NN earnings for the third quarter of 2026 showed sales rising 26.2% to $131.1 million, while the precision-components manufacturer raised its full-year outlook. The company also reported a narrower net loss, although its operating loss widened.

Key Takeaways

  • Adjusted EBITDA increased to $18.5 million from $12.4 million a year earlier.
  • NN now expects 2026 sales of $480 million to $500 million and adjusted EBITDA of $64 million to $68 million.
  • The company reported $130 million in annualized new business awards over the 12 months ended September 30.

NN earnings and third-quarter results

For the quarter ended September 30, sales rose from $103.9 million a year earlier. NN attributed the increase primarily to higher selling prices, including the pass-through of higher raw material costs, as well as higher volumes and favorable foreign exchange effects.

The operating loss widened to $3.3 million from $2.2 million. NN said the decline primarily reflected higher labor costs from hiring to support new business and higher professional fees tied to strategic initiatives.

Net loss improved to $4.6 million from $6.7 million, primarily because of a gain related to a favorable tax ruling in Brazil and higher income from NN’s joint venture in China. Adjusted net income was $5.3 million, compared with an adjusted net loss of $0.3 million a year earlier.

Adjusted EBITDA, a non-GAAP measure, rose 49.7% to $18.5 million. NN attributed the increase primarily to improved sales mix and operating performance, along with higher income from the China joint venture.

ItemDetails
2026 net sales guidance$480 million to $500 million
2026 adjusted EBITDA guidance$64 million to $68 million
2026 new business wins guidance$110 million to $130 million

Full-year guidance moves higher

On October 28, NN raised its 2026 guidance for sales, adjusted EBITDA and new business wins. It did not provide the previous ranges in the supplied results. The updated figures are management forecasts, not completed full-year results.

At the midpoint of its sales range, NN expects a $68 million increase from 2025. Its adjusted EBITDA forecast implies a $17 million increase at the midpoint.

New programs and data-center investment

NN said a significant portion of its $130 million in annualized awards over the trailing 12 months was not yet reflected in its run-rate results. It expects to launch more than 150 new programs in 2026, worth approximately $100 million in peak annual sales.

The company said it was installing more than 50 machines dedicated to the data-center market through the first quarter of 2027. Its $66 million data-center pipeline includes liquid-cooling components for next-generation chip designs. NN describes its data center components as precision-engineered metal and plastic products for infrastructure.

NN also said it had completed a series of balance-sheet transactions, including paying off its preferred stock and raising capital. CEO Harold Bevis said the company would provide more detail on 2027 after completing its business planning process.

Next milestone

NN scheduled its quarterly investor call for October 29, 2026, at 9 a.m. ET.

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