Financial Performance - Net sales decreased by $15.5 million, or 12.8%, to $105.7 million for the three months ended March 31, 2025, compared to $121.2 million for the same period in 2024, primarily due to the rationalization of underperforming business and plants, the sale of Lubbock operations, lower volumes, and unfavorable foreign exchange effects of $2.8 million [125]. - Cost of sales decreased by $9.4 million, or 9.3%, to $91.6 million for the three months ended March 31, 2025, compared to $101.1 million for the same period in 2024, primarily due to the decrease in sales [126]. - Selling, general, and administrative expenses decreased by $2.2 million to $11.2 million for the three months ended March 31, 2025, compared to $13.3 million for the same period in 2024, primarily due to lower incentive compensation expense [126]. - Net loss for the three months ended March 31, 2025, was $6.7 million, an improvement of $5.9 million compared to a net loss of $12.5 million for the same period in 2024 [125]. Segment Performance - Net sales in the Mobile Solutions segment decreased by $10.8 million, or 14.8%, to $62.2 million for the three months ended March 31, 2025, primarily due to the closure of the Juarez, Mexico plant and lower volumes [133]. - Net sales in the Power Solutions segment decreased by $4.7 million, or 9.8%, to $43.5 million for the three months ended March 31, 2025, primarily due to the sale of Lubbock operations and lower volumes [135]. - Share of net income from joint venture increased by $0.2 million to $2.4 million for the three months ended March 31, 2025, compared to $2.3 million for the same period in 2024, with the joint venture recognizing net sales of $32.7 million [132]. Assets and Liabilities - Total assets increased by $3.8 million from December 31, 2024, to March 31, 2025, primarily due to increases in accounts receivable and prepaid assets [137]. - Total liabilities increased by $6.6 million during the same period, primarily due to increases in accounts payable and long-term debt [138]. Cash Flow and Operations - Cash used in operations was $3.3 million for the three months ended March 31, 2025, compared to cash provided of $0.7 million for the same period in 2024, primarily due to lower gross margin contributions and an increase in working capital [140]. Debt and Interest Rates - As of March 31, 2025, the principal amount outstanding under the 2021 Term Loan Facility was $114.3 million, with $8.0 million outstanding borrowings under the ABL Facility and $18.3 million available for future borrowings [142][144]. - The effective fixed interest rate for the sale-leaseback transactions of properties was 9.715%, while the weighted average effective interest rate for equipment sale-leaseback transactions was 10.540% [145]. - A one-percent increase in one-month SOFR would result in a net increase in interest expense of $1.1 million on an annualized basis, with the interest rate on outstanding borrowings under the ABL Facility at 5.92% as of March 31, 2025 [153]. Tax and Compliance - The company received a $12.4 million tax refund receivable from the IRS, expected to be received in the first half of 2025 [148]. - The company is in compliance with all requirements under its credit facilities as of March 31, 2025, allowing for optional expansion of available borrowings [144]. Financial Risk Management - The company has established policies to mitigate exposure to financial market risks, including interest rate and foreign currency risks [151][154]. - The company does not hold any foreign currency derivatives as of March 31, 2025 [154]. Working Capital Management - The company participates in accounts receivable sales programs to improve working capital and cash flows, dependent on customer agreements [146][147]. - The company is not materially impacted by seasonality, although certain businesses experience seasonal trends [149].

Business Performance - NN, Inc. announced new business wins for the quarter ended March 31, 2025[4] - The company increased its five-year Adjusted EBITDA target range to 13-14%[4] - NN, Inc. reaffirmed its 2025 Adjusted EBITDA guidance[4]

