Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.com.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
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A Trillion Dollard Defense Budget? House Republicans have released legislation that would increase Pentagon spending by $150 billion. The proposal was approved by the House Armed Services Committee and, when combined with the already approved government fiscal year 2025 $886 billion defense budget, the added dollars would bring defense spending to more than $1 trillion for the first time. A significant portion of the recent budget increases target areas in Kratos’ wheelhouse, in our opinion, which could provide additional upside to the Company.
Missile Defense. Approximately $25 billion of the $150 billion proposed increase would be earmarked for the Golden Dome missile defense initiative. Recall, Golden Dome would be a shield intended to protect the continental U.S. against advanced missiles. Golden Dome is another project that aligns with Kratos’ capabilities, in our view.
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This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
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Robust first quarter order activity. During the first quarter ending on March 31, FreightCar America received orders for a total of 1,250 railcars valued at approximately $141 million. Based on the Railway Supply Institute’s American Railway Car Institute Committee (ARCI) first quarter 2025 reporting statistics, industry orders totaled 5,085 railcars, while deliveries amounted to 7,810. Freight Car’s orders represented approximately 25% of all new railcars ordered during the quarter and 36% of FreightCar America’s addressable market.
2025 corporate guidance. Railcar deliveries are expected to be in the range of 4,500 to 4,900, revenue is expected to be in the range of $530 million to $595 million, and adjusted EBITDA is expected to be in the range of $43 to $49 million. Our current 2025 estimates include railcar deliveries of 4,700 units, revenue of $562.5 million, and EBITDA of $45.4 million. While first quarter orders of 1,250 was above our estimate of 1,000, our estimate for first quarter deliveries is unchanged.
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Orders Highlight Continued Strength Across Diverse Product Offerings
CHICAGO, April 24, 2025 (GLOBE NEWSWIRE) — FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts, and components, today announced that it received total orders valued at approximately $141 million, representing a total of 1,250 railcars, during the quarter ended March 31, 2025. These orders underscore ongoing demand for FreightCar America’s railcar offerings and reflect continued market share gains.
FreightCar America continues to gain share within its core railcar markets, driven by strategic initiatives aimed at increasing operational efficiency, product innovation, and commercial excellence. The orders represent approximately 25% of all new railcars ordered in the quarter, and 36% in our addressable market, marking the largest new railcar market share quarter intake in 15 years.
Nick Randall, President and Chief Executive Officer of FreightCar America, commented, “We are pleased to see sustained customer interest across our product portfolio, particularly in gondolas, open-top hoppers and covered hopper cars, which remain an integral part of our diverse portfolio of railcar types. Our manufacturing agility and ability to capture these opportunities highlights our competitive strengths.”
Randall continued, “We have been monitoring recent tariff developments and based on our current understanding, railcars sold by FreightCar America in North America are not subject to tariffs due to their compliance with the United States-Mexico-Canada Agreement. We continue to monitor any tariff developments. With our supply chain strategy, operational excellence initiatives at our manufacturing facility and continued commercial momentum, we remain confident in our forward trajectory.”
Certain orders referenced in this release are subject to customary documentation and completion of terms.
About FreightCar America
FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.
Forward-Looking Statements
This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion; delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
CHARLOTTE, N.C., April 24, 2025 (GLOBE NEWSWIRE) — NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, announced today that it will release its first quarter 2025 financial results for the period ended March 31st, 2025, after the close of the market on Wednesday, May 7th, 2025. The Company will hold a related conference call on Thursday, May 8th, 2025, at 9:00 a.m. E.T. Participants on the call are asked to register five to ten minutes prior to the scheduled start time by dialing 1-877-255-4315 and from outside the U.S. at 1-412-317-6579.
The conference call will be webcast simultaneously and in its entirety through the NN, Inc. Investor Relations website. Shareholders, media representatives and others may participate in the webcast by registering through the Investor Relations section on the company’s website at https://investors.nninc.com/.
