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NN INC Revenue Disclosure
Revenue from Contracts with Customers
Revenue is recognized when control of the good or service is transferred to the customer either at a point in time or, in limited circumstances, as our services are rendered over time. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or services.
The following tables summarize revenue by customer industry. Our products in the automotive and commercial vehicle industry include high-precision components and assemblies for electric power steering systems, electric braking, electric motors, fuel systems, emissions control, transmissions, stampings, sensors, and electrical contacts. Our products in the general industrial industry include high-precision metal components for a variety of industrial applications including diesel industrial motors, heating and cooling systems, fluid power systems, power tools, and more. While many of the industries we serve include electrical components, our products in the residential/commercial electrical industry category in the following tables include components used in smart meters, charging stations, circuit breakers, transformers, electrical contact assemblies, precision stampings, welded contact assemblies, specification plating, and surface finishing. The other category includes products sold in aerospace, defense, medical, and other industries.
| Year Ended December 31, 2025 | Mobile Solutions | Power Solutions | Intersegment Sales Eliminations | Total | |||||||||||||||||||
| Automotive and Commercial Vehicle | $ | 216,419 | $ | 30,432 | $ | — | $ | 246,851 | |||||||||||||||
| General Industrial | 7,890 | 46,217 | — | 54,107 | |||||||||||||||||||
| Residential/Commercial Electrical | — | 74,928 | — | 74,928 | |||||||||||||||||||
| Other | 19,707 | 27,049 | (435) | 46,321 | |||||||||||||||||||
| Total net sales | $ | 244,016 | $ | 178,626 | $ | (435) | $ | 422,207 | |||||||||||||||
| Year Ended December 31, 2024 | Mobile Solutions | Power Solutions | Intersegment Sales Eliminations | Total | |||||||||||||||||||
| Automotive and Commercial Vehicle | $ | 192,277 | $ | 28,915 | $ | — | $ | 221,192 | |||||||||||||||
| General Industrial | 71,244 | 46,490 | — | 117,734 | |||||||||||||||||||
| Residential/Commercial Electrical | — | 80,545 | — | 80,545 | |||||||||||||||||||
| Other | 20,423 | 24,595 | (199) | 44,819 | |||||||||||||||||||
| Total net sales | $ | 283,944 | $ | 180,545 | $ | (199) | $ | 464,290 | |||||||||||||||
| Year Ended December 31, 2023 | Mobile Solutions | Power Solutions | Intersegment Sales Eliminations | Total | |||||||||||||||||||
| Automotive and Commercial Vehicle | $ | 212,582 | $ | 34,959 | $ | — | $ | 247,541 | |||||||||||||||
| General Industrial | 73,350 | 52,276 | — | 125,626 | |||||||||||||||||||
| Residential/Commercial Electrical | — | 67,546 | — | 67,546 | |||||||||||||||||||
| Other | 17,403 | 31,167 | (13) | 48,557 | |||||||||||||||||||
| Total net sales | $ | 303,335 | $ | 185,948 | $ | (13) | $ | 489,270 | |||||||||||||||
Other Sources of Revenue
We provide pre-production activities related to engineering efforts to develop molds, dies, and machines that are owned by our customers. We may receive advance payments from customers which are deferred until satisfying our performance obligations by compliance with customer-specified milestones, recognizing revenue at a point in time. These contracts generally have an original expected duration of less than one year.
Deferred Revenue
The timing of revenue recognition, billings, and cash collections results in billed accounts receivable and customer advances and deposits (e.g. contract liability) on the Consolidated Balance Sheets. These contract liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period as deferred revenue, which is reported in the “Other current liabilities” line on the Consolidated Balance Sheets.
Deferred revenue relates to payments received in advance of performance under the contract and recognized as revenue as (or when) we perform under the contract. Changes in the contract liability balances during the year ended December 31, 2025, were not materially impacted by any other factors. The balance of deferred revenue was $0.3 million, $0.2 million, $0.4 million and $0.7 million as of December 31, 2025, 2024, 2023 and 2022, respectively. Revenue recognized for performance obligations satisfied or partially satisfied during the years ended December 31, 2025, 2024 and 2023, included $0.2 million, $0.4 million and $0.7 million, respectively, that was included in deferred revenue as of the prior year-end.
Transaction Price Allocated to Future Performance Obligations
We are required to disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of December 31, 2025, unless our contracts meet one of the practical expedients. Our contracts met the practical expedient for a performance obligation that is part of a contract that has an original expected duration of one year or less.
Costs to Obtain and Fulfill a Contract
We recognize commissions paid to internal sales personnel that are incremental to obtaining customer contracts as an expense when incurred since the amortization period is less than one year. Costs to obtain a contract are expensed as selling, general and administrative expense.
Sales, VAT, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense.
Sales Concentration
During the year ended December 31, 2025, a customer in our Mobile Solutions segment represented 11% of consolidated net sales. During the years ended December 31, 2024 and 2023, no single customer accounted for 10% or more of consolidated net sales.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 12, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 18, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.