Mission Statement, Vision, & Core Values of NN, Inc. (NNBR)

You're looking beyond the latest quarterly earnings reports-like NN, Inc.'s (NNBR) Q3 2025 net sales of $103.9 million-to understand the real engine driving their transformation: the core mission and values. As a seasoned analyst, I know the 'soft' stuff is where the 'hard' numbers start, especially when a company is projecting full-year 2025 Adjusted EBITDA guidance between $53 million and $63 million. Are those foundational principles of integrity and customer focus strong enough to support the over 100 new programs they're launching this year, which are expected to generate more than $45 million in future sales? Let's map the company's stated purpose against its strategic moves, because a clear mission is the best predictor of whether they hit that target 14% Adjusted EBITDA margin goal for Q4 2025.

NN, Inc. (NNBR) Overview

You're looking for a clear picture of NN, Inc. (NNBR), and the takeaway is this: the company is a precision-focused industrial manufacturer in the middle of a major strategic turnaround, trading some top-line revenue for higher-margin, more stable business. It's a classic value-creation play, but it requires patience.

NN, Inc. was founded in 1980 by Dick Ennen, initially making balls and rollers for the oil and gas industry, but a recession quickly pushed the company into new markets. They went public on the Nasdaq (NNBR) in 1994 to fund further growth. Today, they are a global diversified industrial company, engineering and manufacturing high-precision components and assemblies. They serve critical sectors like automotive, aerospace & defense, medical, and general industrial.

The company operates through two main segments: Mobile Solutions, which focuses on components for the automotive market, and Power Solutions, which serves the electrical, medical, and defense sectors. As of November 2025, the Trailing Twelve Months (TTM) revenue stands at approximately $0.43 Billion USD. That's the quick summary.

2025 Financial Performance: Trading Volume for Margin

The latest financials-specifically the third quarter of 2025, reported on October 29-show a clear execution of their strategy: they are prioritizing profitability and cash flow over pure sales volume. Net sales for Q3 2025 were $103.9 million, an 8.5% decrease year-over-year. Here's the quick math: that sales drop is primarily due to the purposeful rationalization of unprofitable business, mostly in the Mobile Solutions segment.

But look at the margins, and the story changes. The adjusted gross margin improved significantly to 18.8% in Q3 2025, up from 16.3% in the prior year. This focus on better business drove the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) up to $12.4 million, representing an 11.9% margin rate, which is a solid jump from 10.2% a year ago. Management expects this trend to continue, forecasting full-year 2025 Adjusted EBITDA to reach an annual record. They are defintely moving the right levers.

Segment performance highlights this shift:

• Power Solutions: Net sales grew by 4.7%, driven by new business and higher precious metal pass-through pricing.
• Mobile Solutions: Net sales declined by 16.4% due to the rationalized volume and a softer global automotive market.

What this estimate hides is the future pipeline. NN, Inc. secured $11.3 million in new business wins in Q3 2025, and is on track for a company-record three-year new business wins target of $200 million. That future revenue is already in the works.

A Leading Global Diversified Industrial Company

NN, Inc. is positioning itself as a leading global diversified industrial company, not just a component supplier. Their success hinges on being an engineered solutions provider for mission-critical applications. They combine advanced engineering with deep materials science expertise to deliver high-precision components and assemblies across four continents. This global reach and technical capability-manufacturing to single-digit micron tolerances-is what separates them from commodity players.

The company's unique value proposition is built on:

• State-of-the-art engineering capabilities.
• Close-tolerance manufacturing and in-house tooling development.
• Capacity to grow with customers across a global platform.

They are not just making parts; they are co-designing application-specific solutions, ensuring speed to market for their customers. To understand the full implications of this strategic shift and what it means for the stock's valuation, you need to look at the balance sheet and cash flow. Find out more below to understand why NN, Inc. is successful: Breaking Down NN, Inc. (NNBR) Financial Health: Key Insights for Investors

NN, Inc. (NNBR) Mission Statement

You're looking for a clear map of where NN, Inc. is going, and its mission statement is the best place to start. A mission statement isn't just marketing fluff; it's the core directive that guides capital allocation, operational decisions, and long-term strategy. NN, Inc.'s mission is simple but powerful: Provide high-quality products and superior customer service that continuously exceed our customers' expectations while providing enhanced value for our stakeholders.

This statement is the foundation of their ongoing transformation, which is defintely showing up in the numbers. It breaks down into three actionable pillars-quality, customer focus, and value creation-that drive their path to achieving a Q4 2025 Adjusted EBITDA margin of 14%, a goal they are set to hit more than two years ahead of schedule.

If you want a deeper dive into the company's journey, you can check out NN, Inc. (NNBR): History, Ownership, Mission, How It Works & Makes Money.

