth in 2026
CHARLOTTE, N.C., March 4, 2026 – NN, Inc. (NASDAQ: NNBR) (“NN” or the “Company”), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today reported its financial results for the fourth quarter and full-year ended December 31, 2025. Key results include:
Financial Highlights
•Q4 2025 net sales of $104.7 million and full-year 2025 net sales $422.2 million
•Q4 2025 gross margin of 9.2% and full-year 2025 gross margin of 14.1%
•Q4 2025 adjusted gross margin of approximately 18.8%, up 120 bps and approaching the Company's five-year target of 20%
•Q4 2025 operating loss of $10.4 million, and full-year 2025 operating loss of $18.9 million, improving 38.3% and 31.3%, respectively
•Q4 2025 adjusted operating income of $3.3 million and full-year 2025 adjusted operating income of $14.2 million, improving 34.2% and 180.0%, respectively
•Q4 2025 GAAP net loss of $11.3 million or $0.35 per share and full year 2025 GAAP net loss of $24.4 million, or $1.07 per share
•Q4 2025 adjusted earnings per share of $0.00 and adjusted loss per share of $0.03 for the full-year 2025
•Q4 2025 adjusted EBITDA of $12.9 million (12.3% of net sales) and full year 2025 adjusted EBITDA of $49.0 million (11.6% of net sales), respectively
Commercial & Strategic Highlights
•Third consecutive year of achieving or beating target rate of new business wins, with approximately $70 million secured in 2025, exceeding guidance range, and bringing the three-year cumulative total to more than $200 million
◦New wins are accretive to consolidated margin profile
◦NN is achieving a >20% hit rate on new business opportunities
•NN has won more than 170 new sales program awards which have launched during 2025 or will launch in 2026
•NN secured its first new business win in the data center market with expanded commercial plans in the data center and electrical/power infrastructure ecosystem
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•Sales pipeline of more than $800 million across more than 800 programs, concentrated in targeted areas.
◦During 2025, NN significantly upsized the business development team for electrical products
•NN formed a Strategic Committee of the Board of Directors in December 2025 to evaluate a range of strategic and financing alternatives to enhance shareholder value.
"NN delivered a third consecutive year of improved financial performance in 2025, and we look ahead to 2026 with increased confidence in our trajectory for sales, margins, and adjusted EBITDA," said Harold Bevis, Chief Executive Officer of NN, Inc. "In 2025 we drove adjusted EBITDA towards recent highs despite softness in automotive and commercial vehicle markets and record high precious metal prices. Importantly, we completed the most capital-intensive portion of our transformation plan that included plant closures, significant headcount realignment, and exiting dilutive business. As a result, NN enters 2026 as a healthier, leaner, and more focused company, performing on multiple fronts, while beginning our next chapter of net sales growth."
Bevis continued, "We expect 2026 to be a meaningful inflection point, and we are guiding to a fourth consecutive year of improved adjusted EBITDA which we expect to range between $50 million to $60 million. Our forecasted sales growth is already underway in the first quarter of 2026, and we plan to launch approximately 100 new programs in 2026. These new programs carry accretive margins that will strengthen our EBITDA and cash flow profile as they ramp. Critically, the success of our new wins program, our planned launches, and more stable markets will return NN’s annual net sales growth. We expect real commercial momentum, and we are also increasing our goals for new business wins for the year to a range of $70 million to $80 million."
Bevis concluded, "The progress we have made and the momentum we are carrying into 2026 and beyond gives us increasing confidence in NN's forward net sales trajectory. Our business mix continues to shift toward higher-growth, higher-margin markets including data center power, electrical grid infrastructure, defense, and medical, and we recently secured our first direct data center win. We believe the combination of our operational transformation and accelerating sales growth positions NN to deliver meaningful and sustained value creation for shareholders both in 2026 and in the years ahead."
Fourth Quarter Results
Net sales were $104.7 million, a decrease of 1.7% compared to the fourth quarter of 2024 net sales of $106.5 million, which was primarily due to rationalization of underperforming business and plants and lower volumes partially offset by favorable foreign exchange impact of $2.1 million.
Loss from operations for the fourth quarter was $10.4 million compared to a loss from operations of $16.9 million for the same period of 2024. The year-over-year improvement was due to rationalization of underperforming business and plants, impairment of machinery and equipment recorded in 2024 at a plant that closed in 2025, and lower compensation expense due to decreased headcount.
Net loss for the fourth quarter was $12.5 million compared to net loss of $21.0 million for the same period in 2024. The year-over-year improvement was due to rationalization of underperforming business and plants, impairment of machinery and equipment recorded in 2024 at a plant that closed in 2025, and lower compensation expense due to decreased headcount.
Full-Year Results
Net sales for the year ended December 31, 2025, were $422.2 million compared to $464.3 million for the same period of 2024, a decrease of $42.1 million, or 9.1%. This was primarily due to the rationalization of underperforming business and plants, sale of our Lubbock operations, lower volumes, and unfavorable foreign exchange effects of $0.6 million. These decreases were partially offset by the contribution of new business launches and higher precious metals pass-through pricing. Power Solutions sales were up while Mobile Solutions sales were down primarily due to a decline in low-margin auto parts business.
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Loss from operations for the year ended December 31, 2025, was $18.9 million compared to a loss from operations of $27.5 million for the same period of 2024. The year-over-year improvement was due to rationalization of underperforming business and plants, impairment of machinery and equipment recorded in 2024 at a plant that closed in 2025, decrease in depreciation due to the impact of historical purchase accounting step-up basis being fully depreciated in the second half of 2024, and lower compensation expense due to decreased headcount. The improvement is partially offset by lower volumes.
Net loss for the year ended December 31, 2025, was $34.0 million compared to net loss of $38.3 million for the same period of 2024. The year-over-year improvement was primarily due to our improvement in loss from operations. The improvement is partially offset by loss on extinguishment of debt in 2025.
Fourth Quarter Adjusted Results
Adjusted EBITDA for the fourth quarter of 2025 was $12.9 million, or 12.3% of sales, compared to $12.1 million, or 11.3% of sales, for the same period of 2024. Adjusted income from operations for the fourth quarter of 2025 was $3.3 million compared to adjusted income from operations of $2.4 million for the same period of 2024.
Adjusted net loss for the fourth quarter of 2025 was $0.1 million, or $0.00 per diluted share, compared to adjusted net loss of $0.9 million, or $0.02 per diluted share, for the same period of 2024.
Power Solutions
Net sales for the fourth quarter of 2025 were $45.5 million compared to $39.2 million in the same period in 2024, an increase of 16.1%. The increase was primarily due to steady volumes, higher precious metals pass-through pricing and favorable foreign exchange effects.
Loss from operations for the fourth quarter was $3.9 million compared to income from operations of $1.3 million for the same period of 2024.
Adjusted income from operations for the fourth quarter was $4.9 million compared to adjusted income from operations of $4.6 million for the same period of 2024. The increase in adjusted income from operations was primarily due to lower administrative costs.
