Latest news with #HaroldBevis
Yahoo
4 days ago
- Business
- Yahoo
NN (NASDAQ:NNBR) Misses Q2 Revenue Estimates
Industrial components supplier NN (NASDAQ:NNBR) missed Wall Street's revenue expectations in Q2 CY2025, with sales falling 12.3% year on year to $107.9 million. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $445 million at the midpoint. Its GAAP loss of $0.26 per share was 60% below analysts' consensus estimates. Is now the time to buy NN? Find out in our full research report. NN (NNBR) Q2 CY2025 Highlights: Revenue: $107.9 million vs analyst estimates of $110.8 million (12.3% year-on-year decline, 2.6% miss) EPS (GAAP): -$0.26 vs analyst expectations of -$0.16 (60% miss) Adjusted EBITDA: $13.18 million vs analyst estimates of $13.16 million (12.2% margin, in line) The company reconfirmed its revenue guidance for the full year of $445 million at the midpoint EBITDA guidance for the full year is $58 million at the midpoint, above analyst estimates of $53.41 million Operating Margin: -1.4%, in line with the same quarter last year Free Cash Flow was -$4.42 million compared to -$4.87 million in the same quarter last year Market Capitalization: $108 million Harold Bevis, President and Chief Executive Officer, said, 'NN delivered a solid quarter for gross margins, operating income, adjusted operating income, and adjusted EBITDA. We are pleased with our reported results, new business acquisition, and new business launches. We leveraged the soft market environment to upsize our business development activities and investments. Our soft top-line centers around certain automotive customers. Conversely, we have been able to partially offset this weakness through the contribution of new business launches and precious metals pass-through pricing.' Company Overview Formerly known as Nuturn, NN (NASDAQ:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, NN struggled to consistently increase demand as its $433.7 million of sales for the trailing 12 months was close to its revenue five years ago. This wasn't a great result and is a sign of poor business quality. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. NN's recent performance shows its demand remained suppressed as its revenue has declined by 6.6% annually over the last two years. This quarter, NN missed Wall Street's estimates and reported a rather uninspiring 12.3% year-on-year revenue decline, generating $107.9 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 3.4% over the next 12 months. Although this projection suggests its newer products and services will fuel better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. NN's high expenses have contributed to an average operating margin of negative 3.3% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. Analyzing the trend in its profitability, NN's operating margin decreased by 5.2 percentage points over the last five years. NN's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. NN's operating margin was negative 1.4% this quarter. The company's consistent lack of profits raise a flag. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Although NN's full-year earnings are still negative, it reduced its losses and improved its EPS by 30.6% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For NN, EPS didn't budge over the last two years, a regression from its five-year trend. We hope it can revert to earnings growth in the coming years. In Q2, NN reported EPS at negative $0.26, down from negative $0.12 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street expects NN to improve its earnings losses. Analysts forecast its full-year EPS of negative $1.13 will advance to negative $0.59. Key Takeaways from NN's Q2 Results We were impressed by NN's optimistic full-year EBITDA guidance, which blew past analysts' expectations. We were also glad its full-year revenue guidance was in line with Wall Street's estimates. On the other hand, its revenue missed and its EPS fell short of Wall Street's estimates. Overall, this quarter was mixed. The stock traded up 2.3% to $2.20 immediately after reporting. Is NN an attractive investment opportunity at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
NN, Inc. Reports Second Quarter 2025 Results
Improvement in Operating Income, Adjusted EBITDA, and New Business Program Company Reiterates Full Year 2025 Guidance CHARLOTTE, N.C., Aug. 06, 2025 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR) ('NN' or the 'Company'), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today reported results for the second quarter ended June 30, 2025. Second Quarter Highlights: (results from continuing operations compared with prior year, where comparisons are noted) Net sales of $107.9 million, down 2.4% on a pro forma basis Gross margin of 16.9%, and adjusted gross margin of 19.5% Operating loss of $1.5 million and adjusted operating income of $4.9 million, an increase of $2.8 million Adjusted EBITDA of $13.2 million, with an adjusted EBITDA margin of 12.2% New business wins were $32.7 million in the first half of 2025, and NN has over 100 programs launching in 2025 that are expected to add greater than $45 million in future sales at full run-rate Harold Bevis, President and Chief Executive Officer, said, 'NN delivered a solid quarter for gross margins, operating income, adjusted operating income, and adjusted EBITDA. We are pleased with our reported results, new business acquisition, and new business launches. We leveraged the soft market environment to upsize our business development activities and investments. Our soft top-line centers around certain automotive customers. Conversely, we have been able to partially offset this weakness through the contribution of new business launches and precious metals pass-through pricing.' 