Industrial components supplier NN (NASDAQ: NNBR) missed Wall Street’s revenue expectations in Q4 CY2025, with sales falling 1.7% year on year to $104.7 million. On the other hand, the company’s full-year revenue guidance of $455 million at the midpoint came in 1.5% above analysts’ estimates. Its non-GAAP loss of $0 per share was in line with analysts’ consensus estimates.
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NN (NNBR) Q4 CY2025 Highlights:
- Revenue: $104.7 million vs analyst estimates of $105.4 million (1.7% year-on-year decline, 0.6% miss)
- Adjusted EPS: $0 vs analyst estimates of $0.01 (in line)
- Adjusted EBITDA: $12.89 million vs analyst estimates of $15.64 million (12.3% margin, 17.6% miss)
- EBITDA guidance for the upcoming financial year 2026 is $55 million at the midpoint, below analyst estimates of $57.22 million
- Operating Margin: -9.9%, up from -11% in the same quarter last year
- Free Cash Flow was -$3.27 million, down from $3.72 million in the same quarter last year
- Market Capitalization: $74.79 million
"NN delivered a third consecutive year of improved financial performance in 2025, and we look ahead to 2026 with increased confidence in our trajectory for sales, margins, and adjusted EBITDA," said Harold Bevis, Chief Executive Officer of NN, Inc.
Company Overview
Formerly known as Nuturn, NN (NASDAQ: NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, NN struggled to consistently increase demand as its $422.2 million of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and suggests it’s a low quality business.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. NN’s recent performance shows its demand remained suppressed as its revenue has declined by 7.1% annually over the last two years. 
This quarter, NN missed Wall Street’s estimates and reported a rather uninspiring 1.7% year-on-year revenue decline, generating $104.7 million of revenue.
Looking ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months. While this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average.
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Operating Margin
NN’s high expenses have contributed to an average operating margin of negative 4% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.
Looking at the trend in its profitability, NN’s operating margin decreased by 1.3 percentage points over the last five years. NN’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.
NN’s operating margin was negative 9.9% this quarter. The company's consistent lack of profits raise a flag.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Sadly for NN, its EPS declined by 16.5% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.
Diving into the nuances of NN’s earnings can give us a better understanding of its performance. As we mentioned earlier, NN’s operating margin expanded this quarter but declined by 1.3 percentage points over the last five years. Its share count also grew by 17.4%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. 
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For NN, its two-year annual EPS growth of 73.7% was higher than its five-year trend. Its improving earnings is an encouraging data point, but a caveat is that its EPS is still in the red.
In Q4, NN reported adjusted EPS of $0, up from negative $0.02 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast NN’s full-year EPS of negative $0.02 will flip to positive $0.10.
Key Takeaways from NN’s Q4 Results
It was great to see NN’s full-year revenue guidance top analysts’ expectations. On the other hand, its full-year EBITDA guidance missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 5.4% to $1.44 immediately after reporting.
NN didn’t show it’s best hand this quarter, but does that create an opportunity to buy the stock right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
