tiprankstipranks
Trending News
More News >
NN Inc (NNBR)
NASDAQ:NNBR
Advertisement

NN (NNBR) AI Stock Analysis

Compare
244 Followers

Top Page

NNBR

NN

(NASDAQ:NNBR)

Select Model
Select Model
Select Model
Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
$1.50
▲(18.11% Upside)
NNBR's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. Despite some positive developments from the earnings call, such as new business wins and improved cash flow, the company's high leverage and ongoing losses weigh heavily on its attractiveness.
Positive Factors
New Business Wins
Securing significant new business and expanding the sales pipeline indicates strong market demand and potential for future revenue growth.
Free Cash Flow Improvement
Improved free cash flow enhances financial flexibility, enabling investment in growth opportunities and debt reduction.
Segment Growth in Power Solutions
Growth in the power solutions segment reflects successful market penetration and product demand, supporting overall business stability.
Negative Factors
High Leverage
High leverage can constrain financial flexibility and increase risk, particularly in volatile market conditions.
Decline in Mobile Solutions Segment
Declining sales in the mobile solutions segment indicate challenges in maintaining market share and revenue stability.
Challenges in Electrical Segment
Reduced federal funding and resulting volatility in the electrical segment may hinder growth and profitability in this area.

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

NN Business Overview & Revenue Model

Company DescriptionNN, Inc., a diversified industrial company, designs, manufactures, and sells high-precision components and assemblies. It operates through two segments, Mobile Solutions and Power Solutions. The Mobile Solutions segment manufactures and sells system critical components for general industrial and automotive end markets. This segments products are used in power steering, braking, transmissions, gasoline fuel system, diesel injection, and diesel emissions treatment applications, as well as use in heating, ventilation, and air conditioning. The Power Solutions segment designs, manufactures, and sells a range of high-precision metal and plastic components, assemblies, and finished devices used in various applications, such as power control, flight control, and military devices. Its products include electrical contacts, connectors, contact assemblies, and precision stampings for the electrical, general industrial, automotive, aerospace, defense, and medical end markets. This segment also produces various tools and instruments for the orthopaedics and medical/surgical end markets. NN, Inc. was founded in 1980 and is headquartered in Charlotte, North Carolina.
How the Company Makes MoneyNN, Inc. generates revenue primarily through the sale of its precision components and assemblies to various industries, particularly automotive and industrial markets. The company operates on a business model that includes direct sales to original equipment manufacturers (OEMs) and distributors, which enables it to establish long-term contracts and relationships. Key revenue streams consist of the sale of high-precision metal and plastic components, engineering services, and technical support. Additionally, NN benefits from strategic partnerships with major industry players, which enhance its market presence and allow for collaborative product development. The company also invests in research and development to innovate and improve its product offerings, which can lead to increased market share and revenue growth.

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
NN's financial statements reflect significant challenges, including declining revenues, negative profitability, and high leverage. Cash flow issues further exacerbate the situation, indicating the need for strategic improvements.
Income Statement
45
Neutral
The income statement shows declining revenue with a negative growth rate of -2.24% TTM. Gross profit margin decreased to 8.14% TTM from 14.96% in the previous year, indicating reduced profitability. Net profit margin is negative, reflecting ongoing losses. EBIT and EBITDA margins are also negative, highlighting operational challenges.
Balance Sheet
50
Neutral
The balance sheet indicates a high debt-to-equity ratio of 1.01 TTM, suggesting significant leverage. Return on equity is negative, indicating losses relative to shareholder equity. The equity ratio is moderate, reflecting a balanced asset structure but with potential risk due to high debt levels.
Cash Flow
40
Negative
Cash flow analysis reveals a significant decline in free cash flow growth at -162.97% TTM. Operating cash flow to net income ratio is low, indicating limited cash generation relative to net income. Free cash flow to net income ratio is positive, but overall cash flow performance is weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue424.00M464.29M489.27M498.74M477.58M427.53M
Gross Profit60.91M69.48M70.09M77.63M87.59M83.94M
EBITDA9.23M20.72M13.46M31.20M36.42M-87.51M
Net Income-42.44M-38.27M-50.15M-26.10M-13.22M-100.59M
Balance Sheet
Total Assets450.96M456.89M510.88M546.13M579.10M683.22M
Cash, Cash Equivalents and Short-Term Investments12.21M18.13M21.90M12.81M28.66M48.14M
Total Debt199.40M196.96M212.83M209.41M211.13M154.87M
Total Liabilities294.04M382.37M308.08M359.86M354.92M323.98M
Stockholders Equity156.92M74.52M202.80M186.26M224.19M359.24M
Cash Flow
Free Cash Flow3.51M-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 Price1.27
Price Trends
50DMA
1.77
Negative
100DMA
2.01
Negative
200DMA
2.13
Negative
Market Momentum
MACD
-0.16
Positive
RSI
31.32
Neutral
STOCH
26.58
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 1.27 is below the 20-day moving average (MA) of 1.49, below the 50-day MA of 1.77, and below the 200-day MA of 2.13, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 31.32 is Neutral, neither overbought nor oversold. The STOCH value of 26.58 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
$145.10M11.4536.68%13.70%-13.35%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
$553.74M13.59%6.77%9.95%
54
Neutral
$755.73M-30.68-5.33%4.10%-16.60%58.86%
51
Neutral
$1.49B163.5328.00%28.46%-105.62%
50
Neutral
$88.68M-24.62%-21.67%60.44%
45
Neutral
$63.75M-24.06%-9.85%-11.65%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NNBR
NN
1.27
-2.98
-70.12%
CODI
Compass Diversified Holdings
7.36
-15.78
-68.19%
MATW
Matthews International
24.54
-4.47
-15.41%
RCMT
Rcm Technologies
19.58
-3.41
-14.83%
TUSK
Mammoth Energy Services
1.84
-1.59
-46.36%
FBYD
Falcon's Beyond Global
20.42
12.65
162.81%

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.

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 18, 2025