What changed in this filing

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Item 1. Business

2025-03-06 compared with 2024-03-12 · 48 added, 38 removed, 188 unchanged (31% of the section changed)

NN, Inc., a Delaware corporation, is a diversified industrial company that 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 end markets on a global basis.

As used in this Annual Report, the terms the “Company,” “we,” “our,” or “us” refer to NN, Inc., and its subsidiaries.

As used in this Annual Report, the terms the “Company,” “we,” “our,” or “us” refer to NN, Inc.

and its subsidiaries.

As of December 31, 2024, we had 26 facilities in North America, South America, Europe, and China.

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Power Solutions is focused on growth in the electrical, general industrial, automotive, and medical end markets.

Within this group we combine materials science expertise with advanced engineering and production capabilities to design and manufacture a broad range of high-precision metal and plastic components, assemblies, and finished devices used in applications ranging from power control to transportation electrification.

We manufacture a variety of products including electrical contacts, connectors, contact assemblies, and precision stampings for the electrical end market and high precision products for the aerospace and defense end market utilizing our extensive process technologies for optical grade plastics, thermally conductive plastics, titanium, Inconel, magnesium, and electroplating.

Our medical business includes the production of a variety of tools and instruments for the orthopaedics and medical/surgical end markets.

Within this group we combine materials science expertise with advanced engineering and production capabilities to design and manufacture a broad range of high-precision metal components, assemblies, and finished devices used in applications ranging from power control to transportation electrification.

Our medical business includes the production of a variety of tools and instruments for the orthopedics and medical/surgical end markets.

Competitive Strengths

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We believe our ability to produce high-precision parts at high production volumes is among the best in the market.

Our technology platform consists of high precision machining, progressive stamping, injection molding, laser welding, material science, assembly, and design optimization.

Our technology platform consists of high precision machining, progressive stamping, laser welding, material science, assembly, and design optimization.

In-house tool design and process know-how create trade secrets that enable consistent production tolerances of less than one micron while producing millions of parts per day.

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The tight-tolerance and high-quality nature of our precision products is specifically suited for use in the most demanding applications that require superior reliability.

Our products are critical components to the operation and reliability of larger mechanical systems.

Our products are critical components to the operation and reliability of larger mechanical and electrical systems.

Precision parts are difficult to manufacture and the high cost of failure motivates our customers to focus on quality.

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Our ability to make products with tight-tolerance and extreme precision requirements enables our customers to satisfy the critical functionality and performance requirements of their products.

We are included in customer designs and deployed in critical systems that involve high cost of failure applications and significant regulatory certification processes, including those for the Underwriters Laboratories.

We are included in customer designs and deployed in

critical systems that involve high cost of failure applications and significant regulatory certification processes, including those for the Underwriters Laboratories.

Complete product lifecycle focus

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We maintain relationships with hundreds of customers around the world.

Our customers are typically sophisticated, engineering-driven, mechanical systems manufacturers with long histories of product development and reputations for quality.

Our customers are typically sophisticated, engineering-driven, mechanical and electrical systems manufacturers with long histories of product development and reputations for quality.

We have no significant retail exposure, which limits volatility and provides enhanced sales visibility.

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In general, we pass through material cost fluctuations when incurred to our customers in the form of changes in selling prices.

ordinarily ship our products directly to customers within 60 days, and in many cases, during the same calendar month of the date on which a sales order is placed.

We ordinarily ship our products directly to customers within 60 days, and in many cases, during the same calendar month of the date on which a sales order is placed.

Sales and Marketing

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Factors that may affect our ability to attract and retain qualified employees include employee morale, our reputation, competition from other employers, and availability of qualified individuals in the communities in which we operate.

As of December 31, 2023, we employed a total of 2,926 full and part-time employees and 234 temporary workers, which includes 1,177 employees in the U.S.

and 1,983 employees in other countries employed by our international subsidiaries.

Of our total employment, approximately 12% are management/staff employees and 88% are production employees.

Our employees in the France, Brazil, and Mexico City plants are subject to labor council relationships that vary due to the diverse countries in which we operate.

We believe we have a good working relationship with our employees and the unions that represent them.

Diversity, Equity, and Inclusion

Diversity, equity, and inclusion are at the core of our values and strategic business priorities.

Throughout our business, we champion equality, supporting parity for women and under-represented groups as we work to create ethical, safe, and supportive workplaces where our employees thrive.