Net sales for the year ended December 31, 2025, were $178.6 million compared to $180.5 million for the same period of 2024, a decrease of $1.9 million, or 1.1%. This was primarily due to the sale of our Lubbock operations, lower volumes and unfavorable foreign exchange effects of $0.8 million. These decreases were partially offset by higher precious metals pass-through pricing.
Income from operations for the year ended December 31, 2025 was $10.3 million compared to income from operations of $13.1 million for the same period of 2024, a decrease of $2.8 million. This was primarily due to the sale of our Lubbock operations and lower volumes. The decrease is partially offset by lower administrative costs and lower depreciation and amortization expense due to sold or fully utilized assets.
Adjusted income from operations for the year ended December 31, 2025 was $26.9 million compared to adjusted income from operations of $24.7 million for the same period in 2024.
Mobile Solutions
Net sales for the fourth quarter of 2025 were $59.3 million compared to $67.4 million in the fourth quarter of 2024, a decrease of 12.0%. The decrease was primarily driven by rationalization of underperforming business and plants and lower volumes and partially offset by favorable foreign exchange impact.
Loss from operations for the fourth quarter was $1.4 million compared to loss from operations of $12.9 million for the same period of 2024. The improvement was primarily driven by rationalization of underperforming business and plants,
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impairment of machinery and equipment recorded in 2024 at a plant that closed in 2025, and lower compensation expense due to decreased headcount.
Adjusted income from operations for the fourth quarter was $3.1 million compared to adjusted income from operations of $2.5 million for the same period of 2024. The increase in adjusted income from operations was primarily due to the rationalization of underperforming business and plants.
Net sales for the year ended December 31, 2025, were $244.0 million compared to $283.9 million for the same period of 2024, a decrease of $39.9 million, or 14.1%. This was primarily due to rationalization of underperforming business and plants, lower volume in North America, and partially offset by favorable foreign exchange effects.
Loss from operations for the year ended December 31, 2025, was $8.0 million compared to loss from operations of $18.1 million for the same period of 2024. The improvement was primarily driven by rationalization of underperforming business and plants, impairment of machinery and equipment recorded in 2024 at a plant that closed in 2025, lower depreciation expense due to the impact of historical purchase accounting step-up becoming fully depreciated in the second half of 2024, and lower compensation expense due to decreased headcount.
Adjusted income from operations for the year ended December 31, 2025, was $7.3 million compared to adjusted income from operations of $1.5 million for the same period of 2024. The increase was primarily due to rationalization of underperforming business and plants and lower depreciation expense due to the impact of historical purchase accounting step-up becoming fully depreciated in the second half of 2024.
2026 Outlook
•Revenues are expected to range between $445 to $465 million with modest organic growth coupled with new business launches, values may vary based on metals cost
•Adjusted EBITDA expected to range between $50 and $60 million with modest operating leverage
•New business wins are expected to increase to $70 to $80 million
Chris Bohnert, Senior Vice President and Chief Financial Officer commented, “For fiscal 2026, we are guiding net sales in the range of $445 million to $465 million and adjusted EBITDA in the range of $50 million to $60 million, reflecting a return to year-over-year net sales growth, and a notable expansion versus prior year. Importantly, this top-line growth will flow through a cost structure that has been fundamentally improved over the course of our transformation. The resulting operating performance is expected to drive adjusted EBITDA growth and margin expansion.”
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Conference Call
NN will discuss its results during its quarterly investor conference call on March 5, 2026, at 9 a.m. ET. The call and supplemental presentation may be accessed via NN's website, www.nninc.com. The conference call can also be accessed by dialing 1-877-255-4315 or 1-412-317-6579. For those who are unavailable to listen to the live broadcast, a replay will be available shortly after the call until March 6, 2027.
NN discloses in this press release the non-GAAP financial measures of adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow. Each of these non-GAAP financial measures provides supplementary information about the impacts of restructuring and integration expense, acquisition and transition expenses, foreign exchange impacts on inter-company loans, amortization of intangibles and deferred financing costs, and other non-operating impacts on our business.
The financial tables found later in this press release include a reconciliation of adjusted income (loss) from operations, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per diluted share, free cash flow to the U.S. GAAP financial measures of income (loss) from operations, net income (loss), net income (loss) per diluted common share, and cash provided (used) by operating activities.
The Company is unable to include a reconciliation of forward-looking Adjusted EBITDA to net loss, the most directly comparable GAAP measure, without unreasonable effort due to the high variability with respect to the impact of items such as income taxes, depreciation and amortization, stock-based compensation expense and other items that are excluded from this non-GAAP measure.
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About NN, Inc.
NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Europe, South America, and Asia. For more information about the company and its products, please visit www.nninc.com.
This press release contains express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for full year 2026, the impact of, and our ability to execute, our corporate strategies and business initiatives, the potential impact tariffs, high interest rates, high metal costs and additional economic uncertainties may have on our financial condition and results of operations, and the results and timing of our strategic review process. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project”, “achieve”, “growth”, “enable”, “improve”, or the negative of those terms, and similar words, phrases or expressions that convey uncertainty of future events or outcomes. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises on our financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; new laws and governmental regulations; the impact of climate change on our operations; uncertainty of government policies and actions after recent U.S. elections in respect to global trade, tariffs and international trade agreements; and cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.
With respect to any non-GAAP financial measures included in the following document, the accompanying information required by SEC Regulation G can be found in the back of this document or in the “Investors” section of the Company’s web site, www.nninc.com, under the heading “News & Events” and subheading “Presentations.”
With respect to any non-GAAP financial measures included in the following document, the accompanying information required by SEC Regulation G can be found in the back of this document or in the “Investors” section of the Company’s web site, www.nninc.com, under the heading “News & Events” and subheading “Presentations.”
