NN, Inc. announced the creation of a three‑member Strategic Committee on December 12, 2025. The committee, composed of independent directors Raynard Benvenuti, Jeri Harman and Thomas Wilson, will review a broad range of options—from divestitures to capital structure changes—while the company retains Houlihan Lokey as its financial advisor.
The move follows NN’s aggressive transformation plan that has shifted the company’s focus from legacy automotive products to higher‑margin medical, electrical and defense markets. Management highlighted that the company now has a sales pipeline exceeding $800 million and has secured roughly $200 million in new business, a significant upside to the previously reported $200 million pipeline figure. The committee’s work will build on these gains and the company’s recent margin improvements, with adjusted gross margin rising to 18.8% from 16.3% in the prior year, driven by growth in Power Solutions and cost‑control initiatives.
Financially, NN has faced a challenging environment. Revenue has slipped in recent quarters, and the company carries more than $207 million in debt, while EBITDA for the last twelve months was $31 million. Despite these headwinds, the company’s operating income has improved, and free cash flow has turned positive, reflecting disciplined cost management and a shift toward higher‑margin segments. The committee will assess whether further restructuring, asset sales or capital‑structure changes are needed to strengthen the balance sheet and unlock shareholder value.
Jeri Harman, the independent chair, said the board’s decision “reflects our commitment to maximizing value for shareholders and evaluating potential avenues to achieve this objective.” President and CEO Harold Bevis added that the committee’s review will complement the ongoing transformation plan, noting that the company has “delivered measurable improvement to our fundamentals, driving higher operating income, improved margins and positive free‑cash‑flow performance.”
The committee’s formation signals that NN is actively seeking ways to address its high leverage and revenue volatility while capitalizing on its growing pipeline. No immediate change in strategy or capital structure has been announced, and the company has stated that the review is part of a broader effort to unlock value. Investors will likely monitor the committee’s recommendations for potential divestitures, equity or debt transactions, or strategic partnerships that could reshape the company’s capital allocation and growth trajectory.
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