NN, Inc. Reports Third Quarter 2026 Results

Power Solutions operating income rose 69.4%, while Mobile Solutions posted a wider operating loss as new programs ramped up.

Rhea-AI Summary

NN (NNBR) raised its 2026 outlook after reporting third-quarter net sales of $131.1 million, up 26.2% from a year earlier. Adjusted EBITDA, a non-GAAP earnings measure, rose 49.7% to $18.5 million. GAAP net loss narrowed to $4.6 million from $6.7 million, while operating loss widened to $3.3 million from $2.2 million.

NN now expects full-year sales of $480–$500 million, adjusted EBITDA of $64–$68 million and new business wins of $110–$130 million. It secured $130 million of annualized new business awards in the trailing 12 months, much of which is not yet reflected in its run-rate. NN completed $143 million of capital transactions, including paying off all preferred stock and raising equity. It targets $12 million in cost reductions and expects to launch more than 150 programs in 2026, worth approximately $100 million in peak annual sales.

29 points · 2 major

PositiveiHow this balance works

How this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 4 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 sales guidance raised to $480–$500 million, implying 16% growth over 2025 at the midpoint.
• Major pointPreferred stock was fully paid off; additional equity capital funded programs previously on hold for lack of funding.
• Moderate pointThird-quarter net sales rose 26.2% to $131.1 million year over year.
• Moderate pointThird-quarter adjusted EBITDA increased 49.7% to $18.5 million year over year.
• Moderate pointThird-quarter GAAP net loss narrowed 31.3% to $4.6 million from $6.7 million a year earlier.
• Moderate pointThird-quarter adjusted net income reached $5.3 million, versus a $0.3 million adjusted loss a year earlier.
• Moderate pointThird-quarter adjusted gross margin rose 29.5% to $25.3 million year over year.
• Moderate pointThird-quarter adjusted operating income increased 109.5% to $8.5 million year over year.
• Moderate pointAnnualized new business awards totaled $130 million over the trailing 12 months ended September 30, 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.NN targets $12 million in cost reductions through 335 projects, not yet fully reflected in run-rate results.
• Moderate point. Forward-looking: it has not happened yet and may not happen.NN expects more than 150 program launches in 2026, worth approximately $100 million in peak annual sales.
• Moderate pointPower Solutions third-quarter sales rose 40.6% to $63.2 million year over year.
• Moderate pointPower Solutions third-quarter operating income rose 69.4% to $9.2 million year over year.
• Moderate pointPower Solutions third-quarter adjusted operating income rose 53.1% to $12.4 million year over year.
• Moderate pointMobile Solutions third-quarter sales rose 15.3% to $68.2 million year over year.
• Moderate pointMobile Solutions third-quarter adjusted operating income rose 75.2% to $4.0 million year over year.

13 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance raised to $64–$68 million, implying 35% growth over 2025 at the midpoint.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 new business wins guidance raised to $110–$130 million, implying 71% growth over 2025 at the midpoint.
• Minor pointThird-quarter adjusted EBITDA margin increased 220 basis points to 14.1% year over year.
• Minor pointThird-quarter adjusted diluted earnings reached $0.07 per share, versus a $0.01 loss a year earlier.
• Minor pointThird-quarter gross margin increased 4.6% to $18.3 million year over year.
• Minor pointThird-quarter adjusted gross margin percentage rose 50 basis points to 19.3% year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Data-center expansion includes over 50 new machines through Q1 2027 and a $66 million opportunity pipeline.
• Minor pointDefense business secured multiple new awards in 2026, including firearm-accessories programs now ramping up.
• Minor pointMedical business secured multiple new awards in 2026, with programs ramping up for a medical-equipment customer.
• Minor pointNine-month sales increased to $378.293 million from $317.492 million a year earlier.
• Minor pointNine-month operating loss narrowed to $4.373 million from $8.501 million a year earlier.
• Minor pointNine-month net loss narrowed to $13.682 million from $21.466 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.NN is taking actions to exit low-profit auto programs and explore small bolt-on acquisitions.

Negative

• Major pointThe completed equity raise and debt-for-equity transactions added common-equity dilution.
• Moderate pointThird-quarter operating loss widened to $3.3 million from $2.2 million, reflecting higher labor costs and professional fees.
• Moderate pointMobile Solutions third-quarter operating loss widened to $6.3 million from $2.9 million amid higher operating costs.
• Minor pointNine-month interest expense increased to $16.956 million from $16.517 million a year earlier.

