NN Q2 profit beats analyst expectations on new business launches

NN

05/08/2026 22:18

Overview
US industrial components maker's Q2 revenue rose 19%, beating analyst expectations
Adjusted EPS and adjusted EBITDA for Q2 beat analyst expectations
Company raised 2026 sales and adjusted EBITDA guidance and completed $89 mln preferred stock refinancing

Outlook
NN raises 2026 net sales guidance to $460 mln-$470 mln, up 10% at midpoint over 2025
Company lifts 2026 adjusted EBITDA guidance to $55 mln-$65 mln, 22% growth at midpoint
NN expects 2026 new business wins of $80 mln-$100 mln, up 29% at midpoint over 2025

Result Drivers
NEW BUSINESS LAUNCHES - Co said revenue growth was primarily driven by contribution of new business launches
HIGHER PRECIOUS METALS PRICING - Higher precious metals pass-through pricing contributed to increased sales, especially in Power Solutions
5 PILLAR GROWTH PROGRAM - Co attributed material results to its 5 Pillar growth program, with new wins in Data Center, Medical, and Defense

Company press release: ID:nGNXbyHXkc

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$128.70 mln
$116.09 mln (4 Analysts)
Q2 Adjusted EPS
Beat
$0.11
-$0.003 (3 Analysts)
Q2 Adjusted Net Income
Beat
$5.50 mln
$276,670 (3 Analysts)
Q2 Net Loss
 
$2.30 mln
 
Q2 Adjusted EBITDA
Beat
$17.90 mln
$13.64 mln (4 Analysts)
Q2 Adjusted Income from Operations
 
$8.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for NN Inc is $6.00, about 55.8% above its August 4 closing price of $3.85
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
Aug 4 - Mayville Engineering Q2 revenue beats estimates on Datacenter & Critical Power growth
Aug 4 - AMETEK beats Q2 sales and adjusted EPS estimates, raises 2026 outlook
Aug 4 - Ascent Industries Q2 net sales rise 38%, adjusted EBITDA turns positive

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)