NN, Inc. Reports First Quarter 2025 Financial Results with Reduced Net Loss

NN, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $6.7 million, or $0.23 per share, compared to a net loss of $12.5 million, or $0.34 per share, in the same period last year. The company's net sales decreased by 12.8% to $105.7 million from $121.2 million in the prior year, primarily due to the rationalization of underperforming business segments, the sale of its Lubbock operations, and unfavorable foreign exchange effects. Despite the decline in sales, the company managed to reduce its cost of sales by 9.3%, resulting in a loss from operations of $4.8 million, slightly higher than the loss of $4.8 million reported in the previous year.

In terms of operational changes, NN, Inc. has been actively consolidating its manufacturing footprint, having ceased production at its Mobile Solutions plants in Juarez, Mexico, and Dowagiac, Michigan. This strategic decision is part of a broader effort to enhance operational efficiency and reduce costs. The company has recognized cumulative costs of $13.3 million related to these restructuring activities, with expected annual benefits of approximately $5.4 million once fully implemented. Additionally, the company reported an increase in its investment in a joint venture, which contributed positively to its financial performance.

The balance sheet as of March 31, 2025, showed total assets of $460.7 million, a slight increase from $456.9 million at the end of 2024. Current assets rose to $173.0 million, driven by higher accounts receivable and prepaid assets. However, total liabilities also increased to $295.5 million, primarily due to higher accounts payable and long-term debt. The company’s working capital decreased slightly to $82.9 million, reflecting the ongoing adjustments in its operational strategy.

Looking ahead, NN, Inc. remains cautious about macroeconomic conditions, including inflationary pressures and supply chain disruptions, which could impact its financial performance. The company is focused on optimizing its operations and exploring growth opportunities in more profitable markets. The recent establishment of a new term loan facility, which replaced the previous 2021 Term Loan Facility, is expected to provide additional liquidity and financial flexibility as the company navigates these challenges. The management anticipates that the strategic changes implemented will position the company for improved performance in the coming quarters.