Investor & Media Contacts:
Joe Caminiti or Abe Plimpton
NNBR@alpha-ir.com
312-445-2870
Financial Tables Follow
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NN, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| (in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net sales | $ | 104,715 | $ | 106,513 | $ | 422,207 | $ | 464,290 | |||||||||||||||
| Cost of sales (exclusive of depreciation and amortization shown separately below) | 95,093 | 95,338 | 362,848 | 394,812 | |||||||||||||||||||
| Selling, general, and administrative expense | 11,846 | 12,365 | 46,171 | 49,481 | |||||||||||||||||||
| Depreciation and amortization | 9,167 | 10,150 | 35,923 | 45,302 | |||||||||||||||||||
| Other operating expense (income), net | (977) | 5,528 | (3,820) | 2,243 | |||||||||||||||||||
| Loss from operations | (10,414) | (16,868) | (18,915) | (27,548) | |||||||||||||||||||
| Interest expense | 5,850 | 5,452 | 22,367 | 22,095 | |||||||||||||||||||
| Loss on extinguishment of debt | — | 349 | 3,007 | 349 | |||||||||||||||||||
| Other expense (income), net | (1,710) | 65 | (4,568) | (4,558) | |||||||||||||||||||
| Loss before provision for income taxes and share of net income from joint venture | (14,554) | (22,734) | (39,721) | (45,434) | |||||||||||||||||||
| Provision for income taxes | (255) | (1,216) | (3,153) | (2,410) | |||||||||||||||||||
| Share of net income from joint venture | 2,271 | 2,974 | 8,870 | 9,571 | |||||||||||||||||||
| Net loss | $ | (12,538) | $ | (20,976) | $ | (34,004) | $ | (38,273) | |||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Foreign currency transaction gain (loss) | 1,203 | (7,642) | 9,588 | (9,405) | |||||||||||||||||||
| Interest rate swap: | |||||||||||||||||||||||
| Reclassification adjustments included in net loss, net of tax | — | — | — | (1,007) | |||||||||||||||||||
| Other comprehensive income (loss) | $ | 1,203 | $ | (7,642) | $ | 9,588 | $ | (10,412) | |||||||||||||||
| Comprehensive loss | $ | (11,335) | $ | (28,618) | $ | (24,416) | $ | (48,685) | |||||||||||||||
| Basic and diluted net loss per common share: | |||||||||||||||||||||||
| Basic and diluted net loss per share | $ | (0.35) | $ | (0.51) | $ | (1.07) | $ | (1.11) | |||||||||||||||
| Shares used to calculate basic and diluted net loss per share | 49,624 | 49,039 | 49,437 | 48,653 | |||||||||||||||||||
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NN, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
| (in thousands, except per share data) | December 31, 2025 | December 31, 2024 | |||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 11,377 | $ | 18,128 | |||||||
| Accounts receivable, net | 59,785 | 61,549 | |||||||||
| Inventories | 65,978 | 61,877 | |||||||||
| Income tax receivable | 13,389 | 12,634 | |||||||||
| Prepaid assets | 2,952 | 2,855 | |||||||||
| Other current assets | 10,526 | 10,519 | |||||||||
| Total current assets | 164,007 | 167,562 | |||||||||
| Property, plant and equipment, net | 158,885 | 162,034 | |||||||||
| Operating lease right-of-use assets | 35,155 | 39,317 | |||||||||
| Intangible assets, net | 30,789 | 44,410 | |||||||||
| Investment in joint venture | 42,543 | 34,971 | |||||||||
| Deferred tax assets | 1,673 | 1,329 | |||||||||
| Other non-current assets | 7,732 | 7,270 | |||||||||
| Total assets | $ | 440,784 | $ | 456,893 | |||||||
| Liabilities, Preferred Stock, and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 49,442 | $ | 38,879 | |||||||
| Accrued salaries, wages and benefits | 14,004 | 19,915 | |||||||||
| Income tax payable | 553 | 659 | |||||||||
| Short-term debt and current maturities of long-term debt | 5,791 | 5,039 | |||||||||
| Current portion of operating lease liabilities | 6,430 | 6,038 | |||||||||
| Other current liabilities | 13,575 | 13,382 | |||||||||
| Total current liabilities | 89,795 | 83,912 | |||||||||
| Deferred tax liabilities | 4,312 | 4,969 | |||||||||
| Long-term debt, net of current maturities | 153,758 | 143,591 | |||||||||
| Operating lease liabilities, net of current portion | 37,092 | 42,291 | |||||||||
| Other non-current liabilities | 9,420 | 14,111 | |||||||||
| Total liabilities | 294,377 | 288,874 | |||||||||
| Commitments and contingencies | |||||||||||
| Series D perpetual preferred stock | 112,409 | 93,497 | |||||||||
| Stockholders' equity: | |||||||||||
| Common stock | 502 | 499 | |||||||||
| Additional paid-in capital | 439,700 | 455,811 | |||||||||
| Accumulated deficit | (367,625) | (333,621) | |||||||||
| Accumulated other comprehensive loss | (38,579) | (48,167) | |||||||||
| Total stockholders’ equity | 33,998 | 74,522 | |||||||||
| Total liabilities, preferred stock, and stockholders’ equity | $ | 440,784 | $ | 456,893 | |||||||
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NN, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Year Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Cash flows from operating activities | |||||||||||
| Net loss | $ | (34,004) | $ | (38,273) | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 35,923 | 45,302 | |||||||||
| Amortization of debt issuance costs and discount | 1,494 | 2,288 | |||||||||
| Paid-in-kind interest | 2,664 | 2,677 | |||||||||
| Impairments of property, plant and equipment | — | 6,546 | |||||||||
| Loss on extinguishment of debt and write-off of debt issuance costs | 3,007 | 349 | |||||||||
| Total derivative gain, net of cash settlements | (3,324) | (1,036) | |||||||||
| Share of net income from joint venture, net of cash dividends received | (5,824) | (3,311) | |||||||||
| Gain on sale of business | — | (7,154) | |||||||||
| Share-based compensation expense | 3,200 | 3,140 | |||||||||
| Deferred income taxes | (961) | (690) | |||||||||
| Other | (792) | (1,074) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 4,129 | (2,839) | |||||||||
| Inventories | (1,826) | 4,210 | |||||||||
| Other operating assets | 1,473 | (1,558) | |||||||||
| Income taxes receivable and payable, net | (837) | (662) | |||||||||
| Accounts payable | 10,647 | (3,894) | |||||||||
| Other operating liabilities | (9,298) | 7,049 | |||||||||
| Net cash provided by operating activities | 5,671 | 11,070 | |||||||||
| Cash flows from investing activities | |||||||||||
| Acquisition of property, plant and equipment | (12,919) | (18,314) | |||||||||
| Proceeds from sale of property, plant, and equipment | 1,885 | 306 | |||||||||
| Proceeds received from sale of business | — | 17,000 | |||||||||
| Net cash used in investing activities | (11,034) | (1,008) | |||||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from asset backed credit facilities | 53,000 | 63,400 | |||||||||
| Repayments of asset backed credit facilities | (53,700) | (58,000) | |||||||||
| Proceeds from long-term debt | 118,590 | — | |||||||||
| Repayments of long-term debt | (115,770) | (38,031) | |||||||||
| Cash paid for debt issuance costs | (3,811) | (2,011) | |||||||||
| Proceeds from sale-leaseback of equipment | 1,385 | 8,324 | |||||||||
| Proceeds from sale-leaseback of land and buildings | 4,300 | 16,863 | |||||||||
| Repayments of financing obligations | (1,359) | (781) | |||||||||
| Other | (5,086) | (3,009) | |||||||||
| Net cash used in financing activities | (2,451) | (13,245) | |||||||||
| Effect of exchange rate changes on cash flows | 1,063 | (592) | |||||||||
| Net change in cash and cash equivalents | (6,751) | (3,775) | |||||||||
| Cash and cash equivalents at beginning of year | 18,128 | 21,903 | |||||||||
