Q1 strength pushes NN, Inc. (NASDAQ: NNBR) to raise 2026 goals
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
NN, Inc. reported strong Q1 2026 momentum, with net sales of $118.5 million, up 12.1% from Q1 2025, and adjusted EBITDA of $14.1 million, up 33.0% and lifting adjusted EBITDA margin to 11.9%.
Despite a GAAP net loss of $6.8 million (–$0.25 per share), adjusted net income reached $1.0 million, or $0.02 per diluted share, reversing an adjusted loss a year earlier. Growth was led by Power Solutions, where sales rose 27.3% to $55.4 million and adjusted operating income nearly doubled.
On the back of these results, NN raised its full‑year 2026 guidance: net sales of $450–$470 million (9% growth at midpoint), adjusted EBITDA of $52–$62 million (16% growth at midpoint), and new business wins of $80–$90 million (14% growth at midpoint). Management now expects long‑term 2030 financial targets to be achieved in 2029, reflecting faster progress in higher‑margin end markets such as Electric Grid & Data Center, Defense & Electronics, and Medical.
Positive
- Strong Q1 operating momentum: Net sales rose 12.1% to $118.5 million and adjusted EBITDA grew 33.0% to $14.1 million, expanding adjusted EBITDA margin from 10.0% to 11.9%.
- Return to adjusted profitability: Adjusted net income reached $1.0 million, or $0.02 per diluted share, improving from an adjusted net loss of $1.4 million, or ($0.03) per share, in Q1 2025.
- Guidance raised for 2026: The company increased full‑year targets to net sales of $450–$470 million, adjusted EBITDA of $52–$62 million, and new business wins of $80–$90 million, with midpoint growth of 9%, 16%, and 14% versus 2025.
- Accelerated long-term goals: Management now expects its 2030 financial targets to be achieved in 2029, citing strong progress in higher‑margin growth markets such as Electric Grid & Data Center and Defense & Electronics.
Negative
- None.
Insights
Q1 showed broad-based improvement, a guidance raise, and faster progress toward long-term targets.
NN, Inc. delivered 12.1% Q1 net sales growth to $118.5 million and expanded adjusted EBITDA by 33.0% to $14.1 million, lifting margin to 11.9%. Power Solutions was a key driver, with sales up 27.3% to $55.4 million and significantly higher adjusted profitability.
The company still posted a GAAP net loss of $6.8 million, or $0.25 per share, but non‑GAAP results turned to an adjusted net profit of $1.0 million, or $0.02 per diluted share, helped by higher gross profit and operating leverage. Growth initiatives in Electric Grid & Data Center, Defense & Electronics, and Medical are gaining traction, with trailing twelve‑month adjusted EBITDA reaching $52.6 million, the highest level in about five years.
Management raised 2026 guidance to net sales of $450–$470 million, adjusted EBITDA of $52–$62 million, and new business wins of $80–$90 million, and now anticipates hitting its long‑term 2030 financial goals in 2029. This suggests increasing confidence in the portfolio shift toward higher‑value end markets and in the company’s cost‑leadership efforts, although leverage and ongoing GAAP losses remain considerations that future filings will further clarify.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 net sales: $118.5 million
Q1 2026 adjusted EBITDA: $14.1 million
Q1 2026 GAAP net loss: $6.8 million
+5 more
8 metrics
Q1 2026 net sales
$118.5 million
Up 12.1% from Q1 2025 net sales of $105.7 million
Q1 2026 adjusted EBITDA
$14.1 million
Up 33.0% from $10.6 million in Q1 2025; 11.9% margin
Q1 2026 GAAP net loss
$6.8 million
Net loss of $6.8 million versus $6.7 million a year earlier
Q1 2026 adjusted net income
$1.0 million
Adjusted net income versus adjusted net loss of $1.4 million in Q1 2025
Trailing 12-month adjusted EBITDA
$52.6 million
Described as highest level in approximately five years
2026 net sales guidance
$450–$470 million
Midpoint implies 9% growth over 2025
2026 adjusted EBITDA guidance
$52–$62 million
Midpoint implies 16% growth over 2025
Long-term debt at March 31, 2026
$166.9 million
Long-term debt net of current portion on balance sheet
Key Terms
adjusted EBITDA, non-GAAP financial measures, trailing twelve-month adjusted EBITDA, Electric Grid & Data Center, +1 more
5 terms
adjusted EBITDA financial
"Adjusted EBITDA of $14.1 million, increased $3.5 million, up 33.0%"
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
"NN discloses in this press release the non-GAAP financial measures of adjusted gross profit..."
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.
trailing twelve-month adjusted EBITDA financial
"Trailing twelve-month adjusted EBITDA of $52.6 million rose to the highest level in approximately five years"
Trailing twelve-month adjusted EBITDA is a company’s operating profit over the most recent 12 months after removing interest, taxes, depreciation and amortization and further excluding one-time or unusual items. Investors use it as a clearer view of recurring cash-generating performance—like assessing a household’s regular take-home income after ignoring a one-off bonus—helping compare firms, value businesses, and judge ability to pay debt.
Electric Grid & Data Center financial
"NN is achieving wins and sales growth in the targeted end-markets of Electric Grid & Data Center, Defense & Electronics, and Medical."
preferred stock derivatives and warrants financial
"Pre-tax change in fair value of preferred stock derivatives and warrants | 245"
Earnings Snapshot
Net sales: $118.5 million · Guidance included
Q1 2026
Net sales
$118.5 million
+12.1% YoY
GAAP net loss
$6.8 million
slightly higher loss than $6.7 million in Q1 2025
Adjusted EBITDA
$14.1 million
+33.0% YoY from $10.6 million
Adjusted net income
$1.0 million
improved from adjusted net loss of $1.4 million
Adjusted EPS
$0.02 per diluted share
up from $(0.03) per diluted share
Guidance
For 2026, NN, Inc. guides to net sales of $450–$470 million, adjusted EBITDA of $52–$62 million, and new business wins of $80–$90 million, with midpoint growth of 9%, 16%, and 14% versus 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c)) | |||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
| Emerging growth company. | |||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | |||||
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 6, 2026 , NN, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the quarter ended March 31, 2026. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (the "Current Report").
Pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), the information furnished pursuant to Item 2.02 of this Current Report (including Exhibit 99.1) is deemed to have been furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
ITEM 7.01 REGULATION FD DISCLOSURE
On May 6, 2026 , the Company posted a supplemental presentation to its website, https://investors.nninc.com/, which will be presented during its quarterly investor conference call on May 7, 2026, at 9:00 a.m. ET. The supplemental presentation is included as Exhibit 99.2 to this Current Report.
Pursuant to the rules and regulations of the SEC, the information furnished pursuant to Item 7.01 of this Current Report (including Exhibit 99.2) is deemed to have been furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
| Exhibit No. | Description of Exhibit | |||||||
| 99.1 | Press Release issued by NN, Inc., dated May 6, 2026 | |||||||
| 99.2 | First Quarter 2026 Investor Presentation | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | |||||
| Date: | |||||
| NN, INC. | ||||||||
| By: | /s/ Christopher H. Bohnert | |||||||
| Name: | Christopher H. Bohnert | |||||||
| Title: | Senior Vice President and Chief Financial Officer | |||||||
 |  | ||||
FOR IMMEDIATE RELEASE
NN, INC. REPORTS FIRST QUARTER 2026 RESULTS
NN delivers strong growth in first quarter sales, profitability and new wins; results outpaced expectations
NN raises full-year 2026 guidance ranges for net sales, adjusted EBITDA, new wins target
CHARLOTTE, N.C., May 6, 2026 – NN, Inc. (NASDAQ: NNBR) (“NN” or the “Company”), a global diversified industrial company that engineers, co-develops and manufactures high-precision components and assemblies with six sigma quality, today reported results for the first quarter ended March 31, 2026. Key results include (compared with the first quarter 2025):
Q1 2026 Financial Highlights:
•Net sales of $118.5 million, increased $12.8 million, up 12.1%
•Gross profit of $19.4 million, increased $5.4 million, up 38.3%
•Adjusted gross profit of $23.1 million, increased $5.2 million, up 29.2%
•Loss from operations of $2.1 million, improved by $2.7 million, up 57.0%
•Adjusted income from operations of $5.8 million, increased $3.8 million, up 183.5%
•Net loss of $6.8 million or $0.25 per diluted common share
•Adjusted net income of $1.0 million, or $0.02 per diluted common share
•Adjusted EBITDA of $14.1 million, increased $3.5 million, up 33.0%
•Trailing twelve-month adjusted EBITDA of $52.6 million rose to the highest level in approximately five years
Business Highlights
•Raising guidance on full-year net sales, adjusted EBITDA, new business wins (previously announced)
•Improved timing on achievement of long-term targets; now estimating that 2030 targets will be achieved in 2029
•Adjusted gross margin and adjusted EBITDA margin are nearing multi-year goals of 20% and 13%, respectively
•NN is achieving wins and sales growth in the targeted end-markets of Electric Grid & Data Center, Defense & Electronics, and Medical. Strategic mix shift is occurring
•NN expanded its Electric Grid & Data Center product line in Q1 2026 with the introduction of liquid cooling connector components (previously announced) and launched production with several multi-year awards. Forecast is for continued investment and expansion
1
Harold Bevis, President and Chief Executive Officer of NN, Inc., said, "NN delivered a strong start to 2026, with first quarter results rising to the high side of expectations across many metrics, including sales growth, adjusted EBITDA, margin rates, and new business wins. Our performance is being strengthened by the success of our strategic growth programs that we have been internally funding. We are also benefitting from the results of our aggressive and ongoing operational improvements. Additionally, our sales growth programs continue to build momentum and increase velocity."
Bevis concluded, "NN’s progression into its targeted growth end markets and new products is working well as is our cost leadership blueprint. As a result of our strong first quarter and healthy forecasts for the remainder of the year, we are raising our guidance ranges for net sales, adjusted EBITDA, and new business wins targets. We are excited about our performance and look forward to reporting out on progress as we go along the journey to creating shareholder value."
First Quarter NN Results
Net sales for the first quarter of 2026 were $118.5 million, an increase of 12.1% compared to the first quarter of 2025 net sales of $105.7 million, driven primarily by the contribution of new business launches, higher precious metals pass-through pricing, higher volumes in certain areas and favorable foreign exchange effects.
Loss from operations for the first quarter was $2.1 million compared to a loss from operations of $4.8 million for the same period in 2025. The improvement was due to improved operating performance and improved sales mix. These improvements were partially offset by an increase in selling, general, and administrative costs.
Net loss for the first quarter was $6.8 million compared to net loss of $6.7 million for the same period in 2025. The decline is primarily due to non-cash derivative mark-to market loss recognized during the first quarter of 2026 compared to non-cash derivative mark-to-market gain the first quarter of 2025. The loss is partially offset by improvement in operating performance.
First Quarter 2026 NN Adjusted Results
Adjusted EBITDA was $14.1 million, an increase of 33.0%, compared to the first quarter of 2025 adjusted EBITDA of $10.6 million, driven primarily by improved sales mix and operating performance.
Adjusted income from operations was $5.8 million, an increase of 183.5%, compared to the first quarter of 2025, driven primarily by stronger gross profit, and partially offset by selling, general, and administrative costs.
Adjusted net income was $1.0 million, or $0.02 per diluted common share, an increase of $2.4 million or $0.05 per diluted common share, compared to adjusted net loss of $1.4 million, or ($0.03) per diluted common share, in the first quarter of 2025.
First Quarter Power Solutions Results
Net sales for the first quarter of 2026 were $55.4 million compared to $43.5 million in the same period in 2025, an increase of 27.3%. The increase was primarily due to a good sales mix, an increase in precious metal pass-through pricing, higher volumes in certain areas, and favorable foreign exchange effects.
Net sales for the first quarter of 2026 were $55.4 million compared to $43.5 million in the same period in 2025, an increase of 27.3%. The increase was primarily due to a good sales mix, an increase in precious metal pass-through pricing, higher volumes in certain areas, and favorable foreign exchange effects.
