Latest news with #HaroldBevis
Yahoo
2 days ago
- 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.
Yahoo
21-04-2025
- Business
- Yahoo
NN Announces Another Strong Quarter of New Business Wins
CHARLOTTE, N.C., April 21, 2025 (GLOBE NEWSWIRE) -- NN (NASDAQ: NNBR) today announced an update on its new business wins program and its ongoing above-plan margin results. Highlights: First quarter 2025 new business wins were $16.4 million; we believe NN is on pace to meet its 2025 goal of $65 million of new business awards Approximately $98 million of new business awards will ramp into revenue stream during 2025 and beyond New wins for the quarter were in the key focus areas of non-automotive industrial products, electrical and power products, medical, and automotive products NN is leveraging its installed base of $340 million of assets and is selectively adding new capacity in certain growth areas NN has secured more than $150 million in new wins since Q1 2023, tracking ahead of its five-year goal and supporting its long-term net sales targets which also assumes a stable base market for ongoing business NN's new business pipeline continues to expand in non-automotive, medical, industrial, and automotive products NN has built a $340+ million pipeline in the targeted areas of electrical, medical, and industrial; or about half of its pipeline NN's adjusted EBITDA rate is ahead of its five-year plan due to cost-improvement actions and new business NN is increasing its five-year Adjusted EBITDA target range up to 13-14%, up from prior range of 12-13% Company is incurring immaterial direct tariff impacts due to its indigenous footprint strategy in the US NN is reaffirming prior adjusted EBITDA guidance for 2025 Harold Bevis, Chief Executive Officer of NN Inc. commented, 'First quarter 2025 was a good quarter for NN as we continued to execute on our transformation strategy, highlighted by strong new business growth of $16.4 million. Our commercial pipeline is building upon the strong momentum delivered since the launch of the transformation, and we are proud to be solidifying our position as an elite and preferred supplier in our key growth portfolios. Our base business is slightly less than expected in certain areas due to uncertainties, but the company is adjusting its cost positions where needed.' Bevis concluded, 'Our team remains highly focused on accretive margin expansion and driving operational improvements across the company. Our efforts to date have resulted in profitability improvements that are tracking ahead of our initial transformation plan, and as a result, we are increasing our five-year Adjusted EBITDA margin target up to the range of 13-14%. We are well underway with improving our cost structure, onboarding accretive new business, pivoting our ongoing accumulated pipeline, and improving our margin mix through continued wins in our key growth areas of stampings, electrical, and medical markets. While we are pleased with the momentum and early success of our program, we are only getting started and will implement further growth and cost-out initiatives to strengthen profitability and expand our margins as part of our commitment to growing shareholder value.' ABOUT NN NN is a global industrial company that combines advanced engineering and production capabilities to deliver solutions for 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, Asia, Europe, and South America. For more information, visit FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. (the 'Company') based on current beliefs of management as well as assumptions made by, and information currently available to, management. 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 forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises, on our financial condition, business operations and liquidity; 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; new laws and governmental regulations; the impact of climate change on our operations; 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Any forward-looking statement speaks only as of the date of this press release, and 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. Investor Relations: Joseph Caminiti or Stephen Poe, Investors NNBR@ 312-445-2870
Associated Press
21-04-2025
- Business
- Associated Press
NN Announces Another Strong Quarter of New Business Wins
New Business Awards of $16.4 million in first quarter 2025; New Business Awards of over $150 million since Q1 2023; tracking ahead of its five-year plan Company raises five-year Adjusted EBITDA margin target range to 13–14%, and reaffirms previous 2025 Adjusted EBITDA guidance CHARLOTTE, N.C., April 21, 2025 (GLOBE NEWSWIRE) -- NN (NASDAQ: NNBR) today announced an update on its new business wins program and its ongoing above-plan margin results. Highlights: Harold Bevis, Chief Executive Officer of NN Inc. commented, 'First quarter 2025 was a good quarter for NN as we continued to execute on our transformation strategy, highlighted by strong new business growth of $16.4 million. Our commercial pipeline is building upon the strong momentum delivered since the launch of the transformation, and we are proud to be solidifying our position as an elite and preferred supplier in our key growth portfolios. Our base business is slightly less than expected in certain areas