NNBR Sales Plunge, Losses Widen Amid Mobile Solutions Weakness

Ticker: NNBR · Form: 10-Q · Filed: 2025-10-29T00:00:00.000Z

Sentiment: bearish

Topics: Industrial Manufacturing, Earnings Miss, Revenue Decline, Net Loss, Debt Extinguishment, Operational Restructuring, Automotive Sector

TL;DR

**NNBR is bleeding cash and losing market share; steer clear until they show a clear path to profitability.**

AI Summary

NN, Inc. (NNBR) reported a significant decline in net sales and an increased net loss for both the three and nine months ended September 30, 2025. Net sales for the three months decreased by 8.5% to $103.88 million from $113.59 million in the prior year, while the net loss widened to $6.68 million, or $0.23 per share, from $2.56 million, or $0.13 per share. For the nine-month period, net sales fell 11.3% to $317.49 million from $357.78 million, and the net loss increased to $21.47 million, or $0.72 per share, compared to $17.30 million, or $0.59 per share, in 2024. The Mobile Solutions segment experienced a substantial revenue drop, with sales down 16.4% to $59.12 million for the quarter and 14.7% to $184.75 million for the nine months. This segment also reported an increased loss from operations of $2.85 million for the quarter. The company incurred a $3.01 million loss on extinguishment of debt for the nine months ended September 30, 2025, and cash and cash equivalents decreased to $12.22 million from $18.13 million at December 31, 2024. Strategic changes include ceasing production at the Mobile Solutions plant in Dowagiac, Michigan, and classifying its assets as held for sale.

Why It Matters

NNBR's deteriorating financial performance, marked by significant revenue declines and widening losses, signals deep challenges for investors. The substantial drop in Mobile Solutions segment revenue, down 16.4% quarterly, suggests a struggle in key automotive and industrial markets, potentially impacting future growth prospects and competitive positioning against more agile rivals. Employees at the Dowagiac, Michigan plant have already faced production cessation, highlighting job insecurity. Customers might see supply chain adjustments or product line shifts as NNBR navigates its operational changes. The broader market could view this as a cautionary tale for diversified industrial companies facing sector-specific headwinds and debt management issues.

Risk Assessment

Risk Level: high — NNBR exhibits high risk due to a widening net loss of $21.47 million for the nine months ended September 30, 2025, compared to $17.30 million in 2024, alongside an 11.3% decline in net sales to $317.49 million. The company also reported a $3.01 million loss on extinguishment of debt and a decrease in cash and cash equivalents from $18.13 million to $12.22 million, indicating significant liquidity and operational challenges.

Analyst Insight

Investors should exercise extreme caution and consider divesting NNBR shares given the consistent decline in sales and widening net losses. The company's inability to stem losses in its Mobile Solutions segment and the significant debt extinguishment loss suggest fundamental operational issues that may persist. Await clear evidence of sustained revenue growth and a return to profitability before considering any investment.

Financial Highlights

revenue
$103.88M
total Assets
$450.96M
net Income
-$6.68M
eps
-$0.23
cash Position
$12.22M
revenue Growth
-8.5%

Revenue Breakdown

SegmentRevenueGrowth
Mobile Solutions$59.12M-16.4%
Overall$103.88M-8.5%
Overall$317.49M-11.3%

Key Numbers

Key Players & Entities

FAQ

What were NN, Inc.'s net sales for the third quarter of 2025?

NN, Inc.'s net sales for the three months ended September 30, 2025, were $103.88 million, a decrease from $113.59 million in the same period of 2024.

How much was NNBR's net loss for the nine months ended September 30, 2025?

For the nine months ended September 30, 2025, NNBR reported a net loss of $21.47 million, which is an increase from the $17.30 million net loss in the prior year period.

What was the performance of NN, Inc.'s Mobile Solutions segment in Q3 2025?

The Mobile Solutions segment reported net sales of $59.12 million for the three months ended September 30, 2025, a significant decrease from $70.68 million in the same period of 2024. The segment also posted a loss from operations of $2.85 million.

Did NN, Inc. incur any debt-related losses in 2025?

Yes, NN, Inc. incurred a loss on extinguishment of debt amounting to $3.01 million for the nine months ended September 30, 2025.

What is NNBR's current cash position?

As of September 30, 2025, NNBR's cash and cash equivalents stood at $12.22 million, a decrease from $18.13 million at December 31, 2024.

What strategic changes did NN, Inc. make regarding its Mobile Solutions plant?

During the three months ended March 31, 2025, NN, Inc. ceased production activity at its Mobile Solutions plant in Dowagiac, Michigan, and classified the assets as held for sale.

How did depreciation and amortization change for NN, Inc.?

Depreciation and amortization decreased to $9.06 million for the three months ended September 30, 2025, from $10.84 million in the prior year, and to $26.76 million for the nine months from $35.15 million.

What was the basic and diluted net loss per share for NNBR in Q3 2025?