We believe a diverse and inclusive workplace results in business growth and encourages increased innovation, retention of talent, and a more engaged workforce.

Throughout our business, we foster an ethical, safe, and supportive workplace where our employees thrive.

We believe an inclusive workplace results in business growth and encourages increased innovation, retention of talent, and a more engaged workforce.

Respect for human rights is fundamental to our business and our commitment to ethical business conduct, as is embodied by our Human Rights Policy, which sets forth our expectations related to workplace discrimination;

diversity, equity and inclusion;

workplace conditions;

and freedom of association.

As of December 31, 2024, we employed approximately 2,600 full and part-time employees and 300 temporary workers, which includes approximately 1,000 employees in the U.S.

and 1,900 employees in other countries employed by our international subsidiaries.

Of our total employment, approximately 12% are management/staff employees and 88% are production employees.

Our employees in the France, Brazil, and Mexico City plants are subject to labor council relationships that vary due to the diverse countries in which we operate.

We believe we have a good working relationship with our employees and the labor council that represent them.

Compensation, Benefits, and Employee Health and Safety

Our compensation programs are based on a strong alignment between pay and performance, and are designed to reward both financial and operational successes and support actions that drive stockholder value creation at all organizational levels.

We use a combination of programs (which vary by geography and level) to attract and retain our employees, including annual performance bonuses, quarterly gainsharing bonuses, and equity awards.

We use a combination of programs (which vary by geography and level) to attract and retain our employees, including annual performance bonuses, periodic gainsharing bonuses, and equity awards.

We also provide our employees and their families access to a range of benefits, including health insurance benefits, employer-paid life and disability insurance, health savings and flexible spending accounts, 401(k) match, vacation and paid time off, wellness offerings, education assistance, and an employee assistance program.

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Mobile Solutions

Mobile Solutions produces products from a wide variety of metals in various forms from various sources located in the North America, Europe, South America, and Asia.

Basic types include hot rolled steel, cold rolled steel (both carbon and alloy), stainless, extruded aluminum, die cast aluminum, gray and ductile iron castings, hot and cold forgings, and mechanical tubing.

Mobile Solutions produces products from a wide variety of metals in various forms from various sources located in North America, Europe, South America, and Asia.

Basic types include hot rolled steel, cold rolled steel (both carbon and alloy), stainless steel, steel alloys, copper alloys, extruded aluminum, die cast aluminum, aluminum alloy bar, gray and ductile iron castings, hot and cold forgings, titanium alloys, plastics, and mechanical tubing.

Some material is purchased directly under contracts, some is consigned by the customer, and some is purchased directly from the steel mills.

Power Solutions

Power Solutions uses a wide variety of metals in various forms, including precious metals like gold, silver, palladium, and platinum, as well as plastics.

Power Solutions uses a wide variety of metals in various forms, including precious metals like gold, silver, palladium, and platinum, as well as copper, copper alloys, brass, brass alloys, and plastics.

Through our diverse network of suppliers, we minimize supplier concentration risk and provide a stable supply of raw materials at competitive pricing.

This group also procures resins and metal stampings from several domestic and foreign suppliers.

This group also procures metal stampings from several domestic and foreign suppliers.

Power Solutions bases purchase decisions on quality, service and price.

Generally, we do not enter into written supply contracts with our suppliers or commit to maintain minimum monthly purchases of materials.

However, we carefully manage raw material price volatility, particularly with respect to precious metals, through the use of consignment agreements, which allow us to buy the precious metals on the same day customer shipments are priced, thereby eliminating risk of price changes from procurement to product shipment.

Generally, we do not enter into long term supply contracts with our suppliers or commit to maintain minimum monthly purchases of materials.

However, we carefully manage raw material price volatility, particularly with respect to precious metals, through the use of consignment agreements, which allow us to buy the precious metals on the same day customer shipments are priced, thereby minimizing risk of price changes from procurement to product shipment.

Supply and Cost Pressures

In each of our segments, we at times have been affected by upward price pressure on steel principally due to general increases in global demand.

In each of our segments, we at times have been affected by upward price pressure on the raw materials we purchase due to changes in commodity pricing.

In general, we pass through material cost fluctuations to our customers in the form of changes in selling price.

