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NN Inc (NNBR)
NASDAQ:NNBR
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NN (NNBR) AI Stock Analysis

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NNBR

NN

(NASDAQ:NNBR)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
$2.00
▲(20.48% Upside)
NNBR's overall stock score is primarily impacted by its weak financial performance and valuation. The company faces significant challenges with declining revenue and profitability, as evidenced by negative margins and ongoing losses. Technical analysis indicates a bearish trend, further weighing on the stock. While the earnings call provided some positive insights, these are not enough to offset the broader financial and technical challenges.

NN (NNBR) vs. SPDR S&P 500 ETF (SPY)

NN Business Overview & Revenue Model

Company DescriptionNN, Inc. (NNBR) is a diversified industrial company that provides high-performance precision components for a variety of applications. Operating through three primary segments - Mobile Solutions, Power Solutions, and Medical - NNBR manufactures products such as bearings, gears, and other critical components. The company serves a diverse range of industries including automotive, aerospace, and medical, focusing on delivering innovative solutions that enhance performance and efficiency.
How the Company Makes MoneyNN, Inc. generates revenue through the production and sale of precision components across its three segments. The Mobile Solutions segment primarily provides parts for automotive applications, which is a significant revenue driver given the size of the automotive market. The Power Solutions segment focuses on energy applications, while the Medical segment supplies components for medical devices, which is a rapidly growing area. Key revenue streams include direct sales to manufacturers, long-term contracts with OEMs (original equipment manufacturers), and partnerships with industry leaders to develop specialized products. Additionally, NNBR benefits from economies of scale and operational efficiencies, allowing them to optimize production costs and enhance margins.

NN Earnings Call Summary

Earnings Call Date:Oct 29, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong new business wins and improved financial metrics, offset by challenges in certain segments and market volatility. Despite the headwinds in the automotive and electrical segments, NN, Inc. demonstrated resilience through strategic wins and operational improvements.
Q3-2025 Updates
Positive Updates
Secured New Business
NN, Inc. secured over $180 million of new business, with a sales pipeline now exceeding $850 million and a hit rate of closed opportunities at over 20%.
Strong Free Cash Flow
Generated $9 million of free cash flow in Q3, marking significant improvement in working capital management.
Adjusted Operating Income Growth
Adjusted operating income improved to about $4 million, marking a strong trend versus historical results and a margin of almost 4%.
Improvements in Adjusted EBITDA
Adjusted EBITDA increased by 7.9% year-over-year despite a lower sales base, with a margin up 170 basis points year-over-year.
Successful Segment Growth in Power Solutions
Power solutions segment saw net sales increase to $44.9 million, with adjusted EBITDA margins representing 19.8% of net sales, up approximately 500 basis points year-over-year.
New Business Wins
Secured $34.5 million in new awards in the mobile solutions segment across multiple markets, including high-value auto, medical, and defense.
Supplier of the Year Award
NN was named Supplier of the Year by one of their top 2 customers.
Negative Updates
Decline in Mobile Solutions Segment
Mobile solutions segment experienced a decline in net sales to $59.1 million, a 10.2% decrease year-over-year on a pro forma basis.
Impact of Automotive Market Downturn
The North American automotive market softness contributed to a need for plant consolidation and rationalization of underperforming business.
Challenges in Electrical Segment
Federal funding cancellations have impacted the electrical segment, resulting in lower volumes and volatility.
High Precious Metal Costs
Very high precious metal costs, specifically gold, impacted adjusted gross margins, which were about 19%.
Company Guidance
During the third quarter of 2025 earnings call, NN, Inc. provided guidance that highlighted several key metrics and strategic initiatives. The company secured over $180 million in new business and expanded its sales pipeline to over $850 million, achieving a hit rate of over 20% for closed opportunities. Quarterly sales were approximately $104 million, with adjusted operating income improving to around $4 million, reflecting a margin of nearly 4%. Adjusted EBITDA rose by 7.9% year-over-year, with the margin up 170 basis points. The company generated $9 million in free cash flow, with cash flow from operations exceeding $11 million. NN, Inc. is actively pursuing a strategic M&A program, evaluating multiple acquisition targets to accelerate growth, and is in the process of refinancing its preferred equity. The company also discussed ongoing efforts to optimize its product mix and capacity utilization, with a focus on increasing profitability and expanding into new markets such as defense and medical sectors.

