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NN: Earnings Report Analysis: NN, Inc.

The company's financial performance for the fourth quarter showed a revenue of $422.2 million, a decline of $42.1 million from the previous year. The adjusted EBITDA was $12.9 million, an increase from $12.1 million in the prior year, representing a year-over-year growth of 6.6%. The adjusted EBITDA margin expanded by 90 basis points to 12.3% of net sales. The company's EPS was -$0.25362, missing estimates of $0.02. The Power Solutions segment saw an increase in net sales, driven by new business wins and higher precious metals pass-through pricing.

NNBR

USD 1.26

-0.79%

A-Score: 2.6/10

Publication date: March 5, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Adjusted EBITDA Growth Full-year 2025 adjusted EBITDA reached $12.9 million, up 7.4% YoY, with margins expanding 90 basis points to 12.3%.
  • New Business Wins Secured $4.07 billion in new contracts in 2025, exceeding targets, with a $800 million high-quality pipeline for 2026.
  • 2026 Revenue Outlook Guiding $445–$465 million in sales, driven by 100+ program launches and 5–7% growth in defense and data center markets.
  • Segment Performance Power Solutions segment grew sales 5.3% YoY to $178.6 million, with EBITDA up 10.8% to $30.7 million (17.2% margin).
  • Margin Expansion Mobile Solutions EBITDA margin expanded 70 bps to 13.7% in 2025 despite 9.3% sales decline, driven by cost discipline.

Segment Performance

The Power Solutions segment reported net sales of $178.6 million, a 5.3% increase from the previous year. Adjusted EBITDA improved by 10.8% to $30.7 million, with a 90 basis-point expansion in EBITDA margins. The segment won $13.2 million in new business awards, focusing on key target growth markets. The Mobile Solutions segment saw a decline in net sales, but still reported an expansion in adjusted EBITDA margins to 13.7%, driven by cost savings and lower operating costs.

New Business Wins and Outlook

The company reported new business wins of over $200 million in the trailing three years, with a significant pipeline of opportunities. The average gross margin on these wins is 27%, concentrated in strategic markets where the company sees long-term value. The company is guiding to net sales growth of $445 million to $465 million in 2026, with a focus on new program launches and strengthening of end markets. Analysts estimate next year's revenue growth at 5.4%.

Valuation Metrics

The company's valuation metrics indicate a 'P/E Ratio' of -1.98, 'P/S Ratio' of 0.16, and an 'EV/EBITDA' of 15.09. The 'ROE (%)' is -25.53, and 'ROIC (%)' is -4.94, indicating potential areas for improvement. The 'Net Debt / EBITDA' ratio is 11.24, suggesting a significant debt burden. The 'Free Cash Flow Yield (%)' is negative, indicating that the company's cash flow is not sufficient to support its current valuation.

Growth Prospects

The company is expecting growth in its key markets, driven by the increasing demand for data centers and defense electronics. The company is also investing in new capacity to support future growth, with a doubling of its capital spending to around $20-$30 million. The increased spending is expected to benefit 2027, as the company says yes to more programs and invests in new capacity to support future growth.

NN's A-Score