What were the key takeaways from NN’s earnings call?

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Did NN beat or miss consensus estimates last quarter?

What is NN's latest dividend and current dividend yield?

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What were the key takeaways from NN's earnings call?

What is the revenue and EPS growth rate for NN year over year?

- **Revenue Resilience**: Q3 sales $104M, with $11M new wins offsetting automotive headwinds. Defense/medical pipeline >$850M.
- **Margin Expansion**: Adjusted EBITDA +7.9% YoY to $12.4M; gross margin 19% (350bps improvement YoY).
- **Strategic Momentum**: 40+ M&A targets in pipeline; plant rationalization to eliminate $5M+ EBITDA drag.
- **China Strength**: JV generates $130M sales, 24% EBITDA margin; total China sales $70M+.
- **Defense Growth**: Aerospace/defense sales up 50% YoY, targeting $20M+ in 2026.

**【CEO Summary Section】**
- **Sales Growth and New Wins**: Q3 sales of $104M, with $11M in new wins (defense and medical). Total pipeline exceeds $850M, with a 20% hit rate. Key wins include $5M+ annually in defense and medical.
- **Market Dynamics**: Automotive sales down due to industry destocking, but ICE portfolio strength provides resilience. Defense market growth driven by federal appropriations (~$500B by 2023).
- **Strategic Initiatives**: M&A pipeline active with 40+ targets; preferred equity refinancing discussions underway. Plant rationalization to eliminate $5M+ EBITDA drag in Q4.
- **Financial Highlights**: Adjusted EBITDA up 7.9% YoY to $12.4M; free cash flow $9M (excluding CARES Act). Gross margin 19%, impacted by 350bps from precious metals.

**【CFO Financial Commentary】**
- **Q3 Results**: Net sales $103.9M (-9.7% YoY), adjusted operating income $4M (+100% YoY). Power Solutions segment EBITDA up 39% YoY to $8.9M; Mobile Solutions down 26% YoY due to underperforming business.
- **Margins**: Adjusted EBITDA margin 11.9% (+170bps YoY). Power Solutions gross margin 19.8% (+500bps YoY). Mobile Solutions margin 11.4% (-120bps YoY).
- **Cash Flow**: Free cash flow $9M (vs. -$2M YoY). Working capital improved $21M over 2 years, driven by AR/Inventory reductions.

**【Q&A Highlights】**
- **China Operations**: JV generates $130M sales, 24% EBITDA margin. Wholly-owned stamping plant exports to medical market. Total China sales $70M+.
- **Free Cash Flow Outlook**: 2026 target $10M+ (excluding CARES Act). 2025 guidance assumes $15M Q4, but IRS delay could limit to $2-3M.
- **Capacity Utilization**: Power Solutions at 60% capacity; Mobile Solutions 60-80% across facilities.
- **M&A Strategy**: Refinancing discussions with stakeholders; no timeline for preferred equity elimination.
- **Defense Growth**: Aerospace/defense sales up 50% YoY, targeting $20M+ in 2026. Gold plating specs drive margin accretion.


NN, Inc. (NNBR) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: $107.9M Q2 sales, 19.5% gross margin, $13.2M EBITDA. New business wins $32.7M YTD, targeting $65M annual.
- **Margin Expansion**: Gross margin +190bps YoY to 18.2%; EBITDA margin 11.2% (+100bps YoY). Aiming for 20% gross margin and 13-14% EBITDA.
- **China Growth**: Auto market up 6% YoY; BYD partnerships driving steering/braking components. Medical machines ramping to $40M+ capacity.
- **M&A Activity**: Actively pursuing acquisitions with immediate synergies; Board-led process with Marathon Capital support.
- **Financial Health**: Free cash flow $14-16M; CARES Act refund imminent. Working capital optimization plans.

**【Management Opening Remarks】**
- Q2 2025 revenue: $107.9 million (adjusted for Lubbock sale). Adjusted EBITDA: $13.2 million (12.2% of sales). Gross margin: 19.5%, up 190bps YoY. New business wins: $32.7M YTD, on track for $65M annual goal. Portfolio: 39% automotive, 61% non-automotive. Refinanced term loan; focused on preferred stock refinancing.