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Key Figures

Q3 net sales: $131.1 million, up 26.2% Adjusted EBITDA: $18.5 million, up 49.7% GAAP net loss: $4.6 million, improving 31.3% +5 more

Q3 net sales

$131.1 million, up 26.2%

Q3 2026 compared with Q3 2025

Adjusted EBITDA

$18.5 million, up 49.7%

Q3 2026 compared with Q3 2025

GAAP net loss

$4.6 million, improving 31.3%

Q3 2026 compared with Q3 2025

Adjusted net income

$5.3 million

Q3 2026

2026 net sales guidance

$480 million–$500 million

Full-year 2026; guidance raised

2026 adjusted EBITDA guidance

$64 million–$68 million

Full-year 2026; guidance raised

2026 new business wins guidance

$110 million–$130 million

Full-year 2026; guidance raised

Annualized new business awards

$130 million

Trailing 12 months ended September 30, 2026

Previous Earnings Reports

3 past events · Latest: Aug 05

Same Type 3 events

1. Aug 05

   Q2 earnings results

   24h Move

   -0.8%

   Sales and adjusted EBITDA rose, but the reported price reaction was negative.

2. May 06

   Q1 earnings results

   24h Move

   +9.5%

   Sales and adjusted EBITDA increased, and NN raised full-year guidance.

3. Oct 29

   Q3 earnings results

   24h Move

   -14.2%

   Sales declined and adjusted EBITDA fell, with reported negative price reaction of 14.21%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap financial measures, oem

3 terms

adjusted ebitda financial

"Adjusted EBITDA was $18.5 million, an increase of 49.7%"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial measures financial

"the non-GAAP financial measures of adjusted gross margin"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

oem technical

"became a supplier to a leading medical equipment OEM with 30 core platforms"

OEM stands for Original Equipment Manufacturer, which is a company that produces parts or components used in the final products made by other companies. For investors, understanding OEMs is important because their performance can impact the supply chain and overall success of major industries, especially those relying on specialized parts. Think of OEMs as the suppliers that provide the building blocks for larger products, like the engine parts for a car.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NN Delivers Another Quarter of Growth in Net Sales, Adjusted EBITDA, and New Wins; Raises 2026 Outlook Again

CHARLOTTE, N.C., Oct. 28, 2026 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR) (“NN” or the “Company”), an entrepreneurial growth company that engineers and manufactures high-precision components and assemblies, today reported results for the third quarter ended September 30, 2026.

Q3 2026 Financial Highlights, compared to Q3 2025

• Net sales of $131.1 million, up $27.2 million or 26.2%
• Gross margin of $18.3 million, up $0.8 million or 4.6%
• Adjusted gross margin of $25.3 million, up $5.8 million or 29.5%
• Adjusted gross margin percentage of 19.3%, up 50 basis points
• Loss from operations of $3.3 million, up $1.1 million from a loss of $2.2 million
• Adjusted income from operations of $8.5 million, up $4.4 million or 109.5% 
• GAAP net loss of $4.6 million, improving by $2.1 million or 31.3% 
• Adjusted net income of $5.3 million, up $5.6 million
• Adjusted EBITDA of $18.5 million, up $6.1 million or 49.7%
• Adjusted EBITDA margin percentage of 14.1%, up 220 basis points                

Performance Highlights:

• During 2026, NN has completed a multi-step process to transform its balance sheet. The preferred stock payoff and equity raise has unlocked growth potential. NN now has the financial flexibility to accelerate and optimize its business results. The Company had been severely constrained by its capital structure for multiple years. The Company looks forward to achieving higher results at a faster pace.
• NN’s new business program has continued to outperform expectations. On a trailing 12 months basis ended September 30, 2026, the Company has secured $130 million of annualized new business awards, a significant portion of which is not yet reflected in the Company’s run-rate. The Company is now winning more than 1 new program per day. The Company will continue to update results during quarterly earnings calls.
• NN’s 5 Pillar growth program is working well and the Company is investing its time and resources to strategically pivot the portfolio to high-growth, high-value markets and products. The Company has been aided by strong underlying market growth.
  • Data Center: NN’s top targeted end market and one of its fastest growing businesses. NN is ramping up the business by installing over 50 new machines dedicated to this market through Q1 2027. This business has a growing $66 million pipeline, including liquid cooling components for next generation chip designs.
  • Defense: NN has secured multiple new awards in this market in 2026 and recently became a supplier to a leading firearm accessories OEM with multiple programs currently in ramp-up mode.
  • Medical: NN has secured multiple new awards in this market in 2026 and became a supplier to a leading medical equipment OEM with 30 core platforms. The Company is significantly increasing the size of the business with multiple programs in ramp-up mode.
• NN’s cost-out program is on track to deliver $12 million of cost-out via 335 projects globally. These cost improvements are not yet fully reflected in the Company’s run-rate results. NN’s global operations team is also leading an ongoing continuum of new product development and business launches. In 2026, NN expects to launch more than 150 new programs worth approximately $100 million in peak annual sales.
• NN is underway with an intentional sales growth investment program. Overall, the Company is growing its net sales by approximately $68 million in 2026 based on updated guidance. The Company has achieved excellent working capital performance of 16.5% - 16.7% of sales over the trailing 6 months.

