Core Viewpoint - NN, Inc. has received approval from the Chinese government to continue its Joint Venture with Weifu in Wuxi, China, extending a successful 20-year partnership that has significantly contributed to the automotive market [1][2]. Company Overview - NN, Inc. is a global diversified industrial company that specializes in engineering and manufacturing high-precision components and assemblies for various markets [6]. - The company has a strong presence in China, with over $200 million in profitable sales across its three businesses, making it the largest global automotive market for NN [2][4]. Joint Venture Details - The Joint Venture, known as Wuxi Weifu Autocam, has achieved consistent growth, currently generating approximately $130 million in annual sales [2][3]. - The JV supplies high-end automotive parts for both local consumption and key export markets, playing a crucial role in the largest auto market globally, which sees about 29 million passenger vehicles sold annually [2]. Operational Insights - The Joint Venture is currently expanding due to increased business, having outgrown its existing facilities, and employs over 550 people across three shifts [3]. - NN, Inc. holds a 49% stake in the Joint Venture, while Weifu owns 51%, with key executives from NN serving on the Board of Directors [4]. Market Position - The Joint Venture is a key supplier to major automotive OEMs in China, including BYD, highlighting its importance in the local automotive supply chain [2].

Summary of NN Incorporated's Conference Call Company Overview - **Company Name**: NN Incorporated - **Industry**: High-tech manufacturing, specializing in custom metal parts and assemblies - **Market Presence**: Engaged in multiple sectors including automotive, electric grid, defense, commercial vehicles, construction, industrial components, and medical equipment [3][4] Key Financial Metrics - **Sales**: $434 million on a Last Twelve Months (LTM) basis through Q2 [5] - **Adjusted EBITDA**: $47 million, approximately 11% margin [5] - **Employee Count**: 2,600 employees, with an additional 700 in a joint venture [5] - **Joint Venture**: $130 million JV with 49% ownership [5] Market Segmentation - **Automotive**: 40% of revenue, facing disruptions due to U.S. political changes [9] - **Electric Grid**: 20% of revenue, benefiting from growth in data centers and electric vehicles [9] - **Defense and Electronics**: 15% of revenue, growing due to increased defense spending [9] - **Commercial Vehicles**: Flat market outlook, primarily tied to diesel engine components [10] - **Medical Equipment**: Reentered market with steady progress [10] Strategic Initiatives - **Five-Year Plan**: Focus on organic growth, M&A, cost leadership, and improving free cash flow [11] - **New Business Wins**: $182 million in new business secured since Q2 2023, with a target of $200 million by year-end [15] - **Cost Reduction**: Targeting $15 million in cost savings through continuous improvement projects [19] Operational Improvements - **Margin Growth**: Adjusted gross margins improved from 16.3% to 18.2% from 2023 to H1 2025; adjusted EBITDA margins increased from 8.8% to 11.1% [13] - **Plant Closures**: Closed two underperforming plants to enhance operational efficiency [13][26] - **Quality and Delivery Targets**: Aiming for Six Sigma quality and 98% on-time delivery [19] M&A Strategy - **Focus Areas**: Exploring opportunities in consumer, defense, industrial, and aerospace sectors, while avoiding increased automotive exposure [32] - **Cultural Fit and Synergies**: Prioritizing acquisitions that align with company culture and offer operational synergies [25] Market Outlook - **Automotive Sector**: Engaged in both electric and internal combustion engine (ICE) markets, with a focus on high-efficiency components [30][31] - **China Operations**: Steady growth in the automotive sector, benefiting from government support for exports [17] Conclusion - **Investment Thesis**: NN Incorporated is repositioning for growth, with a strong pipeline of new business and a focus on operational efficiency. The company is well-positioned to capitalize on market recovery and is actively pursuing M&A opportunities to enhance its portfolio [21][25]

Investor Presentation September 2025 NN Blue Dark Charcoal Platinum Pewter Orange Green Forward Looking Statement & Disclosures 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 2025, the impact of, and our ability to execute, our corporate strategies and business initiatives and the potential impact tariffs, high interest rates, ...