Income from operations for the first quarter was $6.3 million compared to income from operations of $3.0 million for the same period of 2025, an increase of 110%. The increase was primarily due to a better sales mix and solid operating performance.
Adjusted income from operations for the first quarter was $10.0 million compared to adjusted income from operations of $5.5 million for the same period of 2025, an increase of 81.8%. The increase was primarily due to better sales mix and solid operating performance.
2
First Quarter Mobile Solutions Results
Net sales for the first quarter of 2026 were $63.1 million compared to $62.2 million in the first quarter of 2025, an increase of 1.4%. This was primarily due to favorable growth in North America, South America and Europe and foreign exchange effects of $2.6 million, partially offset by soft China volumes.
Loss from operations for the first quarter was $2.1 million compared to loss from operations of $2.7 million for the same period in 2025. The improvement was primarily due to improved operating performance partially offset by an increase in selling, general, and administrative costs.
Adjusted income from operations for the first quarter of 2026 was $1.3 million compared to adjusted income from operations of $1.6 million for the same period of 2025. The decrease in adjusted income from operations was primarily due to lower sales volumes.
2026 Outlook
NN is revising its guidance ranges upward in several areas.
•Net sales expected to range between $450 to $470 million, 9% growth over 2025 at midpoint
•Adjusted EBITDA expected to range between $52 and $62 million, 16% growth over 2025 at midpoint
•New business wins are expected to increase to $80 to $90 million, 14% growth over 2025 at midpoint
•Long-term goal attainment is expected to be in 2029, versus 2030, a 1 year acceleration
Chris Bohnert, Senior Vice President and Chief Financial Officer commented, “Given the strength of our first quarter results and solid outlook for the remainder of the year, we are modestly revising our guidance ranges. For fiscal 2026, we are now guiding net sales in the range of $450 million to $470 million and adjusted EBITDA in the range of $52 million to $62 million, reflecting solid growth versus prior year. Our current forecast and guidance is supported by strong results and momentum thus far in 2026. We are forecasting a continuation of this trend and Q2 is off to a good start.”
3
Conference Call
NN will discuss its results during its quarterly investor conference call on May 7, 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 800-715-9871 (US) or 646-307-1963 (International). 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 profit, 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 profit, 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 profit, income (loss) from operations, net income (loss), and net income (loss) per diluted common share.
4
About NN, Inc.
NN, Inc., a global diversified industrial company, 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 markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, South America, Europe and China. For more information about the company and its products, please visit www.nninc.com.
This press release contains express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for full year 2026 and the impact of, and our ability to execute, our corporate strategies and business initiatives. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project”, “achieve”, “growth”, “enable”, “improve”, or the negative of those terms, and similar words, phrases or expressions that convey uncertainty of future events or outcomes. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; inflationary pressures and material changes in the cost or availability of raw materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the restrictions contained in our debt agreements; the level of our indebtedness and our ability to obtain financing at favorable rates, if at all, or to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; the impact of climate change on our operations; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; and uncertainty of government policies and actions in respect to global trade and tariffs, including the potential impacts of tariffs on the United States economy, the economy of other countries in which we conduct operations and our industry, cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.
With respect to any non-GAAP financial measures included in the following document, the accompanying information required by SEC Regulation G can be found in the back of this document or in the “Investors” section of the Company’s web site, www.nninc.com, under the heading “News & Events” and subheading “Presentations.”
Investor & Media Contacts:
Joe Caminiti or Abe Plimpton
NNBR@alpha-ir.com
312-445-2870
Financial Tables Follow
5
NN, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| (in thousands, except per share data) | 2026 | 2025 | |||||||||
| Net sales | $ | 118,452 | $ | 105,688 | |||||||
| Cost of sales (exclusive of depreciation and amortization shown separately below) | 99,031 | 91,646 | |||||||||
| Selling, general, and administrative expense | 13,294 | 11,170 | |||||||||
| Depreciation and amortization | 9,240 | 8,774 | |||||||||
| Other operating income, net | (1,055) | (1,113) | |||||||||
| Loss from operations | (2,058) | (4,789) | |||||||||
| Interest expense | 5,769 | 5,194 | |||||||||
| Other expense (income), net | 502 | (2,169) | |||||||||
| Loss before provision for income taxes and share of net income from joint venture | (8,329) | (7,814) | |||||||||
| Provision for income taxes | (717) | (1,310) | |||||||||
| Share of net income from joint venture | 2,218 | 2,439 | |||||||||
| Net loss | $ | (6,828) | $ | (6,685) | |||||||
| Other comprehensive income: | |||||||||||
| Foreign currency translation gain | 1,547 | 3,125 | |||||||||
| Other comprehensive income | $ | 1,547 | $ | 3,125 | |||||||
| Comprehensive loss | $ | (5,281) | $ | (3,560) | |||||||
| Basic and diluted net loss per share | $ | (0.25) | $ | (0.23) | |||||||
| Shares used to calculate basic and diluted net loss per share | 49,702 | 49,075 | |||||||||
6
NN, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
| (in thousands, except per share data) | March 31, 2026 | December 31, 2025 | |||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 8,471 | $ | 11,377 | |||||||