For those who are unavailable to listen to the live call, a replay will be available shortly after the call on NN’s website through May 8th, 2026.
About NN, Inc. NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Europe, South America, and Asia. For more information about the company and its products, please visit www.nninc.com.
Investor Relations: Joe Caminiti or Stephen Poe NNBR@alpha-ir.com 312-445-2870
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
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Fourth quarter and full year financial results. For fiscal year (FY) 2025, AZZ reported adjusted net income of $156.8 million or $5.20 per share compared to $132.8 million or $4.53 per share during FY 2024 and our estimate of $155.9 million or $5.17 per share. Compared to FY 2024, sales increased 2.6% to $1.578 billion. AZZ generated a 24.3% gross margin as a percentage of sales compared to 23.6% during the prior year. Adjusted EBITDA increased 4.3% to $347.9 million, representing 22.0% of sales compared to 21.7% of sales in FY 2024. Adjusted net income and EPS during the fourth quarter of FY 2025 were $29.6 million and $0.98, respectively, compared to our estimates of $28.8 million and $0.95 per share.
Updating estimates. We project FY 2026 revenue, adjusted EBITDA, and adjusted EPS of $1.676 billion, $381.7 million, and $5.83 respectively. Our FY 2026 estimates reflect a gross margin of $408.7 million or 24.4% of sales. We have assumed the company accelerates debt repayment to lower interest expense to offset the reduction of equity in earnings of unconsolidated subsidiaries caused by the AVAIL JV’s sale of its Electric Products business.
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Achieved Record Full-Year Sales and Profitability, Adjusted EPS of $5.20 and GAAP EPS of $1.79
FORT WORTH, Texas, April 21, 2025 /PRNewswire/ — AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today issued its audited consolidated financial statements contained in the Company’s Fiscal Year 2025 Annual Report on Form 10-K for the year ended February 28, 2025.
Fiscal Year 2025 Overview (as compared to prior fiscal year 2024(1)):
Total Sales $1,577.7 million, up 2.6%
Metal Coatings sales of $665.1 million, up 1.4%
Precoat Metals sales of $912.6 million, up 3.5%
Net income of $128.8 million, up 26.8%; Net Income available to common shareholders of $52.4 million reflects the redemption premium payment on the Series A Preferred Stock of $75.2 million; Adjusted net income of $156.8 million, up 18.1%
GAAP diluted EPS of $1.79 per share, down 48.3%, which includes full redemption of Series A Preferred Stock, and Adjusted diluted EPS of $5.20, up 14.8%
Adjusted EBITDA of $347.9 million, or 22.0% of sales, up 4.3% versus prior year of $333.6 million, or 21.7% of sales
Segment Adjusted EBITDA margin of 30.9% for Metal Coatings and 19.6% for Precoat Metals
Debt reduction of $110.0 million for the year, resulting in net leverage below 2.5x
Fourth Quarter 2025 Overview (as compared to prior fiscal year fourth quarter(1)):
Total Sales of $351.9 million, down 4.0%, primarily due to inclement weather during the quarter
Metal Coatings sales of $148.4 million, down 3.9%
Precoat Metals sales of $203.5 million, down 4.1%
Net Income of $20.2 million, up 41.7%, and Adjusted net income of $29.6 million, up 7.9%
GAAP diluted EPS of $0.67 per share, up 19.6%, and Adjusted diluted EPS of $0.98, up 5.4%
Adjusted EBITDA of $71.2 million or 20.2% of sales, versus prior year of $73.9 million, or 20.2% of sales
Segment Adjusted EBITDA margins of 29.2% for Metal Coatings and 17.8% for Precoat Metals
______________________________________
(1) Adjusted Net Income, Adjusted EPS, Adjusted EBITDA and net leverage ratio are non-GAAP financial measures as defined and reconciled in the tables below.