Management Commentary:

Harold Bevis, President and Chief Executive Officer, commented, “NN has delivered several consecutive years of improved adjusted EBITDA and sales growth wins, is now benefitting from the launching of these programs, and has a solid multi-year outlook for continued growth. This enabled the Company to initiate a transformation of its equity and debt structure. We paid off all of our preferred stock via several debt-for-equity transactions over the last 4 months. We also raised strategic capital to fund additional programs that were previously on hold due to lack of funding. Taken together, this represented $143 million of capital transactions. We executed decisively and I want to thank our Board of Directors, our new investors, and our advisors. This transformation is behind us now and we are already underway leveraging our newly enhanced flexibility.

We are operating under a new reality whereby we can move faster and improve on multiple fronts at once. While we are on track for our best year ever in 2026, our momentum is continuing into 2027, as part of an achievable multi-year growth outlook. We have a full basket of opportunities to improve, and we are taking on the next set of big improvements during 2027 now that we have the financial capacity to do so. The last remaining balance sheet financial improvements are with regards to our ABL and Term Loan, which we will fix at the right time.

While we are happy with our last four years of sustained results improvement, we are at the same time determined to continue elevating the business to a higher plane of performance.  This will require us to continue shifting our portfolio. We are taking forward actions on targeted sales growth, exiting low profit auto programs, and continuously taking out costs. We are on track for our multi-year targets. We are pleased that we have secured many new customers and introduced multiple new products in 2026. Further, we have a refreshed investor roster with growth-minded investors aligned with our forward goals. We are already accelerating our pace of improvement with our newfound financial flexibility.”

Bevis continued, “Our 5 Pillar growth program is our touchstone. Now we are in a position to also explore logical, small bolt-on acquisitions to further enhance our goals and growth trajectory. We are pleased that many of our new sales programs require ‘Immediate Startup’. Overall, the new wins numbers are very good, but we have areas where we want a significantly higher level of wins and growth, especially Data Center, Medical, and Defense. We are disciplined about improving our margins at the same time, walking away from dilutive business, and exiting minimal margin, minimal ROI business. We believe we have more room to increase our gross margins, adjusted EBITDA margins, and ROIs.”

Bevis concluded, “Given the results we have delivered in 2026 year to date and our strong forward outlook, we are raising our full-year 2026 guidance. We will be more specific about 2027 when we have completed our 2027 business planning process which is underway now. We are updating our thinking now that we have more financial firepower that has been enabled by our balance sheet transformation of 2026.”

Third Quarter NN Results

Net sales for the third quarter were $131.1 million, an increase of 26.2% compared to net sales of $103.9 million for the same period in 2025. The increase was primarily driven by higher selling prices, reflecting the pass-through of increased raw material costs to customers, higher volumes, and favorable foreign exchange effects.

Loss from operations for the third quarter was $3.3 million, an increase of $1.1 million compared to a loss from operations of $2.2 million for the same period in 2025.  The decline was primarily due to higher labor costs associated with increasing headcount to support new business and higher professional fees driven by the various strategic initiatives.

Net loss for the third quarter was $4.6 million, an improvement of 31.3% compared to net loss of $6.7 million for the same period in 2025.  The improvement was primarily driven by a gain related to a favorable tax ruling in Brazil and higher income from our joint venture in China.

Third Quarter 2026 NN Adjusted Results

Adjusted EBITDA was $18.5 million, an increase of 49.7% compared to adjusted EBITDA of $12.4 million for the same period in 2025, primarily driven by improved sales mix, operating performance and higher income from our joint venture in China.

