NN Highlights Transformation Progress in Q4 Earnings Call

Company expects return to net sales growth in 2026 as it pivots to higher-value end markets

Published on Mar. 6, 2026

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NN (NASDAQ:NNBR) executives used the company's fourth-quarter 2025 earnings call to frame 2025 as the third consecutive year of improved results, while emphasizing that 2026 is expected to mark a return to net sales growth as the company pivots toward higher-value end markets and ramps a record slate of new program launches.

Why it matters

NN's transformation plan, which includes closing and consolidating plants, exiting unprofitable operations, and shifting its sales profile away from low-value commodity automotive parts toward higher-value markets, appears to be gaining traction. The company's ability to win over $200 million in new business since 2023 and its $800 million pipeline suggest the strategy is resonating with customers.

The details

NN reported Q4 2025 net sales of $104.7 million and full-year sales of $422.2 million, which were 'a little lighter than we had hoped' as some customers reduced inventories late in the year. However, the company saw improved shipping backlogs in Q1 2026. On profitability, NN reported adjusted operating income of $3.3 million in Q4 and $14.2 million for the full year, roughly three times the prior year, attributed to a leaner operating model and exiting lower-end business. The company's Power Solutions segment grew 14.9% in Q4 and 5.3% for the full year, while Mobile Solutions saw a 9.3% full-year decline, largely due to one auto parts customer pushing out volumes.

  • NN has completed 'the majority of the heavy spending portion' of its transformation plan, including closing and consolidating four plants and 'right sizing about 800 people'.
  • NN has won more than $200 million of new business since the transformation plan launched in mid-2023 and is facing 'record levels of program launches' in 2026.
  • NN expects to launch more than 100 programs in 2026, with revenue contribution from those launches expected to be 'somewhere around between $20 million and $25 million'.

The players

Harold Bevis

President and CEO of NN, Inc.

Chris Bonner

CFO of NN, Inc.

Tim French

COO of NN, Inc.

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What they’re saying

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