'We have increased the size of our new business program in terms of prospecting, launching, and investing. We now have over 40 people in business development and launch, and we expect to launch over 100 new programs in 2025. We expect those launches will add over $45 million in future sales at run-rate. We plan to invest $18 to $20 million on capital projects in 2025. The twin goals of lowering our costs overall as a company while adding increased focus on growth is working and will be the main drivers of sustained top-line growth and increased profitability.' Mr. Bevis continued, 'Our current expectation is that some of our automotive markets may have similar soft patterns in the second half of 2025. In response, we have activated our own mitigation levers including tight cost controls and working capital actions. We are underway with tariff mitigation efforts with our customers and have positioned ourselves as a tariff problem solver.' 'We are using this opportunity to accelerate our transformation activities. We are actively investing in growth capex, and we have hired additional personnel to accelerate growth in our targeted areas. We recently announced the hiring of Tim Erro as NN's new Chief Commercial Officer and have also added new account managers in our targeted areas of medical, stampings, and electrical products. We now have a core team of electrical harness experts and are evaluating an organic entry into this new market, just as we have done to enter the medical market.' Mr. Bevis concluded, 'Our transformation plan is working and we have increased our efforts during this slow auto market. Lastly, we have fully kicked off an M&A program and are seeking targets that are consistent with our strategy and can help refinance our preferred stock.' Second Quarter Results Net sales were $107.9 million, a decrease of 12.3% compared to the second quarter of 2024 net sales of $123.0 million, primarily due to the rationalization of underperforming business and plants in 2024, the sale of our Lubbock operations in 2024, and lower automotive volumes. These decreases were partially offset by the contribution of 70 new business launches in the first half of 2025 and higher precious metals pass-through pricing. Loss from operations for the second quarter of 2025 was $1.5 million, an improvement of 28.6% compared to the second quarter of 2024 loss from operations of $2.1 million. Second Quarter Adjusted Results Pro forma net sales when adjusted for rationalized sales, currency changes, and the sale of Lubbock, were a decrease of 2.4% in the second quarter when compared to the second quarter of 2024. Adjusted income from operations for the second quarter of 2025 was $4.9 million compared to adjusted income from operations of $2.1 million for the same period in 2024. Adjusted EBITDA was $13.2 million, or 12.2% of sales, compared to $13.4 million, or 10.9% of sales, for the same period in 2024. Adjusted net income was $0.7 million, or $0.02 per diluted share, compared to adjusted net loss of $0.7 million, or $(0.02) per diluted share, for the same period in 2024. Free cash flow was a use of cash of $3.2 million compared to a use of cash of $1.3 million for the same period in 2024. Power Solutions Net sales for the second quarter of 2025 were $44.6 million compared to $50.2 million in the same period in 2024. The decrease is primarily due to the sale of our Lubbock operations, partially offset by higher precious metals pass-through pricing. Income from operations was $5.8 million compared to income from operations of $5.3 million for the same period in 2024. Adjusted income from operations was $8.4 million compared to $8.1 million in the second quarter of 2024. The increase in adjusted income from operations was primarily due to favorable product mix, and lower operating costs. Mobile Solutions Net sales for the second quarter of 2025 were $63.4 million compared to $72.9 million in the second quarter of 2024. The decrease in sales was primarily due to rationalized volume and lower automotive volume. Loss from operations was $1.1 million compared to loss from operations of $1.6 million for the same period in 2024. Adjusted income from operations was $2.3 million compared to adjusted loss from operations of $0.7 million in the second quarter of 2024. The increase in adjusted income from operations was primarily due to improved margin mix of sales and lower operating costs. 