Company Overview - NN, Inc. is a global diversified industrial company that specializes in engineering and manufacturing high-precision components and assemblies [3] - The company is headquartered in Charlotte, North Carolina, and has facilities across North America, Europe, South America, and Asia [3] Upcoming Events - Members of the executive management team will present at the iAccess Alpha Virtual Best Ideas Fall Investment Conference on September 16, 2025 [1] - The presentation will be led by Harold Bevis (President and CEO), Chris Bohnert (CFO), and Tim French (COO) at 9:00 AM ET [1] - Following the presentation, there will be 1x1 meetings with registered investors on September 17 [1] Investor Relations - A live webcast of the management's presentation will be available on the company's Investor Relations website [2] - A replay of the presentation will be accessible shortly after the event on the same website [2] - For inquiries, investors can contact Joe Caminiti or Stephen Poe via the provided email and phone number [4]

Core Viewpoint - NN, Inc. will participate in the Lake Street Capital Markets 9th Annual Best Ideas Growth (BIG8) Conference on September 11, 2025, with CFO Chris Bohnert attending [1]. Company Overview - NN, Inc. is a global diversified industrial company that specializes in engineering and manufacturing high-precision components and assemblies [3]. - The company combines advanced engineering and production capabilities with materials science expertise to serve various global markets [3]. - Headquartered in Charlotte, North Carolina, NN, Inc. operates facilities across North America, Europe, South America, and Asia [3]. Investor Engagement - The executive management of NN, Inc. will conduct one-on-one and group meetings with registered investors and analysts during the conference [2].

Core Insights - NN, Inc. has appointed Mohamad Farhat as the new Chief Technical Officer for its electrical, defense, and medical businesses, aiming to enhance innovation and customer solutions [1][2][3] Company Overview - NN, Inc. is a global diversified industrial company that specializes in engineering and manufacturing high-precision components and assemblies for various markets [4] Leadership and Strategy - The appointment of Mr. Farhat is part of NN's strategy to strengthen its technical capabilities and innovation focus, particularly in the electrical, defense, and medical sectors [2][3] - Tim French, COO, emphasized the importance of technology leadership in solving customer problems and expanding into new markets [3] Market Focus - NN has a distinct focus on electrical, defense, and medical products, with recent promotions within the company to enhance its Mobile Solutions segment, which targets automotive and industrial markets [2][3] Background of New CTO - Mohamad Farhat brings extensive experience in engineering leadership, having previously served as Vice President of Engineering for Commercial Vehicle Group, Inc., and held roles at Sumitomo, Rigaku, and Flex [3]

Financial Data and Key Metrics Changes - The company reported net sales of $107.9 million for Q2 2025, a decline of approximately $15.1 million compared to the previous year [29] - Adjusted EBITDA for the quarter was $13.2 million, with an adjusted EBITDA margin of 12.2%, reflecting an increase of 130 basis points year-over-year [29] - Adjusted operating income increased to $4.9 million, marking a strong increase of $2.8 million compared to the prior year [29] Business Line Data and Key Metrics Changes - In the Power Solutions segment, net sales were $44.6 million, down $5.5 million year-over-year, primarily due to the sale of the Lubbock operations [30] - The Mobile Solutions segment reported net sales of $63.4 million, a decrease from $72.9 million in the previous year, impacted by rationalized business and lower automotive volume [32] - Adjusted EBITDA in the Mobile Solutions segment was $8.6 million, reflecting a slight year-over-year growth due to cost control actions [33] Market Data and Key Metrics Changes - The automotive market accounted for 39% of the company's revenue, with overall light vehicle production remaining flat globally [12] - The U.S. GDP-linked businesses showed a rebound in the second quarter after a weak first half, although trade uncertainty continues to impact demand [14] - The medical equipment market is growing, with the company increasing its participation significantly above market growth [18] Company Strategy and Development Direction - The company aims to achieve approximately 20% gross margin as part of its long-term plan, with a focus on margin expansion and operational efficiency [22] - A commitment to increase personnel in specialized growth areas, including the hiring of a new Chief Commercial Officer, indicates a strategic focus on expanding into electrical and medical markets [38] - The company is actively pursuing M&A opportunities to enhance its growth strategy and improve its operational footprint [90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite uncertainties in the automotive market, emphasizing the importance of new business launches [41] - The company is leaning towards the lower end of its revenue guidance due to macroeconomic uncertainties and customer feedback [41] - The outlook for the electrical market remains positive, with growth opportunities identified in power generation and distribution sectors [50] Other Important Information - The company plans to launch approximately 112 new programs in 2025, contributing an estimated $48 million in annual revenue at peak run rate [36] - The company is preparing for an Investor Day in December 2025 to provide further insights into its strategy and performance [42] Q&A Session Summary Question: Can you remind us about the incremental margin from new business wins? - New business wins are accretive by three to four points on the EBITDA line overall, with a focus on existing open capacity and strategic investments [46] Question: What are the growth opportunities in the electrical market? - The company is seeing growth in power generation, particularly with customers like Cummins, while residential distribution has been softer [50] Question: How does the company plan to achieve its revenue guidance? - The company expects to benefit from new business launches and a consistent performance from its base business, without relying on market rebounds [55] Question: What is the status of the Group of Five facilities? - All facilities are on track to be profitable this year, with expectations for run rate profitability by the end of the year [60] Question: Can you provide details on the M&A program? - The company is actively pursuing specific acquisitions that align with its strategy, focusing on synergies and operational improvements [90]