Adjusted income from operations was $8.5 million, an increase of 109.5% compared to adjusted income from operations of $4.0 million for the same period in 2025. The increase was driven primarily by higher volumes and improved mix to higher margin products, partially offset by increased selling, general and administrative expenses.

Adjusted net income was $5.3 million, or $0.07 per diluted common share, an increase of $5.6 million or $0.08 per diluted common share, compared to adjusted net loss of $0.3 million, or $(0.01) per diluted common share for the same period in 2025.

Third Quarter Power Solutions Results 
Net sales for the third quarter of 2026 were $63.2 million, an increase of 40.6% compared to net sales of $44.9 million for the same period in 2025. The increase was driven primarily by higher selling prices, reflecting the pass-through of increased raw material costs to customers, increased volumes, and favorable foreign exchange effects.

Income from operations for the third quarter of 2026 was $9.2 million, an increase of 69.4% compared to income from operations of $5.4 million for the same period in 2025. The increase was primarily due to higher selling prices and increased volumes. The increase was partially offset by higher material costs and labor costs.

Adjusted income from operations for the third quarter of 2026 was $12.4 million, an increase of 53.1% compared to adjusted income from operations of $8.1 million for the same period in 2025. The increase was primarily due to the improved operating performance from higher selling prices and volumes.

Third Quarter Mobile Solutions Results

Net sales for the third quarter of 2026 were $68.2 million, an increase of 15.3% compared to net sales of $59.1 million in the same period of 2025. The increase was primarily due to higher volumes and favorable foreign exchange effects.

Loss from operations for the third quarter was $6.3 million, a decline of $3.4 million compared to $2.9 million for the same period in 2025. The increase was primarily due to higher costs from volume increases, increased labor costs due to the start-up of new programs, material cost increases, and facility costs. 

Adjusted income from operations for the third quarter was $4.0 million, an increase of 75.2% compared to adjusted income from operations of $2.3 million in the same period of 2025. The increase in adjusted income from operations was primarily due to higher sales volumes and increased net income from our joint venture.

2026 Outlook
NN is revising its guidance ranges upward in several areas. 

• Net sales are expected to range between $480 to $500 million
  • This reflects a $68 million improvement over 2025, or 16% growth year-over-year at the midpoint.
• Adjusted EBITDA is expected to range between $64 and $68 million.
  • This reflects a $17 million improvement over 2025, or 35% growth year-over-year at the midpoint.
• New business wins are expected to range between $110 to $130 million.
  • This reflects a $50 million improvement over 2025, or 71% growth year-over-year at the midpoint.

Chris Bohnert, Senior Vice President and Chief Financial Officer, commented, “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. As we look ahead to the final quarter of 2026 and into 2027, our outlook reflects continued profitable growth and keeps us well on track to maintain pace with our 2029 financial goals. Our new capital structure enables NN to enter 2027 with a stronger balance sheet and greater financial flexibility to invest in our growth.” 

Conference Call

NN will discuss its results during its quarterly investor conference call on October 29, 2026, at 9 a.m. ET.  The call and supplemental presentation may be accessed via NN's website, www.nninc.com. The conference call can also be accessed by dialing (833) 461-5787 (domestic) or (585) 542-9983 (international) and entering Conference ID number 100337183. For those who are unavailable to listen to the live broadcast, a replay will be available shortly after the call.

NN discloses in this press release the non-GAAP financial measures of adjusted gross margin, adjusted gross margin %, adjusted income from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans, reorganizational and impairment charges.

The financial tables found later in this press release include a reconciliation of adjusted gross margin, adjusted gross margin %, adjusted income from operations, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share to the U.S. GAAP financial measures of gross margin, income (loss) from operations, net loss, net loss per diluted common share.

About NN, Inc.

NN, Inc. (NASDAQ: NNBR) is an entrepreneurial manufacturing company specializing in manufacturing micron-tolerance precision metal componentry for high-growth end markets, especially Data Center, Electric Grid, Medical, Defense, and High-Value Vehicle systems. Founded in 1980, NN serves over 700 customers on 4 continents through its 2,700 person workforce operating out of 27 global plants. This footprint enables rapid innovation and globally scaled solutions. For more information, visit nninc.com.