| Accounts receivable, net | 71,977 | 59,785 | |||||||||
| Inventories | 68,181 | 65,978 | |||||||||
| Income tax receivable | 13,622 | 13,389 | |||||||||
| Prepaid assets | 5,375 | 2,952 | |||||||||
| Other current assets | 12,466 | 10,526 | |||||||||
| Total current assets | 180,092 | 164,007 | |||||||||
| Property, plant and equipment, net | 158,369 | 158,885 | |||||||||
| Operating lease right-of-use assets | 33,474 | 35,155 | |||||||||
| Intangible assets, net | 27,384 | 30,789 | |||||||||
| Investment in joint venture | 45,332 | 42,543 | |||||||||
| Deferred tax assets | 1,673 | 1,673 | |||||||||
| Other non-current assets | 7,102 | 7,732 | |||||||||
| Total assets | $ | 453,426 | $ | 440,784 | |||||||
| Liabilities, Preferred Stock, and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 51,881 | $ | 49,442 | |||||||
| Accrued salaries, wages and benefits | 17,136 | 14,004 | |||||||||
| Income tax payable | 323 | 553 | |||||||||
| Current maturities of long-term debt | 3,511 | 5,791 | |||||||||
| Current portion of operating lease liabilities | 5,846 | 6,430 | |||||||||
| Other current liabilities | 17,826 | 13,575 | |||||||||
| Total current liabilities | 96,523 | 89,795 | |||||||||
| Deferred tax liabilities | 4,427 | 4,312 | |||||||||
| Long-term debt, net of current maturities | 166,853 | 153,758 | |||||||||
| Operating lease liabilities, net of current portion | 35,168 | 37,092 | |||||||||
| Other non-current liabilities | 6,505 | 9,420 | |||||||||
| Total liabilities | 309,476 | 294,377 | |||||||||
| Commitments and contingencies | |||||||||||
| Series D perpetual preferred stock | 117,847 | 112,409 | |||||||||
| Stockholders' equity: | |||||||||||
| Common stock | 527 | 502 | |||||||||
| Additional paid-in capital | 437,061 | 439,700 | |||||||||
| Accumulated deficit | (374,453) | (367,625) | |||||||||
| Accumulated other comprehensive loss | (37,032) | (38,579) | |||||||||
| Total stockholders’ equity | 26,103 | 33,998 | |||||||||
| Total liabilities, preferred stock, and stockholders’ equity | $ | 453,426 | $ | 440,784 | |||||||
7
NN, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
| Cash flows from operating activities | |||||||||||
| Net loss | $ | (6,828) | $ | (6,685) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 9,240 | 8,774 | |||||||||
| Amortization of debt issuance costs and discount | 249 | 716 | |||||||||
| Paid-in-kind interest | 1,542 | 316 | |||||||||
| Total derivative loss (gain), net of cash settlements | 245 | (1,762) | |||||||||
| Share of net income from joint venture | (2,218) | (2,439) | |||||||||
| Share-based compensation expense | 801 | 839 | |||||||||
| Deferred income taxes | 179 | 174 | |||||||||
| Other | (196) | (519) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (12,011) | (5,403) | |||||||||
| Inventories | (1,919) | (220) | |||||||||
| Other operating assets | (4,479) | (3,444) | |||||||||
| Income taxes receivable and payable, net | (457) | (163) | |||||||||
| Accounts payable | 578 | 6,468 | |||||||||
| Other operating liabilities | 6,653 | 3 | |||||||||
| Net cash used in operating activities | (8,621) | (3,345) | |||||||||
| Cash flows from investing activities | |||||||||||
| Acquisition of property, plant and equipment | (3,297) | (3,907) | |||||||||
| Proceeds from sale of property, plant, and equipment | 100 | 177 | |||||||||
| Net cash used in investing activities | (3,197) | (3,730) | |||||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from asset backed credit facilities | 16,200 | 11,000 | |||||||||
| Repayments of asset backed credit facilities | (15,950) | (9,026) | |||||||||
| Proceeds from long-term debt | 10,000 | — | |||||||||
| Repayments of long-term debt | (284) | — | |||||||||
| Cash paid for debt issuance costs | (100) | — | |||||||||
| Repayments of financing obligations | (465) | (297) | |||||||||
| Other | (1,444) | (1,094) | |||||||||
| Net cash provided by financing activities | 7,957 | 583 | |||||||||
| Effect of exchange rate changes on cash flows | 955 | 103 | |||||||||
| Net change in cash and cash equivalents | (2,906) | (6,389) | |||||||||
| Cash and cash equivalents at beginning of year | 11,377 | 18,128 | |||||||||
| Cash and cash equivalents at end of quarter | $ | 8,471 | $ | 11,739 | |||||||
8
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit and Adjusted Gross Margin
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
| Net sales | $ | 118,452 | $ | 105,688 | |||||||
| Cost of sales (exclusive of depreciation and amortization) | 99,031 | 91,646 | |||||||||
| GAAP gross profit | 19,421 | 14,042 | |||||||||
| Personnel costs (1) | 1,095 | — | |||||||||
| Facility costs (2) | 1,814 | 3,066 | |||||||||
| Other | 776 | 778 | |||||||||
| Adjusted gross profit (a) | $ | 23,106 | $ | 17,886 | |||||||
| Adjusted gross margin (3) | 19.5 | % | 16.9 | % | |||||||
| (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 gross margin = Non-GAAP adjusted gross profit / GAAP net sales | |||||||||||
9
Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income from Operations
| Three Months Ended March 31, | |||||||||||
| (in thousands) | |||||||||||
| NN, Inc. Consolidated | 2026 | 2025 | |||||||||
| GAAP loss from operations | $ | (2,058) | $ | (4,789) | |||||||
| Professional fees | 689 | 50 | |||||||||
| Personnel costs (1) | 1,398 | 3,365 | |||||||||
| Facility costs (2) | 2,323 | — | |||||||||
| Amortization of intangibles | 3,405 | 3,405 | |||||||||
| Non-GAAP adjusted income from operations (b) | $ | 5,757 | $ | 2,031 | |||||||
| Non-GAAP adjusted operating margin (3) | 4.9 | % | 1.9 | % | |||||||
| GAAP net sales | $ | 118,452 | $ | 105,688 | |||||||
| Three Months Ended March 31, | |||||||||||
| (in thousands) | |||||||||||
| Power Solutions | 2026 | 2025 | |||||||||
| GAAP income from operations | $ | 6,297 | $ | 3,023 | |||||||
| Personnel costs (1) | 405 | (66) | |||||||||
| Facility costs (2) | 726 | — | |||||||||
| Amortization of intangibles | 2,567 | 2,567 | |||||||||
| Non-GAAP adjusted income from operations (b) | $ | 9,995 | $ | 5,524 | |||||||
| Non-GAAP adjusted operating margin (3) | 18.0 | % | 12.7 | % | |||||||
| GAAP net sales | $ | 55,400 | $ | 43,508 | |||||||
| Three Months Ended March 31, | |||||||||||
| (in thousands) | |||||||||||
| Mobile Solutions | 2026 | 2025 | |||||||||