Financial Performance - Net sales for Q2 2025 were $107.9 million, a decrease compared to $123.0 million in Q2 2024[17] - Adjusted EBITDA for Q2 2025 was $13.2 million, representing 12.2% of sales, compared to $13.4 million in Q2 2024, which was 10.9% of sales[17] - Adjusted operating income for Q2 2025 was $4.9 million, or 4.6% of net sales, compared to $2.1 million in Q2 2024[17] - The company's adjusted gross margin improved to 19.5% in Q2 2025[8] Business Segment Highlights - Power Solutions business net sales were $44.6 million, up 2.3%, with adjusted EBITDA of $9.1 million, up 5.8%[22] - Mobile Solutions business net sales were $63.4 million, down 5.4%, but adjusted EBITDA increased by 6.2% to $8.6 million[27] Growth and Outlook - The company secured $32.7 million in new business wins year-to-date in Q2 2025[8] - The company is launching 112 programs in 2025, expected to generate $48 million in revenue at full run-rate[35] - The company is reiterating its 2025 outlook, with net sales expected to be in the range of $430 to $460 million and adjusted EBITDA in the range of $53 to $63 million[40, 41]

[Second Quarter 2025 Financial Highlights and Business Update](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights%20and%20Business%20Update) NN, Inc. reported a 2.4% pro forma decrease in net sales to $107.9 million for Q2 2025, but demonstrated improvements in operating income, adjusted operating income, and adjusted EBITDA [Overall Performance Summary](index=1&type=section&id=Overall%20Performance%20Summary) NN, Inc. reported a 2.4% pro forma decrease in net sales to $107.9 million for Q2 2025, but demonstrated improvements in operating income, adjusted operating income, and adjusted EBITDA Q2 2025 Key Performance Indicators | Metric | Value | Note | | :--- | :--- | :--- | | Net Sales | $107.9 million | Down 2.4% on a pro forma basis | | Gross Margin | 16.9% | Adjusted Gross Margin of 19.5% | | Operating Loss | ($1.5) million | Adjusted Operating Income of $4.9 million | | Adjusted EBITDA | $13.2 million | 12.2% margin | | New Business Wins (H1 2025) | $32.7 million | >100 programs launching in 2025 | | Future Sales from 2025 Launches | >$45 million | At full run-rate | - Management expressed satisfaction with the quarter's performance in gross margins, operating income, and adjusted EBITDA, despite a soft top-line primarily due to certain automotive customers[2](index=2&type=chunk) - The company is actively leveraging the market environment to increase business development activities and investments[2](index=2&type=chunk) [Strategic Initiatives and Management Commentary](index=1&type=section&id=Strategic%20Initiatives%20and%20Management%20Commentary) The company is accelerating its transformation by investing in growth capex, hiring key commercial personnel, and exploring organic entry into the electrical harness market - The company is increasing its investment in business development and new program launches, with plans to invest **$18 million to $20 million** in capital projects in 2025 to lower costs and drive growth[2](index=2&type=chunk) - Strategic growth initiatives include: investing in growth capex and hiring personnel for targeted areas like medical, stampings, and electrical products[4](index=4&type=chunk) - Evaluating an organic entry into the electrical harness market[4](index=4&type=chunk) - Activating an M&A program to seek strategic targets and address the refinancing of preferred stock[4](index=4&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Q2 2025 net sales were $107.9 million, a 12.3% decrease from Q2 2024, but profitability improved with adjusted operating income increasing to $4.9 million and adjusted EBITDA stable at $13.2 million Q2 2025 vs. Q2 2024 Consolidated Results | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $107.9M | $123.0M | -12.3% | | Pro Forma Net Sales | - | - | -2.4% | | Loss from Operations | ($1.5M) | ($2.1M) | +28.6% Improvement | | Adjusted Income from Operations | $4.9M | $2.1M | +133.3% | | Adjusted EBITDA | $13.2M | $13.4M | -1.5% | | Adjusted EBITDA Margin | 12.2% | 10.9% | +130 bps | | Adjusted Net Income (Loss) | $0.7M | ($0.7M) | N/A | | Adjusted EPS | $0.02 | ($0.02) | N/A | | Free Cash Flow | ($3.2M) | ($1.3M) | -$1.9M | [Segment Performance](index=2&type=section&id=Segment%20Performance) Power Solutions sales declined due to divestiture but improved operating income, while Mobile Solutions saw lower sales but a significant turnaround in profitability [Power Solutions](index=2&type=section&id=Power%20Solutions) Power Solutions net sales decreased to $44.6 million from $50.2 million, mainly due to a divestiture, but adjusted income from operations increased to $8.4 million Power Solutions Q2 2025 vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $44.6M | $50.2M | | Income from Operations | $5.8M | $5.3M | | Adjusted Income from Operations | $8.4M | $8.1M | [Mobile Solutions](index=2&type=section&id=Mobile%20Solutions) Mobile Solutions net sales fell to $63.4 million from $72.9 million due to rationalized business and lower automotive volume, but adjusted income from operations turned positive Mobile Solutions Q2 2025 vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $63.4M | $72.9M | | Loss from Operations | ($1.1M) | ($1.6M) | | Adjusted Income (Loss) from Operations | $2.3M | ($0.7M) | [2025 Full-Year Outlook](index=2&type=section&id=2025%20Outlook) NN, Inc. is maintaining its full-year 2025 outlook, with the CFO guiding expectations towards the lower end of ranges due to tariff and macroeconomic uncertainties [Guidance Reiteration and CFO Commentary](index=3&type=section&id=Guidance%20Reiteration%20and%20CFO%20Commentary) NN, Inc. is maintaining its full-year 2025 