Nn — Income Statement, Cash Flows & Balance Sheet
Is NN, Inc. profitable?
NN, Inc. continues to lose money, though losses are narrowing as the company cuts costs.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Net sales | $464.3M | $422.2M | -9.1% |
| Cost of sales | $394.8M | $362.8M | -8.1% |
| Gross profit (GAAP, calculated) | $69.5M | $59.4M | -14.5% |
| Loss from operations | $(27.5M) | $(18.9M) | +$8.6M improvement |
| Net loss | $(38.3M) | $(34.0M) | +$4.3M improvement |
Revenue fell meaningfully — partly due to deliberate plant closures — but cost cuts outpaced that decline, shrinking the operating loss by nearly a third. The net loss is still substantial, and the company has now accumulated a deficit of $367.6M on its balance sheet.
Restructuring charges and a debt refinancing penalty distort the underlying picture somewhat.
| Item | 2024 | 2025 |
|---|---|---|
| Asset impairment (PP&E) | $6.5M charge | $0 |
| Loss on debt extinguishment | $0.3M | $3.0M |
| Plant closure / restructuring costs | $12.6M | $0.8M |
The prior year included a $6.5M impairment tied to a plant that closed in 2025, while this year includes a $3.0M penalty from refinancing the old term loan. Stripping these items out, the improvement in underlying operations is real but modest.
Where does NN, Inc.'s revenue come from?
Mobile Solutions is shrinking and losing money; Power Solutions is smaller but consistently profitable.
| Segment | 2024 Revenue | 2025 Revenue | Change | 2025 Operating Income (Loss) |
|---|---|---|---|---|
| Mobile Solutions | $283.9M | $244.0M | -14.1% | $(8.0M) |
| Power Solutions | $180.5M | $178.6M | -1.1% | $10.3M |
Mobile Solutions — which serves mainly automotive customers — is responsible for all of the revenue decline and all of the segment-level losses. Power Solutions, serving electrical and industrial markets, held revenue steady and remained profitable. The two businesses are pulling in opposite directions.
China is the one geography bucking the declining revenue trend.
| Geography | 2023 Revenue | 2024 Revenue | 2025 Revenue |
|---|---|---|---|
| United States | $294.0M | $265.0M | $228.8M |
| China | $58.2M | $68.0M | $71.8M |
| All other | $137.1M | $131.3M | $121.6M |
U.S. revenue has fallen sharply over three years while China has grown steadily, now representing roughly 17% of total sales. This partly reflects NN's 49%-owned Chinese joint venture, which is a meaningful profit contributor.
Does NN, Inc. generate cash?
NN generated positive operating cash flow, but the trend is deteriorating and free cash flow is thin.
| Cash Flow Item | 2023 | 2024 | 2025 |
|---|---|---|---|
| Cash from operations | $29.3M | $11.1M | $5.7M |
| Capital expenditures | $(20.5M) | $(18.3M) | $(12.9M) |
| Free cash flow (calculated) | $8.8M | $(7.2M) | $(7.2M) |
Operating cash generation has declined sharply over three years. Free cash flow (operating cash minus capex — a non-GAAP measure) is negative, meaning the business is not self-funding after maintenance and investment spending, despite significant cuts to capital expenditures.
How strong is NN, Inc.'s balance sheet?
Debt is rising and expensive, and the preferred stock adds a significant hidden liability.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Total debt | $148.6M | $159.5M | +$10.9M |
| Series D preferred stock (carrying value) | $93.5M | $112.4M | +$18.9M |
| Cash | $18.1M | $11.4M | -$6.7M |
| Total stockholders' equity | $74.5M | $34.0M | -$40.5M |
Debt grew after a refinancing in April 2025, with the new term loan carrying an interest rate above 13%. The preferred stock — which accrues unpaid dividends at 12% annually and is growing rapidly — is not counted as debt but economically behaves like it. Stockholders' equity has been nearly halved in one year, and the accumulated deficit continues to grow. The overall financial position is stretched.