NN Third-Quarter 2026 Sales Rise 26.2%

The Tip Desk · October 28, 2026 · 4 min read

Third-quarter sales reached $131.1 million, up 26.2%, as the company forecast 2026 net sales of $480 million to $500 million.

NN, Inc. (NNBR), an entrepreneurial manufacturer of high-precision components and assemblies, reported third-quarter 2026 net sales of $131.1 million, up 26.2% from a year earlier.

Year-over-year sales growth accelerated from 19.3% in the second quarter and 12.1% in the first. The company said the increase was driven primarily by higher selling prices that passed through increased raw-material costs, higher volumes, and favorable foreign-exchange effects.

Adjusted EBITDA rose 49.7% to $18.5 million, after 36.1% growth in the second quarter. Adjusted EBITDA margin expanded 220 basis points year over year to 14.1%. Adjusted income from operations was $8.5 million. Adjusted net income was $5.3 million, or $0.07 a share, versus an adjusted net loss of $0.3 million, or $(0.01) a share, a year earlier.

GAAP results told a different story on the operating line. Loss from operations widened to $3.3 million from a $2.2 million loss a year earlier, reversing a swing to $1.0 million of income from operations in the second quarter. The company attributed the decline primarily to higher labor costs from adding headcount to support new business and higher professional fees tied to strategic initiatives. GAAP net loss narrowed 31.3% to $4.6 million, which the company said was driven primarily by a gain related to a favorable tax ruling in Brazil and higher income from its joint venture in China.

Power Solutions, the stamped and plated products segment, was the faster-growing business. Net sales there rose 40.6% to $63.2 million. GAAP income from operations increased 69.4% to $9.2 million, and adjusted income from operations rose 53.1% to $12.4 million. The company said the sales increase was driven primarily by higher selling prices, increased volumes, and favorable foreign-exchange effects, with the operating gain due to higher prices and volumes, partially offset by higher material and labor costs.

Mobile Solutions, the machined products segment, posted net sales of $68.2 million, up 15.3%. GAAP loss from operations widened to $6.3 million from $2.9 million. The company said the increase was primarily due to higher costs from volume increases, increased labor costs from the start-up of new programs, material-cost increases, and facility costs. Adjusted income from operations including the China joint venture rose 75.2% to $4.0 million.

During 2026 the company completed a multi-step balance-sheet transformation. It paid off all preferred stock through several debt-for-equity transactions over the last four months and raised strategic capital, totaling $143 million of capital transactions, after paying off approximately $89 million of preferred stock in the second-quarter refinancing. President and Chief Executive Officer Harold Bevis said the company had been severely constrained by its capital structure for multiple years and now has the financial flexibility to accelerate and optimize results.

On a trailing 12-month basis ended September 30, 2026, NN said it had secured $130 million of annualized new business awards, a significant portion of which is not yet reflected in run-rate, and that it is winning more than one new program per day. The Data Center pipeline, described as the company’s top targeted end market, grew to $66 million, including liquid-cooling components for next-generation chip designs. The company said it is installing over 50 new machines dedicated to that market through the first quarter of 2027.

A cost-out program is on track to deliver $12 million through 335 projects globally, which the company said are not yet fully reflected in run-rate results. In 2026 it expects to launch more than 150 new programs worth approximately $100 million in peak annual sales. Working capital performance was 16.5% to 16.7% of sales over the trailing six months.

NN outlined its 2026 guidance ranges. Net sales are expected to range between $480 million and $500 million, a $68 million improvement over 2025, or 16% growth at the midpoint. Adjusted EBITDA is expected to range between $64 million and $68 million, a $17 million improvement over 2025, or 35% growth at the midpoint. New business wins are expected to range between $110 million and $130 million, a $50 million improvement over 2025, or 71% growth at the midpoint, after second-quarter guidance of $80 million to $100 million. Chief Financial Officer Chris Bohnert said full-year 2026 guidance reflects year-to-date results and momentum in targeted growth markets.