NN Inc beats Q2 earnings expectations, posts revenue miss

Published 07/08/2025, 11:32
 NN Inc beats Q2 earnings expectations, posts revenue miss

CHARLOTTE - On Thursday, NN Inc (NASDAQ:NNBR), a diversified industrial manufacturer, reported second-quarter earnings that exceeded analyst expectations despite revenue falling short of estimates. The company posted adjusted earnings per share of $0.02, beating the analyst consensus of breakeven, while revenue came in at $107.9 million, below the expected $113.44 million.

Revenue declined from $123 million in the same quarter last year, representing a 12.3% YoY decrease. On a pro forma basis, adjusting for the sale of the Lubbock facility, rationalized volumes, and foreign exchange impacts, revenue was down 2.4% from $110.6 million in the prior-year period. Despite the revenue decline, the company improved its adjusted EBITDA margin to 12.2%, an increase of 100 basis points compared to the same period last year.

NN’s shares edged higher following the earnings announcement as investors responded positively to the company’s improved profitability metrics despite lower sales. The company reported adjusted gross margin of 19.5%, continuing its steady improvement trajectory toward its long-term goal of exceeding 20%.

The company maintained its full-year 2025 guidance, expecting net sales of $430 million to $460 million and adjusted EBITDA of $53 million to $63 million, though it indicated results would likely fall toward the lower end of these ranges. Management cited uncertainty from top customers and the second-half macroeconomic environment as factors influencing the outlook.

NN continues to shift its portfolio toward non-automotive markets, which now represent 60% of its business, with particular growth in its Power Solutions segment. The company also highlighted its recent hiring of Tim Erro as Chief Commercial Officer to accelerate growth initiatives, particularly in electrical markets.

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