**【CEO Commentary】**
- **Market Performance**: Automotive global turmoil offset by 70+ new programs. Non-automotive growth driven by GDP-linked businesses (e.g., smoke detectors, lasers). China auto market resilient; NN serves BYD with steering/braking components. Commercial vehicles down but NN up due to fuel efficiency focus. Medical equipment growth via new talent and 60 dedicated machines.
- **Operational Efficiency**: OneTeam salaried approach reduces costs, improves on-time delivery. Working capital sticky due to metal price escalation (gold, silver, steel, etc.). Aiming for 20% gross margin and 13-14% EBITDA margin.

**【COO Transformation Update】**
- **Margin Expansion**: Gross margin 18.2% YTD (vs. 16.3% FY23), EBITDA margin 11.2% (up 100bps YoY). Closed Dowagiac and Juarez plants, reduced staff by 600 (20%), added 80 in sales/engineering. On track for 20% gross margin and 13-14% EBITDA margin.
- **New Business Momentum**: $172M cumulative wins YTD, $750M pipeline. China auto market growth via leased equipment (3% interest rate). Medical machines ramping to $40M+ capacity.

**【CFO Financial Review】**
- **GAAP Results**: Net sales $107.9M (-15% YoY). Pro forma net sales -2.4% YoY. Adjusted EBITDA $13.2M (+6.5% YoY). Margins: 12.2% (130bps YoY). Power Solutions EBITDA +5.8% YoY; Mobile Solutions EBITDA +$0.4M YoY.
- **Guidance**: FY25 sales $430-460M, EBITDA $53-63M (lower end expected). Free cash flow $14-16M (includes $18-20M capex). CARES Act refund imminent.

**【Q&A Highlights】**
- **New Business Wins**: 3-4pts EBITDA accretion. Electrical/harness market entry via ITAR/FDA certifications. China auto growth via BYD partnerships. M&A pipeline active, focusing on synergies. Working capital improvement plans. Tax refund expected Q3. Medical machines ramping to $30-35M run rate.

NN, Inc. (NNBR) Q2 2025 Earnings Call Transcript

- **New business momentum**: $55M in new wins ramping in H2 2025, including $40M medical pipeline and major industrial products win. 
- **Cost efficiency**: 16.1% headcount reduction since Q2 2023, driving $15M annualized savings. 
- **Market resilience**: Flat Q1 sales despite 40% automotive exposure, supported by PIGS program. 
- **Tariff opportunities**: Actively pursuing $750M pipeline in reshoring and supply chain shifts. 
- **Free cash flow visibility**: $14M-$16M guidance includes $12.3M CARES Act refund and disciplined CapEx. 


**【CEO Opening Remarks】**
- Q1 2025 net sales were flat year-over-year on a pro forma basis, driven by new business wins and cost reduction programs. The company reconfirmed its full-year guidance for EBITDA ($53M-$63M) and new business awards ($60M-$70M). 
- Introduced the PIGS (Profitable Immediate Growth Strategy) program, which secured 120 new programs worth $55M in annualized sales. Key wins include a $40M pipeline in medical devices and a major industrial products win. 
- Base business softened in automotive (40% of sales), but new business offsets market uncertainty. 
- 2025 cost-out plan targets $15M in savings through workforce reduction (16.1% headcount decline since Q2 2023) and operational efficiency improvements. 

**【CFO Financial Highlights】**
- Q1 2025 adjusted EBITDA: $10.6M (flat vs. Q1 2024 on a pro forma basis). Adjusted gross margin: 16.9% (on track to meet 5-year target of 19%-20%). 
- Working capital reduced by $4.8M YoY to $84.8M, with a goal to lower to 16%-17% of revenue. 
- Free cash flow guidance: $14M-$16M, driven by cost-out actions and $12.3M CARES Act refund. 
- Power Solutions segment (+4% pro forma sales) and Mobile Solutions segment (13% EBITDA margin) showed resilience despite market headwinds. 