2025 Outlook NN is maintaining its full-year 2025 outlook. Net sales to range between $430 to $460 million Adjusted EBITDA to range between $53 to $63 million Free cash flow to range between $14 to $16 million; guidance assumes receipt of CARES Act refund in 2025 New business wins to range between $60 to $70 million Chris Bohnert, Senior Vice President and Chief Financial Officer, commented, 'Our second quarter results were largely in line with expectations. We are maintaining our current guidance and given the ongoing tariff-driven uncertainties and the anticipated downstream effects for our customers, we continue to direct expectations towards the lower end of our guided ranges. We note that the uncertainty of the current macroeconomic environment, particularly the potential for shifts in trade policy and interest rates could drive variability in our results, which may fall above or below our current forecasts. Irrespective of the near-term macroeconomic backdrop, we continue to pursue expense mitigation and operational efficiencies to partially offset potential impacts to end market demand. We are investing in commercial enhancements to accelerate future growth, and we remain optimistic about the strong pace of our transformation and growth opportunities.' Conference Call NN will discuss its results during its quarterly investor conference call on August 7, 2025, at 9 a.m. ET. The call and supplemental presentation may be accessed via NN's website, The conference call can also be accessed by dialing 1-888-999-3182 or 1-848-280-6330. For those who are unavailable to listen to the live broadcast, a replay will be available shortly after the call until August 7, 2026. NN discloses in this press release the non-GAAP financial measures of adjusted income (loss) from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans, reorganizational and impairment charges. The financial tables found later in this press release include a reconciliation of adjusted income (loss) from operations, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per diluted share, free cash flow to the U.S. GAAP financial measures of income (loss) from operations, net income (loss), net income (loss) per diluted common share, and cash provided (used) by operating activities. About NN, Inc. NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, South America, Europe and China. For more information about the company and its products, please visit This press release contains express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the full year of fiscal 2025, the impact of, and our ability to execute, our corporate strategies and business initiatives and the potential impact tariffs, high interest rates, high metal costs and additional economic uncertainties may have on our financial statements and results of operations. Forward-looking statements generally will be accompanied by words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'growth,' 'guidance,' 'intend,' 'may,' 'will,' 'possible,' 'potential,' 'predict,' 'project', 'trajectory' or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management's control and that may cause actual results to be materially different from such statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the potential impacts of tariffs on the U.S. economy, the economy of other countries in which we conduct operations and our industry, as well as the potential implications and ramifications of tariffs on our business and the local and global supply chains supporting the same, and our ability to mitigate any adverse impacts of such; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; uncertainty of government policies and actions after recent U.S. elections in respect to global trade, tariffs and international trade agreements; and cyber liability or potential liability for breaches of our or our service providers' information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' included in the Company's filings made with the U.S. Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this press release and are based on information available to NN at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements. With respect to any non-GAAP financial measures included in the following document, the accompanying information required by SEC Regulation G can be found in the back of this document or in the 'Investors' section of the Company's web site, under the heading 'News & Events' and subheading 'Presentations.' NN, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2025 2024 2025 2024 Net sales $ 107,921 $ 122,992 $ 213,609 $ 244,190 Cost of sales (exclusive of depreciation and amortization shown separately below) 89,699 101,257 181,345 202,343 Selling, general, and administrative expense 12,095 13,511 23,265 26,859 Depreciation and amortization 8,918 11,761 17,692 24,308 Other operating income, net (1,327) (1,390) (2,440) (2,390) Loss from operations (1,464) (2,147) (6,253) (6,930) Interest expense 5,657 5,873 10,851 11,239 Loss on extinguishment of debt 3,007 — 3,007 — Other expense (income), net (619) (3,461) (2,788) 692 Loss before benefit (provision) for income taxes and share of net income from joint venture (9,509) (4,559) (17,323) (18,861) Benefit (provision) for income taxes (774) 215 (2,084) (291) Share of net income from joint venture 2,181 2,141 4,620 4,412 Net loss $ (8,102) $ (2,203) $ (14,787) $ (14,740) Other comprehensive income (loss): Foreign currency transaction gain (loss) 4,454 (3,387) 7,579 (5,733) Reclassification adjustments from