The basic and diluted net loss per share for NNBR was $0.23 for the three months ended September 30, 2025, compared to $0.13 in the same period of 2024.

What are the primary risks facing NN, Inc. based on this filing?

Primary risks include declining net sales, widening net losses, significant debt-related expenses, and decreasing cash reserves, indicating operational and liquidity challenges. The cessation of production at a Mobile Solutions plant also points to business segment struggles.

How does NN, Inc. evaluate the performance of its segments?

NN, Inc.'s Chief Operating Decision Maker (CODM), the President and Chief Executive Officer, uses segment income (loss) from operations to evaluate segment performance and make key operating decisions such as capital expenditures and plant optimization.

Risk Factors

Industry Context

The industrial manufacturing sector, particularly segments like mobile solutions, is subject to cyclical demand and intense competition. Companies often face pressure from technological advancements, global supply chain disruptions, and evolving customer preferences. NN, Inc.'s performance indicates challenges in adapting to these market dynamics.

Regulatory Implications

NN, Inc. must comply with SEC reporting requirements, including accurate disclosure of financial performance and risk factors. Any misstatements or failures to disclose material information could lead to regulatory scrutiny and penalties. The classification of assets as held for sale also has accounting and potential tax implications.

What Investors Should Do

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Key Dates

Glossary

Loss on extinguishment of debt
A loss recognized when a company repays debt before its maturity date, often involving fees or penalties. (NN, Inc. incurred a $3.01M loss in this category for the nine months ended September 30, 2025, impacting profitability.)
Operating lease right-of-use assets
Assets recognized under accounting standards for leases, representing the right to use an asset for a specified period. (These assets decreased from $39.317M at December 31, 2024, to $36.197M at September 30, 2025, reflecting lease terminations or expirations.)
Intangible assets, net
Non-physical assets that have value, such as patents, trademarks, and goodwill, net of accumulated amortization. (These assets decreased significantly from $44.410M to $34.194M, potentially due to amortization or write-downs.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, NN, Inc. has experienced a significant downturn. Net sales for the three months ended September 30, 2025, declined by 8.5% to $103.88M, and the net loss widened substantially from $2.56M to $6.68M. This trend is also evident in the nine-month period, with net sales down 11.3% and net losses increasing. The company's cash position has also weakened, decreasing from $18.13M at the end of 2024 to $12.22M. New risks related to strategic restructuring, such as the closure of the Mobile Solutions plant, have emerged.

Filing Stats: 4,796 words · 19 min read · ~16 pages · Grade level 17.5 · Accepted 2025-10-29 16:38:34

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 28

OTHER INFORMATION

PART II. OTHER INFORMATION 29

Legal Proceedings

Item 1. Legal Proceedings 29

Risk Factors

Item 1A. Risk Factors 29

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30

Other Information

Item 5. Other Information 30

Exhibits

Item 6. Exhibits 30

SIGNATURES

SIGNATURES 32 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements NN, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share data) 2025 2024 2025 2024 Net sales $ 103,882 $ 113,587 $ 317,492 $ 357,777 Cost of sales (exclusive of depreciation and amortization shown separately below) 86,410 97,131 267,755 299,474 Selling, general, and administrative expense 11,059 10,257 34,325 37,116 Depreciation and amortization 9,064 10,844 26,756 35,152 Other operating income, net ( 404 ) ( 895 ) ( 2,843 ) ( 3,285 ) Loss from operations ( 2,247 ) ( 3,750 ) ( 8,501 ) ( 10,680 ) Interest expense 5,666 5,404 16,517 16,643 Loss on extinguishment of debt — — 3,007 — Other income, net ( 70 ) ( 5,315 ) ( 2,858 ) ( 4,623 ) Loss before provision for income taxes and share of net income from joint venture ( 7,843 ) ( 3,839 ) ( 25,167 ) ( 22,700 ) Provision for income taxes ( 815 ) ( 903 ) ( 2,898 ) ( 1,194 ) Share of net income from joint venture 1,979 2,185 6,599 6,597 Net loss $ ( 6,679 ) $ ( 2,557 ) $ ( 21,466 ) $ ( 17,297 ) Other comprehensive income (loss): Foreign currency translation gain (loss) $ 806 $ 3,970 $ 8,385 $ ( 1,763 ) Reclassification adjustments from the interest rate swap included in net loss, net of tax — ( 109 ) — ( 1,007 ) Other comprehensive income (loss) $ 806 $ 3,861 $ 8,385 $ ( 2,770 ) Comprehensive income (loss) $ ( 5,873 ) $ 1,304 $ ( 13,081 ) $ ( 20,067 ) Basic and diluted net loss per share $ ( 0.23 ) $ ( 0.13 ) $ ( 0.72 ) $ ( 0.59 ) Shares used to calculate basic and diluted net loss per share 49,605 48,997 49,373 48,522 See notes to condensed consolidated financial statements (unaudited). 3 Table of Contents NN, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except per share data) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 12,215 $ 18,128 Acco

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