Core Insights - NN, Inc. reaffirms its full-year adjusted EBITDA outlook for 2025 and sets a free cash flow guidance of $14-$16 million [1][15] - The company reported a net sales decrease of 12.8% year-over-year for Q1 2025, totaling $105.7 million, primarily due to business rationalization and unfavorable foreign exchange effects [5][6] - Adjusted EBITDA for Q1 2025 was $10.6 million, maintaining a margin of 10%, an increase from 9.3% in the prior year [5][8] Financial Performance - Q1 2025 net sales were $105.7 million, down from $121.2 million in Q1 2024, with pro forma net sales decreasing by 1.3% after adjustments [5][7] - The company reported a GAAP loss per share of $(0.23) compared to $(0.34) in Q1 2024, while adjusted net loss per share improved to $(0.03) from $(0.08) [9][33] - Free cash flow for Q1 2025 was a use of cash of $7.1 million, compared to a generation of cash of $0.3 million in the same period last year [9][34] Business Segments - Power Solutions segment net sales for Q1 2025 were $43.5 million, down from $48.2 million in Q1 2024, primarily due to the sale of Lubbock operations and lower volumes [10][11] - Mobile Solutions segment net sales decreased to $62.2 million from $73.1 million in Q1 2024, with losses from operations increasing to $2.7 million [12][13] Strategic Initiatives - The company secured $16.4 million in new business wins during the quarter, contributing to a robust commercial pipeline exceeding $740 million [4][21] - NN, Inc. aims for a $15 million cost reduction in 2025 as part of its operational efficiency initiatives [4][5] - The adjusted EBITDA margin target has been raised to 13-14% over the next five years [5][6] Outlook - For 2025, NN, Inc. expects net sales to range between $430 million and $460 million, with adjusted EBITDA projected between $53 million and $63 million [14][15] - The company anticipates that macroeconomic uncertainties will not significantly impact its operations, maintaining a positive outlook for organic growth and cash flow generation [4][15]

Core Viewpoint - NN plans to host a virtual investor day in August 2025 to discuss updates and important topics related to shareholder value creation [1][2] Group 1: Company Overview - NN is a global diversified industrial company that engineers and manufactures high-precision components and assemblies for various markets [3] - The company is headquartered in Charlotte, North Carolina, with facilities across North America, Asia, Europe, and South America [3] Group 2: Investor Day Details - The investor day will include discussions on NN's five-year targets for sales growth, increased profitability, and shareholder value [5] - Management will provide updates on the company's capital allocation strategy, M&A acquisition strategy, and capital markets strategy [5] - Key market trends and NN's participation in specific markets such as the US electrical grid, US industrial, global passenger vehicle, global commercial vehicle, and global medical markets will be discussed [5] Group 3: Business Initiatives - NN's $700+ million new business program and pipeline specifics will be highlighted during the investor day [5] - The company will discuss its cost-out program and major ongoing and upcoming projects [5] - An overview of NN's free cash flow generation program and associated projects will also be presented [5]

Core Viewpoint - NN, Inc. is set to release its first quarter 2025 financial results on May 7, 2025, followed by a conference call on May 8, 2025, at 9:00 a.m. E.T. [1] Financial Results Announcement - The financial results for the period ended March 31, 2025, will be disclosed after the market closes on May 7, 2025 [1] - A related conference call will take place on May 8, 2025, at 9:00 a.m. E.T. [1] Participation Details - Participants can register for the conference call by dialing 1-877-255-4315 or 1-412-317-6579 for international calls [1] - The conference call will be webcast live on the NN, Inc. Investor Relations website [2] - A replay of the call will be available on the company's website until May 8, 2026 [2] Company Overview - NN, Inc. is a global diversified industrial company specializing in high-precision components and assemblies [3] - The company combines advanced engineering and production capabilities with materials science expertise [3] - NN, Inc. is headquartered in Charlotte, North Carolina, with facilities across North America, Europe, South America, and Asia [3]

New Business Awards of $16.4 million in first quarter 2025; New Business Awards of over $150 million since Q1 2023; tracking ahead of its five-year plan Company raises five-year Adjusted EBITDA margin target range to 13–14%, and reaffirms previous 2025 Adjusted EBITDA guidance CHARLOTTE, N.C., April 21, 2025 (GLOBE NEWSWIRE) -- NN (NASDAQ: NNBR) today announced an update on its new business wins program and its ongoing above-plan margin results. Highlights: First quarter 2025 new business wins were $16.4 ...

Provides company with the continued ability to move quickly and decisivelyCHARLOTTE, N.C., April 16, 2025 (GLOBE NEWSWIRE) -- NN (NASDAQ: NNBR) today announced the successful completion of its debt refinancing initiative, accomplished in two steps. Step One - ABL (Asset Backed Loan) Refinancing – This refinancing with PNC Bank, N.A. was previously announced in January 2025: $65 million facilityFive-year maturity to 2030Improved collateral and borrowing amounts$15 million capex line at ABL ratesSlightly lowe ...

