NN (NNBR) Q2 2024 earnings summary

Executive summary

• Achieved fourth consecutive quarter of year-over-year adjusted EBITDA growth and profitability improvement, driven by transformation initiatives and operational improvements.

• Q2 2024 net sales were $123.0 million, down 1.8% year-over-year, mainly due to FX impacts and rationalization of low-margin or unprofitable business.

• Adjusted EBITDA grew to $13.4 million (10.9% margin), with net loss narrowing to $2.2 million from $14.4 million in Q2 2023.

• Secured $34.3 million in new business awards year-to-date and expanded the pipeline to over $600 million.

• Leadership strengthened with new CFO and General Counsel; sale of non-core plastics plant generated $15.4 million, used to pay down debt.

Financial highlights

• Q2 2024 net sales: $123.0 million, down 1.8% year-over-year; adjusted EBITDA: $13.4 million (10.9% margin), up from $10.5 million (8.4%).

• Adjusted operating income increased to $2.1 million from $1.3 million; adjusted net loss per share improved to $0.02.

• Net loss improved to $2.2 million from $14.4 million in Q2 2023.

• Free cash flow was a use of $1.3 million, compared to a generation of $3.0 million in Q2 2023.

• Trailing twelve-month adjusted EBITDA reached $49.2 million, up nearly 29% year-over-year.

Outlook and guidance

• Reaffirmed full-year 2024 guidance: net sales $465–$485 million, adjusted EBITDA $47–$51 million, free cash flow $8–$12 million, and new business wins $55–$70 million.

• Strategic refinancing of term loan remains a near-term priority, expected to lower cost of capital and redeem preferred equity.

• Management continues to monitor macroeconomic and geopolitical risks, including inflation, supply chain disruptions, and labor shortages.