NN (NNBR) Q4 2025 earnings summary

Executive summary

• Achieved third consecutive year of improved results, with adjusted EBITDA and operating income near company highs and significant improvement, driven by transformation and restructuring efforts.

• Completed major restructuring: closed/consolidated plants, reduced workforce, exited low-margin automotive business, and shifted focus to higher-value markets like defense, electronics, data centers, and medical.

• Secured over $200 million in new business wins since mid-2023, with a record program launch pipeline for 2026 exceeding $800 million and more than 100 new programs planned.

• Entered the data center market with high-precision products, expecting immediate ramp-up and margin accretive growth.

• Operational restructuring largely complete, enabling increased investment in growth despite capital structure constraints.

Financial highlights

• Q4 2025 net sales: $104.7 million; full year: $422.2 million, down year-over-year due to FX, volume rationalization, and auto weakness, but offset by Power Solutions and new launches.

• Adjusted operating income Q4: $3.3 million (up 34.2% YoY); full year: $14.2 million (up 180% YoY).

• Adjusted EBITDA Q4: $12.9 million (12.3% margin); full year: $49.0 million (11.6% margin), both near company records.

• Adjusted gross margin Q4: 18.8% (up 120 bps YoY); full year: 18.5% (up 100 bps YoY), trending toward 20% target.

• SG&A as % of sales dropped to 10.9%; $15 million net cost-out target achieved.

Outlook and guidance

• 2026 guidance: net sales of $445–$465 million, with growth balanced throughout the year and beginning in Q1.

• Adjusted EBITDA guidance: $50–$60 million, with margin expansion and $10 million in additional cost reductions planned.

• Targeting $70–$80 million in new business wins for 2026 and over 100 new program launches.

• Long-term goal: $600 million in organic sales and $80 million adjusted EBITDA by 2030.