| Cash and cash equivalents at end of quarter | $ | 11,377 | $ | 18,128 | |||||||
9
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and Gross Margin
| Three Months Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Net sales | $ | 104,715 | $ | 106,513 | |||||||
| Cost of sales (exclusive of depreciation and amortization) | 95,093 | 95,338 | |||||||||
| GAAP gross profit | 9,622 | 11,175 | |||||||||
| Personnel costs (1) | 2,983 | 616 | |||||||||
| Facility costs (2) | 6,327 | 6,341 | |||||||||
| Other | 776 | 778 | |||||||||
| Adjusted gross profit (a) | $ | 19,708 | $ | 18,910 | |||||||
| Adjusted gross margin (3) | 18.8 | % | 17.8 | % | |||||||
| Year Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Net sales | $ | 422,207 | $ | 464,290 | |||||||
| Cost of sales (exclusive of depreciation and amortization) | 362,848 | 394,812 | |||||||||
| GAAP gross profit | 59,359 | 69,478 | |||||||||
| Personnel costs (1) | 9,294 | 1,492 | |||||||||
| Facility costs (2) | 6,327 | 7,292 | |||||||||
| Other | 3,108 | 3,113 | |||||||||
| Adjusted gross profit (a) | $ | 78,088 | $ | 81,375 | |||||||
| Adjusted gross margin (3) | 18.5 | % | 17.5 | % | |||||||
10
Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations
| Three Months Ended December 31, | |||||||||||
| (in thousands) | |||||||||||
| NN, Inc. Consolidated | 2025 | 2024 | |||||||||
| GAAP loss from operations | $ | (10,414) | $ | (16,868) | |||||||
| Professional fees | 422 | 568 | |||||||||
| Personnel costs (1) | 676 | 1,577 | |||||||||
| Facility costs (2) | 9,165 | 7,199 | |||||||||
| Amortization of intangibles | 3,406 | 3,406 | |||||||||
| Fixed asset impairments | — | 6,546 | |||||||||
| Non-GAAP adjusted income from operations (a) | $ | 3,255 | $ | 2,428 | |||||||
| Non-GAAP adjusted operating margin (3) | 3.1 | % | 2.3 | % | |||||||
| GAAP net sales | $ | 104,715 | $ | 106,513 | |||||||
| Three Months Ended December 31, | |||||||||||
| (in thousands) | |||||||||||
| Power Solutions | 2025 | 2024 | |||||||||
| GAAP income (loss) from operations | $ | (3,916) | $ | 1,307 | |||||||
| Professional fees | — | — | |||||||||
| Personnel costs (1) | 25 | 706 | |||||||||
| Facility costs (2) | 6,178 | 51 | |||||||||
| Amortization of intangibles | 2,567 | 2,567 | |||||||||
| Non-GAAP adjusted income from operations (a) | $ | 4,854 | $ | 4,631 | |||||||
| Non-GAAP adjusted operating margin (3) | 10.7 | % | 11.8 | % | |||||||
| GAAP net sales | $ | 45,529 | $ | 39,221 | |||||||
| Three Months Ended December 31, | |||||||||||
| (in thousands) | |||||||||||
| Mobile Solutions | 2025 | 2024 | |||||||||
| GAAP loss from operations | $ | (1,370) | $ | (12,864) | |||||||
| Personnel costs (1) | 637 | 790 | |||||||||
| Facility costs (2) | 2,986 | 7,148 | |||||||||
| Amortization of intangibles | 838 | 839 | |||||||||
| Fixed asset impairments | — | 6,546 | |||||||||
| Non-GAAP adjusted income from operations (a) | $ | 3,091 | $ | 2,459 | |||||||
| Share of net income from joint venture | 2,271 | 2,974 | |||||||||
| Non-GAAP adjusted income from operations with JV (a) | $ | 5,362 | $ | 5,433 | |||||||
| Non-GAAP adjusted operating margin (3) | 9.0 | % | 8.1 | % | |||||||
| GAAP net sales | $ | 59,264 | $ | 67,351 | |||||||
| Three Months Ended December 31, | |||||||||||
| (in thousands) | |||||||||||
| Elimination | 2025 | 2024 | |||||||||
| GAAP net sales | $ | (78) | $ | (59) | |||||||
(1)Personnel costs include recruitment, retention, relocation, and severance costs
(2)Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations
(3)Non-GAAP adjusted operating margin = Non-GAAP adjusted income (loss) from operations / GAAP net sales
11
Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations
| Year Ended December 31, | |||||||||||
| (in thousands) | |||||||||||
| NN, Inc. Consolidated | 2025 | 2024 | |||||||||
| GAAP loss from operations | $ | (18,915) | $ | (27,548) | |||||||
| Professional fees | 977 | 648 | |||||||||
| Personnel costs (1) | 8,739 | 3,437 | |||||||||
| Facility costs (2) | 9,825 | 8,280 | |||||||||
| Amortization of intangibles | 13,621 | 13,723 | |||||||||
| Fixed asset impairments | — | 6,546 | |||||||||
| Non-GAAP adjusted income from operations (a) | $ | 14,247 | $ | 5,086 | |||||||
| Non-GAAP adjusted operating margin (3) | 3.4 | % | 1.1 | % | |||||||
| GAAP net sales | $ | 422,207 | $ | 464,290 | |||||||
| Year Ended December 31, | |||||||||||
| (in thousands) | |||||||||||
| Power Solutions | 2025 | 2024 | |||||||||
| GAAP income from operations | $ | 10,321 | $ | 13,111 | |||||||
| Personnel costs (1) | 135 | 887 | |||||||||
| Facility costs (2) | 6,189 | 357 | |||||||||
| Amortization of intangibles | 10,268 | 10,369 | |||||||||
| Fixed asset impairments | — | — | |||||||||
| Non-GAAP adjusted income from operations (a) | $ | 26,913 | $ | 24,724 | |||||||
| Non-GAAP adjusted operating margin (3) | 15.1 | % | 13.7 | % | |||||||
| GAAP net sales | $ | 178,626 | $ | 180,545 | |||||||
| Year Ended December 31, | |||||||||||
| (in thousands) | |||||||||||
| Mobile Solutions | 2025 | 2024 | |||||||||
| GAAP loss from operations | $ | (8,021) | $ | (18,078) | |||||||
| Personnel costs (1) | 8,283 | 1,739 | |||||||||
| Facility costs (2) | 3,651 | 7,930 | |||||||||
| Amortization of intangibles | 3,353 | 3,354 | |||||||||
| Fixed asset impairments | — | 6,546 | |||||||||
| Non-GAAP adjusted income from operations (a) | $ | 7,266 | $ | 1,491 | |||||||
| Share of net income from joint venture | 8,870 | 9,571 | |||||||||
| Non-GAAP adjusted income from operations with JV (a) | $ | 16,136 | $ | 11,062 | |||||||
| Non-GAAP adjusted operating margin (3) | 6.6 | % | 3.9 | % | |||||||
| GAAP net sales | $ | 244,016 | $ | 283,944 | |||||||
| Year Ended December 31, | |||||||||||
| (in thousands) | |||||||||||
| Elimination | 2025 | 2024 | |||||||||
| GAAP net sales | $ | (435) | $ | (199) | |||||||
(1)Personnel costs include recruitment, retention, relocation, and severance costs
(2)Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations
(3)Non-GAAP adjusted operating margin = Non-GAAP adjusted income (loss) from operations / GAAP net sales
12
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA
| Three Months Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| GAAP net loss | $ | (12,538) | $ | (20,976) | |||||||
| Provision for income taxes | 255 | 1,216 | |||||||||
| Interest expense | 5,850 | 5,452 | |||||||||
| Write-off of unamortized debt issuance cost | — | 349 | |||||||||
| Change in fair value of preferred stock derivatives and warrants | (1,224) | (1,618) | |||||||||
| Depreciation and amortization | 9,167 | 9,292 | |||||||||
| Professional fees | 422 | 568 | |||||||||
| Personnel costs (1) | 676 | 1,577 | |||||||||
| Facility costs (2) | 9,165 | 7,199 | |||||||||
| Mexico VAT | — | 632 | |||||||||
| Non-cash stock compensation | 823 | 792 | |||||||||
| Non-cash foreign exchange (gain) on inter-company loans | 290 | 1,031 | |||||||||
| Fixed asset impairments | — | 6,546 | |||||||||
| Non-GAAP adjusted EBITDA (b) | $ | 12,886 | $ | 12,060 | |||||||
| Non-GAAP adjusted EBITDA margin (3) | 12.3 | % | 11.3 | % | |||||||
| GAAP net sales | $ | 104,715 | $ | 106,513 | |||||||
| (1) Personnel costs include recruitment, retention, relocation, and severance costs | |||||||||||
(2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations | |||||||||||
(3) Non-GAAP adjusted EBITDA margin = Non-GAAP adjusted EBITDA / GAAP net sales | |||||||||||
13
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA
| Year Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| GAAP net loss | $ | (34,004) | $ | (38,273) | |||||||
| Provision for income taxes | 3,153 | 2,410 | |||||||||
| Interest expense | 22,367 | 22,095 | |||||||||
| Write-off of unamortized debt issuance cost | 3,007 | 349 | |||||||||
| Change in fair value of preferred stock derivatives and warrants | (3,331) | 72 | |||||||||
| Gain on sale of business | — | (7,154) | |||||||||
| Depreciation and amortization | 35,923 | 44,444 | |||||||||
| Professional fees | 977 | 648 | |||||||||
| Personnel costs (1) | 8,739 | 3,437 | |||||||||
| Facility costs (2) | 9,825 | 8,280 | |||||||||
| Mexico VAT | — | 632 | |||||||||
| Non-cash stock compensation | 3,200 | 3,140 | |||||||||
| Non-cash foreign exchange (gain) loss on inter-company loans | (839) | 1,712 | |||||||||
| Fixed asset and goodwill impairments | — | 6,546 | |||||||||
| Non-GAAP adjusted EBITDA (b) | $ | 49,017 | $ | 48,338 | |||||||
| Non-GAAP adjusted EBITDA margin (3) | 11.6 | % | 10.4 | % | |||||||
| GAAP net sales | $ | 422,207 | $ | 464,290 | |||||||
| (1) Personnel costs include recruitment, retention, relocation, and severance costs | |||||||||||
| (2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations | |||||||||||
(3) Non-GAAP adjusted EBITDA margin = Non-GAAP adjusted EBITDA / GAAP net sales | |||||||||||
14
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income and GAAP Net Income (Loss) per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share
| Three Months Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| GAAP net loss | $ | (12,538) | $ | (20,976) | |||||||
| Pre-tax professional fees | 422 | 568 | |||||||||
| Pre-tax personnel costs | 676 | 1,577 | |||||||||
| Pre-tax facility costs | 9,165 | 7,199 | |||||||||
| Pre-tax foreign exchange (gain) loss on inter-company loans | 290 | 1,031 | |||||||||
| Pre-tax write-off of unamortized debt issuance costs | — | 349 | |||||||||
| Pre-tax change in fair value of preferred stock derivatives and warrants | (1,224) | (1,618) | |||||||||
| Pre-tax amortization of intangibles and deferred financing costs | 3,686 | 3,976 | |||||||||
| Pre-tax impairments of fixed asset costs | — | 6,546 | |||||||||
| Mexico VAT | — | 632 | |||||||||
| Tax effect of adjustments reflected above (c) | (606) | (207) | |||||||||
| Non-GAAP adjusted net income (loss) (d) | $ | (129) | $ | (923) | |||||||
| Three Months Ended December 31, | |||||||||||
| (per diluted common share) | 2025 | 2024 | |||||||||
| GAAP net loss per diluted common share | $ | (0.35) | $ | (0.51) | |||||||
| Pre-tax professional fees | 0.01 | 0.01 | |||||||||
| Pre-tax personnel costs | 0.01 | 0.03 | |||||||||
| Pre-tax facility costs | 0.18 | 0.15 | |||||||||
| Pre-tax foreign exchange (gain) loss on inter-company loans | 0.01 | 0.02 | |||||||||
| Pre-tax write-off of unamortized debt issuance costs | — | 0.01 | |||||||||
| Pre-tax change in fair value of preferred stock derivatives and warrants | (0.02) | (0.03) | |||||||||
| Pre-tax amortization of intangibles and deferred financing costs | 0.07 | 0.08 | |||||||||
| Pre-tax impairments of fixed asset costs | — | 0.13 | |||||||||
| Mexico VAT | — | 0.01 | |||||||||
| Preferred stock cumulative dividends and deemed dividends | 0.10 | 0.09 | |||||||||
| Non-GAAP adjusted net income (loss) per diluted common share (d) | $0.00 | $(0.02) | |||||||||
| Shares used to calculate net earnings (loss) per share | 49,624 | 49,039 | |||||||||
15
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income and GAAP Net Income (Loss) per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share
| Year Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| GAAP net income (loss) | $ | (34,004) | $ | (38,273) | |||||||
| Pre-tax foreign exchange (gain) loss on inter-company loans | (839) | 1,712 | |||||||||
| Pre-tax professional fees | 977 | 648 | |||||||||
| Pre-tax personnel costs | 8,738 | 3,437 | |||||||||
| Pre-tax facility costs | 9,825 | 8,280 | |||||||||
| Pre-tax loss on extinghishment of debt & write-off of unamortized debt issuance costs | 3,007 | 349 | |||||||||
| Pre-tax change in fair value of preferred stock derivatives and warrants | (3,331) | 72 | |||||||||
| Pre-tax change in gain on sale of business | — | (7,154) | |||||||||
| Pre-tax amortization of intangibles and deferred financing costs | 15,116 | 16,012 | |||||||||
| Pre-tax impairments of fixed asset costs | — | 6,546 | |||||||||
| Mexico VAT | — | 632 | |||||||||
| Tax effect of adjustments reflected above (c) | (755) | (412) | |||||||||
| Non-GAAP adjusted net income (loss) (d) | $ | (1,266) | $ | (8,151) | |||||||
| Year Ended December 31, | |||||||||||
| (per diluted common share) | 2025 | 2024 | |||||||||
| GAAP net income (loss) per diluted common share | $ | (1.07) | $ | (1.11) | |||||||
| Pre-tax foreign exchange (gain) loss on inter-company loans | (0.02) | 0.04 | |||||||||
| Pre-tax professional fees | 0.02 | 0.01 | |||||||||
| Pre-tax personnel costs | 0.18 | 0.07 | |||||||||
| Pre-tax facility costs | 0.20 | 0.17 | |||||||||
| Pre-tax loss on extinghishment of debt & write-off of unamortized debt issuance costs | 0.06 | 0.01 | |||||||||
| Pre-tax change in fair value of preferred stock derivatives and warrants | (0.07) | — | |||||||||
| Pre-tax change in gain on sale of business | — | (0.15) | |||||||||
| Pre-tax amortization of intangibles and deferred financing costs | 0.31 | 0.28 | |||||||||
| Pre-tax impairments of fixed asset costs | — | 0.13 | |||||||||
| Mexico VAT | — | 0.01 | |||||||||
| Tax effect of adjustments reflected above (c) | (0.02) | (0.01) | |||||||||
| Preferred stock cumulative dividends and deemed dividends | 0.38 | 0.32 | |||||||||
| Non-GAAP adjusted net income (loss) per diluted common share (d) | $(0.03) | $(0.17) | |||||||||
| Weighted average common shares outstanding | 49,437 | 48,653 | |||||||||
16
Reconciliation of Operating Cash Flow to Free Cash Flow
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | (1,412) | $ | 6,681 | $ | 5,671 | $ | 11,070 | |||||||||||||||
| Acquisition of property, plant, and equipment | (1,862) | (2,962) | (12,919) | (18,314) | |||||||||||||||||||
| Proceeds from sale of property, plant, and equipment | 28 | 40 | 1,885 | 306 | |||||||||||||||||||
| Proceeds from sale-leaseback of equipment | 396 | — | 1,385 | 8,324 | |||||||||||||||||||
| Transaction costs incurred from sale of business | — | — | — | 1,566 | |||||||||||||||||||
| Free cash flow | $ | (2,850) | $ | 3,759 | $ | (3,978) | $ | 2,952 | |||||||||||||||
17
The Company discloses in this presentation the non-GAAP financial measures of adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans, reorganizational and impairment charges. The costs we incur in completing acquisitions, including the amortization of intangibles and deferred financing costs, and divestitures are excluded from these measures because their size and inconsistent frequency are unrelated to our commercial performance during the period, and we believe are not indicative of our ongoing operating costs. We exclude the impact of currency translation from these measures because foreign exchange rates are not under management’s control and are subject to volatility. Other non-operating charges are excluded as the charges are not indicative of our ongoing operating cost. We believe the presentation of adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow provides useful information in assessing our underlying business trends and facilitates comparison of our long-term performance over given periods.
