Overview

* NN Q3 net sales decline 8.5%, missing analyst expectations

* Adjusted loss per share for Q3 misses analyst expectations

* Adjusted net loss for Q3 beats analyst expectations

Outlook

* NN expects 2025 net sales between $420 mln and $440 mln

* Company maintains 2025 adjusted EBITDA guidance at $53 mln to $63 mln

* NN forecasts 2026 net sales growth and improved profitability

Result Drivers

* POWER SOLUTIONS GROWTH - Segment grew 4.7% due to higher precious metal pass-through pricing

* COST REDUCTION - Improved margins and operating income attributed to cost reduction initiatives

* MOBILE SOLUTIONS RATIONALIZATION - Decline in sales due to rationalization of underperforming business and plants

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $103.9 $111.77

mln mln (4

Analysts

)

Q3 Miss -$0.01 $0.00667

Adjusted (3

EPS Analysts

)

Q3 Miss $12.4 $13.31

Adjusted mln mln (4

EBITDA Analysts

)

Q3 $4 mln

Adjusted

Income

from

Operatio

ns

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

* Wall Street's median 12-month price target for NN Inc ( NNBR ) is $6.00, about 68.7% above its October 28 closing price of $1.88

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)