NN NASDAQ: NNBR reported third-quarter 2026 net sales of $131 million, up 26% from the prior-year period, while adjusted EBITDA increased 50% to $18.5 million. Management attributed the gains to higher selling prices, increased volumes, improved sales mix and operating performance.
For the first nine months of 2026, net sales rose 19% to $378.3 million and adjusted EBITDA increased 40% to $50.6 million. The company also raised its full-year outlook for sales, adjusted EBITDA and new-business awards.
Margins Expand as Sales Rise
Chief Financial Officer Chris Bohnert said third-quarter adjusted gross margin dollars increased 30% year over year to $25.3 million. Adjusted gross margin was 19.3%, up 50 basis points from the prior-year quarter. Year-to-date adjusted gross margin was 19.7%, an increase of 130 basis points.
Third-quarter adjusted EBITDA margin expanded 220 basis points to 14.1% of sales. For the first nine months, adjusted EBITDA margin was 13.4%, compared with 11.4% in the same period of 2025.
“This growth was primarily driven by improved sales mix, better operating performance, and higher income from our joint venture in China,” Bohnert said of the quarterly EBITDA increase.
Management noted that the company continues to operate in an inflationary raw-material environment, particularly for precious metals. Bohnert said price recoveries can lag increases in metal costs, which can temporarily pressure profitability.
Segment Results
- Power Solutions: Quarterly sales increased 41% to $63.2 million. The segment’s adjusted EBITDA rose 51% to $13.4 million, while adjusted EBITDA margin reached 21%. Higher volumes, selling prices and cost-reduction initiatives supported the results.
- Mobile Solutions: Quarterly sales increased 15% to $68.2 million, driven primarily by higher volumes and favorable foreign exchange effects. Adjusted EBITDA rose 31% to $8.8 million, and adjusted EBITDA margin expanded 150 basis points to 12.9%.
President and CEO Harold Bevis said all of NN’s end markets grew during the first nine months of the year. He identified data center and grid infrastructure, defense electronics, medical products and higher-value vehicle components as key components of the company’s growth strategy.
NN secured $106 million in new business awards during the first nine months of 2026 and said it is launching more than 150 programs this year that management estimates are worth $100 million in annual sales.
Data Center, Defense and Medical Initiatives
Bevis said data center and grid sales totaled $87 million on a trailing 12-month basis through the third quarter. The company reported a quoted pipeline of approximately $100 million in that area. Data center sales alone were running at about $35 million, compared with “virtually zero” at the beginning of the prior year, according to Bevis.
The company is expanding production of liquid-cooling connector components for data centers. NN averaged 19 installed and commissioned machines during the third quarter and expects to have 55 machines in operation during the first quarter of 2027. Its longer-term objective is 180 machines. Bevis said the company is adding capacity in China and North Attleborough, Massachusetts, while shipping data-center products from four facilities globally.
In defense electronics, NN reported trailing 12-month sales of $62 million and $10 million in wins during the year, with a quoted opportunity pipeline of $85 million. Bevis said the company registered plants to ITAR and ATF standards, won titanium firearm-component programs and began ramping a munitions contract for the Department of Defense, NATO and the U.S. Marine Corps.
NN’s medical business represented $13 million in sales, with an $85 million quoted pipeline, management said. The company has received initial purchase orders for components used in robotic orthopedic surgery from a large medical-equipment manufacturer after obtaining customer-specific plant certifications.
Balance Sheet and Raised Outlook
NN reduced total net debt and preferred stock to $139 million on a third-quarter pro forma basis, from $261 million at the end of 2025. The company eliminated its remaining preferred stock obligations following a PIPE transaction that redeemed $35 million of preferred stock at a $5 million discount.
Bohnert said the transactions eliminated preferred stock obligations that dated to 2021 and provided additional flexibility to pursue the company’s growth strategy.
The company raised its 2026 guidance as follows:
- Net sales: $480 million to $500 million, up from prior guidance of $460 million to $480 million.
- Adjusted EBITDA: $64 million to $68 million, up from $55 million to $65 million.
- New business wins: $110 million to $130 million, up from $80 million to $100 million.
The outlook assumes current base-metal costs and foreign exchange rates remain relatively stable, Bohnert said. NN also outlined longer-term targets of approximately $625 million in revenue and $87 million in adjusted EBITDA by 2029, based on the midpoint of its current 2026 guidance.
During the question-and-answer session, Bevis said NN is evaluating further reductions in lower-margin automotive business while pursuing higher-margin opportunities. He said some equipment used in automotive production could be repurposed for growing categories, including defense and munitions.
About NN (NASDAQ:NNBR)
NN, Inc NASDAQ: NNBR is a diversified industrial manufacturer that produces highly engineered components and assemblies for customers in the automotive, electrical, industrial, aerospace, and medical markets. Its products are designed for applications that require precision, durability, and consistent performance.
The company's manufacturing capabilities have included precision machining, metal forming, plastic injection molding, and the production of complex assemblies. NN, Inc has supplied components used in systems such as automotive powertrains, electrical and industrial equipment, medical devices, and other specialized products.
Founded in 1980 as NN Ball & Roller, the company expanded beyond its original bearing-component operations through acquisitions and later adopted the NN, Inc name.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider NN, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NN wasn't on the list.
While NN currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
