NNBR

NN’s second quarter was marked by strong year-over-year revenue growth and significant outperformance on adjusted profitability versus Wall Street expectations. Despite the negative market reaction, management attributed the quarter’s results to robust new business wins across its targeted verticals, including data center electric grid, defense electronics, and medical products. CEO Harold Bevis emphasized that the company’s diversification strategy is taking hold, with non-automotive end markets now representing roughly a third of total sales. The quarter also featured meaningful improvements in gross margins, driven by favorable product mix and efficiency gains from earlier cost initiatives. Is now the time to buy NNBR? Find out in our full research report (it’s free). Revenue: $128.7 million vs analyst estimates of $116.1 million (19.3% year-on-year growth, 10.9% beat) Adjusted EPS: $0.05 vs analyst estimates of $0.01 (significant beat) Adjusted EBITDA: $17.94 million vs analyst estimates of $13.91 million (13.9% margin, 29% beat) The company lifted its revenue guidance for the full year to $465 million at the midpoint from $460 million, a 1.1% increase EBITDA guidance for the full year is $60 million at the midpoint, above analyst estimates of $56.5 million Operating Margin: 0.8%, up from -1.4% in the same quarter last year Market Capitalization: $192.6 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Robert Brown (Lake Street Capital Markets) asked about the data center pipeline scale and product focus. CEO Harold Bevis described a multiproduct approach, with a "large expanding pipeline" nearing $100 million in prospecting, and emphasized NN’s growing role in cold plates and transformer parts. Greg Palm (Craig-Hallum) questioned when new business wins would impact financials. Bevis clarified that "the announcements we made...are not impacting the first half at all," and production ramp-ups will begin contributing in the second half. George Proost (NOBLE Capital, for Joe Gomes) inquired about the timeline for capacity expansion in China. Bevis explained that NN is seeking space for 200 additional machines, aiming to secure facilities within 12 months to support growth. Barry Haimes (Sage Asset Management) asked about the impact of refinancing on share count and future debt plans. CFO Chris Bohnert detailed the preferred-for-common swap and ongoing efforts to renegotiate term loans, with a focus on lowering rates and increasing flexibility. Robert Sussman (Bentley Capital) sought insight into NN’s hit rate on new business. Bevis reported a 27% win rate on closed opportunities, attributing it to disciplined pricing and expanding credentials in growth markets. Over the next few quarters, the StockStory team will be monitoring (1) the pace and scale of new business ramp-ups in data center, defense, and medical verticals; (2) execution of capacity expansion, especially in China, to ensure NN can meet rising demand; and (3) progress on further balance sheet optimization, particularly refinancing of term loans to support growth. The ability to sustain margin improvements amid material cost volatility will also be a key area of focus. NN currently trades at $3.74, down from $3.90 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Investor Relations - Joseph Caminiti President and Chief Executive Officer - Harold Bevis Senior Vice President and Chief Financial Officer - Christopher Bohnert Operator: Hello, everyone. Thank you for joining us, and welcome to the NN, Inc. Second Quarter Earnings Call and Webcast. [Operator Instructions] I will now hand the conference over to Joseph Caminiti, Investor Relations. Joseph, please go ahead. Joseph Caminiti: Thank you, Christine. Good morning, everyone, and thanks for joining us. I'm Joe Caminiti, with NN Inc.'s Investor Relations team, and I'd like to thank you for attending today's earnings call and business update. Last evening, we issued a press release announcing our financial results for the second quarter ended June 30, 2026, as well as a supplemental presentation, which has been posted on the Investor Relations section of our website. If anyone needs a copy of the press release or the supplemental presentation, you may contact Alpha IR Group at [email protected]. Joining us today from NN management are Harold Bevis, President and Chief Executive Officer; and Chris Bohnert, Senior Vice President and Chief Financial Officer. Please turn to Slide 2, where you'll find our forward-looking statements and disclosure information. Before we begin, I'd like to ask that you take note of the cautionary language regarding forward-looking statements contained in today's press release, supplemental presentation and in the Risk Factors section in the company's annual report on Form 10-Q for the fiscal second quarter ended June 30, 2026. The same language applies to the comments made on today's conference call, including the Q&A session as well as the live webcast. Our presentation today will contain forward-looking statements regarding sales, margins, inflation, supply chain constraints, foreign exchange rates, tax rates, acquisitions and divestitures, synergies, cash and cost savings, future operating results, performance of our worldwide markets, general economic conditions and economic conditions in the industrial sector, including the potential impacts and ramifications of tariffs, the impacts of pandemics and other public health crises or military conflicts, all on the company's financial condition and other topics. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside of the company's control, which may cause actual results to be materially different from such forward-looking statements. The presentation also includes certain non-GAAP measures as defined by SEC rules. A reconciliation of such non-GAAP measures is contained in the tables in the final section of the press release and the supplemental presentation. Please turn to Slide 3, and I will now turn the call over to our CEO, Harold Bevis. Harold? Harold Bevis: Thank you, Joe. Good morning, everybody. I would like to announce that we had a really good strong second quarter. It was consistent with our first quarter. We arranged some looks here for you on Q2 and the first half, and you can see that it's pretty consistent. Our results show significant growth across the business and the first half finished ahead of our expectations. Our second quarter sales increased 19% year-over-year. Our second quarter adjusted EBITDA increased 36%. In our first half EBITDA increased 35%. And in the first half, we were able to secure $65 million of new business awards. So we had profitable growth achieved across both of our reporting segments. And then subsequent to the end of the quarter, we had a significant strategic development wherein