Pillar 1: Delivering High-Quality Products and Superior Service

The first component anchors the company's identity in precision manufacturing. For a global diversified industrial manufacturer with approximately 3,000 employees across 27 facilities, quality isn't optional; it's a prerequisite for mission-critical applications. NN, Inc. focuses on achieving single-digit micron tolerances, which is the kind of precision that dictates whether a component works in an electric vehicle or a medical device. That's a serious commitment.

Their operational philosophy is founded on Dr. W. Edwards Deming's 14 Points, which is a classic, data-driven approach to quality management and continuous improvement. This isn't just a poster on the wall; it translates into tangible results like the anticipated Q4 2025 adjusted gross margin of 20%, a sign of improved operational efficiency and a rationalized cost structure. Here's the quick math: higher quality means less scrap and rework, which directly boosts those margins.

• Focus on quality systems and dedicated program management.
• Use close-tolerance manufacturing and in-house tooling.
• Drive continuous improvement in all processes.

Pillar 2: Continuously Exceeding Customer Expectations

The second pillar is about growth and market relevance. Exceeding expectations means more than just filling an order; it means being a partner in product development. NN, Inc. achieves this through application-specific co-design and co-engineering capabilities, which helps customers get to market faster.

The proof is in their new business pipeline. For 2025, the company is on track to secure $65 million in new business wins, with year-to-date wins through the first half of 2025 already totaling $32.7 million. They are also launching over 100 new programs this year, which are expected to generate more than $45 million in future annual sales at full run-rate. This momentum shows their ability to anticipate and meet evolving customer needs, especially as they diversify, with 61% of sales coming from non-automotive sectors like electrical, power, and medical.

It's a virtuous cycle: solve a tough engineering problem for a customer, and you win the next program. That's how you build a robust pipeline.

Pillar 3: Providing Enhanced Value for All Stakeholders

The final component broadens the focus beyond just customers to encompass shareholders, employees, and the communities they operate in. This is the financial analyst's sweet spot, as it maps directly to shareholder returns and sustainability. For 2025, the company has maintained its net sales guidance between $430 million and $460 million, and adjusted EBITDA guidance between $53 million and $63 million. This is a clear, measurable value proposition for investors.

More critically, NN, Inc. is forecasting a third consecutive year of positive free cash flow, with a 2025 guidance of $14 million to $16 million. Positive free cash flow, especially while managing elevated precious metal costs, is a strong indicator of operational health and an ability to create value for shareholders. Plus, they are committed to their employees, fostering a culture of empowerment and continuous improvement, and to their communities, supporting initiatives like FIRST Robotics competitions.

What this estimate hides is the strategic transformation work-like the cost-out initiatives expected to save an estimated $15 million in 2025-that makes that free cash flow possible. It's a holistic approach to value creation.

NN, Inc. (NNBR) Vision Statement

You're looking for the true north of NN, Inc., and honestly, the company's vision isn't just a plaque on a wall; it's a mapping of their current operational transformation into concrete financial targets. The core mission is simple: Provide high-quality products and superior customer service that continuously exceed our customers' expectations while providing enhanced value for our stakeholders. Everything they are doing right now, from cost-outs to new program launches, ties back to this mission and the three pillars of their vision: Market Leadership, Technological Advancement, and Sustainable Growth. The numbers for fiscal year 2025 defintely show this transformation is working.

This isn't just corporate speak; it's the framework that drives their expected record-breaking Adjusted EBITDA for 2025, which is currently forecasted to land between $53 million and $63 million.

The vision of Market Leadership means becoming the preferred supplier in their target industries-think US electrical grid, industrial, and medical markets, not just global passenger vehicles. They are actively shifting their sales mix away from low-margin, unprofitable contracts to focus on these higher-value opportunities. This strategic rationalization is why their Q4 2025 Adjusted Gross Margin is expected to hit their five-year goal of 20%, more than two years ahead of schedule.

The proof is in the pipeline. Their commercial opportunity pipeline is now robust at >$800 million, encompassing over 800 new programs, and they are running a respectable >20% hit rate on closed opportunities. This focus is why they expect to meet their 2025 new business wins guidance of $60 million to $70 million.

Technological Advancement means investing in R&D to stay at the forefront of precision manufacturing, which is their bread and butter. For a company that engineers and manufactures high-precision components, this is non-negotiable. They are leveraging state-of-the-art engineering and close-tolerance manufacturing. Here's the quick math: they are launching over 100 new programs in 2025 alone, which are expected to add over $45 million in future sales at full run-rate. That's a huge injection of new, technologically-driven revenue into the business. They are even evaluating an organic entry into the electrical harness market, building on their core expertise.

The company's philosophy is deeply rooted in Deming's 14 Points, a data-driven approach that champions continuous improvement and quality. That's how you move the needle on execution and quality control.