Tom Ferguson, President, and Chief Executive Officer of AZZ, commented, “Fiscal year 2025 was a successful year for AZZ. We delivered record full year results and made significant progress on our growth initiatives throughout the year. We are pleased with full-year sales growth of 2.6%, which includes record results in both Metal Coatings and Precoat Metals, despite navigating significant weather impacts in the fourth quarter. For the year, our Metal Coatings segment delivered sales of $665.1 million, and 30.9% EBITDA margin, while Precoat Metals delivered sales of $912.6 million and 19.6% EBITDA margin.
“With sales of $1.58 billion and cash flow from operations of $250 million, we were able to substantially complete our greenfield project in Washington, Missouri while significantly paying down debt in fiscal 2025. We successfully completed a secondary public offering of common stock, and fully redeemed the Company’s Series A Preferred Stock. We are pleased with the financial condition of the Company and plan to further strengthen our balance sheet. We expect to accelerate debt paydown with proceeds from the AVAIL transaction which is expected to close in the first quarter of fiscal 2026.
“I want to sincerely thank our entire AZZ team for their exceptional performance in fiscal 2025—our 38th consecutive year of profitability from continuing operations. As we capitalize on our strong market positions to meet rising demand in our end markets, I am confident in our ability to generate significant cash flow and drive long-term value. With a focus on strategic growth initiatives, we remain committed to enhancing shareholder value and seizing future opportunities as they arise,” Ferguson concluded.
Segment Performance
Full Year 2025 Metal Coatings
Strong sales of $665.1 million, up 1.4% from prior year. Improved sales were driven by an increase in volume for hot-dip galvanizing driven by continued strength within the renewables, utility and construction markets.
Segment EBITDA of $205.4 million was up 4.4% versus the prior year. EBITDA margin of 30.9% was at the upper end of our previously stated range of 25%-30%, and increased 90 basis points due to a higher volume of steel processed and operational efficiencies.
Full Year 2025 Precoat Metals
Sales of $912.6 million, up 3.5% from prior year due to higher volume.
Segment EBITDA of $179.0 million or 19.6% of sales, was up 6.9%, on higher volume.
Fourth Quarter 2025 Metal Coatings
Sales decreased 3.9% to $148.4 million and EBITDA decreased 2.1% to $43.2 million versus the prior quarter in fiscal 2024. Sales were lower as a result of decreased volume due to unfavorable weather conditions in the quarter.
Segment EBITDA margin increased to 29.2% of sales, or 60 basis points higher than the prior year fourth quarter EBITDA margin. The increase in EBITDA margin was a result of lower operating and selling, general and administrative costs.
Fourth Quarter 2025 Precoat Metals
Sales decreased 4.1% to $203.5 million and EBITDA decreased 3.9% to $36.2 million, versus the prior quarter in fiscal 2024. Sales were seasonally lower as a result of decreased volume due to unfavorable weather conditions and lower end market demand in transportation.
Segment EBITDA margin of 17.8% of sales, was flat compared to prior year fourth quarter EBITDA margin.
Balance Sheet, Liquidity and Capital Allocation
The Company generated significant operating cash of $249.9 million for fiscal 2025 through improved earnings and disciplined working capital management. At the end of the fourth quarter, the Company’s net leverage was below 2.5x trailing twelve months EBITDA. Consistent with the capital allocation strategy, the Company paid down debt of $110.0 million and returned cash to common shareholders through cash dividend payments totaling $23.1 million. Capital expenditures were $115.9 million during the year, which included $52.8 million for the greenfield facility in Washington, Missouri. Fiscal 2026 capital expenditures are expected to be approximately $60 – $80 million. In fiscal 2026, we will continue to allocate our strong cash flow generated from operations as well as the proceeds from the AVAIL joint venture transaction, which we now estimate will be over $200 million, to support our capital allocation strategy.
