NN, INC. REPORTS THIRD QUARTER 2026 RESULTS
NN INC (NNBR) filed an SEC Form 8-K — Results of Operations and Financial Condition. FOR IMMEDIATE RELEASE NN, INC. REPORTS THIRD QUARTER 2026 RESULTS NN Delivers Another Quarter of Growth in Net Sales, Adjusted EBITDA, and New Wins; Raises 2026 Outlook Again CHARLOTTE, N.C., October 28, 2026 – NN, Inc. (NASDAQ: NNBR) (“NN” or the “Company”), an entrepreneurial g
How this was made
The 30-second read
Why it matters
The raised 2026 outlook and strong Q3 results suggest continued momentum, but cost‑out initiatives and margin expansion remain key execution risks.
Market read
The earnings beat and guidance raise provide a fresh catalyst for NNBR, likely influencing short‑term price action.
What to watch
Higher labor costs and professional fees may erode profitability if growth slows.
NN Delivers Another Quarter of Growth in Net Sales, Adjusted EBITDA, and New Wins; Raises 2026 Outlook Again
Net sales increased 26.2%, adjusted EBITDA increased 49.7%, and the Company raised full-year guidance for net sales, adjusted EBITDA, and new business wins. GAAP loss from operations widened to $3.3 million, while GAAP net loss improved to $4.6 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $131.1M | – | 26.2% |
| Nine months ended September 30, 2026 net salesGAAP | $378.3M | – | – |
| Q3 2026 gross marginGAAP | $18.3M | – | 4.6% |
| Q3 2026 adjusted gross marginnon-GAAP | $25.3M | – | 29.5% |
| Q3 2026 adjusted gross margin percentagenon-GAAP | 19.3% | – | up 50 basis points |
| Q3 2026 selling, general, and administrative expenseGAAP | $13.29M | – | – |
| Nine months ended September 30, 2026 selling, general, and administrative expenseGAAP | $39.15M | – | – |
| Q3 2026 loss from operationsGAAP | $3.3M | – | $1.1 million increase in loss |
| Nine months ended September 30, 2026 loss from operationsGAAP | $4.37M | – | – |
| Q3 2026 adjusted income from operationsnon-GAAP | $8.5M | – | 109.5% |
| Q3 2026 adjusted operating marginnon-GAAP | 6.5% | – | – |
| Q3 2026 net lossGAAP | $4.6M | – | improving by 31.3% |
| Nine months ended September 30, 2026 net lossGAAP | $13.68M | – | – |
| Q3 2026 basic and diluted net loss per common shareGAAP | $(0.13) | – | – |
| Nine months ended September 30, 2026 basic and diluted net loss per common shareGAAP | $(0.49) | – | – |
| Q3 2026 adjusted net incomenon-GAAP | $5.3M | – | up $5.6 million |
| Q3 2026 adjusted net income per diluted common sharenon-GAAP | $0.07 per diluted common share | – | up $0.08 per diluted common share |
| Q3 2026 adjusted EBITDAnon-GAAP | $18.5M | – | 49.7% |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 14.1% | – | up 220 basis points |
| Q3 2026 Power Solutions income from operationsGAAP | $9.2M | – | 69.4% |
| Q3 2026 Power Solutions adjusted income from operationsnon-GAAP | $12.4M | – | 53.1% |
| Q3 2026 Mobile Solutions loss from operationsGAAP | $6.3M | – | $3.4 million decline |
| Q3 2026 Mobile Solutions adjusted income from operations with JVnon-GAAP | $4M | – | 75.2% |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $16.90M | – | – |
| Nine months ended September 30, 2026 acquisition of property, plant and equipmentGAAP | −$14.93M | – | – |
| Cash and cash equivalents at September 30, 2026GAAP | $12.29M | – | – |
| Long-term debt, net of current maturities at September 30, 2026GAAP | $165.9M | – | – |
| Current maturities of long-term debt at September 30, 2026GAAP | $2.96M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Power SolutionsHigher selling prices reflecting pass-through of increased raw material costs to customers, increased volumes, and favorable foreign exchange effects. | $63.2M | – | 40.6% |
| Mobile SolutionsHigher volumes and favorable foreign exchange effects. | $68.2M | – | 15.3% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
full-year 2026 outlook
- Revenue$480 to $500 million
- NoteAdjusted EBITDA is expected to range between $64 and $68 million.
