NN Inc
NASDAQ:NNBR
NN Inc
NN, Inc. engages in the design and manufacture high-precision components and assemblies primarily for the electrical, automotive, general industrial, aerospace and defense, and medical markets. The company is headquartered in Charlotte, North Carolina and currently employs 3,172 full-time employees. The firm combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies. Its segments include Mobile Solutions and Power Solutions. The Mobile Solutions segment has capabilities that can be utilized in numerous applications, including for use in battery electric, hybrid electric and internal combustion engine vehicles. The Power Solutions segment manufacture a range of products, including electrical contacts, connectors, contact assemblies, and precision stampings for the electrical end market and high precision products for the aerospace and defense end market utilizing its process technologies for optical grade plastics, thermally conductive plastics, titanium, Inconel, magnesium and electroplating. Its medical business includes the production of a range of tools and instruments for the orthopaedics and medical/surgical end markets.
NN, Inc. engages in the design and manufacture high-precision components and assemblies primarily for the electrical, automotive, general industrial, aerospace and defense, and medical markets. The company is headquartered in Charlotte, North Carolina and currently employs 3,172 full-time employees. The firm combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies. Its segments include Mobile Solutions and Power Solutions. The Mobile Solutions segment has capabilities that can be utilized in numerous applications, including for use in battery electric, hybrid electric and internal combustion engine vehicles. The Power Solutions segment manufacture a range of products, including electrical contacts, connectors, contact assemblies, and precision stampings for the electrical end market and high precision products for the aerospace and defense end market utilizing its process technologies for optical grade plastics, thermally conductive plastics, titanium, Inconel, magnesium and electroplating. Its medical business includes the production of a range of tools and instruments for the orthopaedics and medical/surgical end markets.
Sales Decline: Q3 sales were $103.9 million, down $9.7 million year-over-year, largely due to softer automotive and electrical markets.
Margin Expansion: Adjusted EBITDA margin rose 170 basis points year-over-year to 11.9% as cost reduction and portfolio rationalization took effect.
Profit Improvement: Adjusted operating income doubled to $4 million, with adjusted EBITDA up 6.9% year-over-year despite lower sales.
Free Cash Flow: Generated $9 million in free cash flow in Q3, aided by a significant $21 million working capital improvement over two years.
New Business Pipeline: Secured $182 million in new business wins to date, with a robust pipeline over $850 million, especially in electrical, medical, and defense.
Guidance Update: Revenue outlook lowered due to weaker automotive, but higher-margin defense sales are partially offsetting the impact; overall guidance otherwise reiterated.
M&A and Refinancing: Strategic M&A and preferred equity refinancing efforts are active, with progress on both fronts but no imminent deals.
