NN, Inc. reported higher third-quarter sales and adjusted profitability, while its GAAP operating loss widened. The maker of precision components also raised its 2026 outlook again and said it had secured $130 million in annualized new-business awards over the past 12 months.
The company attributed its increased financial flexibility to a preferred-stock payoff and equity raise completed during 2026. It also said new-business wins are coming at a faster pace as it shifts its portfolio toward higher-growth, higher-value markets.
Third-quarter performance
- Sales rose 26.2% to $131.1 million from $103.9 million a year earlier.
- Adjusted EBITDA increased 49.7% to $18.5 million, and its margin expanded 2.2 percentage points to 14.1%.
- Adjusted gross margin grew 29.5% to $25.3 million, with the margin rising 0.5 percentage points to 19.3%. On a reported basis, gross margin increased 4.6% to $18.3 million.
- Adjusted operating income was $8.5 million, up $4.4 million from a year earlier. In contrast, the GAAP operating loss widened to $3.3 million from $2.2 million.
- The GAAP net loss narrowed to $4.6 million, an improvement of $2.1 million. Adjusted net income was $5.3 million, up $5.6 million from the prior-year quarter.
Growth plans and outlook
- NN said it secured $130 million of annualized new-business awards in the 12 months ended September 30. A significant portion has not yet entered the company’s current revenue run-rate, and NN said it is now winning more than one new program per day.
- The company said its five-pillar growth program is guiding a shift toward higher-growth, higher-value markets and products. It identified data centers as its top targeted end market and one of its fastest-growing areas.
- NN raised its 2026 outlook again. The announcement provided here does not specify the updated forecast figures.
- NN said the preferred-stock payoff and equity raise have eased constraints imposed by its capital structure and given it more flexibility to pursue growth and improve business performance.
NN also posted a third-quarter investor presentation ahead of its October 29 conference call.