Financial Outlook — Reiterating Fiscal Year 2026 Guidance
We are reiterating our fiscal year guidance, reflecting our confidence in the Company’s strategic execution, operational resilience, and market positioning. Fiscal year 2026 guidance reflects our best estimates given expected market conditions for the full year, lower interest expense, an annualized effective tax rate of 25% and excludes M&A and any federal regulatory changes that may emerge.
FY2026 Guidance(1)
Sales
$1.625 – $1.725 billion
Adjusted EBITDA
$360 – $400 million
Adjusted Diluted EPS
$5.50 – $6.10
(1)
FY2026 Guidance Assumptions:
a.
Excludes the impact of any future acquisitions.
b.
Management defines adjusted earnings per share to exclude intangible asset amortization, acquisition expenses, transaction related expenses, certain legal settlements and accruals, and certain expenses related to non-recurring events from the reported GAAP measure.
c.
Assumes EBITDA margin range of 27 – 32% for the Metal Coatings segment and 17% – 22% for the Precoat Metals segment.
Conference Call Details
AZZ Inc. will conduct a live conference call with Tom Ferguson, Chief Executive Officer, Jason Crawford, Chief Financial Officer, and David Nark, Chief Marketing, Communications and Investor Relations Officer to discuss financial results for the fourth quarter of the fiscal year 2025, Tuesday, April 22, 2025, at 11:00 A.M. ET. Interested parties can access the conference call by dialing (844) 855-9499 or (412) 317-5497 (international). A webcast of the call will be available on the Company’s Investor Relations page at http://www.azz.com/investor-relations.
A replay of the call will be available at (877) 344-7529 or (412) 317-0088 (international), replay access code: 3079902 through April 29, 2025, or by visiting http://www.azz.com/investor-relations for the next 12 months.
About AZZ Inc.
AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions to a broad range of end-markets. Collectively, our business segments provide sustainable, unmatched metal coating solutions that enhance the longevity and appearance of buildings, products and infrastructure that are essential to everyday life.
Safe Harbor Statement
Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as “may,” “could,” “should,” “expects,” “plans,” “will,” “might,” “would,” “projects,” “currently,” “intends,” “outlook,” “forecasts,” “targets,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial, and economic data and management’s views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Forward-looking statements speak only as of the date they are made and are subject to risks that could cause them to differ materially from actual results. Certain factors could affect the outcome of the matters described herein. This press release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our manufactured solutions, including demand by the construction markets, the industrial markets, and the metal coatings markets. We could also experience additional increases in labor costs, components and raw materials including zinc and natural gas, which are used in our hot-dip galvanizing process, paint used in our coil coating process; supply-chain vendor delays; customer requested delays of our manufactured solutions; delays in additional acquisition opportunities; an increase in our debt leverage and/or interest rates on our debt, of which a significant portion is tied to variable interest rates; availability of experienced management and employees to implement AZZ’s growth strategy; a downturn in market conditions in any industry relating to the manufactured solutions that we provide; economic volatility, including a prolonged economic downturn or macroeconomic conditions such as inflation or changes in the political stability in the United States and other foreign markets in which we operate; tariffs, acts of war or terrorism inside the United States or abroad; and other changes in economic and financial conditions. AZZ has provided additional information regarding risks associated with the business, including in Part I, Item 1A. Risk Factors, in AZZ’s Annual Report on Form 10-K for the fiscal year ended February 28, 2025, and other filings with the SEC, available for viewing on AZZ’s website at www.azz.com and on the SEC’s website at www.sec.gov.
You are urged to consider these factors carefully when evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Company Contact: David Nark, Chief Marketing, Communications and Investor Relations Officer AZZ Inc. (817) 810-0095 www.azz.com
Investor Contact: Sandy Martin / Phillip Kupper Three Part Advisors (214) 616-2207 or (817) 368-2556 www.threepa.com
CHICAGO, April 21, 2025 (GLOBE NEWSWIRE) — FreightCar America, Inc. (NASDAQ: RAIL), a diversified manufacturer of railroad freight cars, today announced that it will release its first quarter 2025 financial results on Monday, May 5, 2025, after the market close and host a teleconference to discuss its first quarter 2025 results on the following day. Teleconference details are as follows:
Please note that the webcast is listen-only and webcast participants will not be able to participate in the question and answer portion of the conference call. Interested parties are asked to dial in approximately 10 to 15 minutes prior to the start time of the call.
