NN, Inc. Reports $6.7 Million Net Loss in Q3 2025, Revenue Declines 8.5%

NN, Inc. reported a net loss of $6.7 million for the third quarter of 2025, compared to a loss of $2.6 million in the same period last year. Revenue for the quarter decreased by 8.5% to $103.9 million, down from $113.6 million in the prior year, primarily due to the rationalization of underperforming business segments and lower sales volumes. The company's cost of sales also fell by 11% to $86.4 million, reflecting the decline in sales. Despite the decrease in revenue, the loss from operations improved to $2.2 million from $3.8 million a year earlier, indicating some operational efficiencies.

For the nine months ending September 30, 2025, NN, Inc. reported a net loss of $21.5 million, compared to a loss of $17.3 million for the same period in 2024. Year-to-date revenue decreased by 11.3% to $317.5 million, down from $357.8 million, largely due to the sale of the Lubbock operations and unfavorable foreign exchange effects. The company’s cost of sales also decreased by 10.6% to $267.8 million, contributing to a loss from operations of $8.5 million, an improvement from the $10.7 million loss reported in the previous year.

Strategically, NN, Inc. has been focusing on optimizing its operations, which included the closure of two manufacturing facilities in Mexico and Michigan to enhance efficiency. The company has also launched new business initiatives that contributed positively to its revenue, although these were not enough to offset the overall decline. The company’s investment in a joint venture in China continues to yield stable returns, with a share of net income from the joint venture reported at $6.6 million for the nine-month period.

Operationally, NN, Inc. has seen fluctuations in its customer base and product demand, with the Mobile Solutions segment experiencing a significant revenue drop of 14.7% year-to-date, while the Power Solutions segment reported a smaller decline of 5.8%. The company’s total assets decreased slightly to $451.0 million from $456.9 million at the end of 2024, while total liabilities increased to $294.0 million, reflecting higher accounts payable and long-term debt.

Looking ahead, NN, Inc. anticipates continued challenges due to macroeconomic conditions, including inflationary pressures and potential trade restrictions. The company is committed to further optimizing its operations and managing costs effectively to navigate these challenges. The management remains focused on improving operational efficiencies and exploring new market opportunities to enhance revenue growth in the future.