| GAAP loss from operations | $ | (2,075) | $ | (2,687) | |||||||
| Personnel costs (1) | 983 | 3,431 | |||||||||
| Facility costs (2) | 1,597 | — | |||||||||
| Amortization of intangibles | 838 | 838 | |||||||||
| Non-GAAP adjusted income from operations (b) | $ | 1,343 | $ | 1,582 | |||||||
| Share of net income from joint venture | 2,218 | 2,439 | |||||||||
| Non-GAAP adjusted income from operations with JV (b) | $ | 3,561 | $ | 4,021 | |||||||
| Non-GAAP adjusted operating margin (3) | 5.6 | % | 6.5 | % | |||||||
| GAAP net sales | $ | 63,113 | $ | 62,244 | |||||||
| Three Months Ended March 31, | |||||||||||
| (in thousands) | |||||||||||
| Elimination | 2026 | 2025 | |||||||||
| GAAP net sales | $ | (61) | $ | (64) | |||||||
(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 operating margin = Non-GAAP adjusted income (loss) from operations / GAAP net sales
10
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
| GAAP net loss | $ | (6,828) | $ | (6,685) | |||||||
| Provision for income taxes | 717 | 1,310 | |||||||||
| Interest expense | 5,769 | 5,194 | |||||||||
| Change in fair value of preferred stock derivatives and warrants | 245 | (1,763) | |||||||||
| Depreciation and amortization | 9,240 | 8,774 | |||||||||
| Professional fees | 689 | 50 | |||||||||
| Personnel costs (1) | 1,398 | 3,365 | |||||||||
| Facility costs (2) | 2,323 | — | |||||||||
| Non-cash stock compensation | 801 | 839 | |||||||||
| Non-cash foreign exchange loss on inter-company loans | (734) | (506) | |||||||||
| Other | 525 | — | |||||||||
| Non-GAAP adjusted EBITDA (c) | $ | 14,145 | $ | 10,578 | |||||||
| Non-GAAP adjusted EBITDA margin (3) | 11.9 | % | 10.0 | % | |||||||
| GAAP net sales | $ | 118,452 | $ | 105,688 | |||||||
| (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 | |||||||||||
11
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Income and GAAP Net Loss per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
| GAAP net loss | $ | (6,828) | $ | (6,685) | |||||||
| Pre-tax professional fees | 689 | 50 | |||||||||
| Pre-tax personnel costs | 1,398 | 3,365 | |||||||||
| Pre-tax facility costs | 2,323 | — | |||||||||
| Pre-tax foreign exchange (gain) loss on inter-company loans | (734) | (506) | |||||||||
| Pre-tax change in fair value of preferred stock derivatives and warrants | 245 | (1,763) | |||||||||
| Pre-tax amortization of intangibles and deferred financing costs | 3,654 | 4,125 | |||||||||
| Pre-tax other | 525 | — | |||||||||
| Tax effect of adjustments reflected above (d) | (247) | — | |||||||||
| Non-GAAP adjusted net income (loss) (e) | $ | 1,025 | $ | (1,414) | |||||||
| Three Months Ended March 31, | |||||||||||
| (per diluted common share) | 2026 | 2025 | |||||||||
| GAAP net loss per diluted common share | $ | (0.25) | $ | (0.23) | |||||||
| Pre-tax professional fees | 0.01 | — | |||||||||
| Pre-tax personnel costs | 0.03 | 0.07 | |||||||||
| Pre-tax facility costs | 0.05 | — | |||||||||
| Pre-tax foreign exchange (gain) loss on inter-company loans | (0.01) | (0.01) | |||||||||
| Pre-tax change in fair value of preferred stock derivatives and warrants | — | (0.04) | |||||||||
| Pre-tax amortization of intangibles and deferred financing costs | 0.07 | 0.08 | |||||||||
| Pre-tax other | 0.01 | — | |||||||||
| Preferred stock cumulative dividends and deemed dividends | 0.11 | 0.09 | |||||||||
| Non-GAAP adjusted net income (loss) per diluted common share (e) | $0.02 | $(0.03) | |||||||||
| Shares used to calculate net earnings (loss) per share | 49,702 | 49,075 | |||||||||
12
The Company discloses in this presentation the non-GAAP financial measures of adjusted gross profit, adjusted gross margin, adjusted income (loss) 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 costs we incur in completing acquisitions, including the amortization of intangibles and deferred financing costs, and divestitures are excluded from these measures because their size and inconsistent frequency are unrelated to our commercial performance during the period, and we believe are not indicative of our ongoing operating costs. We exclude the impact of currency translation from these measures because foreign exchange rates are not under management’s control and are subject to volatility. Other non-operating charges are excluded as the charges are not indicative of our ongoing operating cost. We believe the presentation of adjusted gross profit, adjusted gross margin, adjusted income (loss) from operations, adjusted EBITDA and adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share provides useful information in assessing our underlying business trends and facilitates comparison of our long-term performance over given periods.
The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual income growth derived from income amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results.
(a) Non-GAAP adjusted gross margin represents GAAP gross profit, adjusted to exclude the effects of restructuring and integration expense and non-operational charges related to acquisition and transition expense. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted gross margin is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP gross margin.
(b) Non-GAAP adjusted income (loss) from operations represents GAAP income (loss) from operations, adjusted to exclude the effects of restructuring and integration expense; non-operational charges related to acquisition and transition expense, intangible amortization costs for fair value step-up in values related to acquisitions, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income (loss) from operations is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from operations.
(c) Non-GAAP adjusted EBITDA represents GAAP net income (loss), adjusted to include income taxes, interest expense, write-off of unamortized debt issuance costs, change in fair value of preferred stock derivatives and warrants, depreciation and amortization, charges related to acquisition and transition costs, non-cash stock compensation expense, foreign exchange gain (loss) on inter-company loans, restructuring and integration expense, costs related to divested businesses and litigation settlements, income from discontinued operations, and other charges, to the extent applicable. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from continuing operations.
