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

Key Financial Highlights

• Q4 2025 Net Sales: \$104.7 million
• Full-Year 2025 Net Sales: \$422.2 million
• Q4 2025 Gross Margin: 9.2%
• Full-Year 2025 Gross Margin: 14.1%
• Q4 2025 Adjusted Gross Margin: 18.8% (up 120 bps, approaching five-year target of 20%)
• Q4 2025 Adjusted Operating Income: \$3.3 million (up 34.2%)
• Full-Year 2025 Adjusted Operating Income: \$14.2 million (up 180%)
• Q4 2025 GAAP Net Loss: \$11.3 million or \$0.35 per share
• Full-Year 2025 GAAP Net Loss: \$24.4 million or \$1.07 per share
• Q4 2025 Adjusted EPS: \$0.00
• Full-Year 2025 Adjusted Loss Per Share: \$0.03
• Sales Pipeline: Over \$800 million across more than 800 programs, concentrated in targeted areas

Strategic and Operational Developments

• Third consecutive year of successful transformation, with the majority of heavy capital spending completed.
• Significant upsizing of the business development team for electrical products in 2025, targeting growth opportunities.
• Completion of the most capital-intensive phase of the transformation plan, including plant closures, headcount realignment, and exit from dilutive businesses. NN enters 2026 as a healthier, leaner, and more focused company.
• Formation of a Strategic Committee of the Board in December 2025 to evaluate a range of strategic and financing alternatives aimed at enhancing shareholder value. This process could include asset sales, mergers, acquisitions, capital raises, or other corporate actions.
• Adjusted EBITDA improved toward recent highs despite softness in automotive and commercial vehicle markets and record high precious metal prices.

CEO Commentary

“NN delivered a third consecutive year of improved financial performance in 2025, and we look ahead to 2026 with increased confidence in our trajectory for sales, margins, and adjusted EBITDA,” said Harold Bevis, Chief Executive Officer. “Importantly, we completed the most capital-intensive portion of our transformation plan. NN enters 2026 as a healthier, leaner, and more focused company, performing on multiple fronts, while beginning our next chapter of net sales growth.”

Bevis continued, “We expect 2026 to be a meaningful inflection point as we leverage our investments and strategic changes for growth and margin improvement.”

Segment Highlights

• Power Solutions:
  • GAAP income from operations: \$24.7 million in 2025
  • Adjusted operating margin: 15.1% in 2025
• Mobile Solutions:
  • GAAP loss from operations: \$(8.0) million in 2025
  • Adjusted operating margin: 6.6% in 2025
  • Share of net income from joint venture: \$8.9 million in 2025

Balance Sheet and Cash Flow

• Total Assets: \$440.8 million at year-end 2025
• Cash and Cash Equivalents: \$11.4 million at year-end 2025 (down from \$95.3 million at year-end 2024)
• Series D Perpetual Preferred Stock: \$112.4 million
• Total Shareholders’ Equity: \$34.0 million (down from \$74.5 million at year-end 2024)
• Net Cash Used in Investing Activities: \$(11.0) million
• Net Cash Used in Financing Activities: \$(2.5) million
• Repayments of Long-Term Debt: \$(115.8) million

Forward-Looking Statements and Risks

The company provided guidance and outlook for 2026, citing confidence in sales growth and margin improvement. However, management highlighted several risks:

• General economic conditions and those specific to the industrial sector
• Potential impact of tariffs, high interest rates, and record metal prices
• Risks related to customer captive production and capacity underutilization
• Pandemics, epidemics, and public health crises affecting operations and liquidity

The ongoing strategic review may result in significant changes to the company’s structure, operations, or ownership, which could materially affect share values.

Non-GAAP Financial Measures

NN, Inc. discloses adjusted income from operations, adjusted EBITDA, adjusted net income, adjusted EPS, and free cash flow. These metrics provide insight into the impacts of restructuring, integration, acquisition and transition expenses, foreign exchange, and other non-operating impacts. Reconciliations to GAAP measures are provided in the financial tables.

Conference Call Information

NN, Inc. will discuss its results during its quarterly investor conference call on March 5, 2026, at 9 a.m. ET. The call and supplemental presentation may be accessed via NN’s website (www.nninc.com). A replay will be available until March 6, 2027.

Investor Contacts

Joe Caminiti or Abe Plimpton
[email protected]
312-445-2870

Potential Share Price Sensitivities

• The formation of a Strategic Committee for a broad review of strategic and financing alternatives is potentially price-sensitive. Outcomes could include asset sales, mergers, acquisitions, capital raises, or other corporate actions that may materially impact shareholder value.
• Completion of heavy capital spending and transformation initiatives may positively affect future profitability and margins.
• Improved adjusted operating income and gross margin trends, especially the approach toward the 20% margin target, may be viewed favorably by investors.
• Risks associated with declining cash balances and shareholders’ equity, as well as ongoing net losses, warrant investor attention.