- NoteNew business wins are expected to range between $110 to $130 million.
- NoteNet sales guidance reflects a $68 million improvement over 2025, or 16% growth year-over-year at the midpoint.
- NoteAdjusted EBITDA guidance reflects a $17 million improvement over 2025, or 35% growth year-over-year at the midpoint.
- NoteNew business wins guidance reflects a $50 million improvement over 2025, or 71% growth year-over-year at the midpoint.
What drove it
- Consolidated net-sales growth was driven by higher selling prices reflecting pass-through of increased raw material costs to customers, higher volumes, and favorable foreign exchange effects.
- Adjusted EBITDA growth was driven by improved sales mix, operating performance, and higher income from the joint venture in China.
- Adjusted income from operations growth was driven by higher volumes and improved mix to higher-margin products, partly offset by increased selling, general, and administrative expenses.
- The Company secured $130 million of annualized new business awards on a trailing 12 months basis ended September 30, 2026.
- NN expects to launch more than 150 new programs in 2026 worth approximately $ 100 million in peak annual sales.
- The cost-out program is on track to deliver $12 million of cost-out via 335 projects globally.
Concerns
- GAAP loss from operations was $3.3 million, compared to a loss from operations of $2.2 million in the same period in 2025.
- The consolidated operating-loss decline was attributed to higher labor costs associated with increasing headcount to support new business and higher professional fees driven by strategic initiatives.
- Mobile Solutions loss from operations was $6.3 million, compared to $2.9 million in the same period of 2025, reflecting higher costs from volume increases, labor costs related to new-program start-ups, material cost increases, and facility costs.
- Accounts receivable were $77,225 (in thousands) at September 30, 2026, compared with $59,785 (in thousands) at December 31, 2025.
- Inventories were $69,620 (in thousands) at September 30, 2026, compared with $65,978 (in thousands) at December 31, 2025.
- The Company stated that remaining balance-sheet financial improvements relate to its ABL and Term Loan.
What to watch
- Delivery against full-year 2026 net-sales guidance of $480 to $500 million and adjusted EBITDA guidance of $64 to $68 million.
- Conversion of the $130 million of annualized new business awards into run-rate revenue, as a significant portion is not yet reflected in run-rate.
- Installation of over 50 new machines dedicated to the Data Center market through Q1 2027.
- Execution of the $12 million cost-out program, which management said is not yet fully reflected in run-rate results.
- Progress toward improved gross margins, adjusted EBITDA margins, and returns on investment while exiting low-profit automotive programs.
- Completion of 2027 business planning and further detail on the 2027 outlook.
Balance sheet and cash flow
- Cash and cash equivalents were $12,290 (in thousands) at September 30, 2026, compared with $11,377 (in thousands) at December 31, 2025.
- Long-term debt, net of current maturities, was $165,851 (in thousands) at September 30, 2026, compared with $153,758 (in thousands) at December 31, 2025.
- Series D perpetual preferred stock was $35,594 (in thousands) at September 30, 2026, compared with $112,409 (in thousands) at December 31, 2025.
- Nine-month net cash provided by operating activities was $16,896 (in thousands), compared with $7,124 (in thousands).
- Nine-month acquisition of property, plant and equipment was $(14,931) (in thousands), compared with $(11,058) (in thousands).
- Nine-month proceeds from issuance of common stock, net of issuance costs, were $69,405 (in thousands).
- Nine-month redemption of preferred stock was $(70,002) (in thousands).
- Net cash used in financing activities for the nine months ended September 30, 2026 was $(2,261) (in thousands).
