NN, Inc. Reports 12.3% Decline in Q2 2025 Net Sales, Net Loss Increases

NN, Inc. reported a decline in financial performance for the second quarter of 2025, with net sales of $107.9 million, down 12.3% from $123.0 million in the same period last year. The company also recorded a net loss of $8.1 million, compared to a loss of $2.2 million in the prior year. For the first half of 2025, net sales totaled $213.6 million, a decrease of 12.5% from $244.2 million in the first half of 2024. The loss from operations improved slightly to $6.3 million from $6.9 million year-over-year, indicating some operational efficiencies despite lower sales.

The decrease in revenue was attributed to the rationalization of underperforming business units and the sale of the Lubbock operations in 2024, alongside lower volumes and unfavorable foreign exchange impacts. However, the company noted that new business launches and higher precious metals pass-through pricing partially offset these declines. Cost of sales also decreased, reflecting the drop in sales, with a reduction of $11.6 million in the second quarter and $21.0 million in the first half of 2025.

Operationally, NN, Inc. has been undergoing significant changes, including the closure of two manufacturing facilities in Juarez, Mexico, and Dowagiac, Michigan, as part of a broader strategy to optimize its footprint and reduce costs. The company expects to realize annual benefits of approximately $5.4 million from these actions. As of June 30, 2025, NN, Inc. had 50.3 million shares of common stock outstanding, with a total stockholders' equity of $59.5 million, down from $74.5 million at the end of 2024.

In terms of financial health, total assets increased slightly to $460.8 million, while total liabilities rose to $298.7 million, primarily due to increased accounts payable and long-term debt. The company entered into a new $128 million Term Loan Facility in April 2025, which was used to repay previous debt obligations. NN, Inc. reported compliance with all financial covenants associated with its credit facilities as of the end of the quarter.

Looking ahead, NN, Inc. remains cautious about macroeconomic conditions, including inflationary pressures and potential impacts from global trade negotiations. The company is focused on managing its liquidity and working capital effectively while continuing to evaluate opportunities for growth and operational efficiency.