The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual income growth derived from income amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results.
(a) Non-GAAP adjusted income (loss) from operations represents GAAP income (loss) from operations, adjusted to exclude the effects of restructuring and integration expense; non-operational charges related to acquisition and transition expense, intangible amortization costs for fair value step-up in values related to acquisitions, non-cash impairment charges, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income (loss) from operations is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from operations.
(b) Non-GAAP adjusted EBITDA represents GAAP net income (loss), adjusted to include income taxes, interest expense, write-off of unamortized debt issuance costs, interest rate swap payments and change in fair value that was recognized in earnings, change in fair value of preferred stock derivatives and warrants, depreciation and amortization, charges related to acquisition and transition costs, non-cash stock compensation expense, foreign exchange gain (loss) on inter-company loans, restructuring and integration expense, costs related to divested businesses and litigation settlements, income from discontinued operations, and non-cash impairment charges, to the extent applicable. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from continuing operations.
(c) This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the respective table. NN, Inc. estimates the tax effect of the adjustment items identified in the reconciliation schedule above by applying the applicable statutory rates by tax jurisdiction unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment.
(d) Non-GAAP adjusted net income (loss) represents GAAP net income (loss) adjusted to exclude the tax-affected effects of charges related to acquisition and transition costs, foreign exchange gain (loss) on inter-company loans, restructuring and integration charges, amortization of intangibles costs for fair value step-up in values related to acquisitions and amortization of deferred financing costs, non-cash impairment charges, write-off of unamortized debt issuance costs, interest rate swap payments and change in fair value, change in fair value of preferred stock derivatives and warrants, costs related to divested businesses and litigation settlements, income (loss) from discontinued operations, and preferred stock cumulative dividends and deemed dividends. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry.
18
Q4 & Full Year 2025 EARNINGS PRESENTATION Transforming Precision and Powering the Next Generation of Innovation
FORWARD LOOKING STATEMENTS 2 This presentation contains express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the full year of fiscal 2026, the impact of, and our ability to execute, our corporate strategies and business initiatives, the potential impact tariffs, high interest rates, high metal costs and additional economic uncertainties may have on our financial statements and results of operations, and the results and timing of our strategic review process. Forward- looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “growth,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project,” “achieve,” “enable,” “improve,” or the negative of those terms, and similar words, phrases or expressions that convey uncertainty of future events or outcomes. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; inflationary pressures and material changes in the cost or availability of raw materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the restrictions contained in our debt agreements; the level of our indebtedness and our ability to obtain financing at favorable rates, if at all, or to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; the impact of climate change on our operations; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; uncertainty of government policies and actions in respect to global trade and tariffs, including the potential impacts of tariffs on the United States economy, the economy of other countries in which we conduct operations and our industry, cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in NN, Inc.'s (the "Company") filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this presentation and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements. In this presentation, we use the following non-GAAP measures: adjusted gross margin, adjusted income (loss) from operations, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per diluted share and free cash flow. See the Appendix to this presentation for definitions of each non-GAAP measure and reconciliations to the most comparable GAAP measure.