(d) This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the respective table. NN, Inc. estimates the tax effect of the adjustment items identified in the reconciliation schedule above by applying the applicable statutory rates by tax jurisdiction unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment.
(e) Non-GAAP adjusted net income (loss) represents GAAP net income (loss) adjusted to exclude the tax-affected effects of charges related to acquisition and transition costs, foreign exchange gain (loss) on inter-company loans, restructuring and integration charges, amortization of intangibles costs for fair value step-up in values related to acquisitions and amortization of deferred financing costs, write-off of unamortized debt issuance costs, change in fair value of preferred stock derivatives and warrants, costs related to divested businesses and litigation settlements, income (loss) from discontinued operations, preferred stock cumulative dividends and deemed dividends and other charges. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry.
13
Q1 2026 Update Growth Meets Cost Leadership
FORWARD LOOKING STATEMENTS 2 This presentation contains express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for full year 2026 and the impact of, and our ability to execute, our corporate strategies and business initiatives. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project”, “achieve”, “growth”, “enable”, “improve”, or the negative of those terms, and similar words, phrases or expressions that convey uncertainty of future events or outcomes. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; inflationary pressures and material changes in the cost or availability of raw materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the restrictions contained in our debt agreements; the level of our indebtedness and our ability to obtain financing at favorable rates, if at all, or to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; the impact of climate change on our operations; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; and uncertainty of government policies and actions in respect to global trade and tariffs, including the potential impacts of tariffs on the United States economy, the economy of other countries in which we conduct operations and our industry, cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements. With respect to any non-GAAP financial measures included in the following document, the accompanying information required by SEC Regulation G can be found in the back of this document or in the “Investors” section of the Company’s web site, www.nninc.com, under the heading “News & Events” and subheading “Presentations.
Harold Bevis Chief Executive Officer Chris Bohnert Chief Financial Officer Management in Attendance 3 Tim French Chief Operating Officer
Growth Programs: Delivering Results • Three main end-market diversification programs: Electric Grid & Data Center, Defense & Electronics, and Medical • Solid volume growth forecast across full year 2026, and beyond 2026: Raising Guidance • Raising guidance ranges for Net Sales, Adj. EBITDA and New Business Wins (previously announced on 4/14/2026) • Updated 2026 outlook is leading to revised timing on attaining long-term goals Q1 2026 Strong: Raising Guidance Growth Meets Cost Leadership: Good Profits • New lower-cost operating footprint is delivering results • Margins trending to high side, more than offsetting high precious metal cost pass- through Strong Q1: Momentum is Building • Strong Q1 results with good mix • Highest trailing 12-month adj. EBITDA in ~5 yrs • Noteworthy wins in Electric Grid & Data Center 4
5 Guidance and Outlook Raise 2026 first quarter – strong performance, good outlook for the rest of 2026 • Sales and adjusted EBITDA outperformed prior period - good mix, good operating performance, lower costs • 22 of Top 30 customers are up in sales, broad-based sales growth, prospecting & adding new Data Center customers • NN’s outlook for FY 2026 is expected to be stronger than FY 2025 • Intentionally expanding Electric Grid & Data Center business growth opportunities 2026 full year - outlook expected to be record annual performance in multiple areas • Good mix, good operating performance, sales growth, EBITDA growth, adjusted EBITDA growth, adjusted EPS, new wins • Expanded participation in Electric Grid & Data Center growth, while also prospecting and winning additional business 2027-2030 – outlook improving, moving the timing of long-term goal attainment in from 2030 to 2029 • Results are overcoming global auto weakness and tariffs turmoil • Replacing Auto sales with Electric Grid & Data Center, Defense & Electronics, Medical, Industrial
6 Net Sales: $118.5M Adj. EBITDA: $14.1M • Up $12.8M, or +12% • Electric Grid & Data Center, Defense & Electronics delivering strong growth • Up $3.5M, or +33% • Good sales mix, and strong operating performance 1 2 4 6 3 Adj. Gross Margin: 19.5% • Up $5.2M, or +29% • Good sales mix, and strong operating performance 5 Adj. Op. Income: $5.8M New Business: $42.9M • Up $3.8M, or +184% • Leaner operating model, less burden from operational transformation costs • Up $19.4M, or +83% • Wins concentrated in Electric Grid & Data Center market Updated Forward Projections • FY 2026 looks stronger; raising guidance • FY 2027-2030 outlooks strengthening First Quarter 2026 – Key Metrics Note: Comparisons are versus Q1 2025 results
$10.6 $14.1 Adjusted EBITDA & Margin (%) ($millions) Q1'25 Q1'26 $105.7 $118.5 Net Sales ($millions) Q1'25 Q1'26 ($millions) Q1’25 Q1’26 $ Δ % Δ Net Sales $105.7 $118.5 +$12.8M +12% Adj. Operating Income $2.0 $5.8 +$3.8M +184% Adj. EBITDA $10.6 $14.1 +$3.5M +33% Adj. EBITDA Margin % 10.0% 11.9% -- +190 bps New Business Wins $23.5 $42.9 +$19.4M +83% First Quarter 2026 – Financial Results Summary 7 11.9%10.0% Net Sales: +$12.8M, up 12.1% (+) Good mix, stable volumes (+) Higher precious metal price pass-through, favorable FX effects (-) China automotive weakness, global automotive flat / stable Adjusted EBITDA: +$3.5M, up 33.0% (+) Sales growth, good mix, higher margins (+) Benefitting from operating efficiencies, cost-out actions (-) Still have some impact from dilutive plants; one not fully fixed +12% +33%
Power Solutions / Stamped Products Net Sales: $55.4M, up $11.9M, or +27.3% (+) Positive sales mix (+) Higher precious metal price pass-through, favorable FX effects (-) Sales volume softness in a few areas Adjusted EBITDA: $10.4M, up $4.1M, or +65.1% (+) Better sales mix, higher margins (-) Small lag from passing through high precious metals / tariffs / surcharges New Business: $29.3M (+) Wins concentrated in Electric Grid & Data Center, Defense & Electronics products (+) Acquired plating equipment to advance growth in Electric Grid & Data Center markets (-) Need additional new wins in certain areas 8 $43.5 $55.4 Q1'25 Q1'26 Net Sales ($millions) $6.3 $10.4 Q1'25 Q1'26 Adjusted EBITDA & Margin (%) ($millions) 18.7%14.5% +27% +65% Note: Comparisons are versus Q1 2025 results