This press release may contain forward-looking statements regarding our business, operations, and financial performance. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our most recently filed Form 10-K and our Form 10-Q for the period following that Form 10-K, including the risk factors described therein. We undertake no obligation to update any forward-looking statement, except as required by law. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements.

Investor & Media Contacts:
Joseph Caminiti
NNBR@alpha-ir.com
312-445-2870

Financial Tables Follow

NN, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except per share data)		2026				2025				2026				2025
Net sales	$	131,100			$	103,882			$	378,293			$	317,492
Cost of sales (exclusive of depreciation and amortization shown separately below)		112,830				86,410				318,724				267,755
Selling, general, and administrative expense		13,287				11,059				39,151				34,325
Depreciation and amortization		9,260				9,064				27,844				26,756
Other operating income, net		(957	)			(404	)			(3,053	)			(2,843	)
Loss from operations		(3,320	)			(2,247	)			(4,373	)			(8,501	)
Interest expense		5,467				5,666				16,956				16,517
Loss on extinguishment of debt		—				—				—				3,007
Other income, net		(2,919	)			(70	)			(2,634	)			(2,858	)
Loss before provision for income taxes and share of net income from joint venture		(5,868	)			(7,843	)			(18,695	)			(25,167	)
Provision for income taxes		(1,872	)			(815	)			(2,778	)			(2,898	)
Share of net income from joint venture		3,153				1,979				7,791				6,599
Net loss	$	(4,587	)		$	(6,679	)		$	(13,682	)		$	(21,466	)
Other comprehensive income:
Foreign currency translation gain		468				806				3,228				8,385
Total other comprehensive income		468				806				3,228				8,385
Comprehensive loss	$	(4,119	)		$	(5,873	)		$	(10,454	)		$	(13,081	)
Basic and diluted net loss per common share	$	(0.13	)		$	(0.23	)		$	(0.49	)		$	(0.72	)
Shares used to calculate basic and diluted net loss per common share		78,109				49,605				59,461				49,373

NN, Inc. Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data)	September 30, 2026				December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	12,290			$	11,377
Accounts receivable, net		77,225				59,785
Inventories		69,620				65,978
Income tax receivable		581				13,389
Prepaid assets		6,941				2,952
Other current assets		11,496				10,526
Total current assets		178,153				164,007
Property, plant and equipment, net		164,096				158,885
Operating lease right-of-use assets		31,270				35,155
Intangible assets, net		20,573				30,789
Investment in joint venture		48,008				42,543
Deferred tax assets		1,775				1,673
Other non-current assets		7,019				7,732
Total assets	$	450,894			$	440,784
Liabilities, Preferred Stock, and Stockholders’ Equity
Current liabilities:
Accounts payable	$	59,663			$	49,442
Accrued salaries, wages and benefits		17,270				14,004
Income tax payable		468				553
Current maturities of long-term debt		2,962				5,791
Current portion of operating lease liabilities		6,409				6,430
Other current liabilities		15,116				13,575
Total current liabilities		101,888				89,795
Deferred tax liabilities		4,077				4,312
Long-term debt, net of current maturities		165,851				153,758
Operating lease liabilities, net of current portion		32,401				37,092
Other non-current liabilities		7,351				9,420
Total liabilities		311,568				294,377
Commitments and contingencies
Series D perpetual preferred stock		35,594				112,409
Stockholders' equity:
Common stock		825				502
Additional paid-in capital		519,565				439,700
Accumulated deficit		(381,307	)			(367,625	)
Accumulated other comprehensive loss		(35,351	)			(38,579	)
Total stockholders’ equity		103,732				33,998
Total liabilities, preferred stock, and stockholders’ equity	$	450,894			$	440,784