the interest rate swap included in net loss, net of tax — (449) — (898) Other comprehensive income (loss) $ 4,454 $ (3,836) $ 7,579 $ (6,631) Comprehensive loss $ (3,648) $ (6,039) $ (7,208) $ (21,371) Basic and diluted net loss per share $ (0.26) $ (0.12) $ (0.48) $ (0.46) Shares used to calculate basic and diluted net loss per share 49,433 48,839 49,255 48,281 NN, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except per share data) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 9,542 $ 18,128 Accounts receivable, net 69,825 61,549 Inventories 62,793 61,877 Income tax receivable 13,084 12,634 Prepaid assets 4,602 2,855 Other current assets 12,133 10,519 Total current assets 171,979 167,562 Property, plant and equipment, net 164,248 162,034 Operating lease right-of-use assets 37,301 39,317 Intangible assets, net 37,599 44,410 Investment in joint venture 40,312 34,971 Deferred tax assets 1,329 1,329 Other non-current assets 7,992 7,270 Total assets $ 460,760 $ 456,893 Liabilities, Preferred Stock, and Stockholders' Equity Current liabilities: Accounts payable $ 45,793 $ 38,879 Accrued salaries, wages and benefits 14,444 19,915 Income tax payable 484 659 Current maturities of long-term debt 5,580 5,039 Current portion of operating lease liabilities 5,903 6,038 Other current liabilities 16,949 13,382 Total current liabilities 89,153 83,912 Deferred tax liabilities 4,896 4,969 Long-term debt, net of current maturities 154,047 143,591 Operating lease liabilities, net of current portion 39,710 42,291 Other non-current liabilities 10,896 14,111 Total liabilities 298,702 288,874 Commitments and contingencies Series D perpetual preferred stock 102,518 93,497 Stockholders' equity: Common stock 503 499 Additional paid-in capital 448,033 455,811 Accumulated deficit (348,408) (333,621) Accumulated other comprehensive loss (40,588) (48,167) Total stockholders' equity 59,540 74,522 Total liabilities, preferred stock, and stockholders' equity $ 460,760 $ 456,893 NN, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (in thousands) 2025 2024 Cash flows from operating activities Net loss $ (14,787) $ (14,740) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 17,692 24,308 Amortization of debt issuance costs and discount 1,024 1,106 Paid-in-kind interest 1,236 1,436 Loss on extinguishment of debt 3,007 — Total derivative gain, net of cash settlements (2,036) (1,068) Share of net income from joint venture (4,620) (4,412) Share-based compensation expense 1,640 1,536 Deferred income taxes (5) (479) Other (785) (758) Changes in operating assets and liabilities: Accounts receivable (6,568) (8,747) Inventories 1,044 (1,185) Other operating assets (3,318) (2,705) Income taxes receivable and payable, net (589) (1,326) Accounts payable 6,564 1,726 Other operating liabilities (3,540) 4,739 Net cash used in operating activities (4,041) (569) Cash flows from investing activities Acquisition of property, plant and equipment (7,630) (9,052) Proceeds from sale of property, plant, and equipment 451 237 Net cash used in investing activities (7,179) (8,815) Cash flows from financing activities Proceeds from asset backed credit facilities 21,000 25,000 Repayments of asset backed credit facilities (21,400) (25,000) Proceeds from term loans and other long-term debt 118,579 — Repayments of term loans and other long-term debt (115,356) (21,061) Cash paid for debt issuance costs (3,553) (646) Proceeds from sale-leaseback of equipment 946 8,324 Proceeds from sale-leaseback of land and buildings 4,300 16,863 Repayments of financing obligations (601) (211) Other (2,352) (1,700) Net cash provided by financing activities 1,563 1,569 Effect of exchange rate changes on cash flows 1,071 (342) Net change in cash and cash equivalents (8,586) (8,157) Cash and cash equivalents at beginning of year 18,128 21,903 Cash and cash equivalents at end of quarter $ 9,542 $ 13,746 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and Gross Margin Three Months Ended June 30, (in thousands) 2025 2024 Net sales $ 107,921 $ 122,992 Cost of sales (exclusive of depreciation and amortization) 89,699 101,257 GAAP gross profit 18,222 21,735 Personnel costs (1) 2,052 298 Facility costs (2) — 10 Other 781 778 Adjusted gross profit (a) $ 21,055 $ 22,821 Adjusted gross margin (3) 19.5 % 18.6 % (1) Personnel costs include recruitment, retention, relocation, and severance costs (2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations (3) Non-GAAP adjusted gross margin = Non-GAAP adjusted gross profit / GAAP net sales Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations (in thousands) Three Months Ended June 30, NN, Inc. Consolidated 2025 2024 GAAP loss from operations $ (1,464) $ (2,147) Professional fees 352 (12) Personnel costs (1) 2,614 826 Facility costs (2) — (51) Amortization of intangibles 3,405 3,456 Non-GAAP adjusted income from operations (b) $ 4,907 $ 2,072 Non-GAAP adjusted operating margin (3) 4.6 % 1.7 % GAAP net sales $ 107,921 $ 122,992 (in thousands) Three Months Ended June 30, Power Solutions 2025 2024 GAAP income from operations $ 5,782 $ 5,320 Personnel costs (1) 77 33 Facility costs (2) — 79 Amortization of intangibles 2,567 2,617 Non-GAAP adjusted income from operations (b) $ 8,426 $ 8,049 Non-GAAP