NN Financial Statement Overview

Summary
NNBR faces significant challenges with declining revenue and profitability, as evidenced by negative margins and ongoing losses. Improvements in leverage and cash flow generation are positive, but the company needs to address operational inefficiencies to ensure long-term sustainability.
Income Statement
45
Neutral
The company has experienced declining revenue over the past few years, with a negative revenue growth rate of -3.36% in the TTM period. Gross profit margins have decreased from 18.34% in 2021 to 11.75% in the TTM period. Net profit margins are negative, indicating ongoing losses, with a net profit margin of -8.84% in the TTM period. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Overall, the income statement shows a concerning trend of declining profitability and revenue.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio has improved from 2.76 in 2024 to 1.31 in the TTM period, indicating a reduction in leverage. However, the return on equity remains negative, at -30.67% in the TTM period, reflecting ongoing losses. The equity ratio has decreased, suggesting a decline in the proportion of equity financing. The balance sheet shows some improvement in leverage, but profitability remains a concern.
Cash Flow
60
Neutral
The company has shown improvement in free cash flow, with a growth rate of 43.92% in the TTM period. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. The free cash flow to net income ratio is also positive, suggesting better cash management. Overall, the cash flow statement shows positive trends in cash generation, although profitability challenges persist.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue424.00M464.29M489.27M498.74M477.58M427.53M
Gross Profit34.52M69.48M70.09M77.63M87.59M83.94M
EBITDA9.69M20.72M15.40M31.63M36.34M-96.42M
Net Income-42.79M-38.27M-50.15M-32.69M-20.69M-143.12M
Balance Sheet
Total Assets450.96M456.89M510.88M546.13M579.10M624.96M
Cash, Cash Equivalents and Short-Term Investments12.21M18.13M21.90M12.81M28.66M48.14M
Total Debt50.02M205.99M212.83M209.41M211.13M143.76M
Total Liabilities294.04M382.37M308.08M295.16M354.92M370.81M
Stockholders Equity49.57M168.02M202.80M250.97M224.19M254.15M
Cash Flow
Free Cash Flow10.84M-7.24M8.85M-10.23M-2.63M-8.22M
Operating Cash Flow13.80M11.07M29.34M7.72M15.59M15.55M
Investing Cash Flow-12.14M-1.01M-17.60M-17.49M-36.10M719.28M
Financing Cash Flow-2.89M-13.24M-2.88M-5.19M2.56M-714.85M

NN Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.66
Price Trends
50DMA
2.06
Negative
100DMA
2.11
Negative
200DMA
2.26
Negative
Market Momentum
MACD
-0.08
Negative
RSI
37.60
Neutral
STOCH
35.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNBR, the sentiment is Negative. The current price of 1.66 is below the 20-day moving average (MA) of 1.81, below the 50-day MA of 2.06, and below the 200-day MA of 2.26, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 37.60 is Neutral, neither overbought nor oversold. The STOCH value of 35.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NNBR.

NN Risk Analysis

NN disclosed 30 risk factors in its most recent earnings report. NN reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

NN Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$173.04M12.9736.68%13.70%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
53
Neutral
$482.26M16.81%6.77%9.95%
52
Neutral
$1.49B163.539.17%-91.26%
48
Neutral
$715.89M-10.89-12.81%4.30%-11.13%-351.71%
48
Neutral
$97.35M-24.62%-21.67%60.44%
46
Neutral
$89.85M-24.06%-9.85%-11.65%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NNBR
NN
1.66
-1.85
-52.71%
CODI
Compass Diversified Holdings
5.95
-16.15
-73.08%
MATW
Matthews International
23.01
-0.55
-2.33%
RCMT
Rcm Technologies
20.07
-3.94
-16.41%
TUSK
Mammoth Energy Services
1.97
-1.65
-45.58%
FBYD
Falcon's Beyond Global
14.50
6.96
92.31%

NN Corporate Events

Business Operations and StrategyFinancial Disclosures
NN Highlights Strategic Growth at Gabelli Symposium
Positive
Nov 3, 2025

NN, Inc. announced its participation in the 49th Annual Automotive Symposium by Gabelli Funds in November 2025, highlighting its strategic transformation and readiness for growth. The company has successfully turned around historically unprofitable plants, improved margins, and increased adjusted EBITDA by 45%, now delivering positive free cash flow. Despite facing volatile market dynamics, NN has secured $182 million in new sales wins, reshaping its net sales profile and positioning itself for growth in 2026. The company anticipates increased revenue from normalizing sales in the automotive and commercial vehicle sectors, as well as from rising gold and silver prices and new program launches.

