Core Viewpoint - NN, Inc. will present at the Noble Capital Markets Emerging Growth Equity Conference on June 5, 2025, highlighting its position as a global diversified industrial company specializing in high-precision components and assemblies [1][2]. Group 1: Presentation Details - The presentation is scheduled to begin at 3:30 p.m. ET on June 5, 2025, and will be accessible via a webcast for registered investors [2]. - Registrants will receive a link to the live event upon registration, and additional materials will be available on the company's investor section of its website [2]. Group 2: Management Engagement - Executive management will conduct one-on-one and group meetings with investors and analysts who have registered for the conference, providing further engagement opportunities [3]. Group 3: Company Overview - NN, Inc. is headquartered in Charlotte, North Carolina, and operates globally with facilities in North America, Europe, South America, and Asia, focusing on advanced engineering and materials science to manufacture high-precision components [4].

Financial Data and Key Metrics Changes - The company reported flat sequential sales and flat year-over-year sales on a pro forma basis, attributed to a successful new business program despite a softening base business [6][7] - Adjusted gross margins were 16.9%, with a target to reach 19% to 20% over five years [14] - Adjusted EBITDA for the quarter was $10,600,000, with a full-year guidance range of $53,000,000 to $63,000,000 [15][48] - Working capital was $84,800,000, down $4,600,000 year-over-year, representing 19.1% of trailing twelve-month sales [16][36] Business Line Data and Key Metrics Changes - In the Power Solutions segment, net sales were $43,500,000, down from $48,200,000, primarily due to the impact of the Lubbock facility and unfavorable foreign exchange [42] - The Mobile Solutions segment reported net sales of $62,200,000, down from $73,100,000, impacted by rationalized business and lower automotive volumes [45] Market Data and Key Metrics Changes - The automotive market is experiencing a shift towards hybrid vehicles, which is beneficial for the company as it allows for the use of existing assets [57][58] - The company is seeing increased activity in tariff-related RFQs, particularly in reshoring opportunities from Canada and China [53][56] Company Strategy and Development Direction - The company is focusing on a profitable immediate growth strategy (PIGS) to ramp up new business, with 120 programs worth $55,000,000 in annualized sales expected to ramp up this year [8][10] - A significant transformation plan is underway, with 70% completion, focusing on enhancing leadership and addressing underperforming areas [17][18] Management's Comments on Operating Environment and Future Outlook - Management noted that business uncertainty has increased, leading to lighter sales than planned, particularly in global automotive [6][9] - The company is optimistic about both 2025 and long-term goals, with a focus on cost reduction and operational efficiency [12][49] Other Important Information - The company is initiating free cash flow guidance in the range of $14,000,000 to $16,000,000 for the year, reflecting improved margin capture and anticipated proceeds from the CARES Act [48] Q&A Session Summary Question: Can you provide more detail on tariff-related RFQs? - Management indicated that there is significant activity in reshoring opportunities from Canada and China, with a mix of new capital and reuse of existing capital [53][56] Question: How is the automotive market affecting new business opportunities? - The shift towards hybrid vehicles is seen as beneficial, allowing the company to utilize existing assets while also entering new markets for EV components [57][58] Question: Can you elaborate on the $55,000,000 in new business wins? - The timing for these wins is expected to be weighted towards the second half of the year, with a ramp-up period of three to six months for immediate programs [65][66] Question: What about the $15,000,000 cost savings target? - The cost savings are expected to be evenly distributed throughout the year, with some back-end loading [70] Question: Are there any more plant closures expected? - There are two additional plants under evaluation for potential closure, but no firm plans have been established yet [72]

Financial Data and Key Metrics Changes - The company reported net sales of $105.7 million for Q1 2025, a decline of $15.5 million compared to the previous year [42] - Adjusted gross margins were 16.9%, with adjusted EBITDA at $10.6 million, down from $11.3 million year-over-year [15][42] - Adjusted operating income was $2 million, an increase of $2.7 million quarter-on-quarter [15][43] Business Line Data and Key Metrics Changes - In the Power Solutions segment, net sales were $43.5 million, down $4.7 million from the prior year, primarily due to the impact of the Lubbock facility [43] - The Mobile Solutions segment reported net sales of $62.2 million, a decrease of $10.9 million year-over-year, driven by lower automotive volumes and unfavorable foreign exchange impacts [46] Market Data and Key Metrics Changes - The company noted that global automotive sales, which account for about 40% of total sales, experienced a downturn, leading to flat sequential and year-over-year sales [7][8] - The company is seeing a shift in the automotive market towards hybrids, which is beneficial for leveraging existing assets [58] Company Strategy and Development Direction - The company is focusing on a "Profitable Immediate Growth Strategy" (PIGS) to ramp up new business, with 120 programs expected to generate $55 million in annualized sales [9][10] - A significant transformation plan is underway, with 70% completion, aimed at enhancing leadership and addressing underperforming areas [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's outlook for 2025, despite current market uncertainties, and reiterated guidance for EBITDA and new business awards [10][49] - The company is initiating free cash flow guidance of $14 million to $16 million for the year, reflecting improved margin capture and cost reduction efforts [49] Other Important Information - The company has a working capital of $84.8 million, down from the previous year, and aims to further reduce it by $5 million over the next two quarters [16][37] - The company is actively pursuing new business opportunities in the medical sector, with a $40 million pipeline [30] Q&A Session Summary Question: Can you provide more detail on tariff-related RFQs? - Management noted increased activity in reshoring opportunities from Canada and China, primarily in the automotive sector, with a mix of new and existing capital required [54][55] Question: How is the automotive market affecting new business opportunities? - The shift towards hybrids is seen as beneficial, allowing the company to utilize legacy assets effectively while also entering new markets for EV components [58][59] Question: Can you elaborate on the $55 million in new business wins? - The new business is expected to ramp up over the next three to six months, with a significant portion impacting the second half of the year [66][67] Question: What is the status of the $15 million cost savings target? - The cost savings are expected to be evenly distributed throughout the year, with some back-end loading [71] Question: Are there plans for further plant closures? - There are two additional plants under evaluation for potential closure, but no firm plans have been established yet [73] Question: Does the free cash flow guidance include the CARES Act refund? - Yes, the guidance includes approximately $12.3 million from the CARES Act [78]

