Despite falling short of expectations with first-quarter revenue of $105.7 million—missing the consensus estimate of $109.7 million—NN, Inc. (NNBR, Financial) showcased significant strides in its strategic transformation. The company remains aligned with its full-year projections and long-term strategy.
Key developments for NN, Inc. included expansion and securing new successes in focused sectors like stamped, medical, and electrical components, in addition to high-value automotive offerings. Achieving $16.4 million in new business during the quarter demonstrates the effectiveness of their commercial strategies and positions the company to achieve its ambitious sales growth objectives over the coming years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for NN Inc (NNBR, Financial) is $6.50 with a high estimate of $7.00 and a low estimate of $6.00. The average target implies an upside of 255.19% from the current price of $1.83. More detailed estimate data can be found on the NN Inc (NNBR) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, NN Inc's (NNBR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NN Inc (NNBR, Financial) in one year is $2.38, suggesting a upside of 30.05% from the current price of $1.83. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NN Inc (NNBR) Summary page.
NNBR Key Business Developments
Release Date: March 06, 2025
- Fourth Quarter Net Sales: $106.5 million, reflecting a 5% decline compared to Q4 of last year.
- Fourth Quarter Adjusted Operating Income: $2.4 million, a $3.8 million improvement over the prior-year quarter.
- Fourth Quarter Adjusted EBITDA: $12.1 million, a 21% increase from the $10 million in Q4 of 2023.
- Full Year Net Sales: $464.3 million, declining 5% compared to 2023.
- Full Year Adjusted Operating Income: $5.1 million, up 65% versus $3.1 million in fiscal 2023.
- Full Year Adjusted EBITDA: $48.3 million, marking a 12% increase year-over-year.
- Power Solutions Fourth Quarter Net Sales: $39.2 million, a decline primarily due to the sale of the Lubbock facility.
- Power Solutions Full Year Net Sales: $180.5 million, down slightly from $185.9 million in the prior year.
- Mobile Solutions Fourth Quarter Revenue: $67.4 million, a decline of just over 2%.
- Mobile Solutions Fourth Quarter Adjusted EBITDA: $10 million, up from $7.1 million in the prior-year period.
- Mobile Solutions Full Year Revenue: $283.9 million, down from $303.3 million in fiscal 2023.
- Mobile Solutions Full Year Adjusted EBITDA: $35.6 million, up more than 19% from $29.8 million in full-year 2023.
- 2025 Outlook Net Sales: Projected in the range of $450 million to $480 million.
- 2025 Outlook Adjusted EBITDA: Projected in the range of $53 million to $63 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NN Inc (NNBR, Financial) has secured approximately $150 million in new business awards, indicating strong business development efforts.
- The company has implemented a 'fix-it or close-it' program for underperforming plants, leading to operational improvements.
- NN Inc (NNBR) has successfully closed two plants and is in the process of closing another, which is expected to improve profitability.
- The company has achieved a 21% increase in adjusted EBITDA for the fourth quarter, reflecting improved operational efficiencies.
- NN Inc (NNBR) is on track with its five-year plan, having completed 60% of its transformation goals, including leadership restructuring and cost reduction initiatives.
Negative Points
- Fourth-quarter net sales declined by 5% compared to the previous year, impacted by the sale of a facility and strategic volume rationalization.
- The company faces challenges with tariffs and reshoring, which could impact future operations and profitability.
- Despite improvements, some facilities still need to focus on improving free cash flow, particularly in the Marnaz, France facility.
- The company is still in the process of refinancing its term loan, which could affect financial flexibility.
- NN Inc (NNBR) has experienced a decline in full-year net sales by 5%, driven by strategic exits and foreign exchange impacts.