An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Tuesday, May 6, 2025, until 11:59 p.m. (Eastern Time) on Tuesday, May 20, 2025. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13753235. An archived version of the webcast will also be available on the FreightCar America Investor Relations website.
About FreightCar America
FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission’s lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Hans Baldau, Research Associate, Noble Capital Markets, Inc.
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LOGCAP Extensions. V2X has been notified by the U.S. Army that it will extend the current period of performance (PoP) for the various task orders under the LOGCAP V ID/IQ contract to support U.S. military operations worldwide. The Company’s Kuwait Task Order (TO), Iraq Task Order, and INDOPACOM Task Order are scheduled to extend through June 2030. Given the size of LOGCAP V, we view this as a significant positive for the Company.
SAM.gov. According to the filing on SAM.gov, the Army sought to increase the overall PoP for the current LOGCAP performance task orders (PTOs) to match the PoPs of the aligned Set the Theater (STT) task orders. The LOGCAP STT TOs were awarded as a base year plus nine one-year option periods.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Hans Baldau, Research Associate, Noble Capital Markets, Inc.
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1Q25 New Business Wins. NN achieved 1Q25 new business wins of $16.4 million, a solid performance given the state of the economy, in our view. In the same period last year, new business wins totaled $17.2 million. NN is well on its way to meeting its 2025 goal of $65 million in new business wins.
Diversified Backlog and Pipeline. New business wins for the quarter were focused on electrical and power products, medical, non-automotive industrial products, and automotive products. Roughly half of the nearly $700 million pipeline is in these targeted areas.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fourth quarter and full year financial results. For fiscal year (FY) 2025, AZZ reported adjusted net income of $156.8 million or $5.20 per share compared to $132.8 million or $4.53 per share during FY 2024 and our estimate of $155.9 million or $5.17 per share. Compared to FY 2024, sales increased 2.6% to $1.578 billion. AZZ generated a 24.3% gross margin as a percentage of sales compared to 23.6% during the prior year. Adjusted EBITDA increased 4.3% to $347.9 million, representing 22.0% of sales compared to 21.7% of sales in FY 2024. Adjusted net income and EPS during the fourth quarter of FY 2025 were $29.6 million and $0.98, respectively, compared to our estimates of $28.8 million and $0.95 per share.
Debt reduction. During FY 2025, AZZ generated operating cash flow of $249.9 million and reduced debt by $110 million. Management expects to accelerate debt repayments with proceeds from the AVAIL transaction which is expected to close in the first quarter of FY 2026. We estimate FY 2026 debt repayments could approach $300 million. At the end of FY 2025, AZZ’s net leverage was below 2.5x trailing twelve months EBITDA.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
New Business Awards of $16.4 million in first quarter 2025; New Business Awards of over $150 million since Q1 2023; tracking ahead of its five-year plan
Company raises five-year Adjusted EBITDA margin target range to 13–14%, and reaffirms previous 2025 Adjusted EBITDA guidance
CHARLOTTE, N.C., April 21, 2025 (GLOBE NEWSWIRE) — NN (NASDAQ: NNBR) today announced an update on its new business wins program and its ongoing above-plan margin results.
