Financial Performance - Net sales decreased by $9.7 million, or 8.5%, during the three months ended September 30, 2025, primarily due to the rationalization of underperforming business and lower volumes [147]. - Net loss for the three months ended September 30, 2025, was $6.7 million, compared to a net loss of $2.6 million in the same period of 2024, representing an increase in loss of $4.1 million [147]. - For the nine months ended September 30, 2025, net sales decreased by $40.3 million, or 11.3%, primarily due to the rationalization of underperforming business and lower volumes [161]. - Net sales in the Mobile Solutions segment decreased by $31.8 million, or 14.7%, during the nine months ended September 30, 2025, primarily due to rationalization of underperforming business and lower volume in North America [170]. - Net sales in the Power Solutions segment decreased by $8.2 million, or 5.8%, during the nine months ended September 30, 2025, primarily due to the sale of Lubbock operations and lower volumes [172]. Cost Management - Cost of sales decreased by $10.7 million, or 11.0%, during the same period, primarily due to the decrease in sales [148]. - Cost of sales decreased by $31.7 million, or 10.6%, during the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to the decrease in sales [162]. - Selling, general, and administrative expenses decreased by $2.8 million during the nine months ended September 30, 2025, primarily due to lower compensation expenses from a reduction in headcount [162]. - The company identified two manufacturing facilities to close, which is expected to reduce costs and improve operational efficiency [146]. Tax and Interest - The effective tax rate for the three months ended September 30, 2025, was (10.4)%, compared to (23.5)% for the same period in 2024 [153]. - The effective tax rate was (11.5)% for the nine months ended September 30, 2025, compared to (5.3)% for the same period in 2024, impacted by accrual of tax on unremitted earnings [167]. - Interest expense increased by $0.3 million during the three months ended September 30, 2025, primarily due to average debt balances and interest rates [151]. Assets and Liabilities - Total assets decreased by $5.9 million from December 31, 2024, to September 30, 2025, primarily due to a decrease in property, plant, and equipment [174]. - Total liabilities increased by $5.2 million during the same period, primarily due to increases in accounts payable and long-term debt [175]. Financing Activities - The principal amount outstanding under the Term Loan Facility as of September 30, 2025, was $119.8 million [180]. - The company entered into a Term Loan Credit Agreement establishing a new $128.0 million senior secured Term Loan Facility, maturing on April 16, 2030 [179]. Joint Ventures - The share of net income from the joint venture decreased during the three months ended September 30, 2025, with net sales of $33.3 million compared to $32.4 million in 2024 [154]. Cash Flow - Cash provided by operations was $7.1 million for the nine months ended September 30, 2025, compared to $4.4 million for the same period in 2024, due to improved management of working capital [177].

Core Viewpoint - NN, Inc. is set to release its third quarter 2025 financial results on October 29, 2025, with a conference call scheduled for October 30, 2025, at 9:00 a.m. E.T. [1] Company Information - NN, Inc. is a global diversified industrial company that specializes in engineering and manufacturing high-precision components and assemblies for various markets [3] - The company is headquartered in Charlotte, North Carolina, and operates facilities across North America, Europe, South America, and Asia [3] Investor Relations - Investors and interested parties can participate in the conference call by registering through the company's Investor Relations website [2] - A replay of the conference call will be available on NN's website until October 31, 2026 [2] - Contact information for investor relations includes Joe Caminiti and Stephen Poe, reachable via email at NNBR@alpha-ir.com or by phone at 312-445-2870 [4]

Summary of NN Inc. Conference Call - October 08, 2025 Company Overview - **Company Name**: NN Inc. (NasdaqGS: NNBR) - **Industry**: Precision component manufacturing - **Core Competencies**: Machining, stamping, precious metal plating - **Leadership**: Harold Bevis (President and CEO), Tim French (COO), Chris Bohnert (CFO) [1][2] Key Points and Arguments Transformation and Business Development - NN Inc. is in the second phase of its transformation, having corrected previous issues and initiated a business development program [2][3] - The company aims to secure $200 million in new business by the end of 2025, with a robust pipeline of $750 million [3][10] - The company has pivoted in its business areas, focusing on profitable segments and shedding unprofitable ones [3][10] Financial Performance - Current revenue stands at $434 million, with an additional $130 million from a joint venture not consolidated in financials [4] - EBITDA margin has improved from 8.8% in 2023 to 11.1% in 2025, with a long-term goal of around 14% [10][11] - Adjusted gross margins increased from 16.3% to 18.2%, aiming for a 20% target [9][10] Market Dynamics - 40% of revenue is tied to the automotive sector, which is experiencing turmoil in Europe and the U.S. due to tariffs, while the Chinese market remains strong [6][8] - The company is also focusing on defense and electronic systems, which are growing in the U.S. market [7][22] - Medical equipment is a re-entered market, with ongoing efforts to expand capabilities and production [7][26] Operational Efficiency - The company has implemented a cost program to offset inflation and improve productivity, targeting $15 million in cost reductions for 2025 [9][11] - Working capital improvement is ongoing, with a target to reduce it from 20% of sales to 17% [12] M&A Strategy - NN Inc. is actively pursuing M&A opportunities, focusing on cultural fit and commercial synergies [13][14] - The leadership team has significant experience in acquisitions, with plans to complete transactions by the end of 2025 or early 2026 [14][32] Challenges and Opportunities - Tariffs are impacting the industry but are seen as an opportunity for NN Inc. to attract new business by sourcing materials locally [18][19] - The company is addressing preferred equity and capital structure to reduce costs and support future M&A activities [28][29] Additional Important Content - The company has a global footprint with operations across four continents and 24 plants, including three in China [5] - NN Inc. has a strong focus on quality, achieving Six Sigma standards and maintaining green scorecards with major customers [11][12] - The leadership team emphasizes a culture of continuous improvement and operational efficiency [10][11] This summary encapsulates the key insights from the conference call, highlighting NN Inc.'s strategic direction, financial performance, market dynamics, operational efficiency, and M&A strategy.