Analysis
NN reported strong top-line and adjusted-profit growth in the third quarter. Net sales were $131.1 million, up 26.2% from $103.9 million, driven by selling-price increases tied to raw-material cost pass-through, higher volumes, and favorable foreign exchange effects. Adjusted gross margin rose to $25.3 million from $19.5 million and adjusted gross margin percentage increased to 19.3% from 18.8%. Adjusted EBITDA increased to $18.5 million from $12.4 million, with margin increasing to 14.1% from 11.9%.
The GAAP operating result remained under pressure. Loss from operations was $3.3 million compared with a loss of $2.2 million, which the Company attributed to labor costs associated with hiring for new business and higher professional fees related to strategic initiatives. Mobile Solutions accounted for a $6.3 million GAAP operating loss, compared with $2.9 million in the prior-year period, although its adjusted income from operations with JV increased to $4.0 million from $2.3 million. Power Solutions was the stronger reported segment, with sales up 40.6% to $63.2 million and operating income up 69.4% to $9.2 million.
GAAP net loss improved to $4.6 million from $6.7 million, primarily due to a favorable tax ruling in Brazil and higher income from the China joint venture. Non-GAAP adjusted net income was $5.3 million, or $0.07 per diluted common share, compared with adjusted net loss of $0.3 million, or $(0.01) per diluted common share. For the first nine months, net cash provided by operating activities was $16,896 (in thousands), while acquisition of property, plant and equipment was $(14,931) (in thousands).
Management highlighted the balance-sheet transformation, including debt-for-equity transactions, common-stock issuance, and preferred-stock redemption. Cash and cash equivalents were $12,290 (in thousands), long-term debt net of current maturities was $165,851 (in thousands), and Series D perpetual preferred stock had declined to $35,594 (in thousands) at September 30, 2026. NN also pointed to $130 million of annualized new business awards over the trailing 12 months and a data-center pipeline of $66 million.
The Company raised its 2026 outlook, guiding net sales to $480 to $500 million, adjusted EBITDA to $64 to $68 million, and new business wins to $110 to $130 million. The guide is underpinned by targeted growth markets, new-program launches, cost-out initiatives, and greater financial flexibility. The central execution issues are whether new business awards and more than 150 planned 2026 program launches convert into revenue while the Company contains start-up, labor, material, and facility costs.
Management, verbatim
Given the results we have delivered in 2026 year to date and our strong forward outlook, we are raising our full-year 2026 guidance.
Harold Bevis, President and Chief Executive Officer
Given the strength of our results year to date and the continued momentum in our targeted growth markets, we are again raising our full-year 2026 guidance across our key metrics.
Chris Bohnert, Senior Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, comparison of actual results with prior guidance is unavailable.
- Quarterly free cash flow was not reported.
- A stated GAAP gross-margin percentage was not reported.
- A full-year 2026 GAAP operating-income, net-income, EPS, cash-flow, capital-expenditure, tax-rate, or free-cash-flow outlook was not reported.
- A gross-margin, operating-expense, or tax-rate guidance figure was not reported.
- Share repurchases and common-stock dividend declarations or payments were not reported.
- Prior-quarter comparisons for reported third-quarter operating metrics were not reported.
- A full debt total or net-debt figure was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
NN, Inc. is an entrepreneurial growth company that engineers high‑precision components for data center, defense, and medical markets.
Ticker impact
NN, Inc. reported Q3 2026 results with net sales up 26% and raised its 2026 outlook.
likely upward pressure as investors price in higher sales and improved margins
The earnings beat and updated guidance provide fresh, material information that can move the stock in the near term.
Market effects
Highlights growth in data center, defense, and medical components, signaling strength for the precision manufacturing sector.
Positive for U.S. tech manufacturing exposure.
Shows demand for high‑precision components in AI‑driven data centers worldwide.
Counterpoint
If the sales growth is not sustainable, the stock could face pressure despite the raised outlook.
Key entities
- ExecutiveHarold Bevis
President and CEO of NN, Inc.
