Latest news with #NN
Yahoo
18 hours 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
27-05-2025
- Business
- Yahoo
MSC Industrial, Byrna, American Superconductor, NN, and United Airlines Stocks Trade Up, What You Need To Know
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Maintenance and Repair Distributors company MSC Industrial (NYSE:MSM) jumped 5.6%. Is now the time to buy MSC Industrial? Access our full analysis report here, it's free. Law Enforcement Suppliers company Byrna (NASDAQ:BYRN) jumped 5.9%. Is now the time to buy Byrna? Access our full analysis report here, it's free. Renewable Energy company American Superconductor (NASDAQ:AMSC) jumped 6%. Is now the time to buy American Superconductor? Access our full analysis report here, it's free. Engineered Components and Systems company NN (NASDAQ:NNBR) jumped 7%. Is now the time to buy NN? Access our full analysis report here, it's free. Travel and Vacation Providers company United Airlines (NASDAQ:UAL) jumped 5.9%. Is now the time to buy United Airlines? Access our full analysis report here, it's free. NN's shares are extremely volatile and have had 55 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 4 months ago when the stock gained 20.2% as the company reported impressive preliminary guidance, with full-year 2024 new business wins expected to exceed the high end of its previous guidance. Management added, "We will continue this pace of new business acquisition into 2025 and 2026 and have a $720 million pipeline to support it. 2025 is off to a great start with the simultaneous launch of fifty [50] new programs during the first quarter." NN is down 34% since the beginning of the year, and at $2.09 per share, it is trading 50.9% below its 52-week high of $4.25 from December 2024. Investors who bought $1,000 worth of NN's shares 5 years ago would now be looking at an investment worth $434.37. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
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.
Globe and Mail
30-04-2025
- Business
- Globe and Mail
NN Announces 2025 Investor Day
Company plans to host a virtual investor day for analysts, current and prospective investors in August 2025 CHARLOTTE, N.C., April 30, 2025 (GLOBE NEWSWIRE) -- NN (NASDAQ: NNBR) a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced its plans to host a 2025 virtual investor day in August 2025. NN has been performing to its short-term and long-term goals. During its coming Investor Day, NN's executive management plans to provide updates and discuss multiple important shareholder value-creating topics including: A holistic update to NN's five-year targets for sales growth, increased profitability, and shareholder value Update on 2025 Outlook The Company's capital allocation strategy The Company's M&A acquisition strategy and objectives The Company's capital markets strategy and the next phase of its capital structure optimization roadmap An overview and discussion of market trends and NN's participation in specific markets including; US electrical grid market US industrial market Global passenger vehicle market Global commercial vehicle market Global medical market NN management will also host discussions and overviews on important topics including; NN's $700+ million new business program and pipeline specifics NN's cost-out program and major ongoing and upcoming projects NN's free cash flow generation program and major associated projects There will be more to come regarding this investor event. NN management plans to spend the day together with analysts, current and prospective investors, lenders, and the broader investment community. 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.
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