adjusted operating margin (3) 18.9 % 16.0 % GAAP net sales $ 44,641 $ 50,151 (in thousands) Three Months Ended June 30, Mobile Solutions 2025 2024 GAAP loss from operations $ (1,110) $ (1,630) Personnel costs (1) 2,540 265 Facility costs (2) — (130) Amortization of intangibles 838 837 Non-GAAP adjusted income (loss) from operations (b) $ 2,268 $ (656) Share of net income from joint venture 2,181 2,141 Non-GAAP adjusted income from operations with JV (b) $ 4,449 $ 1,485 Non-GAAP adjusted operating margin (3) 7.0 % 2.0 % GAAP net sales $ 63,391 $ 72,855 Three Months Ended June 30, (in thousands) Elimination 2025 2024 GAAP net sales $ (111) $ (14) (1) Personnel costs include recruitment, retention, relocation, and severance costs (2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations (3) Non-GAAP adjusted operating margin = Non-GAAP adjusted income (loss) from operations / GAAP net sales Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA Three Months Ended June 30, (in thousands) 2025 2024 GAAP net loss $ (8,102) $ (2,203) Benefit (provision) for income taxes 774 (215) Interest expense 5,657 5,873 Loss on extinguishment of debt 3,007 — Change in fair value of preferred stock derivatives and warrants (273) (3,949) Depreciation and amortization 8,918 11,761 Professional fees 352 (12) Personnel costs (1) 2,614 826 Facility costs (2) — (51) Non-cash stock compensation 801 691 Non-cash foreign exchange (gain) loss on inter-company loans (569) 684 Non-GAAP adjusted EBITDA (c) $ 13,179 $ 13,405 Non-GAAP adjusted EBITDA margin (3) 12.2 % 10.9 % GAAP net sales $ 107,921 $ 122,992 (1) Personnel costs include recruitment, retention, relocation, and severance costs (2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations (3) Non-GAAP adjusted EBITDA margin = Non-GAAP adjusted EBITDA / GAAP net sales Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income and GAAP Net Income (Loss) per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share Three Months Ended June 30, (in thousands) 2025 2024 GAAP net loss $ (8,102) $ (2,203) Pre-tax loss on extinguishment of debt 3,007 — Pre-tax professional fees 352 — Pre-tax personnel costs 2,614 826 Pre-tax facility costs — (51) Pre-tax foreign exchange (gain) loss on inter-company loans (569) 684 Pre-tax change in fair value of preferred stock derivatives and warrants (273) (3,949) Pre-tax amortization of intangibles and deferred financing costs 3,717 4,018 Tax effect of adjustments reflected above (d) — (63) Non-GAAP adjusted net income (loss) (e) $ 746 $ (738) Three Months Ended June 30, (per diluted common share) 2025 2024 GAAP net loss per diluted common share $ (0.26) $ (0.12) Pre-tax loss on extinguishment of debt 0.06 — Pre-tax professional fees 0.01 — Pre-tax personnel costs 0.05 0.02 Pre-tax facility costs — — Pre-tax foreign exchange (gain) loss on inter-company loans (0.01) 0.01 Pre-tax change in fair value of preferred stock derivatives and warrants (0.01) (0.08) Pre-tax amortization of intangibles and deferred financing costs 0.08 0.08 Preferred stock cumulative dividends and deemed dividends 0.09 0.08 Non-GAAP adjusted net income (loss) per diluted common share (e) $ 0.02 $ (0.02) Shares used to calculate net earnings (loss) per share 49,433 48,839 The Company discloses in this presentation the non-GAAP financial measures of adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans, reorganizational and impairment charges. The costs we incur in completing acquisitions, including the amortization of intangibles and deferred financing costs, and divestitures are excluded from these measures because their size and inconsistent frequency are unrelated to our commercial performance during the period, and we believe are not indicative of our ongoing operating costs. We exclude the impact of currency translation from these measures because foreign exchange rates are not under management's control and are subject to volatility. Other non-operating charges are excluded as the charges are not indicative of our ongoing operating cost. We believe the presentation of adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow provides useful information in assessing our underlying business trends and facilitates comparison of our long-term performance over given periods. The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual income growth derived from income amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. (a) Non-GAAP adjusted gross margin represents GAAP gross profit, adjusted to exclude the effects of restructuring and integration expense and non-operational charges related to acquisition and transition expense. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted gross margin is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP gross margin. (b) Non-GAAP adjusted income (loss) from operations represents GAAP income (loss) from operations, adjusted to exclude the effects of restructuring and integration expense; non-operational charges related to acquisition and transition expense, intangible amortization costs for fair value step-up in values related to acquisitions, non-cash impairment charges, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income (loss) from operations is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from operations. (c) Non-GAAP adjusted EBITDA represents GAAP net income (loss), adjusted to include income taxes, interest expense, write-off of unamortized debt issuance costs, interest rate swap payments and change in fair value that was recognized in earnings, change in fair value of preferred stock derivatives and warrants, depreciation and amortization, charges related to acquisition and transition costs, non-cash stock compensation expense, foreign exchange gain (loss) on inter-company loans, restructuring and integration expense, costs related to divested businesses and litigation settlements, income from discontinued operations, and non-cash impairment charges, to the extent applicable. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from continuing operations. (d) This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the respective table. NN, Inc. estimates the tax effect of the adjustment items identified in the reconciliation schedule above by applying the applicable statutory rates by tax jurisdiction unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment. (e) Non-GAAP adjusted net income (loss) represents GAAP net income (loss) adjusted to exclude the tax-affected effects of charges related to acquisition and transition costs, foreign exchange gain (loss) on inter-company loans, restructuring and integration charges, amortization of intangibles costs for fair value step-up in values related to acquisitions and amortization of deferred financing costs, non-cash impairment charges, write-off of unamortized debt issuance costs, interest rate swap payments and change in fair value, change in fair value of preferred stock derivatives and warrants, costs related to divested businesses and litigation settlements, income (loss) from discontinued operations, and preferred stock cumulative dividends and deemed dividends. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry.
Globe and Mail
22-07-2025
- Business
- Globe and Mail
NN, Inc. Appoints Tim Erro as New Chief Commercial Officer, Expands New Business Program
CHARLOTTE, N.C., July 22, 2025 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced Timothy Erro has joined as its new Vice President and Chief Commercial Officer. In this position, Mr. Erro will lead NN's global commercial team and report directly to Harold Bevis, President and CEO. NN has a successful new business program and as a function of this early success, the Company is announcing a commitment to expand this program with this announced leadership change. NN has shown strong initial results in the last two years. Approximately $160 million of new business wins since launching the initiative in 2023, with success primarily in the Company's traditional markets and emerging success in electrical and medical end markets. NN's new business pipeline remains robust at more than $700 million across all products and targeted growth areas. NN is revising and increasing its overall new business objectives: Increasing its targets and the pace for achieving new wins, specifically in electrical and medical markets; Setting higher annual award goals; and Strategically expanding product offerings and solutions. Tim Erro has led a highly successful global team and program, and has overseen a significant amount of business growth and new wins, including: Leading a global team effort that has averaged more than $50 million per year in new business wins of electrical products, more than three times the historical annual new business wins generated by NN's Power Solutions division; and Entering eight new markets, through which his teams have added many new customers in pursuit of electrical products and systems that fit his prior company's operating assets and know-how. Harold Bevis, President and Chief Executive Officer of NN commented, "Tim brings an outstanding track record with him and is currently leading one of the most successful new wins programs in the electrical industry globally. He is an expert at entering new markets and expanding market share in existing markets. He has a great blend of technical and commercial expertise, operations know-how, and executive leadership experience, all of which align with our commercial strategy and will help take NN's growth program to the next level. He and I have worked together in the past, where he led a tremendously successful global program focused on electrical and electronic products at a much larger scale than our current program. His track record of developing and leading high-performing sales organizations will help us achieve our goals faster.' Erro has more than 30 years of experience with electrical and electronic products across a wide variety of end markets and global geographies, including: On-road commercial vehicles; Vocational vehicles – buses, transit, refuse; Aerospace and defense platforms; Automotive passenger vehicles and trucks; Last mile delivery vehicles; Recreational vehicles – golf carts, ATVs, motorcycles; Off-road construction and agricultural equipment; Gas, diesel and hydrogen engines; Chassis and battery platforms; High and low voltage systems; Wide variety of connector systems; and Windshield wiper systems. Mr. Bevis concluded, 'From our past