NN | 8-K: FY2025 Q3 Revenue Misses Estimate at USD 103.88 M

Revenue: As of FY2025 Q3, the actual value is USD 103.88 M, missing the estimate of USD 111.77 M.

EPS: As of FY2025 Q3, the actual value is USD -0.23, missing the estimate of USD -0.155.

EBIT: As of FY2025 Q3, the actual value is USD 3.419 M.

Segment Revenue

• Net Sales: Total net sales for the third quarter of 2025 were $103.9 million, a decrease of 8.5% compared to $113.6 million in the third quarter of 2024. Power Solutions segment sales increased by 4.7% to $44.9 million, while Mobile Solutions segment sales decreased by 16.4% to $59.1 million.

Operational Metrics

• Gross Margin: Improved to $17.5 million (16.8% of sales) from $16.5 million (14.5% of sales) in the prior year. Adjusted gross margin improved to $19.6 million (18.8% of sales) from $18.6 million (16.3% of sales).
• Operating Loss: Reduced to $2.2 million from $3.8 million in the prior year. Adjusted operating income improved to $4.0 million from $1.3 million.
• Adjusted EBITDA: Increased to $12.4 million with an 11.9% margin rate, compared to $11.6 million and a 10.2% margin rate in the prior year.

Cash Flow

• Free Cash Flow: Improved to $9.1 million from $0.3 million in the prior year.

Unique Metrics

• New Business Wins: Achieved $11.3 million in strategic wins during the third quarter, with a total of $44.4 million through the third quarter. New programs with an expected run-rate value of $48 million are underway.

Outlook / Guidance

• 2025 Outlook: NN, Inc. adjusted its full-year 2025 guidance for net sales to range between $420 to $440 million, while reiterating the existing ranges on adjusted EBITDA ($53 to $63 million), free cash flow ($14 to $16 million), and new business wins ($60 to $70 million).
• 2026 Outlook: NN expects improving core markets outlook in 2026, supporting net sales growth and profitability, with over $60 million of new business launches and ramp-ups already in the forecast.
• NN, Inc. anticipates maintaining guidance for adjusted EBITDA, free cash flow, and new business wins despite slightly lower sales due to supply chain conservatism from top customers. North American passenger vehicle production shows signs of improvement going into 2026, and the softness in automotive and electrical markets is not expected to persist through 2026.