Harold Bevis Chief Executive Officer Chris Bohnert Chief Financial Officer Today’s Speakers 3 Tim French Chief Operating Officer
New Wins Program Working • >$200M of wins over 3 years • Record program launches in 2026; pipeline stands at >$800M • Recently achieved 1st win in data centers Successful Portfolio Evolution Underway • Shifting sales profile towards higher-value markets and capabilities, away from commodity auto • Fixing or exiting unprofitable plants & businesses, replaced with new wins in desirable areas 2026: Return to Top-Line Growth • 2026 forecasted to return to net sales growth • Global volatility remains – tariffs, precious metals, geopolitical unrest, etc. Key Highlights Cash Flow Use Migrating to Investment in New Business • Operational restructuring work now largely complete • Able to fund more capex-based growth, however constrained by capital structure 3rd Consecutive Year of Improved Results • Adj. EBITDA near recent highs • Adj. Operating Income shows significant improvement • Heavy spending portion of transformation has largely been completed 4
5 Net Sales: Q4 $104.7M; FY $422.2M Adj. EBITDA: Q4 $12.9M; FY $49.0M (-) FX, volume rationalization, auto weakness (+) Growth in Power Solutions, new program launches, pricing • Near all-time highs on lower sales • FY’25 margins +120 bps • Guiding for steady growth in FY’26 1 2 4 6 3 Adj. Gross Margin: Q4 18.8%; FY 18.5% • Trending to 5-year target of 20% • Operating performance and portfolio shift driving margin expansion 5 Adj. Op. Income: Q4 $3.3M; FY $14.2M New Business: Q4: ~$26M; FY: ~$70M • Full-year results up 2.8x vs. 2024 • Created leaner operating model • New wins in concentrated strategic markets • Wins carrying gross margins of >25% Cost-Out / Operational Leadership • SG&A declined to 10.9% of sales • Achieved net cost-out target of $15M • Combating record precious metals inflation Key Metrics – Q4 and Full Year 2025
6 2026 Outlook is Stronger than 2025 • Revenue growth is expected, and is multi-faceted - Electric grid, data center, defense, electronics – all growing both in Q1 and full year - Global auto slightly growing but with region-specific outlooks, commercial vehicle growing in 2nd half of 2026 • Gross Margin and EBITDA will increase and be balanced across multiple areas - Increased volumes, $10M cost-out program, accretive portfolio of new business launches • US auto parts market (23% of revenue) will remain volatile - Auto production growth, but continued supply chain confusion from global tariff wars, EV to ICE resets, vehicle affordability, EPA resets, Middle Eat war, etc. • Upsizing new business growth program to $70M - $80M - Will reinvest a higher portion of capex into stronger growth programs - Foundational large wins and ramp-ups underway in both medical and defense that are intended to unlock further potential upon successful launches Excited for 2026 and Q1 2026 is on Track
($millions) Q4’24 Q4’25 Δ Net Sales $106.5 $104.7 ($1.8) Adj. Operating Income (Loss) $2.4 $3.3 +$0.9 Adj. EBITDA $12.1 $12.9 +$0.8 Adj. EBITDA Margin % 11.3% 12.3% +100 bps Fourth Quarter 2025 – Financial Results Summary Q4 2025 Financial Results vs. Q4 2024 7 $12.1 $12.9 Adjusted EBITDA & Margin (%) Q4'24 Q4'25 $106.5 $104.7 Net Sales Q4'24 Q4'25 12.3%11.3% ($ millions) Rationalized Volume FX Δ ($5.4) $2.2 ($3.2) $1.1 -- $1.1 -- ($0.3) ($0.3) Q4’24 Q4’25 Δ $103.3 $104.7 +$1.4 $3.5 $3.3 ($0.2) $11.8 $12.9 +$1.1 11.4% 12.3% +110 bps $11.8 $12.9 Pro forma Adjusted EBITDA & Margin (%) Q4'24 Q4'25 $103.3 $104.7 Pro forma Net Sales Q4'24 Q4'25 ($ millions) As Reported Adjustments Pro forma / Normalized 12.3%11.4%
($millions) FY’24 FY’25 Δ Net Sales $464.3 $422.2 ($42.1) Adj. Operating Income $5.1 $14.2 +$9.1 Adj. EBITDA $48.3 $49.0 +$0.7 Adj. EBITDA Margin % 10.4% 11.6% +120 bps Full-Year 2025 – Financial Results Summary FY 2025 Financial Results vs. FY 2024 8 $48.3 $49.0 Adjusted EBITDA & Margin (%) FY'24 FY'25 $464.3 $422.2 Net Sales FY'24 FY'25 11.6%10.4% ($ millions) Sale of Lubbock Rationalized Volume FX Δ ($11.3) ($22.5) ($0.8) ($34.6) ($1.3) $3.3 ($0.1) $1.9 ($1.5) ($0.1) $0.1 ($1.5) FY’24 FY’25 Δ $429.7 $422.2 ($7.4) $7.0 $14.2 +$7.2 $46.8 $49.0 +2.2 10.9% 11.6% +70 bps $46.8 $49.0 Pro forma Adjusted EBITDA & Margin (%) FY'24 FY'25 $429.7 $422.2 Pro forma Net Sales FY'24 FY'25 ($ millions) As Reported Adjustments Pro forma / Normalized 11.6%10.9% Note: Differences between the sum of segment sale and consolidated sales reflect the elimination of intercompany transactions
Power Solutions / Stamped Products Net Sales: $45.5M, up $5.9M, or +14.9% (+) Higher precious metal prices, favorable FX effects (+) Growth in defense and electronics Adjusted EBITDA: $6.4M, up $0.8M, or +14.0% (+) Sales growth, better mix, higher margins (+) Operational cost reductions New Business: $3.1M in Q4’25; $13.2M for FY’25 • Wins concentrated in electrical, defense & electronics products • Invested in expanded growth agenda for electrical markets • Aggressive actions taken to upsize future commercial performance 9Note: Comparisons are versus Q4 2024 results $39.6 $45.5 Q4'24 Q4'25 Pro forma Net Sales ($millions) $169.6 $178.6 FY'24 FY'25 $5.6 $6.4 Q4'24 Q4'25 Pro forma Adjusted EBITDA & Margin (%) ($millions) $27.7 $30.7 FY'24 FY'25 14.0%14.0% 17.2%16.3%
Net sales: $59.3M, down $4.5M, or (9.3%) (-) Rationalized underperforming business at plants undergoing consolidation (-) Lower automotive sales in North America, mostly intentional (+) Partially offset by favorable FX effects Adjusted EBITDA: $10.0M, Flat Y/Y (+) Shed no-profit sales, better resultant mix, lower cost (-) Rationalized underperforming business, customer program, and plants New Business: $26.3M in Q4’25; $58.6M for FY’25 • 108 discrete wins - winning for machined parts for medical and defense markets • Wins in high-quality automotive for next-gen ICE fuel efficiency • Adjusted capex to align sales rates and program launches in early 2026 10Note: Comparisons are versus Q4 2024 results $63.8 $59.3 Q4'24 Q4'25 Pro forma Net Sales ($millions) $269.0 $244.0 FY'24 FY'25 $9.7 $10.0 Q4'24 Q4'25 Pro forma Adjusted EBITDA & Margin (%) ($millions) $34.9 $33.5 FY'24 FY'25 16.9%15.3% 13.7%13.0% Mobile Solutions / Machined Products
▪ $200M of new business wins over trailing 3 years ▪ 27% average gross margin % on new wins ▪ >$800M pipeline pursued by global team of ~40 people ▪ Noteworthy wins in defense, weapons, medical, data center, electronics Winning and Launching New Business Continues >$200M 0 50 100 150 200 250 $0M $25M $50M $75M Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Quarterly & Cumulative Wins (at peak $ value rates) Rolling Program Launches (at peak $ annual rates) ▪ 2026 will be a record year of sales growth program launches ▪ ~100 programs expected to launch in 2026, pulling up growth capex some ▪ Launches are margin accretive, strengthening sales mix ▪ Stronger structural profitability, lower auto exposure 11 $Millions $62.5M 2025 H1'26 H2'26 H1'27 $109.5M $116.1M $123.4M
Long-Term Roadmap 12 20% 2025 2030 Net Sales & Adj. Gross Margin 12.3% 15% 2025 2030 Adj. EBITDA & Margin $49M $80M 7% CAGR 10% CAGR ▪ ~5% market growth plus additional 2% growth from share gains focused on electric grid, data centers, defense, electronics, medical ▪ Continue lowering portion of Company attached to commodity auto parts ▪ Continue ~$10M/yr cost actions to offset inflation and price pressures ▪ Focus areas are robotics, AI / automation equipment, material / vendor substitution $600M $422M 18.5% On Track for Goals
Market Outlooks are Strengthening in 2026 13 Market % Sales* NN Outlook Comments Electrical Grid / Data Center 16% • Market to remain strong • NN will see strong growth across FY’26 Auto – China 13% • Production & sales remain solid • Strong part of NN portfolio – China & export Commercial Vehicle 13% • Expecting market growth to return starting in 2H’26 Defense & Electronics 10% • NA market to remain strong • NN will see strong growth across FY’26 Industrial 9% • Expect US GDP+ growth rate • Focusing on innovation Medical 3% • Market to remain steady and growing • Increasing breadth of team; strong pipeline Global Auto (N. America, S. America, Europe) 36% • Continued mix shift towards high end • Goal is to hold net sales flat over time (*): % of 2025 net sales
14 Engaged with advisors for financial and strategic options review Strategic committee ongoing 1 2 3 • Pace and magnitude of improvement is constrained by capital structure Financial Structure & Strategic Options Review Long-term, sustainable shareholder value is priority
