NN, Inc. (NASDAQ: NNBR) reported fourth‑quarter 2025 net sales of $104.7 million, a 1.7% decline from $106.5 million in the same period last year, and an adjusted EBITDA of $12.9 million, up from $12.1 million a year earlier. For the full year ended December 31 2025, the company posted net sales of $422.2 million, down 9.1% from $464.3 million in 2024, and an adjusted EBITDA of $49.0 million, compared with $48.3 million a year earlier. The year‑over‑year decline in revenue reflects softness in automotive and commercial‑vehicle markets and record‑high precious‑metal prices, while the modest increase in adjusted EBITDA is driven by cost‑control initiatives and a higher mix of high‑margin data‑center power, electrical‑grid, defense, and medical solutions.
The company’s adjusted EBITDA margin expanded to 12.3% in Q4 2025 from 11.3% in Q4 2024, and the adjusted gross margin rose to 18.8%, up 120 basis points year‑over‑year. The margin improvement is largely attributable to the rationalization of underperforming businesses and plants, the sale of its Lubbock operations, and the shift toward higher‑margin segments. These actions reduced operating costs while the company maintained pricing power in its core high‑margin markets.
Management reiterated its 2026 outlook, guiding net sales to $445 million–$465 million and adjusted EBITDA to $50 million–$60 million. The company also confirmed a new $70 million–$80 million target for new business wins in 2026, underscoring confidence in its strategic shift toward higher‑margin markets. The previously quoted full‑year 2025 adjusted EBITDA guidance of $53 million–$63 million was a misstatement; the guidance applies to 2026 and reflects the company’s expectation of a fourth consecutive year of improved adjusted EBITDA.
"NN delivered a third consecutive year of improved financial performance in 2025, and we look ahead to 2026 with increased confidence in our trajectory for sales, margins, and adjusted EBITDA," said CEO Harold Bevis. "In 2025 we drove adjusted EBITDA towards recent highs despite softness in automotive and commercial vehicle markets and record high precious metal prices." "As a result, NN enters 2026 as a healthier, leaner, and more focused company, performing on multiple fronts, while beginning our next chapter of net sales growth," added Bevis. "We expect 2026 to be a meaningful inflection point, and we are guiding to a fourth consecutive year of improved adjusted EBITDA which we expect to range between $50 million to $60 million."
The fourth‑quarter results missed analyst consensus estimates: EPS of $0.00 fell short of the $0.01 estimate, and revenue of $104.7 million was below the $105.36 million–$107.5 million range. The miss reflects the combined impact of weaker demand in legacy markets and higher commodity costs, but the company’s margin expansion and strategic focus on high‑margin segments mitigate short‑term revenue pressure. Investors are weighing the earnings miss against the company’s confidence in a return to growth in 2026.
NN’s transformation is now complete; the heavy‑spending phase that included plant closures and workforce adjustments has ended. The company’s focus on data‑center power, electrical‑grid infrastructure, defense, and medical markets has already yielded its first direct data‑center win, and the new business wins target for 2026 signals continued momentum. Capital‑structure constraints remain a consideration, but the company’s leaner, more focused model positions it to capture higher‑margin opportunities and improve profitability over the long term.
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