NN(US:NNBR)2025-10-29 20:38Financial 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].