Mobile Solutions / Machined Products Net Sales: $63.1M, up $0.9M, or +1.4% (+) Solid volumes from new launches, global volume growth ex-China (-) China automotive softness offsetting volume growth in other areas Segment returned to Y/Y sales growth – with strong forward trajectory & pipeline Adjusted EBITDA: $8.2M, up $0.1M, or +1.2% (+) Increased profitability in most regions, offset by China softness (+) Largely exited profit-diluting sales, underperforming facilities showing improvement New Business: $13.6M • New product launch and new wins in Data Center market – liquid cooling components • Investing greater capex to support long-term growth in Electric Grid & Data Center products • Progress in Defense & Electronics and Medical components 9Note: Comparisons are versus Q1 2025 results $62.2 $63.1 Q1'25 Q1'26 Net Sales ($millions) $8.1 $8.2 Q1'25 Q1'26 Adjusted EBITDA & Margin (%) ($millions) 13.0%13.0% +1% +1%
10 Sales Growth and Portfolio Transformation Continues Auto 65% Growth Markets 35% 2023 Auto 49%Growth Markets 51% Q1 2025 Auto 44% Growth Markets 56% Q1 2026 Three main diversification end-markets Electric Grid & Data Center, Defense & Electronics, and Medical • Strategically shifting portfolio into higher-value end markets, driving margin and profit increases • Maintaining high-value auto business, while growing in other areas • Key growth markets are up +28% vs. Q1 2025 % of Sales
Operational & Technical Success Factors to Compete Commercial Success Factors to Disrupt & Grow Potential to Become a Material Business Stats: Electric Grid & Data Center • Creating growth in a large, profitable NN business • Added dedicated assets, new products, internally funding • Added liquid cooling connectors in 2026 • Data Center is fast-paced collaborative development Bottom Line: Growth from new and existing products, adding new liquid cooling customers + products; growth has been faster than expected Defense & Electronics • Adding to large, profitable business (2024) • Added dedicated assets + certifications, internally funding • 2-year development program with marquee OEM Bottom Line: Growth from pre-existing products + customers, adding new customers + products; growth has been faster + bigger than expected Medical • Fixed a small, unprofitable business and implemented growth plan (Fall 2023) • Added dedicated assets + certifications, internally funding • 2-year development program with marquee OEM Bottom Line: Corrected profit issues, has been slower to grow than expected, momentum increasing 11 Three Main Diversification Growth Areas are Kicking In
12 Investing for Growth in Data Center Business Significant business in Electric Grid & Data Center products • #2 overall market across transformer components, electrical disconnects, circuit breaker components, smart meters • Trailing 12-month sales = $73 Million, accretive margins → near-term goal of $100 Million Launched new product line in Q1 2026 - liquid cooling connector parts • Product category is also called the quick disconnect coupling market or fluid connectors for servers • Market size estimates range from $1.5B to $6B+ and growing quickly • NN leveraging its fluid management trade secrets and added to its existing portfolio of machines to make these types of small, precise components • Ordered 17 additional 6-axis CNC machines coupled with in-house trade secrets around turning, treating, electroplating, abrasive flow machining (AFM), and testing. Added to portfolio of 100+ machines of this type We believe there is upside in this area to add content per rack, working on it
End-Market Outlooks are Strengthening in 2026 13 Market NN Outlook Comments Electric Grid & Data Center • Market to remain strong • NN expected to achieve growth across FY’26 Defense & Electronics • NA market to remain strong, at record levels • NN expected to achieve growth across FY’26 Medical • Market to remain steady and growing • NN expecting to achieve new wins across FY’26 Auto – China • Market is soft in the beginning of 2026 • NN expecting stable sales during 2nd Half of 2026 Commercial Vehicle • Market is slightly down in the beginning of 2026 • NN expecting small growth in the 2nd half of 2026 Industrial • Market is showing small amount of growth in beginning of 2026 • NN expecting continued modest growth across FY’26 Global Auto (N. America, S. America, Europe) • Market is slightly down – affordability, ICE-EV, China exports • NN expecting flat sales across FY’26 Growth Markets
Multi-Year Roadmap – Long-Term Goals are Pulling In 14 • Targeted growth programs are delivering • Cost leadership blueprint is delivering • Still gaining momentum and taking additional actions $422M $600M 2025 2029 2030 Net Sales & Adj. Gross Margin 18.5% 20% $49M $80M 2025 2029 2030 Adj. EBITDA & Margin 11.6% 13%
Forecasting Another Year of Improved Results 15 New Gameplan $45.5 $49.7 $42.0 $35.3 $40.3 $46.9 $49.0 $57.0 11.2% 10.9% 8.8% 7.4% 8.6% 10.3% 11.6% 12.4% 2020 2021 2022 LTM Q2 2023 2023 2024 2025 2026 Guidance Mid- Point Adj. EBITDA ($millions) excluding Lubbock Adj. EBITDA Margin % excluding Lubbock Growth is Meeting Cost Leadership • NN has delivered strong multi-year financial results led by solid operational performance, and has its 3 main growth programs kicking in • Electric Grid Data Center; Defense & Electronics; Medical • Next up will be additional product lines for all 3 focus areas - Wire Harnesses and Bus Bar • As sales growth and volumes build momentum across 2026 and beyond, company will benefit from lower-cost operating model
2026 Outlook: Raising FY 2026 Guidance 16 Net Sales of $450 - $470 million Adjusted EBITDA of $52 - $62 million New Business Wins of $80 - $90 million Financial guidance assumptions: • Assumes current precious metals costs • Assumes current FX rates • Raising forecast on strength of Q1 2026, and strong forward outlook • Wins are concentrated in strategic focus areas – Electric Grid & Data Center, Defense & Electronics • Strong pipeline – Expanding customer wallet share, adding new customers, faster ramp-ups 1 3 2 Midpoint Raise Midpoint vs. Prior Year +$10 Million +9% +$2 Million +16% +14%+$10 Million 16 • Good operating performance • Good mix, higher volumes • Higher volumes running across lower costs, $10m CI program • Volume gaining momentum, good mix, high precious metal pass-through • Significant program launches underway & base markets are stable • Forecasting elevated precious metals and FX throughout 2026
17 Appendix
