The strong Q1 beat and upward guidance revision confirm the portfolio shift toward higher-growth markets is gaining traction. Watch for continued momentum in Electric Grid & Data Center wins and margin expansion toward 20% adjusted gross margin and 13% adjusted EBITDA margin targets. Monitor Q2 for confirmation of the raised guidance trajectory.
Price Chart
Executive Summary
NN, Inc. reported Q1 2026 net sales of $118.5M (+12.1% YoY) and adjusted EBITDA of $14.1M (+33% YoY), both exceeding expectations. The company raised full-year 2026 guidance for net sales ($450-$470M), adjusted EBITDA ($52-$62M), and new business wins ($80-$90M), driven by strong growth in Electric Grid & Data Center and Defense & Electronics markets. Despite GAAP net loss widening to $6.8M due to non-cash derivative mark-to-market losses, the operational beat and upward guidance revision signal accelerating momentum in the portfolio transformation.
Key Financial Metrics
Key Facts
- Q1 2026 net sales of $118.5M, up 12.1% YoY from $105.7M
- Adjusted EBITDA of $14.1M, up 33% YoY from $10.6M
- Adjusted net income of $1.0M ($0.02/diluted share) vs adjusted net loss of $1.4M (-$0.03) in Q1 2025
- GAAP net loss of $6.8M ($0.25/share) vs $6.7M loss ($0.23/share) in Q1 2025, impacted by non-cash derivative mark-to-market losses
- Raised FY 2026 guidance: net sales $450-$470M (9% growth at midpoint), adjusted EBITDA $52-$62M (16% growth at midpoint), new business wins $80-$90M (14% growth at midpoint)
- Trailing twelve-month adjusted EBITDA of $52.6M, highest in approximately five years
- Power Solutions segment net sales up 27.3% to $55.4M; adjusted EBITDA up 65.1% to $10.4M
- Mobile Solutions segment net sales up 1.4% to $63.1M; adjusted EBITDA flat at $8.2M
- New business wins of $42.9M in Q1, up 83% YoY, concentrated in Electric Grid & Data Center
- Long-term goal attainment accelerated from 2030 to 2029
- Operating cash flow used $8.6M in Q1 2026 vs $3.3M used in Q1 2025
Financial Impact
Revenue beat of ~$11.9M vs $106.6M consensus; adjusted EBITDA beat of ~$3.5M vs implied; guidance raised by $10M at midpoint for revenue and $2M for adjusted EBITDA
Risk Factors
- GAAP net loss widened to $6.8M due to non-cash derivative losses, which could persist
- Operating cash flow negative $8.6M vs $3.3M negative in prior year, driven by working capital build
- Mobile Solutions segment growth remains tepid at 1.4% with China auto weakness
- High precious metal pass-through pricing may compress margins if commodity prices decline
- Total debt of $170.4M (including current maturities) vs equity of $26.1M, high leverage
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000918541-26-000034 |
| Document: nnbr-20260506.htm | 0000918541-26-000034 |
| Document: nnbrq126earningspresenta.htm | 0000918541-26-000034 |
| Document: 0000918541-26-000034-index-headers.html | 0000918541-26-000034 |
| Document: 0000918541-26-000034-index.html | 0000918541-26-000034 |
| Document: 0000918541-26-000034.txt | 0000918541-26-000034 |
| 8-K Data (Synthetic) | 0000918541-26-000034 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | EFFECT | $3.36 | awaiting T+60 | — | $3.36 (−0.00%) |
Oct 15, 2026 12d ago | Press Release | $3.41 | awaiting T+60 | — | $3.36 (−1.47%) |
Oct 13, 2026 14d ago | S-3 | $3.46 | awaiting T+60 | — | $3.36 (+2.75%) |
Oct 8, 2026 19d ago | 8-K | $4.01 | awaiting T+60 | — | $3.36 (−16.21%) |
Oct 5, 2026 22d ago | 8-K | $4.04 | awaiting T+60 | — | $3.36 (+16.83%) |
Sep 22, 2026 5w ago | Press Release | $3.86 | awaiting T+60 | — | $3.36 (−12.95%) |
Sep 22, 2026 5w ago | 8-K | $3.86 | awaiting T+60 | — | $3.36 (−12.95%) |
Aug 20, 2026 9w ago | 8-K | $3.81 | awaiting T+60 | — | $3.36 (−11.81%) |
Jul 31, 2026 12w ago | 8-K | $3.31 $3.36 | ▲ +1.51% | ▼ −0.94% | $3.36 (+1.51%) |
Jul 22, 2026 13w ago | EFFECT | $3.45 $3.49 | ▼ −1.16% | ▲ +2.10% | $3.36 (+2.61%) |
US Market Status
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