The most recent analyst rating on (NNBR) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on NN stock, see the NNBR Stock Forecast page.

NN, Inc. Earnings Call: Growth Amid Challenges
Nov 1, 2025

The recent earnings call for NN, Inc. presented a balanced narrative of growth and challenges. While the company celebrated significant new business wins and improved financial metrics, it also faced hurdles in specific segments and market volatility. Despite these challenges, NN, Inc. showcased resilience through strategic victories and operational enhancements.

NN, Inc. Reports Q3 2025 Financial Results
Oct 31, 2025

NN, Inc., a global diversified industrial company, specializes in engineering and manufacturing high-precision components and assemblies for various markets, with a strong presence in North America, South America, Europe, and China. In its third-quarter 2025 earnings report, NN, Inc. announced improvements in operating income, margin performance, and free cash flow, alongside growth in its Power Solutions segment. The company is actively pursuing strategic initiatives, including mergers and acquisitions and the refinancing of preferred equity, while addressing challenges in the global automotive market.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
NN Reports Q3 2025 Results Amid Strategic Changes
Positive
Oct 29, 2025

NN, Inc. reported its third-quarter 2025 results, highlighting improvements in operating income, margin performance, and free cash flow, despite an 8.5% decline in net sales. The company is actively pursuing strategic value creation through M&A and refinancing initiatives, while addressing softness in global automotive markets by closing an unprofitable plant. NN’s transformation plan is yielding positive results with new business wins and operational efficiency initiatives, positioning the company for growth in 2026.

The most recent analyst rating on (NNBR) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on NN stock, see the NNBR Stock Forecast page.

Business Operations and StrategyM&A Transactions
NN Unveils Strategic Growth Plans in Investor Presentation
Positive
Sep 15, 2025

On September 15, 2025, NN, Inc. released an investor presentation detailing its strategic plans and current market positioning. The presentation highlighted the company’s focus on organic growth and strategic acquisitions to drive sales to over $600 million, with a target of $1 billion through mergers and acquisitions. NN, Inc. is navigating challenges such as tariffs, high interest rates, and economic uncertainties while leveraging its global footprint to compete in various markets. The company aims to launch 110 to 120 programs in 2025, with a peak annual sales value of approximately $48 million, and is committed to maintaining top quality and reducing costs by 3% annually.

The most recent analyst rating on (NNBR) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on NN stock, see the NNBR Stock Forecast page.

NN Inc. Earnings Call: Growth Amidst Challenges
Aug 12, 2025

The recent earnings call for NN Inc. painted a picture of both optimism and caution. The company reported strong EBITDA growth and operational improvements, alongside successful new business wins, particularly in non-automotive sectors and China. However, these positives were tempered by challenges in the automotive market, sales declines, and economic uncertainties impacting demand and working capital.

NN, Inc. Reports Q2 2025 Earnings and Growth Plans
Aug 8, 2025

NN, Inc., headquartered in Charlotte, North Carolina, is a global diversified industrial company specializing in the engineering and manufacturing of high-precision components and assemblies for various markets worldwide. The company operates in North America, South America, Europe, and China, leveraging advanced engineering and materials science expertise.

Business Operations and StrategyFinancial Disclosures
NN Reports Q2 2025 Results with Improved EBITDA
Positive
Aug 7, 2025

On August 6, 2025, NN, Inc. reported its second quarter results, highlighting improvements in operating income, adjusted EBITDA, and new business programs. Despite a 12.3% decrease in net sales compared to the same period in 2024, the company managed to increase its adjusted income from operations and adjusted EBITDA. NN has been proactive in expanding its business development activities, launching over 100 new programs expected to add significant future sales. The company is also investing in growth capital expenditures and has initiated a transformation plan to mitigate the impact of a soft automotive market. NN maintains its full-year 2025 guidance, with expectations of net sales ranging between $430 to $460 million and adjusted EBITDA between $53 to $63 million.

The most recent analyst rating on (NNBR) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on NN stock, see the NNBR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 04, 2025