18 The Company discloses in this presentation the non-GAAP financial measures of adjusted gross profit, adjusted gross margin, adjusted income (loss) 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 costs we incur in completing acquisitions, including the amortization of intangibles and deferred financing costs, and divestitures are excluded from these measures because their size and inconsistent frequency are unrelated to our commercial performance during the period, and we believe are not indicative of our ongoing operating costs. We exclude the impact of currency translation from these measures because foreign exchange rates are not under management’s control and are subject to volatility. Other non-operating charges are excluded, as the charges are not indicative of our ongoing operating cost. We believe the presentation of adjusted gross profit, adjusted gross margin, adjusted income (loss) from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) and adjusted net income (loss) per diluted common share provides useful information in assessing our underlying business trends and facilitates comparison of our long-term performance over given periods. The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual income growth derived from income amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. (a) Non-GAAP adjusted gross margin represents GAAP gross profit, adjusted to exclude the effects of restructuring and integration expense and non-operational charges related to acquisition and transition expense. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted gross margin is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP gross margin. (b) Non-GAAP adjusted income (loss) from operations represents GAAP income (loss) from operations, adjusted to exclude the effects of restructuring and integration expense; non-operational charges related to acquisition and transition expense, intangible amortization costs for fair value step-up in values related to acquisitions, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income (loss) from operations is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from operations. (c) Non-GAAP adjusted EBITDA represents GAAP net income (loss), adjusted to include income taxes, interest expense, write-off of unamortized debt issuance costs, change in fair value of preferred stock derivatives and warrants, depreciation and amortization, charges related to acquisition and transition costs, non-cash stock compensation expense, foreign exchange gain (loss) on inter-company loans, restructuring and integration expense, costs related to divested businesses and litigation settlements, income from discontinued operations, and other charges, to the extent applicable. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from continuing operations. (d) This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the respective table. NN, Inc. estimates the tax effect of the adjustment items identified in the reconciliation schedule above by applying the applicable statutory rates by tax jurisdiction unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment. (e) Non-GAAP adjusted net income (loss) represents GAAP net income (loss) adjusted to exclude the tax-affected effects of charges related to acquisition and transition costs, foreign exchange gain (loss) on inter- company loans, restructuring and integration charges, amortization of intangibles costs for fair value step-up in values related to acquisitions and amortization of deferred financing costs, write-off of unamortized debt issuance costs, change in fair value of preferred stock derivatives and warrants, costs related to divested businesses and litigation settlements, income (loss) from discontinued operations, preferred stock cumulative dividends and deemed dividends and other charges. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP Financial Measures Footnotes
19 Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit and Adjusted Gross Margin
20 Consolidated reconciliation of GAAP Loss from Operations to Non-GAAP Adjusted Income from Operations and Non-GAAP Adjusted EBITDA and Adjusted EBITDA margin
21 Power Solutions segment reconciliation of GAAP Income from Operations to Non-GAAP Adjusted Income from Operations and Non-GAAP Adjusted EBITDA and Adjusted EBITDA margin
22 Mobile Solutions segment reconciliation of GAAP Loss from Operations to Non-GAAP Adjusted Income from Operations and Non-GAAP Adjusted EBITDA and Adjusted EBITDA margin
23 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 (Loss) per Diluted Common Share
Thank You 24 Joe Caminiti or Abe Plimpton NNBR@alpha-ir.com 312-445-2870 Investor & Media Contacts
FAQ
How did NN, Inc. (NNBR) perform financially in Q1 2026?
NN, Inc. delivered higher sales and improved profitability in Q1 2026. Net sales reached $118.5 million, up 12.1% year over year, while adjusted EBITDA increased to $14.1 million, up 33.0%, lifting the adjusted EBITDA margin from 10.0% to 11.9%.
Did NN, Inc. (NNBR) remain profitable in Q1 2026 on a GAAP and non-GAAP basis?
On a GAAP basis, NN, Inc. recorded a net loss of $6.8 million, or $0.25 per diluted share. However, on a non‑GAAP basis, the company reported adjusted net income of $1.0 million, or $0.02 per diluted share, improving from an adjusted net loss in Q1 2025.
What 2026 guidance did NN, Inc. (NNBR) provide for net sales and adjusted EBITDA?
For full‑year 2026, NN, Inc. expects net sales between $450 and $470 million and adjusted EBITDA between $52 and $62 million. At the midpoints, these targets represent 9% net sales growth and 16% adjusted EBITDA growth compared with 2025 levels, according to management’s outlook.
How are NN, Inc.’s growth markets like Electric Grid & Data Center performing?
NN, Inc. reported strong momentum in its targeted growth markets, especially Electric Grid & Data Center, Defense & Electronics, and Medical. These growth markets accounted for a rising share of sales, with key markets up 28% versus Q1 2025 and new wins concentrated in Electric Grid & Data Center products.
What were the key segment results for NN, Inc. (NNBR) in Q1 2026?
In Q1 2026, Power Solutions net sales increased 27.3% to $55.4 million, with higher adjusted operating income. Mobile Solutions net sales edged up 1.4% to $63.1 million, with adjusted income from operations of $1.3 million, affected by softness in China automotive volumes.
How is NN, Inc. progressing toward its long-term financial goals?
Based on Q1 2026 performance and its updated outlook, NN, Inc. now estimates that long‑term 2030 financial targets will be achieved in 2029. Management cites successful diversification into Electric Grid & Data Center, Defense & Electronics, and Medical, alongside a lower‑cost operating footprint, as drivers.