Slide 1: 2025 Q1 Earnings
Nw BEYOND RELIABLE 2025 Ol Earnings May 8, 2025
Slide 2: Forward Looking Statement & Disclosures
Forward Looking Statement & Disclosures Except for specific historical information, many of the matters discussed in this presentation may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. T
Slide 3: Key Messages
Key Messages End Market Demand & New Business Updating 2025 Guidance and 5-Year Goals ▪ Global automotive market remains resilient overall - softer than ▪ Reiterating 2025 guidance for adjusted EBITDA at $53 - $63 million expected in NA and EU, but China remains strong ▪ Reiterating 2025 guidance fo
Slide 4: Key Metrics
Key Metrics Q1’25 Results Comments Net Sales* $105.7M Flat Y/Y on proforma net sales; uncertainty in US market Gross Margin (as % of Sales) 16.9% Five-year goal is 19-20% Adjusted Operating Income $2.0M Increased $2.7M Y/Y Adjusted EBITDA $10.6M Reconfirming FY 2025 guidance of $53 - $63M Adjusted E
Slide 5: Business Transformation & Pivot are On Track in 2025
Business Transformation & Pivot are On Track in 2025 From 0 to 70% Complete in Seven Quarters 1. Enhance leadership to mirror and lead the new forward agenda New Leadership 90% "Group of 7" Adjusted EBITDA 2. Isolate and fix chronic underperforming areas – Q1 2024 Q1 2025 FY 2025 Goal sales declines
Slide 6: Sales Growth & Pivot Program is Performing Well and On Track
Sales Growth & Pivot Program is Performing Well and On Track ▪ Prospecting targets are by market, balanced to our asset profile, balanced between auto & non-auto, with targets by salesperson ▪ Adding people, NPI capabilities, assets, expanding at existing accounts, and gaining approved supplier stat
Slide 7: New Business Program Update / Snapshot with Facts & Figures
New Business Program Update / Snapshot with Facts & Figures Overall Program Results - January 2023 Through May YTD 2025 ▪ Value of new win programs since January 2023 (peak annual sales value): $160M ▪ # of new win programs won since January 2023: 363 ➢ 2023: Won 118 programs worth $64M # of non-aut
Slide 8: Sales Growth / Pivot Example: NN Continues to Organically Grow its Medical Business
Sales Growth / Pivot Example: NN Continues to Organically Grow its Medical Business ▪ NN is winning in the Extremities and Instruments markets ▪ Adding people, dedicated machines, gaining certifications, becoming an approved supplier, growing $40M pipeline, securing wins ▪ #1 Product in Q1 2025 is t
Slide 9: Sales Growth / Pivot Example: New Business Driving NN Europe to Financial Turnaround
Sales Growth / Pivot Example: New Business Driving NN Europe to Financial Turnaround → $6.7M of new wins in Q1 (peak annual sales) and >$50M of estimated total program value NN Europe team is successfully achieving its new wins objectives and its turnaround plan ▪ Leveraging NN’s Europe in-region in
Slide 10: Operations Team Continues to Deliver its Cost Reduction Targets with Staff Right-Sizing
Operations Team Continues to Deliver its Cost Reduction Targets with Staff Right-Sizing Being a Key Component → 25% increase in adjusted EBITDA / salaried employee over TTM → 16% decrease in net global headcount – hourly, indirect, salaried, SGA All Employees SG&A/Salaried Only Excludes sold Lubbock
Slide 11: Working Capital Reduction Program
Working Capital Reduction Program → Working capital has been reduced 20% or $21.6M over last two years → Down $4.8M vs. Q1 2024; targeting $5M reduction in Q2-Q3 2025 Working Capital Trend $175.0 Commentary $78.5 $74.3 $125.0 $68.0 $68.6 $69.6 $68.3 $69.6 $62.9 ▪ $106.4M in Q1 2023 down to $84.8M in
Slide 12: Q1 2025 – NN Financial Results
Q1 2025 – NN Financial Results As Reported Q1 2024 Pro Forma Adjustments Pro Forma ($millions) Q1'25 Q1’24 Δ Sale of Rationalized FX Total Q1'25 Q1’24 Δ Lubbock Volume Net Sales $105.7 $121.2 ($15.5) ($5.4) ($5.9) ($2.8) ($14.1) $105.7 $107.1 ($1.4) Adj. Operating Income $2.0 ($0.7) ($2.7) ($0.6) $0
Slide 13: Power Solutions Segment – Q1 2025 Highlights
Power Solutions Segment– Q1 2025 Highlights Net Sales Net Sales Net Sales: down ($4.7M), up $1.5M pro forma As Reported (Pro Forma) ▪ ($5.4M) impact of sale of Lubbock facility ($ millions) ($ millions) ▪ ($0.8M) of unfavorable foreign exchange impact ▪ $1.5M of net impact from volume / mix – primar
Slide 14: Mobile Solutions Segment – Q1 2025 Highlights
Mobile Solutions Segment – Q1 2025 Highlights Net Sales: down ($10.9M), down ($3.1M) pro forma Net Sales Net Sales ▪ ($5.9M) of 2024 rationalized business (planned decrease) ($ millions) (Pro Forma) ($ millions) ▪ ($3.0M) of lower auto volumes globally ▪ ($1.9M) of unfavorable foreign exchange impac
Slide 15: Updated 2025 Outlook & Guidance
Updated 2025 Outlook & Guidance Net Sales of $430 to $460 million ▪ Sales forecast has been decreased to be roughly flat to prior year due to economic uncertainties in the North American market ▪ Offset somewhat from SOPs occurring during 2025 from prior new business awards Key Assumptions ▪ Multipl
Slide 16: NN's 5-Year Plan for Profitable Growth
NN’s 5-Year Plan for Profitable Growth 2028 Goals Pathway to Achievement Near-Term Progress ▪ $40 million of net annual growth driven by $65 million of annual new awards and $25 Grow Organic Sales million of EOPs / walkaways plus M&A growth when the time is right Launching 120 programs to $600M ▪ As
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP Financial Measures Footnotes
Non-GAAP Financial Measures Footnotes The Company discloses in this presentation the non-GAAP financial measures of adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted share, free cash flow and net debt. Each of these non-GAAP f
Slide 19: Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted EBITDA
Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations and Non-GAAP Adjusted EBITDA 19
Slide 20: Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income (Loss)
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income (Loss) and GAAP Net Income (Loss) per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share 20
Slide 21: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow 21
Slide 22: Thank You
Investor & Media Contacts Joe Caminiti or Stephen Poe NNBR@alpha-ir.com 312-445-2870 Thank You 22
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