NN Raises 2026 Sales and EBITDA Outlook After Sales Acceleration

The Tip Desk · October 27, 2026 · 3 min read

Second-quarter net sales reached $128.7 million, up 19.3% from a year earlier, as the company lifted full-year sales guidance, with the earnings release listing $460 million to $470 million and the presentation listing $460 million to $480 million.

NN, Inc. (NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, reported second-quarter net sales of $128.7 million, up 19.3% from $107.9 million a year earlier, faster than the 12.1% increase recorded in the first quarter.

The Charlotte, North Carolina-based company said the year-over-year increase was driven primarily by new business launches, higher precious-metals pass-through pricing, higher volumes and favorable foreign-exchange effects. Adjusted EBITDA rose 36.1% to $17.9 million, and the adjusted EBITDA margin expanded 170 basis points to 13.9%. Adjusted gross margin percentage widened 80 basis points to 20.3%.

GAAP income from operations was $1.0 million, compared with a $1.5 million loss a year earlier. The company said the swing reflected improved operating performance and sales mix, partially offset by higher depreciation and amortization. Adjusted net income was $5.5 million, or $0.11 a share. The GAAP net loss narrowed to $2.3 million from $8.1 million a year earlier, which the company attributed primarily to improved operating performance and the absence of a $3.0 million loss on extinguishment of debt recorded in the second quarter of 2025.

Power Solutions, the stamped-products segment, was the growth engine. Net sales there increased 39.5% to $62.3 million, and GAAP income from operations rose 56.5% to $9.0 million. The company said the increase was due primarily to higher precious-metals pass-through pricing and higher volumes. Mobile Solutions, the machined-products segment, posted net sales of $66.6 million, up 5.0%. GAAP loss from operations widened to $1.9 million from $1.1 million, which the company said was due primarily to higher costs associated with plant mix. Adjusted income from operations in Mobile Solutions, including the joint venture, rose to $4.9 million.

The 5 Pillar growth program delivered about $40 million of new wins in Data Center, Medical and Defense in the quarter. The company said it is on pace to install about 50 new machines during 2026 and has a $50 million-plus growing pipeline in Data Center. July year-to-date new business awards exceeded 100 programs valued at about $80 million a year. President and Chief Executive Officer Harold Bevis said the second half of 2026 is expected to reflect continued momentum.

NN raised its full-year 2026 outlook for a second consecutive period. The earnings release said net sales are now expected to range from $460 million to $470 million, 10% growth at the midpoint versus 2025, compared with prior guidance of $450 million to $470 million; the Q2 presentation instead lists the new sales range as $460 million to $480 million. Adjusted EBITDA is expected to range from $55 million to $65 million, 22% growth at the midpoint, versus a prior range of $52 million to $62 million. New business wins are expected to range from $80 million to $100 million, 29% growth at the midpoint, versus a prior range of $80 million to $90 million.

Chief Financial Officer Chris Bohnert said the company is again revising guidance ranges, supported by year-to-date results and immediate-supply business in Data Center, Defense and Medical.

After the quarter closed, NN completed a $124 million preferred-stock refinancing. The company said it paid off about $89 million of preferred stock, including a $70 million cash payoff from a PIPE transaction and $19 million through equitization to common stock, and that annual PIK interest was reduced by about $13 million. About $35 million of remaining preferred stock carries a 10% PIK interest rate for one year, with a $5 million discount if refinanced by Dec. 31, 2026. Bevis said the company has a goal to refinance the current securities and convert NN to normal credit statistics.