NN (NASDAQ:NNBR) Fails to Meet Q4 CY2025 Revenue Projections, Shares Decline

NN (NNBR) Q4 2025 Earnings Recap

NN, a supplier of industrial components listed on NASDAQ as NNBR, reported fourth-quarter 2025 revenue of $104.7 million, reflecting a 1.7% decrease compared to the same period last year and falling short of Wall Street’s expectations. However, the company’s revenue outlook for the full year stands at $455 million (midpoint), which is 1.5% higher than what analysts had anticipated. NN’s adjusted loss per share was $0, matching consensus estimates.

Is this a good moment to consider investing in NN?

Q4 2025 Financial Highlights

• Revenue: $104.7 million, compared to analyst expectations of $105.4 million (down 1.7% year-over-year, missing by 0.6%)
• Adjusted EPS: $0, in line with the anticipated $0.01
• Adjusted EBITDA: $12.89 million, below the $15.64 million forecast (12.3% margin, 17.6% miss)
• 2026 EBITDA Guidance: $55 million (midpoint), lower than the $57.22 million expected by analysts
• Operating Margin: -9.9%, an improvement from -11% in the prior year’s quarter
• Free Cash Flow: -$3.27 million, compared to $3.72 million a year ago
• Market Cap: $74.79 million

“NN has achieved three consecutive years of better financial results through 2025, and we are optimistic about our path for sales, margins, and adjusted EBITDA as we move into 2026,” commented Harold Bevis, CEO of NN, Inc.

About NN (NNBR)

Previously operating as Nuturn, NN (NASDAQ:NNBR) manufactures metal parts, bearings, and plastic and rubber components for industries such as automotive, aerospace, healthcare, and general manufacturing.

Revenue Trends

Consistent sales growth is a key indicator of a company’s strength. While some businesses may post strong results for a few quarters, truly robust companies show sustained expansion over years. NN’s sales for the past twelve months reached $422.2 million, which is nearly unchanged from five years ago, signaling challenges in driving long-term growth and suggesting lower business quality.

NN Quarterly Revenue

At StockStory, we prioritize long-term growth, but in the industrial sector, five-year trends can overlook market cycles, industry shifts, or company-specific catalysts like new contracts or product launches. NN’s recent results show demand has remained weak, with revenue declining at an average rate of 7.1% per year over the past two years.

NN Year-On-Year Revenue Growth

This quarter, NN’s revenue dropped 1.7% year-over-year to $104.7 million, missing analyst projections and reflecting ongoing challenges.

Looking forward, analysts expect NN’s revenue to rise by 5.2% over the next year. While this suggests some improvement from new offerings, the growth rate remains below the industry average.

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Operating Margin Analysis

Over the past five years, NN’s operating margin has averaged negative 4%, reflecting high costs and ongoing losses. Unprofitable industrial companies like NN require careful scrutiny, as they may struggle to weather downturns.

Examining profitability trends, NN’s operating margin has worsened by 1.3 percentage points over five years, indicating rising costs that the company has been unable to offset through pricing power.

NN Trailing 12-Month Operating Margin (GAAP)

For the latest quarter, NN’s operating margin stood at -9.9%. This persistent lack of profitability is a concern for investors.

Earnings Per Share (EPS) Overview

Tracking long-term changes in EPS is important because it reveals whether a company’s growth is translating into profits. For NN, EPS has fallen by 16.5% annually over the past five years, even as revenue remained flat. This suggests the company’s fixed costs made it difficult to adapt to fluctuating demand.

NN Trailing 12-Month EPS (Non-GAAP)

Looking deeper, NN’s operating margin improved this quarter but is still down over five years. The company’s share count has also increased by 17.4%, meaning not only have operating costs become less efficient, but shareholders have been diluted as well.

NN Diluted Shares Outstanding

As with revenue, examining recent EPS trends can reveal emerging patterns. Over the past two years, NN’s annual EPS growth rate was 73.7%, better than its five-year trend. While this improvement is notable, the company’s EPS remains negative.

In the fourth quarter, NN’s adjusted EPS was $0, up from a loss of $0.02 in the prior year’s quarter. Despite this year-over-year improvement, the result did not meet analyst expectations. Looking ahead, analysts are optimistic, forecasting that NN’s full-year EPS will shift from a loss of $0.02 to a profit of $0.10.

Summary of Q4 Results

It was encouraging to see NN’s full-year revenue guidance exceed expectations, but its EBITDA outlook and actual results fell short. Overall, this was a weaker quarter, and the stock price dropped 5.4% to $1.44 following the report.

While NN’s latest earnings were underwhelming, the bigger question is whether this creates a buying opportunity. Short-term results matter, but long-term business fundamentals and valuation are more important for investment decisions.