Sustainable Growth focuses on long-term, profitable expansion through operational efficiency, strategic acquisitions, and new product development. This is where the financial discipline kicks in. NN, Inc. is on track for a third consecutive year of positive free cash flow in 2025, with guidance set between $14 million and $16 million. This cash generation is critical for strengthening the balance sheet and funding future growth. They are also aggressively executing a cost-out program, targeting $15 million in total cost savings for 2025.

The long-term health of the business is also being addressed through their core values, which include:

• Integrity in all dealings.
• Customer focus for superior service.
• Teamwork and respect for people.
• Excellence and continuous improvement.

They are working to unlock shareholder value through preferred equity refinancing and active M&A diligence, which are key strategic processes underway. For a deeper dive into how these principles have shaped the company, you should check out NN, Inc. (NNBR): History, Ownership, Mission, How It Works & Makes Money.

What this estimate hides, of course, is the ongoing pressure from elevated precious metal costs, but the strong operational execution is currently overcoming that headwind. The Q4 2025 Adjusted EBITDA Margin is expected to reach 14%, a clear indicator that the transformation is driving margin expansion.

NN, Inc. (NNBR) Core Values

You're looking for a clear signal that a company's strategy aligns with its stated principles, especially when navigating a complex industrial turnaround. For NN, Inc., the core values aren't just posters on a wall; they are the engine driving their financial transformation. The proof is in the numbers, like the expected record-high Adjusted EBITDA for the full year 2025, which is a direct result of operational discipline and a clear-eyed focus on their commitments.

This isn't just about maximizing profit, though. It's about building a sustainable, high-precision business. Let's look at how their key values translate into real-world performance and actionable data as of late 2025. It's defintely a story of execution.

Operational Excellence and Continuous Improvement

Operational Excellence-the pursuit of continuous improvement-is the backbone of NN, Inc.'s turnaround. You see this value in their aggressive cost-out programs and their commitment to the Deming's 14 Points philosophy, which emphasizes quality and process refinement. This isn't just talk; it's translating into margin expansion much faster than anticipated.

The company expects its adjusted gross margin for the fourth quarter of 2025 to hit 20%, a five-year goal achieved more than two years ahead of their original plan. Here's the quick math: this improvement is fueled by a targeted $15 million in total cost savings expected for the 2025 fiscal year, driven by the rationalization of underperforming business segments and plant-level productivity enhancements. It's a simple equation: cut waste, improve processes, and the margins follow.

• Achieve Q4 2025 adjusted gross margin of 20%.
• Targeted $15 million in total cost savings for 2025.
• Each business segment is delivering positive Adjusted EBITDA and positive free cash flow.

Customer Focus and Growth

A customer focus in the high-precision components business means delivering mission-critical parts with single-digit micron tolerances, and that requires constant innovation. NN, Inc. demonstrates this value by aggressively expanding its commercial team and its product pipeline, especially in high-growth markets like electrical, medical, and aerospace & defense. They are using their deep engineering expertise to solve customer problems, not just fill orders.

In the first three quarters of 2025 alone, the company secured $44 million in new business wins ($16.4 million in Q1 and $11.3 million in Q3, plus other H1 wins). More importantly, they are on track to meet their ambitious three-year new business wins target of $200 million. This focus on new, higher-value business is why they are launching over 100 new programs in 2025, which are expected to generate more than $45 million in future annual sales at full run-rate. That's a clear commitment to customer-driven growth.

Integrity and Stakeholder Value

For a public company, Integrity and Stakeholder Value mean transparent reporting, ethical behavior, and a dedication to strengthening the balance sheet for long-term health. NN, Inc. is actively pursuing a preferred equity refinancing initiative to strengthen its capital structure, a move directly aimed at enhancing shareholder value.

The financial health of the company is paramount to all stakeholders, and you can see a positive trend: the company expects to generate a third consecutive year of positive free cash flow in 2025, with a full-year guidance of $14 million to $16 million. This is a strong indicator of operational stability, even while managing complex supply chain issues. For a deeper dive into the numbers, you should check out Breaking Down NN, Inc. (NNBR) Financial Health: Key Insights for Investors.

Respect for People and Teamwork

The value of Respect for People is about fostering a safe, inclusive, and empowering work environment. This is where the company's commitment to Diversity, Equity, & Inclusion (DEI) and safety comes in, ensuring a culture where employees feel empowered to speak up and make decisions. They view their global team of approximately 3,000 employees across 27 facilities as the combined experience that drives customer success.

The philosophy is rooted in empowerment and personal responsibility, which is why their internal culture is a data-driven one, built on the tenets of Deming's 14 Points-focusing on teamwork and continuous improvement across the enterprise. This cultural focus is what enables them to execute complex, cross-functional projects, like the launch of over 100 new programs in a single year, which is a massive undertaking that requires seamless global teamwork.