NN, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited)
	Nine Months Ended September 30,
(in thousands)		2026				2025
Cash flows from operating activities
Net loss	$	(13,682	)		$	(21,466	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		27,844				26,756
Amortization of debt issuance costs and discount		750				1,255
Paid-in-kind interest		5,007				2,148
Loss on extinguishment of debt		—				3,007
Total derivative loss (gain)		242				(2,109	)
Share of net income from joint venture, net of cash dividends received		(3,584	)			(3,551	)
Share-based compensation expense		2,321				2,377
Deferred income taxes		(273	)			(481	)
Other		(416	)			(363	)
Changes in operating assets and liabilities:
Accounts receivable		(17,385	)			506
Inventories		(3,216	)			533
Other operating assets		(4,972	)			(3,171	)
Income taxes receivable and payable, net		12,732				(690	)
Accounts payable		7,802				7,629
Other operating liabilities		3,726				(5,256	)
Net cash provided by operating activities		16,896				7,124
Cash flows from investing activities
Acquisition of property, plant and equipment		(14,931	)			(11,058	)
Proceeds from sale of property, plant, and equipment		133				1,837
Net cash used in investing activities		(14,798	)			(9,221	)
Cash flows from financing activities
Proceeds from asset backed credit facilities		64,375				37,000
Repayments of asset backed credit facilities		(69,075	)			(42,400	)
Proceeds from long-term debt		10,000				119,234
Repayments of long-term debt		(845	)			(116,583	)
Payments for debt issuance costs		(100	)			(3,553	)
Proceeds from issuance of common stock, net of issuance costs		69,405				—
Redemption of preferred stock		(70,002	)			—
Proceeds from sale-leaseback of equipment		—				989
Proceeds from sale-leaseback of land and buildings		—				4,300
Repayments of financing obligations		(1,439	)			(913	)
Other		(4,580	)			(3,351	)
Net cash used in financing activities		(2,261	)			(5,277	)
Effect of exchange rate changes on cash flows		1,076				1,461
Net change in cash and cash equivalents		913				(5,913	)
Cash and cash equivalents at beginning of period		11,377				18,128
Cash and cash equivalents at end of period	$	12,290			$	12,215

Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin and Gross Margin %
	Three Months Ended September 30,
(in thousands)		2026				2025
GAAP Net sales	$	131,100			$	103,882
GAAP Cost of sales (exclusive of depreciation and amortization)		112,830				86,410
GAAP gross margin		18,270				17,472
Personnel costs (1)		2,748				1,294
Facility costs (2)		3,514				—
Other		763				772
Adjusted gross margin	$	25,295			$	19,538
Adjusted gross margin % (3)		19.3	%			18.8	%

(1) Personnel costs include recruitment, retention, relocation, severance and start-up costs related to new programs

(2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations and start-up costs related to new programs

(3)  Non-GAAP adjusted gross margin % = Non-GAAP adjusted gross margin / GAAP net sales

Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income from Operations
	Three Months Ended September 30,
(in thousands)
NN, Inc. Consolidated		2026				2025
GAAP loss from operations	$	(3,320	)		$	(2,247	)
Professional fees		1,644				155
Personnel costs (1)		2,896				2,075
Facility costs (2)		3,858				661
Amortization of intangibles		3,405				3,405
Non-GAAP adjusted income from operations	$	8,483			$	4,049
Non-GAAP adjusted operating margin (3)		6.5	%			3.9	%
GAAP net sales	$	131,100			$	103,882

	Three Months Ended September 30,
(in thousands)
Power Solutions		2026				2025
GAAP income from operations	$	9,200			$	5,432
Personnel costs (1)		84				110
Facility costs (2)		562				—
Amortization of intangibles		2,567				2,567
Non-GAAP adjusted income from operations	$	12,413			$	8,109
Non-GAAP adjusted operating margin (3)		19.6	%			18.0	%
GAAP net sales	$	63,178			$	44,948

	Three Months Ended September 30,
(in thousands)
Mobile Solutions		2026				2025
GAAP loss from operations	$	(6,288	)		$	(2,854	)
Professional fees		230				—
Personnel costs (1)		2,810				1,681
Facility costs (2)		3,296				661
Amortization of intangibles		838				838
Non-GAAP adjusted income from operations	$	886			$	326
Share of net income from joint venture		3,153				1,979
Non-GAAP adjusted income from operations with JV	$	4,039			$	2,305
Non-GAAP adjusted operating margin (3)		5.9	%			3.9	%
GAAP net sales	$	68,177			$	59,117

	Three Months Ended September 30,
(in thousands)
Elimination		2026				2025
GAAP net sales	$	(255	)		$	(183	)

1. Personnel costs include recruitment, retention, relocation, severance and start-up costs for new programs
2. Facility costs include costs of opening / closing facilities, relocation / exit of manufacturing operations and start-up costs related to new programs
3. Non-GAAP adjusted operating margin = Non-GAAP adjusted income from operations / GAAP net sales

Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin
	Three Months Ended September 30,
(in thousands)		2026				2025
GAAP net loss	$	(4,587	)		$	(6,679	)
Provision for income taxes		1,872				815
Interest expense		5,467				5,666
Change in fair value of preferred stock derivatives and warrants		(8	)			(72	)
Depreciation and amortization		9,260				9,064
Professional fees		1,644				155
Personnel costs (1)		2,896				2,075
Facility costs (2)		3,858				661
Non-cash stock compensation		712				737
Non-cash foreign exchange (gain) loss on inter-company loans		165				(56	)
Brazil tax / insurance settlement		(2,795	)			—
Other		27				—
Non-GAAP adjusted EBITDA	$	18,511			$	12,366
Non-GAAP adjusted EBITDA margin (3)		14.1	%			11.9	%
GAAP net sales	$	131,100			$	103,882

(1) Personnel costs include recruitment, retention, relocation, severance and start-up costs related to new programs

(2) Facility costs include costs of opening / closing facilities, relocation / exit of manufacturing operations and start-up costs related to new programs

(3)  Non-GAAP adjusted EBITDA margin = Non-GAAP adjusted EBITDA / GAAP net sales

Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Income (Loss) and GAAP Net Loss per Diluted Common Share to Non-GAAP Adjusted Net Income per Diluted Common Share
	Three Months Ended September 30,
(in thousands)		2026				2025
GAAP net loss	$	(4,587	)		$	(6,679	)
Pre-tax professional fees		1,644				155
Pre-tax personnel costs		2,896				2,075
Pre-tax facility costs		3,858				661
Pre-tax foreign exchange (gain) loss on inter-company loans		165				(56	)
Pre-tax change in fair value of preferred stock derivatives and warrants		(8	)			(72	)
Pre-tax amortization of intangibles and deferred financing costs		3,656				3,637
Brazil tax / insurance settlement		(2,795	)			—
Other		27				—
Tax effect of adjustments reflected above		435				—
Non-GAAP adjusted net income (loss)	$	5,291			$	(279	)
	Three Months Ended September 30,
(per diluted common share)		2026				2025
GAAP net loss per diluted common share	$	(0.13	)		$	(0.23	)
Pre-tax professional fees		0.02				—
Pre-tax personnel costs		0.04				0.04
Pre-tax facility costs		0.05				0.01
Pre-tax amortization of intangibles and deferred financing costs		0.05				0.07
Brazil tax / insurance settlement		(0.04	)			—
Tax effect of adjustments reflected above		0.01				—
Preferred stock cumulative dividends and deemed dividends		0.07				0.10
Non-GAAP adjusted net income (loss) per diluted common share	$	0.07			$	(0.01	)
Shares used to calculate net earnings per share		78,109				49,605

This presentation contains certain financial measures not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including adjusted gross margin, adjusted gross margin %, adjusted income from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share (collectively, the “non-GAAP financial measures”). These non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered in isolation from, or as a substitute for, the most directly comparable GAAP measures, and may not be comparable to similarly titled measures used by other companies. Management uses these non-GAAP financial measures, together with the comparable GAAP measures, to evaluate the Company’s operating performance and underlying business trends across periods on a consistent basis, and to assist in operational and financial decision-making, including with respect to internal budgeting and resource allocation. Reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure are set forth in the tables accompanying this presentation.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were NNBR's third-quarter 2026 sales and earnings?

NN reported $131.1 million in sales and a $4.6 million GAAP net loss for the third quarter of 2026. Sales increased 26.2% year over year, while net loss improved 31.3%. Adjusted net income was $5.3 million, or $0.07 per diluted common share.

What is NNBR's raised full-year 2026 guidance?

NN expects $480–$500 million in net sales, $64–$68 million in adjusted EBITDA and $110–$130 million in new business wins for 2026. At the midpoints, these ranges represent growth over 2025 of 16%, 35% and 71%, respectively.

What drove NNBR's third-quarter 2026 sales growth?

Sales growth primarily reflected higher selling prices, higher volumes and favorable foreign exchange effects. Higher selling prices included passing increased raw-material costs through to customers. Power Solutions benefited from all of these factors; Mobile Solutions sales growth primarily reflected higher volumes and favorable foreign exchange effects.

Why did NNBR's third-quarter net loss improve despite a wider operating loss?

The net-loss improvement primarily reflected a gain related to a favorable tax ruling in Brazil and higher income from NN's joint venture in China. Operating loss widened primarily because of higher labor costs associated with adding staff for new business and higher professional fees related to company initiatives.