**【COO Operational Updates】**
- Achieved $2.7M improvement in adjusted operating income vs. Q1 2024, driven by cost-out initiatives. 
- April 2025 volume exceeded internal forecasts, with standout performance in North American machining (+22% vs. Q1 2025 average) and Medical division (+35% YoY). 
- Working capital reduction initiatives will continue, targeting an additional $5M reduction by Q3 2025. 

**【Q&A Key Takeaways】**
- **Tariff-related opportunities**: 2 major RFQs in automotive reshoring (US/Canada) and European-China supply chain shifts. 50% of new business requires capital investment. 
- **EV/Hybrid market balance**: Slower EV transition creates hybrid engine demand, aligning with legacy machining/stamping assets. EV shielding business adds $5.6M in 2026 peak sales. 
- **New business timing**: ~50% of $55M PIGS program revenue will flow in H2 2025, with 3-6 month ramp-up periods. 
- **Plant consolidation**: 2 remaining underperforming plants under evaluation for closure. 
- **Free cash flow composition**: Includes $12.3M CARES Act refund and $10M annual CapEx target. 


NN (NNBR)-8 May 25-2025 Q1 Earnings call transcript

- **Business Turnaround**: 2024 new business wins exceed $150M, with 70 programs launching in 2025; 70% of new wins from existing customers off new business hold.
- **Operational Efficiency**: Group of Seven plants EBITDA loss reduced by 25% YoY; 2025 target: $75M revenue, $5M+ EBITDA.
- **Financial Momentum**: 2024 adjusted EBITDA $48.3M (+12% YoY); 2025 outlook: $53M-$63M EBITDA, 20%+ gross margin achievable.
- **China Growth**: China JV exports growing to 50% of output; wholly-owned China entity at capacity with $130M+ revenue.

**【CEO Business Update】**
- **Five-Year Transformation Plan Progress**: 60% complete, with $150M in new business wins and 70 programs launching in 2025. 80% of new leadership team is in place.
- **Tariff Impact**: Short-term, minimal direct impact; 70% of new business wins are with existing customers off new business hold.
- **Plant Optimization**: Closed 2 plants, 2 more in process; remaining 5 plants expected to generate $75M in revenue and $5M+ EBITDA in 2025.
- **Non-Automotive Growth**: Medical, electrical, and stamped products pipeline exceeds $25M, with 11 U.S. plants now producing medical components.

**【COO Operational Improvements】**
- **Group of Seven Plants**: 2023 EBITDA loss of $12M → 2024 loss of $9M (incl. closures). 2025 target: $75M revenue, $5M+ EBITDA.
- **Capacity Utilization**: 11 programs moving from China to U.S. (e.g., Kentwood plant); France plant to reach capacity with new win.
- **Customer Scorecards**: All plants now have green scorecards, enabling new business wins.

**【CFO Financial Highlights】**
- **Q4 2024 Results**: Net sales $106.5M (-5% YoY), adjusted EBITDA $12.1M (+21% YoY). Pro-forma net sales $106.5M (+2% YoY), adjusted EBITDA $12.1M (+25% YoY).
- **Full Year 2024**: Adjusted EBITDA $48.3M (+12% YoY), margin 10.4% (vs. 8.8% YoY).
- **2025 Outlook**: Net sales $450M-$480M, adjusted EBITDA $53M-$63M, new business wins $65M.
- **Balance Sheet**: ABL refinanced in Q4 2024; term loan refinancing underway, targeting Q2 2025 completion.

**【Q&A Key Takeaways】**
- **China JV Export**: ~50% of China JV output now exported to Europe, Africa, Brazil; wholly-owned China entity at capacity.
- **Plant Closures**: Dowagiac (owned) to close Q2 2025; Juarez (leased) production ended; 1 more plant to close in 2026.
- **Tariff Risk**: Minimal direct impact; indirect risk via Class 8 truck supply chain disruptions (not material to NN's work truck focus).
- **Gross Margin Target**: 20%+ achievable via cost-out ($3M/year) and new business wins (>$20% margin).

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