outlook, with the CFO guiding expectations towards the lower end of ranges due to tariff and macroeconomic uncertainties - The company is maintaining its full-year 2025 outlook[14](index=14&type=chunk) - The CFO directs expectations towards the lower end of guided ranges due to uncertainties from tariffs and potential shifts in trade policy and interest rates[15](index=15&type=chunk) [Key Guidance Metrics](index=4&type=section&id=Key%20Guidance%20Metrics) The company reiterated its full-year 2025 guidance ranges for net sales, adjusted EBITDA, free cash flow, and new business wins Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Net Sales | $430M - $460M | | Adjusted EBITDA | $53M - $63M | | Free Cash Flow | $14M - $16M | | New Business Wins | $60M - $70M | [Financial Statements](index=7&type=section&id=Financial%20Statements) The company reported a net loss of $8.1 million for Q2 2025, influenced by a loss on debt extinguishment, with total assets of $460.8 million and increased long-term debt [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of $8.1 million for Q2 2025, an increase from the prior year, influenced by a $3.0 million loss on extinguishment of debt Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $107,921 | $122,992 | $213,609 | $244,190 | | Loss from Operations | $(1,464) | $(2,147) | $(6,253) | $(6,930) | | Net Loss | $(8,102) | $(2,203) | $(14,787) | $(14,740) | | Diluted Net Loss per Share | $(0.26) | $(0.12) | $(0.48) | $(0.46) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $460.8 million, with cash decreasing to $9.5 million and long-term debt increasing to $154.0 million from year-end 2024 Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $9,542 | $18,128 | | Total current assets | $171,979 | $167,562 | | Total assets | $460,760 | $456,893 | | Total current liabilities | $89,153 | $83,912 | | Long-term debt, net | $154,047 | $143,591 | | Total liabilities | $298,702 | $288,874 | | Total stockholders' equity | $59,540 | $74,522 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash used in operating activities was $4.0 million, with total cash decreasing by $8.6 million, primarily due to operating and investing activities Cash Flow Highlights - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,041) | $(569) | | Net cash used in investing activities | $(7,179) | $(8,815) | | Net cash provided by financing activities | $1,563 | $1,569 | | Net change in cash and cash equivalents | $(8,586) | $(8,157) | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP figures to non-GAAP measures, showing improvements in adjusted gross profit, operating income, EBITDA, and a shift to adjusted net income for Q2 2025 [Gross Profit Reconciliation](index=10&type=section&id=Gross%20Profit%20Reconciliation) Q2 2025 GAAP gross profit of $18.2 million was adjusted to a non-GAAP **$21.1 million**, resulting in an improved adjusted gross margin of **19.5%** Gross Profit Reconciliation - Q2 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | GAAP gross profit | $18,222 | $21,735 | | Adjustments | $2,833 | $1,086 | | **Adjusted gross profit** | **$21,055** | **$22,821** | | **Adjusted gross margin** | **19.5%** | **18.6%** | [Income from Operations Reconciliation](index=11&type=section&id=Income%20from%20Operations%20Reconciliation) Q2 2025 GAAP loss from operations of $1.5 million was reconciled to a non-GAAP adjusted income of **$4.9 million**, a significant improvement from Q2 2024 Income from Operations Reconciliation - Q2 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | GAAP loss from operations | $(1,464) | $(2,147) | | Amortization of intangibles | $3,405 | $3,456 | | Personnel costs | $2,614 | $826 | | Other adjustments | $352 | $(63) | | **Adjusted income from operations** | **$4,907** | **$2,072** | | **Adjusted operating margin** | **4.6%** | **1.7%** | [Adjusted EBITDA Reconciliation](index=12&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q2 2025 GAAP net loss of $8.1 million was reconciled to a non-GAAP adjusted EBITDA of **$13.2 million**, with an improved margin of **12.2%** Adjusted EBITDA Reconciliation - Q2 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | GAAP net loss | $(8,102) | $(2,203) | | Depreciation and amortization | $8,918 | $11,761 | | Interest expense | $5,657 | $5,873 | | Loss on extinguishment of debt | $3,007 | $— | | Other adjustments | $3,701 | $(1,621) | | **Adjusted EBITDA** | **$13,179** | **$13,405** | | **Adjusted EBITDA margin** | **12.2%** | **10.9%** | [Adjusted Net Income and EPS Reconciliation](index=13&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) Q2 2025 GAAP net loss of $8.1 million was reconciled to a non-GAAP adjusted net income of **$0.7 million**, or **$0.02** per share, a positive shift from the prior year Adjusted Net Income & EPS Reconciliation - Q2 | Metric | 2025 | 2024 | | :--- | :--- | :--- | | GAAP net loss (in thousands) | $(8,102) | $(2,203) | | **Adjusted net income (loss) (in thousands)** | **$746** | **$(738)** | | GAAP net loss per diluted share | $(0.26) | $(0.12) | | **Adjusted net income (loss) per diluted share** | **$0.02** | **$(0.02)** | [Free Cash Flow Reconciliation](index=14&type=section&id=Free%20Cash%20Flow%20Reconciliation) Q2 2025 net cash used in operating activities of $0.7 million was reconciled to a free cash flow use of **$3.2 million**, a greater use than the prior year Free Cash Flow Reconciliation - Q2 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(696) | $(1,281) | | Acquisition of property, plant, and equipment | $(3,723) | $(3,592) | | Proceeds from sale of property, plant, and equipment | $274 | $139 | | Proceeds from sale-leaseback of equipment | $946 | $3,415 | | **Free cash flow** | **$(3,199)** | **$(1,319)** |