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Furthermore, third parties may assert infringement claims against us based on their patents or other intellectual property, and we may have to pay substantial damages and/or redesign our products if we are ultimately found to infringe.

intellectual property claims against us are without merit, investigating and defending these types of lawsuits takes significant time, may be expensive and may divert management attention from other business concerns.

Even if such intellectual property claims against us are without merit, investigating and defending these types of lawsuits takes significant time, may be expensive and may divert management attention from other business concerns.

Additionally, we rely on certain data and processes, including trade secrets and know-how, and the success of our business depends, to some extent, on such information remaining confidential.

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The material ESG topics identified during this process enable our organization to prioritize our investments and actions and provide meaningful disclosures.

We continue to strengthen our focus towards providing meaningful disclosures through the publishing of our 2022 ESG Annual Report in June 2023, in which we identified specific actions that we have taken, and will continue to take, to address our ESG priorities.

The information provided in our 2021 Sustainability Report and 2022 ESG Annual Report, as well as on our website, is not part of this Annual Report, and is therefore not incorporated by reference into this Annual Report or other filings with the SEC.

We continue to strengthen our focus towards providing meaningful disclosures through our sustainability reports (collectively, “ESG Reports”), which we publish on a periodic basis.

Our ESG Reports identify specific actions that we have taken, and will continue to take, to address our ESG priorities.

The information provided in our ESG Reports, as well as on our website, is not part of this Annual Report, and is therefore not incorporated by reference into this Annual Report or other filings with the SEC.

Information about our Executive Officers

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Bevis 65 President, Chief Executive Officer and Director

Felcher 51 Senior Vice President and Chief Financial Officer

Christopher H.

Bohnert 58 Senior Vice President and Chief Financial Officer

French 61 Senior Vice President and Chief Operating Officer

Gail Nixon 54 Senior Vice President and Chief Human Resources Officer

Bevis was appointed President, Chief Executive Officer and Director in May 2023.

Statham 44 Senior Vice President, General Counsel and Corporate Secretary

Bevis has served the Company as President, Chief Executive Officer and Director since May 2023.

Prior to joining the Company, Mr.

Bevis served as President and Chief Executive Officer of Commercial Vehicle Group, Inc., from March 2020 to May 2023, and as a Director from June 2014 to May 2023.

Bevis served as President and Chief Executive Officer of Commercial Vehicle Group, Inc.

(“CVGI”), from

March 2020 to May 2023, and as a Director from June 2014 to May 2023.

Bevis served as Chief Executive Officer of Boxlight Corporation from January 2020 to March 2020 and as a Director from March 2018 to March 2020.

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from August 2012 to April 2017.

Felcher has served the Company as Senior Vice President and Chief Financial Officer since July 2021.

Felcher joined the Company in June 2018 and served as Vice President, Chief Accounting Officer until July 2021.

Christopher H.

Bohnert was appointed Senior Vice President and Chief Financial Officer in June 2024.

Prior to joining the Company, Mr.

Felcher served as the Vice President, North America Chief Financial Officer for JELD-WEN, Inc., a publicly held, global manufacturer of doors and windows, from 2013 to 2017.

Bohnert served as advisor to the CEO and CFO at CVGI from September 2022 to June 2024 and as Chief Financial Officer of CVGI from October 2020 to September 2022.

Previously, Mr.

Felcher served in a variety of finance roles at United Technologies Corporation and Goodrich Corporation.

French was appointed Senior Vice President and Chief Operating Officer in August 2023.

Bohnert served as Chief Accounting Officer at Calumet Specialty Products Partners, L.P.

from October 2017 to August 2019 and as Chief Financial Officer of its Finished Lubricants & Chemicals business from August 2019 through October 2020.

French has served the Company as Senior Vice President and Chief Operating Officer since August 2023.

Prior to joining the Company, Mr.

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Nixon is a member of the Society for Human Resource Management (“SHRM”) and has earned her Senior Professional in Human Resources and SHRM – Senior Certified Professional designations.

Statham was appointed Senior Vice President, General Counsel and Corporate Secretary in July 2024.

Prior to joining the Company, Ms.

Statham served as Executive Director, Deputy General Counsel for Nexteer Automotive Corporation from July 2022 to July 2024, and as Assistant General Counsel from June 2019 to July 2022.

Previously, she served as Senior Legal Counsel at Autoneum North America, Inc.

from March 2017 to May 2019.

Available Information - SEC Filings

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business