Nn — Financial Results
Revenue Fell 9% as the Company Deliberately Shed Underperforming Business
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net sales | $422.2M | $464.3M | -$42.1M (-9.1%) |
| Mobile Solutions sales | $244.0M | $283.9M | -$39.9M (-14.1%) |
| Power Solutions sales | $178.6M | $180.5M | -$1.9M (-1.1%) |
The revenue drop was intentional in large part — management closed two underperforming plants and sold its Lubbock operations. Mobile Solutions drove almost all of the decline, while Power Solutions held relatively steady. New business launches and higher precious metals pass-through pricing (where customers reimburse the company for commodity cost increases) partially offset the losses.
The Company Is Still Losing Money, But Losses Are Narrowing
| Metric | 2025 | 2024 |
|---|---|---|
| Net loss | -$34.0M | -$38.3M |
| Net loss as % of sales | -8.1% | -8.2% |
The company has not turned a profit, but the net loss improved by $4.3 million year-over-year. A big driver was a $9.4 million drop in depreciation and amortization (the accounting expense for wearing down assets over time), as older acquisition-related asset values became fully written off. The 49%-owned joint venture contributed $8.9 million in income, which meaningfully cushions the overall loss.
Plant Closures Are Reducing Costs but Highlight Structural Challenges
The company shut its Mobile Solutions factories in Juarez, Mexico and Dowagiac, Michigan in early 2025. These closures cut selling, general, and administrative expenses by $3.3 million (down 6.7%) and contributed to the improved loss from operations in Mobile Solutions, which went from -$18.1M to -$8.0M. Management says it is still evaluating further facility consolidations, signaling this restructuring process is not finished.
The Refinanced Term Loan Carries a Very High Interest Rate
In April 2025, the company replaced its existing debt with a new $128 million term loan (a fixed borrowing repaid over time) maturing in 2030. The catch: it currently carries an interest rate of 13.57%, and the company has the option to pay part of that interest "in-kind" (PIK) — meaning added to the loan balance rather than paid in cash — through April 2027. Interest expense was $22.4 million in 2025, consuming more than 5% of every dollar of revenue. This debt load is a significant ongoing burden.
Cash Generation Is Thin and Declining
| Metric | 2025 | 2024 |
|---|---|---|
| Cash from operations | $5.7M | $11.1M |
| Working capital | $74.2M | $83.7M |
The company generated only $5.7 million in cash from its operations in 2025, down from $11.1 million the prior year. Working capital (short-term assets minus short-term liabilities, a measure of near-term financial flexibility) also fell by $9.5 million. With heavy debt-service costs and ongoing restructuring, thin cash generation leaves limited room for error.