Core Viewpoint - NN, Inc. reported a solid second quarter for 2025, maintaining its full-year guidance despite challenges in the automotive sector and a decrease in net sales [2][12][13]. Financial Performance - Net sales for Q2 2025 were $107.9 million, a decrease of 12.3% compared to $123.0 million in Q2 2024, primarily due to the rationalization of underperforming businesses and lower automotive volumes [3][5]. - Loss from operations was $1.5 million, an improvement of 28.6% from a loss of $2.1 million in Q2 2024 [3]. - Adjusted operating income was $4.9 million, an increase of $2.8 million from the same period in 2024 [5][6]. - Adjusted EBITDA was $13.2 million, with an adjusted EBITDA margin of 12.2%, compared to $13.4 million and 10.9% in Q2 2024 [6][7]. Business Development and Strategy - The company has launched 70 new business programs in the first half of 2025 and expects over 100 launches in total for the year, projected to add over $45 million in future sales at run-rate [2][5]. - NN plans to invest $18 to $20 million in capital projects in 2025 to drive growth while maintaining cost controls [2][5]. - The company is actively pursuing M&A opportunities that align with its strategy to refinance preferred stock [2][12]. Segment Performance - Power Solutions segment net sales were $44.6 million, down from $50.2 million in Q2 2024, but income from operations increased to $5.8 million from $5.3 million [8][9]. - Mobile Solutions segment net sales decreased to $63.4 million from $72.9 million in Q2 2024, with an operating loss of $1.1 million, improved from a loss of $1.6 million [10][11]. Outlook - The company is maintaining its full-year 2025 outlook, with net sales expected to range between $430 to $460 million and adjusted EBITDA between $53 to $63 million [12][15]. - Free cash flow is projected to be between $14 to $16 million, assuming receipt of a CARES Act refund in 2025 [15].