Core Viewpoint - NN, Inc. will present at the Noble Capital Markets Emerging Growth Virtual Equity Conference on October 8, 2025, highlighting its position as a global diversified industrial company specializing in high-precision components and assemblies [1][2]. Company Overview - NN, Inc. is a global diversified industrial company that combines advanced engineering and production capabilities with materials science expertise to manufacture high-precision components and assemblies for various markets [4]. - The company is headquartered in Charlotte, North Carolina, and operates facilities across North America, Europe, South America, and Asia [4]. Event Details - The presentation is scheduled to begin at 2:00 p.m. ET on October 8, 2025, and interested investors can register to access the live webcast [2]. - In addition to the webcast, executive management will conduct one-on-one and group meetings with registered investors and analysts during the conference [3].

Core Insights - NN, Inc. has strengthened its Aerospace and Defense business by obtaining a Federal Firearms License (FFL) and registering with the U.S. Department of State's Directorate of Defense Trade Controls (DDTC) under ITAR, enhancing its ability to serve U.S. and allied defense customers [1][2] Aerospace and Defense Business Update - The company views its Aerospace and Defense segment as a significant growth platform, leveraging its ITAR registration and FFL license alongside U.S.-based manufacturing capabilities to deliver high-quality, mission-critical components [2] - NN has secured a new business relationship with a well-known specialty firearms manufacturer, leading to the prototyping and launching of new parts for various programs, indicating potential for substantial growth in this area [2][3] Manufacturing Capabilities - NN's Aerospace and Defense operations provide precision components, plating services, and assemblies for applications including guidance systems, weapon components, and electronic subsystems, supported by ITAR-registered facilities and FFL licensing [1][2] - The General Metal Finishing (GMF) division has over 50 years of experience in high-reliability defense programs, offering various plating and finishing services that meet military specifications [3] - The Polymet division supplies advanced clad metal solutions, enhancing performance in weaponry components and aerospace applications, backed by ISO 9001:2015 quality systems [4] Strategic Positioning - NN's facilities are strategically located across the U.S., enabling secure production of plating, machining, clad metals, and electronics for a range of defense programs [5] - The company anticipates an increase in Aerospace and Defense-related revenue as new opportunities arise from government programs and prime contractors, with plans to expand capabilities and product offerings [6]

Core Insights - NN, Inc. has promoted Gregg Cottage to Chief Information Officer and Chief Information Security Officer, enhancing its focus on information technology and cybersecurity strategies [1][2] - Mr. Cottage has over 30 years of IT experience and has been with NN since 2014, previously holding roles such as Global IT Infrastructure Manager and Global Director of Information Technology [2] - The company emphasizes the importance of aligning enterprise IT with business goals and leveraging data-driven intelligence to drive innovation and customer solutions [2] Company Overview - NN, Inc. is a global diversified industrial company that designs and manufactures high-precision components and assemblies, with a presence in North America, Europe, South America, and Asia [3] - The company combines advanced engineering and production capabilities with materials science expertise to serve various markets globally [3]

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]

Financial Performance & Outlook - Sales reached $434 million, with an additional $130 million from a Joint Venture (JV)[7] - Adjusted EBITDA stands at $47 million, representing an 11% margin[7] - The company aims to grow organic sales to over $600 million and exceed $1 billion through Mergers and Acquisitions (M&A)[24] - The company is implementing a cost-out plan of approximately $15 million in 2025 through staff reduction, plant rationalization, and continuous improvement programs[24, 41] - The company's adjusted gross margin increased by 190 basis points from 163% in 2023 to 182% in 2025 YTD[27] - Adjusted EBITDA margin increased by 230 basis points from 88% in 2023 to 111% in 2025 YTD[29] Strategic Initiatives & Market Position - The company is launching 110 to 120 programs in 2025, with an estimated peak annual sales value of approximately $48 million[24] - The company's China JV with Weifu has sales of $130 million in 2025 and operates with a workforce of approximately 700 people[18] - The company is targeting a working capital level of 17% of net sales, with the 2025 Q2 YTD figure at 20% of TTM net sales[44] - The company's new business awards reached $182 million YTD in 2025[32]

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]