experience together, I can attest that Tim will increase our focus, pace, hit rates, and the accountability of our global commercial team along our chosen paths. He will strengthen our team and immediately bring in new talent. As part of our enhanced commercial efforts, we especially want to grow at a more accelerated pace in electrical products and medical products.' Tim Erro commented, 'I am excited to join NN's leadership team and am eager to put my background and industry experience to work in strengthening NN's commercial results and our global team. Our engineering and production capabilities are unique and highly valued in the market, and I look forward to working with the talented team at NN to set even higher goals and achieve them with consistency. This is going to be an exciting next phase for NN, and I plan to bring in additional experienced veterans to lead the way with our customers.' Mr. Erro brings an extensive commercial and operations background with him. Prior to joining NN, he served as VP of Global Sales and New Business Development for Commercial Vehicle Group, Inc., and has had a focused set of sales and operations roles at Aptiv (formerly Delphi Automotive), Leoni Wiring Systems, General Motors, and United Technologies Automotive. A highlight of his engineering tenure includes leading the design and execution of fully functional concept vehicles for major global auto shows, showcasing advanced technology trends and innovations. Mr. Erro also proudly served 12 years in the US Navy reserves. He holds a Bachelor of Science in Mechanical Engineering from Youngstown State University. About NN, Inc. NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Europe, South America, and Asia. For more information about the company and its products, please visit
Yahoo
12-06-2025
- Automotive
- Yahoo
NNBR Q1 Earnings Call: Revenue Falls Short, Management Emphasizes Cost Cuts and New Business Pipeline
Industrial components supplier NN (NASDAQ:NNBR) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 12.8% year on year to $105.7 million. The company's full-year revenue guidance of $445 million at the midpoint came in 2% below analysts' estimates. Its non-GAAP loss of $0.03 per share was in line with analysts' consensus estimates. Is now the time to buy NNBR? Find out in our full research report (it's free). Revenue: $105.7 million vs analyst estimates of $109.7 million (12.8% year-on-year decline, 3.7% miss) Adjusted EBITDA: $10.58 million vs analyst estimates of $11.73 million (10% margin, 9.8% miss) The company dropped its revenue guidance for the full year to $445 million at the midpoint from $465 million, a 4.3% decrease EBITDA guidance for the full year is $58 million at the midpoint, above analyst estimates of $53.16 million Operating Margin: -4.5%, in line with the same quarter last year Market Capitalization: $109 million NN's first quarter performance was shaped by ongoing softness in its core automotive markets and broader industrial demand uncertainty. CEO Harold Bevis highlighted that sales lagged internal expectations, particularly among global automotive customers, with management shifting its business development efforts to immediate, profitable ramp-up sales to compensate. The company's new business program—nicknamed PIGS (Profitable Immediate Growth Strategy)—was a focal point, as management stated it successfully secured $55 million in new program wins ramping up throughout the year. Operational cost reductions, including a 16% workforce reduction since mid-2023, were a key lever to offset market headwinds, with management indicating these actions would support profit improvement in the coming quarters. Looking forward, NN's updated full-year guidance centers on a combination of new business launches, ongoing cost reductions, and working capital improvements. Management reiterated its confidence in hitting EBITDA and free cash flow targets, underpinned by what Bevis described as significant open capacity and a large pipeline of new business opportunities—particularly in industrial and medical segments. The company acknowledged persistent economic uncertainty and tariffs as factors influencing its revenue forecast, but expects its immediate ramp-up wins to partially offset base business weakness. CFO Chris Bohnert noted, 'Our Q1 results have NN on pace to achieve full-year guidance, and we anticipate maintaining this pace through 2025,' while also warning that market conditions could push results toward the lower end of the expected range. Management attributed first quarter results to a combination of softening base business demand and successful execution of new business programs, while emphasizing aggressive cost reduction and operational changes. Automotive demand remains volatile: Management cited lower volumes from global automotive customers, which make up 40% of sales, as a primary factor behind the quarter's weaker demand. The company noted a global slowdown in the transition from internal combustion engine (ICE) to electric vehicles (EV), leading to a more balanced market that leverages NN's existing capabilities. PIGS program drives new wins: The Profitable Immediate Growth Strategy (PIGS) was highlighted as a key initiative, with 120 new