NNBR Earnings Prediction
The chart below shows how NNBR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NNBR sees a +0.55% change in stock price 10 days leading up to the earnings, and a -4.05% change 10 days following the report. On the earnings day itself, the stock moves by +1.03%. This data can give you a slight idea of what to expect for the next quarter's release.
NNBR Key Earning Data
2024/Q4
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NNBR Earnings Analysis
NN Inc Corporation (NNBR.O) Earnings Conference Call
Positive
Business Transformation Results: NN's transformation produced significant results, including a new five-year business plan and a new leadership team, with 80% in place.
New Business Awards Secured: The company has secured approximately $150 million in new business awards as part of its business development program.
New Business Initiatives Launch: NN is launching 70 new business win programs in 2025, indicating strong growth potential.
Cash CapEx and Personnel Growth: The company expects to maintain normal levels of cash CapEx while selectively adding personnel to drive new business development in key areas.
Loss Reduction Strategy: Operational improvements have led to a significant reduction in losses at underperforming plants, with expectations for all remaining facilities to be EBITDA positive in 2025.
EBITDA Growth and Profitability: Adjusted EBITDA grew to $12.1 million in Q4 2024, marking a 21% increase from the previous year, showcasing improved profitability despite lower sales.
Adjusted EBITDA Growth: For the full year, adjusted EBITDA increased to $48.3 million, a 12% year-over-year growth, reflecting strong operational efficiencies.
Power Solutions EBITDA Growth: The Power Solutions segment saw adjusted EBITDA increase to $29.2 million for the full year, up from $28.3 million, indicating solid performance in that area.
Mobile Solutions EBITDA Growth: The Mobile Solutions segment achieved a 19% increase in adjusted EBITDA for the full year, demonstrating effective cost management and strategic business exits.
Balance Sheet Improvement: The company is making progress on its balance sheet, having executed refinancing of its ABL and working on term loan refinancing to enhance operational flexibility.
Negative
Net Sales Decline: Fourth-quarter net sales declined by 5% compared to Q4 of last year, attributed to the sale of the Lubbock facility and strategic volume rationalization.
Net Sales Decline: Full-year net sales also reported a decline of 5% compared to 2023, driven by the sale of the Lubbock facility and a one-time customer settlement in the prior year.
Sales Decline Challenges: Despite improvements in adjusted operating income and EBITDA, the overall sales decline indicates challenges in maintaining revenue growth.
Operational Challenges Impacting EBITDA: The company faced significant operational challenges with seven underperforming plants, which negatively impacted customer relationships and resulted in a loss of $11.5 million in adjusted EBITDA in 2023.
Operational Challenges and Restructuring: The need to close two facilities and shed unprofitable business segments highlights ongoing operational inefficiencies and the struggle to achieve profitability in certain areas.
Market Uncertainty Ahead: The company anticipates that current market conditions may drive results to the lower half of their projected ranges for 2025, indicating uncertainty in future performance.
Concerns Over Revenue Sustainability: The reliance on new business wins of approximately $65 million at the midpoint for growth raises concerns about the sustainability of revenue generation without these wins.
NNBR FAQs
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NNBR Earning Call Sentiment
NN, Inc. (NASDAQ:NNBR) Q4 2024 Earnings Call Transcript
NNBR.O
-0.38%Positive
The earnings call shows mixed signals: financial performance is improving with a rise in adjusted EBITDA and margin, but net sales have declined. The Q&A suggests positive developments in reshoring and new business wins, but concerns remain about operational risks and unclear management responses. The absence of a share buyback or dividend program also tempers enthusiasm. Overall, the market reaction is likely to be neutral as positive operational improvements are balanced by financial risks and lack of immediate shareholder returns.