2026 Outlook & Guidance 15 Net Sales of $445 - $465 million • Reflects benefit of strengthening markets, new wins launching in 2026 • Sales growth balanced throughout the year, beginning in Q1 Adjusted EBITDA of $50 - $60 million • Higher contribution margins from volume growth and better resultant mix • Continued cost-out program to more than offset inflation and pricing New Business Wins of $70 - $80 million Financial guidance assumes: • Values may vary based on metals cost • Current FX rates • Long term goal is $600M of sales from market growth and new wins program • Pipeline exceeds $800M; key personnel targeting electrical, data centers, defense, electronics, medical 1 3 2
16 Appendix
17 The Company discloses in this presentation the non-GAAP financial measures of adjusted gross margin, adjusted income (loss) from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per diluted share and free cash flow. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign- exchange impacts on inter-company loans, reorganizational and impairment charges. The costs we incur in completing acquisitions, including the amortization of intangibles and deferred financing costs, and divestitures are excluded from these measures because their size and inconsistent frequency are unrelated to our commercial performance during the period, and we believe are not indicative of our ongoing operating costs. We exclude the impact of currency translation from these measures because foreign exchange rates are not under management’s control and are subject to volatility. Other non-operating charges are excluded, as the charges are not indicative of our ongoing operating cost. We believe the presentation of adjusted gross margin, adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted share and free cash flow provides useful information in assessing our underlying business trends and facilitates comparison of our long-term performance over given periods. The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual income growth derived from income amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. (a) Non-GAAP adjusted gross margin represents GAAP gross profit, adjusted to exclude the effects of restructuring and integration expense and non-operational charges related to acquisition and transition expense. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted gross margin is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP gross margin. (b) Non-GAAP adjusted income (loss) from operations represents GAAP income (loss) from operations, adjusted to exclude the effects of restructuring and integration expense; non-operational charges related to acquisition and transition expense, intangible amortization costs for fair value step-up in values related to acquisitions, non-cash impairment charges, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income (loss) from operations is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from operations. (c) Non-GAAP adjusted EBITDA represents GAAP income (loss) from operations, adjusted to include income taxes, interest expense, write-off of unamortized debt issuance costs, interest rate swap payments and change in fair value, change in fair value of preferred stock derivatives and warrants, depreciation and amortization, charges related to acquisition and transition costs, non-cash stock compensation expense, foreign exchange gain (loss) on inter-company loans, restructuring and integration expense, costs related to divested businesses and litigation settlements, income from discontinued operations, and non-cash impairment charges, to the extent applicable. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from continuing operations. (d) This line item reflects the aggregate tax effect of all non-GAAP adjustments reflected in the respective table. The Company estimates the tax effect of the adjustment items identified in the reconciliation schedule above by applying the applicable statutory rates by tax jurisdiction unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment. (e) Non-GAAP adjusted net income (loss) represents GAAP net income (loss) adjusted to exclude the tax-affected effects of charges related to acquisition and transition costs, foreign exchange gain (loss) on inter-company loans, restructuring and integration charges, amortization of intangibles costs for fair value step-up in values related to acquisitions and amortization of deferred financing costs, non-cash impairment charges, write-off of unamortized debt issuance costs, interest rate swap payments and change in fair value, change in fair value of preferred stock derivatives and warrants, costs related to divested businesses and litigation settlements, income (loss) from discontinued operations, and preferred stock cumulative dividends and deemed dividends. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income e (loss) from segment operations is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from continuing operations. Non-GAAP Financial Measures Footnotes
18 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and Gross Margin
19 Consolidated reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations and Non-GAAP Adjusted EBITDA
20 Segment reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations and Non-GAAP Adjusted EBITDA
21 Consolidated reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations and Non-GAAP Adjusted EBITDA
22 Segment reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations and Non-GAAP Adjusted EBITDA
23 Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Income (Loss) and GAAP Net Loss per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share
24 Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Income (Loss) and GAAP Net Loss per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share
25 Reconciliation of Operating Cash Flow to Free Cash Flow
Thank You 26 Joe Caminiti or Abe Plimpton NNBR@alpha-ir.com 312-445-2870 Investor & Media Contacts
FAQ
How did NNBR (NN, Inc.) perform financially in full-year 2025?
NN, Inc. generated 2025 net sales of $422.2 million, down from $464.3 million in 2024, but improved profitability margins. Adjusted EBITDA rose slightly to $49.0 million, with margin expanding to 11.6% from 10.4%, reflecting restructuring, portfolio rationalization, and lower depreciation and administrative costs.
What is NNBR’s 2026 outlook for revenue and adjusted EBITDA?
NN, Inc. expects 2026 net sales between $445 million and $465 million and adjusted EBITDA between $50 million and $60 million. Guidance assumes modest organic growth from new program launches and improved markets, with metals costs and current foreign exchange rates influencing the final outcome.
How did NNBR’s Power Solutions and Mobile Solutions segments perform in 2025?
Power Solutions 2025 net sales were $178.6 million with adjusted operating income of $26.9 million, while Mobile Solutions delivered $244.0 million of net sales and $7.3 million of adjusted operating income. Power stayed relatively stable; Mobile intentionally reduced low-margin auto sales but significantly improved profitability.
What new business wins and pipeline did NNBR report for 2025?
NN, Inc. secured about $70 million of new business wins in 2025, with a three-year cumulative total above $200 million and a pipeline over $800 million. Wins are concentrated in higher-margin areas such as electrical grid, data centers, defense, electronics, and medical markets.
How did NNBR’s margins change in 2025 compared with 2024?
GAAP gross margin for 2025 was 14.1%, while adjusted gross margin reached 18.5%, up from 17.5% in 2024. Adjusted EBITDA margin improved to 11.6% from 10.4%, supported by facility rationalizations, headcount reductions, and a shift away from lower-margin automotive programs.
What non-GAAP measures does NNBR use and why are they important?
NN, Inc. highlights adjusted income from operations, adjusted EBITDA, adjusted net income, adjusted EPS, and free cash flow. These measures exclude items like restructuring, acquisition-related costs, non-cash impairments, and foreign-exchange impacts to help illustrate underlying operating trends over time, alongside the company’s GAAP results.
What strategic and capital structure actions did NNBR describe around 2025 results?
NN, Inc. formed a Strategic Committee of the Board in December 2025 to evaluate strategic and financing alternatives. Management notes that transformation spending is largely complete, but the pace of further improvement is constrained by the existing capital structure, which the review process is intended to address.
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