Highlights:
First quarter 2025 new business wins were $16.4 million; we believe NN is on pace to meet its 2025 goal of $65 million of new business awards
Approximately $98 million of new business awards will ramp into revenue stream during 2025 and beyond
New wins for the quarter were in the key focus areas of non-automotive industrial products, electrical and power products, medical, and automotive products
NN is leveraging its installed base of $340 million of assets and is selectively adding new capacity in certain growth areas
NN has secured more than $150 million in new wins since Q1 2023, tracking ahead of its five-year goal and supporting its long-term net sales targets which also assumes a stable base market for ongoing business
NN’s new business pipeline continues to expand in non-automotive, medical, industrial, and automotive products
NN has built a $340+ million pipeline in the targeted areas of electrical, medical, and industrial; or about half of its pipeline
NN’s adjusted EBITDA rate is ahead of its five-year plan due to cost-improvement actions and new business
NN is increasing its five-year Adjusted EBITDA target range up to 13-14%, up from prior range of 12-13%
Company is incurring immaterial direct tariff impacts due to its indigenous footprint strategy in the US
NN is reaffirming prior adjusted EBITDA guidance for 2025
Harold Bevis, Chief Executive Officer of NN Inc. commented, “First quarter 2025 was a good quarter for NN as we continued to execute on our transformation strategy, highlighted by strong new business growth of $16.4 million. Our commercial pipeline is building upon the strong momentum delivered since the launch of the transformation, and we are proud to be solidifying our position as an elite and preferred supplier in our key growth portfolios. Our base business is slightly less than expected in certain areas due to uncertainties, but the company is adjusting its cost positions where needed.”
Bevis concluded, “Our team remains highly focused on accretive margin expansion and driving operational improvements across the company. Our efforts to date have resulted in profitability improvements that are tracking ahead of our initial transformation plan, and as a result, we are increasing our five-year Adjusted EBITDA margin target up to the range of 13-14%. We are well underway with improving our cost structure, onboarding accretive new business, pivoting our ongoing accumulated pipeline, and improving our margin mix through continued wins in our key growth areas of stampings, electrical, and medical markets. While we are pleased with the momentum and early success of our program, we are only getting started and will implement further growth and cost-out initiatives to strengthen profitability and expand our margins as part of our commitment to growing shareholder value.”
ABOUT NN
NN is a global industrial company that combines advanced engineering and production capabilities to deliver solutions for high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Asia, Europe, and South America. For more information, visit www.nninc.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. (the “Company”) based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “growth,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project,” “trajectory” or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises, on our financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; new laws and governmental regulations; the impact of climate change on our operations; and cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.
Investor Relations: Joseph Caminiti or Stephen Poe, Investors NNBR@alpha-ir.com 312-445-2870
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Hans Baldau, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Term Loan Refi. NN announced the successful completion of its term loan refinancing. The new term loan has multiple improved operational features that management expects will enable the Company to improve and grow faster. Combined with the $65 million ABL refinancing announced in January, yesterday’s announcement sets the stage for a new chapter for NN, in our view.
Details. Although we are awaiting an 8-K filing to drill down into all the terms of the new financing, the term loan is $118 million, with a 2030 maturity. There is a $10 million add-on feature for certain borrowing and improved leverage and liquidity covenants. However, the interest rates are slightly higher than the previous term loan. Marathon Asset Management is the new lender.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission’s lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
COBRA DANE. V2X has been awarded a $62 million contract extension to continue ensuring the operational readiness of the COBRA DANE radar system in Alaska. In addition to ensuring operational readiness, V2X has incorporated various engineering enhancements into this essential system, extending its capabilities and readiness. This full-spectrum support emphasizes V2X’s differentiated capabilities, in our view. The extension work is expected to be completed by March 2027.
TESS ID/IQ. V2X won a seat on the Bridge to Enduring Synthetic Training Environment Tactical Engagement Simulation Systems (TESS). This contract supports the U.S. Army’s TESS devices, a vital component of its live training capabilities, by extending their product life and ensuring they meet the Army’s evolving requirements. The ID/IQ contract includes a ten-year performance period consisting of a five-year base period and two options with a ceiling value of $921 million. This award complements V2X’s previously won $3.7 billion Warfighter Readiness task order.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