programs worth $55 million in annualized sales set to ramp up during 2025. Management said these wins are helping offset softness in legacy business lines and are expected to significantly impact results in the second half of the year. Cost reduction accelerates: The company completed a 16% reduction in its workforce since Q2 2023, with further headcount alignment and cost-cutting underway. Management stated that these initiatives are already improving EBITDA per salaried employee and will continue to support profit margins. Capacity utilization supports growth: NN operated most plants on a single shift, leaving substantial open capacity. This allows the company to pursue new business opportunities without significant capital expenditure, supporting both near- and long-term growth objectives. Transformation progress continues: Management reported its multi-year transformation plan is roughly 70% complete, including enhancements to leadership, plant optimization, and the exit of unprofitable business lines. This, paired with improved working capital efficiency, is positioned as a foundation for future margin improvement. NN's outlook is shaped by new business launches, ongoing cost actions, and uncertain demand trends in core markets. New business ramp-up timing: Management expects approximately half of the $55 million in new program wins to begin contributing meaningfully in the second half of 2025, with remaining wins phased in over the next three to nine months. The timing depends on customer-driven ramp schedules and certification processes, especially in medical and industrial segments. Cost savings execution: The $15 million cost reduction target for 2025 is expected to be mostly evenly distributed throughout the year, with some actions back-end loaded. These savings are intended to counteract pressure from lower base business volumes and support targeted EBITDA margins. Tariff and market uncertainty: Management acknowledged that tariffs and ongoing economic unpredictability continue to affect both quoting activity and customer order patterns, particularly in automotive. While NN is pursuing reshoring and tariff-driven requests for quotes, the company remains selective and cautious about new automotive business requiring significant capital investments. In the coming quarters, the StockStory team will be watching (1) the pace and profitability of new business program ramp-ups, particularly in medical and industrial segments; (2) further progress on cost reduction initiatives and their effect on margins; and (3) updates on plant optimization, including potential consolidations. Execution of tariff-driven opportunities and the company's ability to improve working capital efficiency will also be closely monitored. NN currently trades at a forward P/E ratio of 324.3×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
NN (NASDAQ:NNBR) Reports Sales Below Analyst Estimates In Q1 Earnings, Stock Drops 11.5%
Industrial components supplier NN (NASDAQ:NNBR) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 12.8% year on year to $105.7 million. The company's full-year revenue guidance of $445 million at the midpoint came in 2% below analysts' estimates. Its GAAP loss of $0.23 per share was 15% below analysts' consensus estimates. Is now the time to buy NN? Find out in our full research report. NN (NNBR) Q1 CY2025 Highlights: Revenue: $105.7 million vs analyst estimates of $109.7 million (12.8% year-on-year decline, 3.7% miss) EPS (GAAP): -$0.23 vs analyst expectations of -$0.20 (15% miss) Adjusted EBITDA: $10.58 million vs analyst estimates of $11.73 million (10% margin, 9.8% miss) The company dropped its revenue guidance for the full year to $445 million at the midpoint from $465 million, a 4.3% decrease EBITDA guidance for the full year is $58 million at the midpoint, above analyst estimates of $53.16 million Operating Margin: -4.5%, in line with the same quarter last year Free Cash Flow was -$7.25 million compared to -$4.75 million in the same quarter last year Market Capitalization: $94 million 'NN marked another quarter of solid steps forward across key areas of our transformation, and our results for the quarter have kept us on track with our full-year outlook and five-year plan. Our strategic and transformation-led progress was highlighted by growth and new wins in targeted markets, including stamped, medical, and electrical products, as well as high-value automotive' said Harold Bevis, President and Chief Executive Officer of NN. Company Overview Formerly known as Nuturn, NN (NASDAQ:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors. Sales Growth Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. NN struggled to consistently generate demand over the last five years as its sales dropped at a 1.3% annual rate. This wasn't a great result and suggests it's a low quality business. NN Quarterly Revenue Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. NN's recent performance shows its demand remained suppressed as its revenue has declined by 5% annually over the last two years. NN Year-On-Year Revenue Growth This quarter, NN missed Wall Street's estimates and reported a rather uninspiring 12.8% year-on-year revenue decline, generating $105.7 million of revenue.