Financial Data and Key Metrics Changes - The company reported net sales of $105.7 million for Q1 2025, a decline of $15.5 million compared to the same period last year [43] - Adjusted gross margins were 16.9%, with adjusted EBITDA at $10.6 million, down from $11.3 million year-over-year [15][44] - Adjusted operating income was $2 million, an increase of $2.7 million quarter-on-quarter [16][44] - Working capital was $84.8 million, down $4.6 million year-on-year, representing 19.1% of trailing twelve-month sales [17][38] Business Line Data and Key Metrics Changes - In the Power Solutions segment, net sales were $43.5 million, down from $48.2 million, primarily due to the impact of the Lubbock facility and unfavorable foreign exchange [44] - The Mobile Solutions segment reported net sales of $62.2 million, down from $73.1 million, affected by rationalized business and lower automotive volumes [46] - Adjusted EBITDA in the Mobile Solutions segment was $8.1 million, down $500,000 from the previous year [48] Market Data and Key Metrics Changes - The company noted a flat sequential sales performance and flat year-over-year sales on a pro forma basis, attributed to a successful new business program [6][14] - The automotive market is experiencing a shift towards hybrid vehicles, which is seen as beneficial for the company as it allows for a larger available market [60] Company Strategy and Development Direction - The company is focusing on a "Profitable Immediate Growth Strategy" (PIGS) to ramp up immediate business, with 120 programs worth $55 million in annualized sales [7][8] - A significant transformation plan is underway, with approximately 70% completion, aimed at enhancing leadership and addressing underperforming areas [19][21] - The company is optimistic about both 2025 and long-term goals, with a focus on leveraging existing capacity while selectively adding new assets [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased business uncertainty and lighter sales in Q1, particularly in the global automotive sector [5] - The company reaffirmed its guidance for adjusted EBITDA in the range of $53 million to $63 million for the full year of 2025, despite current economic uncertainties [50] - Free cash flow guidance was initiated at $14 million to $16 million for the year, reflecting cost reduction actions and improved margin capture [51] Other Important Information - The company has a robust pipeline of new business opportunities, with $740 million in potential projects, indicating strong future growth prospects [29] - The operational team has achieved a 16.1% reduction in total headcount since Q2 2023, contributing to improved adjusted EBITDA per salaried headcount [35][36] Q&A Session Summary Question: Can you provide more detail on tariff-related RFQs? - Management noted increased activity in reshoring opportunities from Canada and China, primarily in the automotive sector, with a mix of new capital and reuse of existing capital [56][59] Question: How is the automotive market changing your new business opportunities? - The shift towards hybrid vehicles is seen as beneficial, allowing the company to utilize legacy assets while entering new markets for EV components [60][61] Question: Can you elaborate on the $55 million in new business wins and the $740 million pipeline? - Immediate ramp-up programs typically have a 3 to 6 month lag before impacting revenue, with a significant portion expected in the second half of the year [66][68] Question: Is the $15 million cost savings expected to be evenly distributed throughout the year? - Most of the cost savings are expected to be evenly distributed, with some back-end loading [72] Question: Are there any more plant closures expected? - There are two additional plants under evaluation for potential closure, but no firm plans have been established yet [73] Question: Does the free cash flow guidance include the CARES Act refund? - Yes, the free cash flow guidance includes approximately $12.4 million from the CARES Act [79]

Financial Performance & Guidance - NN's Q1 2025 net sales were $105.7 million, flat year-over-year on a pro forma basis, but down $15.5 million as reported[14, 40] - Adjusted EBITDA for Q1 2025 was $10.6 million, with an adjusted EBITDA margin of 10.0%, reconfirming FY 2025 guidance of $53-$63 million[14] - The company is lowering its 2025 net sales guidance to $430-$460 million due to GDP uncertainties, but reiterating adjusted EBITDA guidance of $53-$63 million and new business awards guidance of $60-$70 million[12] - NN initiates 2025 guidance for free cash flow at $14 to $16 million[12] Business Transformation & New Business - NN is launching 120 new programs in 2025, expected to add approximately $55 million in peak annual sales[11] - The company's new business program has secured $160 million of new business from January 2023 to May YTD 2025[16, 18, 21] - NN Europe achieved $6.7 million in new wins in Q1 2025, with an estimated total program value of over $50 million[25] - The company's working capital has been reduced by 20%, or $21.6 million, over the last two years, from $106.4 million in Q1 2023 to $84.8 million in Q1 2025[37, 38] Cost Reduction & Operational Efficiency - NN has reduced its global staff by 16%, or 525 people, over two years, with further reductions planned for 2025[29, 33] - The company is implementing a $6.5 million payroll reduction plan in 2025[33] - NN is advancing its organic transition into non-auto areas by leveraging $340 million of installed assets and investing $10-$14 million additional cash capex per year[12]

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]