NN Inc.'s Q2 2025: Unpacking Contradictions in New Business Wins, Delivery, and Market Strategies

New Business Wins and Revenue Impact, On-Time Delivery Improvement, M&A Strategy and Timing, New Business Wins and Margins, Medical Market Revenue Growth are the key contradictions discussed in NN Inc.'s latest 2025Q2 earnings call.



Sales and Earnings Performance:
- NN Inc. reported sales of $107.9 million for Q2 2025, with adjusted EBITDA at $13.2 million and adjusted net income of $0.02 per diluted share.
- The company achieved a 12.2% EBITDA margin, which exceeded expectations due to improved gross margins and successful new business wins.

Impact of Automotive Industry Turmoil:
- The automotive sector faced a 100% sales shortfall due to challenges with one large Tier 1 customer in Europe.
- Despite this, NN Inc. launched over 70 new programs year-to-date, which offset the sales decline and contributed to the growth outlook.

Market Outlook and New Business Wins:
- NN Inc. identified 39% of its sales in the automotive sector and 61% in non-automotive sectors, focusing on expanding non-automotive opportunities.
- The company secured new business wins, with year-to-date wins totaling approximately $32.7 million, contributing to the annual goal of $65 million.

Transformational Initiatives and Cost Management:
- NN Inc. continued its transformation program, reducing staff by over 600 employees (20%) and achieving gross margin improvements.
- The closure of underperforming facilities and focus on operational efficiency resulted in improved adjusted gross margin from 16.3% to 18.2% year-to-date.