due to uncertainties, but the company is adjusting its cost positions where needed.' Bevis concluded, 'Our team remains highly focused on accretive margin expansion and driving operational improvements across the company. Our efforts to date have resulted in profitability improvements that are tracking ahead of our initial transformation plan, and as a result, we are increasing our five-year Adjusted EBITDA margin target up to the range of 13-14%. We are well underway with improving our cost structure, onboarding accretive new business, pivoting our ongoing accumulated pipeline, and improving our margin mix through continued wins in our key growth areas of stampings, electrical, and medical markets. While we are pleased with the momentum and early success of our program, we are only getting started and will implement further growth and cost-out initiatives to strengthen profitability and expand our margins as part of our commitment to growing shareholder value.' ABOUT NN NN is a global industrial company that combines advanced engineering and production capabilities to deliver solutions for 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, Asia, Europe, and South America. For more information, visit FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. (the 'Company') based on current beliefs of management as well as assumptions made by, and information currently available to, management. 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 forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises, on our financial condition, business operations and liquidity; 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; new laws and governmental regulations; the impact of climate change on our operations; 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Any forward-looking statement speaks only as of the date of this press release, and 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. Investor Relations: Joseph Caminiti or Stephen Poe, Investors [email protected] 312-445-2870
Yahoo
17-04-2025
- Business
- Yahoo
Marathon Asset Management Provides $128 Million Commitment to NN, Inc.
Marathon provides a capital solution to support the NN management team's transformation plan NEW YORK, April 17, 2025--(BUSINESS WIRE)--Marathon Asset Management, L.P. ("Marathon"), a leading global asset manager specializing in public and private credit markets with over $23 billion in assets under management, announced the successful completion of a refinancing program for NN, Inc. (NASDAQ: NNBR) ("NN"), a global diversified industrial company that engineers and manufactures high-precision components and assemblies. Marathon's tailored capital solution for NN provides a $128 million term loan facility with a 5-year maturity and the benefit of improved leverage and liquidity covenants to support NN's transformation plan. Harold Bevis, President and Chief Executive Officer of NN said, "We are pleased to announce the successful completion of our two-step ABL and Term Loan refinancing program. We are announcing a new term loan partner – Marathon Asset Management – and a new 5-year term loan. This is an important milestone and allows us to continue the aggressive value advancement of NN. The new term loan has multiple improved operational features that will enable us to improve and grow faster. This transaction, combined with the successful refinancing of our ABL in January, sets the stage for the next chapter of NN." Randy Raisman, Marathon's Head of U.S. Opportunistic Credit said, "We are pleased to partner with the NN management team and provide a bespoke capital solution to the domestic leader in high precision component manufacturing for parts used in the automotive, power, medical, and industrial end markets, so that NN can continue to deliver reliable and exceptional product design to meet the demand of its customer base and deliver on their transformation plan. NN produces American-made components that meet exact design specifications and is perfectly positioned given the new market paradigm." "Thoughtful partnership with best-in-class companies and management teams, such as NN, is the cornerstone of Marathon's Capital Solutions business," said Louis Hanover, Marathon's Chief Investment Officer. "Marathon is a distinguished leader with a flexible investment platform designed to solve complexity and provide creative capital to businesses worldwide, supporting long-term value creation across a wide variety of strategic purposes including growth capital, acquisition financing, and recapitalizations." 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, For more information about the company and its products, please visit About Marathon Asset Management Marathon Asset Management, L.P. is a leading global asset manager, specializing in public and private credit markets with over $23 Billion in AUM. Founded in 1998, Marathon's comprehensive platform spans the credit spectrum with expertise in Direct Lending, Asset-Based Lending, and Opportunistic Credit, along with multi-asset public credit that includes Broadly Syndicated Loans, CLOs, High Yield, Emerging Markets, and Structured Credit. For additional information, please visit View source version on Contacts Marathon Media Prosek PartnersAidan O'Connoraoconnor@ 646-818-9283 Sign in to access your portfolio