CHARLOTTE, N.C., March 18, 2025 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, announced today that Harold Bevis, President and Chief Executive Officer, and Chris Bohnert, Senior Vice President and Chief Financial Officer, will be presenting virtually at the Sidoti Small Cap Conference on Thursday March 20, 2025. The presentation will begin at 3:15 p.m. ET on Thursday, March 20, 2025. Investors in ...

Financial Data and Key Metrics Changes - For Q4 2024, net sales were $106.5 million, reflecting a 5% decline compared to Q4 2023, impacted by the sale of the Lubbock facility and strategic volume rationalization [39][42] - Adjusted operating income improved to $2.4 million, a $3.8 million increase from the prior year, while adjusted EBITDA grew to $12.1 million, marking a 21% increase year-over-year [40][41] - For the full year, net sales totaled $464.3 million, a 5% decline compared to 2023, but adjusted operating income rose 65% to $5.1 million, and adjusted EBITDA increased by 12% to $48.3 million [42][44] Business Line Data and Key Metrics Changes - Power Solutions segment reported Q4 net sales of $39.2 million, down from $43.4 million in the prior year, with adjusted EBITDA at $5.6 million [47][48] - Mobile Solutions segment saw Q4 revenue of $67.4 million, a slight decline of over 2%, but adjusted EBITDA increased to $10 million, reflecting improved cost structure and productivity [50][51] - For the full year, Mobile Solutions revenue decreased to $283.9 million, primarily due to strategic exits from unprofitable business, but adjusted EBITDA grew to $35.6 million, up more than 19% [52][53] Market Data and Key Metrics Changes - The company is experiencing strong demand in the electrical grid market, driven by infrastructure investments and the need for upgrades due to EV adoption [111] - The medical components segment aims to grow to $50 million organically, currently at $20 million, with a $25 million pipeline [75][76] Company Strategy and Development Direction - The company has initiated a five-year transformation plan focusing on sales growth, cost reduction, and balance sheet improvement, with a goal of achieving $65 million in new business wins annually [9][14] - The strategy includes optimizing operational footprint, reducing costs by 3% annually, and leveraging existing assets to enhance profitability [18][19] - The company is also focusing on reshoring initiatives, with 70 new business win programs launching in 2025 [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatility in global markets and the potential impact of tariffs but remains committed to the transformation plan [59][60] - The outlook for 2025 projects net sales between $450 million and $480 million, with adjusted EBITDA ranging from $53 million to $63 million [58] Other Important Information - The company has closed two underperforming plants and is in the process of closing another, with a focus on improving operational performance and customer relationships [29][32] - The company has successfully reduced past due backlogs, leading to improved customer ratings and new business wins [118][121] Q&A Session Summary Question: Update on the turnaround of the Group of Seven plant - Management highlighted improvements in capacity and customer relationships, with expectations to increase EBITDA margins to 10% [66][69] Question: Insights on medical and electrical components businesses - The medical segment is on track to reach $50 million, with a focus on securing new business wins [75][76] Question: Impact of Class 8 truck orders and tariffs - Management clarified that their business is not significantly tied to Class 8 trucks, focusing instead on work trucks [86][89] Question: Long-term gross margin goal - Management indicated that achieving a 20% gross margin will require onboarding accretive business and optimizing operational structures [94][99] Question: Revenue trends in Power Solutions - Management expects an up year in Power Solutions, driven by strong demand in the electrical grid market [110][112] Question: On-time delivery metrics - Management noted significant reductions in past due backlogs, which have improved customer ratings and facilitated new business wins [117][121] Question: Breakdown of JV products staying in China versus exports - Management confirmed that parts produced in their JV are increasingly being exported to markets outside the US [124][126] Question: New business wins and gross margin targets - New business wins are being written above the 20% gross margin target, with a focus on selective opportunities [132][136]

Fourth Quarter and Full-Year 2024 Earnings Call March 6, 2025 Forward Looking Statement & Disclosures Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or s ...