NN, Inc. Reports Fourth Quarter and Full Year 2025 Results

Core Insights - NN, Inc. has achieved its third consecutive year of improved financial performance, with expectations for continued growth in 2026, including a return to organic net sales growth [4][6] - The company has completed the most capital-intensive phase of its transformation plan, which involved plant closures and realignment of headcount, positioning itself as a healthier and more focused entity [4][6] - NN forecasts adjusted EBITDA for 2026 to be between $50 million and $60 million, indicating a fourth consecutive year of improvement [4][27] Financial Highlights - Q4 2025 net sales were $104.7 million, a decrease of 1.7% from Q4 2024's $106.5 million, primarily due to rationalization efforts and lower volumes [5][7] - Full-year 2025 net sales totaled $422.2 million, down 9.1% from $464.3 million in 2024, attributed to business rationalization and unfavorable foreign exchange effects [10] - Q4 2025 adjusted EBITDA was $12.9 million, representing 12.3% of net sales, compared to $12.1 million or 11.3% of sales in Q4 2024 [13][51] Operational Highlights - The company secured approximately $70 million in new business wins in 2025, exceeding guidance and bringing the three-year cumulative total to over $200 million [5][6] - NN achieved a hit rate of over 20% on new business opportunities, with more than 170 new sales program awards launched in 2025 or set to launch in 2026 [5][6] - The sales pipeline exceeds $800 million across more than 800 programs, focusing on higher-growth markets such as data centers and electrical infrastructure [5][6] 2026 Outlook - For fiscal 2026, NN is guiding net sales between $445 million and $465 million, reflecting a return to year-over-year growth [27][34] - The company plans to launch approximately 100 new programs in 2026, which are expected to enhance EBITDA and cash flow profiles [6][34] - New business wins are anticipated to increase to a range of $70 million to $80 million in 2026 [6][34]