we completed and announced the retirement of $89 million of preferred stock as part of a multi-leg refinancing. Knowing that's one of the big events that we want to talk about today, I want to address it right upfront with Chris, and we're going to turn it over here to Chris to discuss the refinancing on the next page. Christopher Bohnert: Thank you, Harold. Good morning, everyone. I'll begin my remarks on Slide 4. For those of you who have been following along on our progress, you know we've been working hard in the background to improve and optimize our capital structure. We spent the last 2 quarters alongside our strategic advisers comprehensively assessing the potential options available to address the preferred stock. We concluded that this was the best path to creating a capital structure that allows more of the value we have created through our transformation to accrete to common equity holders and to better position the company to capitalize on the growth we are generating through our commercial programs. As we previously announced back in July, we successfully raised $75 million of capital through a PIPE transaction, bringing multiple new investors into our investor base. This effectively expanded the optionality for how we could strategically address capital structure overhang, namely through the preferred equity security. Last evening, we announced that NN successfully completed $124 million refinancing transaction to address the preferred. This is a significant strategic and financial milestone for the company as we are largely out from under the structure that NN entered back when the company was experiencing stress in its business and financial performance. I'll take a moment to walk through the details of this multi-legged transaction. First, we utilized cash from the recent PIPE transaction to materially delever the company's balance sheet. We used the $70 million of cash to redeem a large portion of the outstanding preferred equity. Second, we equitized roughly $19 million of preferred into NN common stock. Third, the remaining stub of preferred equity of approximately $35 million in total will now carry a lower PIK interest rate of 10% for 1 year, significantly below the previous rate of 14.5%. Additionally, the remaining pref will be discounted by $5 million if we pay off or refinance it by December 31, 2026. This successful transaction has materially delevered NN and annual PIK interest will be reduced by approximately $13 million. This transaction did not impact our existing term loan. However, we expect to have a greater degree of optionality on how we address existing other debt and the refinance of our term loan when it makes sense strategically and financially. You'll hear Harold discuss NN's 5-pillar growth strategy shortly, but achieving this refinancing was a critical step in enabling the acceleration of our growth across the enterprise. This is a significant strategic win for the company and the value will now more comprehensively accrete to our business and our shareholder value creation. Now I'll spend some time walking through our financial performance for the business and its segments, beginning on Slide 5. Q2 net sales of $128.7 million were up $20.8 million or roughly 19% versus the prior year period, supported by growth across both segments. Further, Q2 net sales growth was driven by the contributions from new business launches, higher precious metals pass-through pricing, volume growth and slightly favorable FX translation. Over the first half of the year, net sales of $247.2 million are up $33.6 million or 16%, demonstrating a very strong start to the year and a continuation of our momentum from the first quarter. Our Q2 adjusted gross margin dollars of $26.1 million grew $5 million or 24% versus the prior year period. This growth was supported by a stronger mix of sales as a function of new business launches. Across the first half of the year, adjusted gross margin dollars of $49.2 million are up $10.3 million or 26%. These results reflect a very solid adjusted gross margin of 20.3% in the second quarter and 19.9% year-to-date, each displaying meaningful expansion as margins for the quarter and year-to-date have grown by 80 basis points and 170 basis points, respectively, compared to the respective periods a year ago. Second quarter adjusted EBITDA of $17.9 million grew by $4.7 million or 36% versus last year's second quarter. This increase is led by higher sales and improved mix and volume leverage from past cost improvement actions, partially offset by higher SG&A. Across the first half of 2026, total adjusted EBITDA of $32.1 million is up $8.3 million or 35% versus results of $23.1 million versus the first half of 2025. The first half growth in our profitability measure has been driven by similar drivers as noted in our quarterly results. Adjusted EBITDA growth has come with an improvement in our margins and second quarter adjusted EBITDA margins of 13.9% of sales expanded 170 basis points versus last year's second quarter. On a year-to-date basis, through the first 2 quarters of 2026, adjusted EBITDA margins of 13% are up 190 basis points versus the 11.1% in the first half of 2025. I'll now turn to our segments, starting on Slide 6. In our Power Solutions segment, where our business consists largely of scam products, net sales for the quarter were $62.3 million, up 40% compared to $44.6 million in the prior year period. This increase was driven by higher precious metals pass-through pricing and higher volumes. Across the first half of the year, Power Solutions net sales of $117.7 million grew 34% versus the first half of 2026 -- or 2025, sorry, driven largely by the same factors impacting the second quarter. Power Solutions adjusted EBITDA was $12.7 million, an increase of $3.6 million or 40% versus last year's second quarter of $9.1 million, driven by sales growth, improved mix from growth in targeted high-value end markets and contributions from ongoing cost-out initiatives. Additionally, the first quarter -- additionally, quarterly and first half adjusted EBITDA margins were 20% of net sales, up meaningfully versus the first half of 2025. Our next segment, Mobile Solutions on Slide 7 covers our Machined Products business. Net sales for the first quarter were $66.6 million compared to $63.4 million in last year's first quarter, an increase of $3.2 million or 5%. This segment has now delivered 2 consecutive quarters of net sales growth year-over-year. This sales growth reflected solid volumes from new program launches along with favorable foreign exchange impacts. Across the first half of the year, net sales of $129.7 million or up 3% versus $125.6 million in the first half of the prior year period. Our second quarter adjusted EBITDA in the Mobile Solutions segment was $9.8 million, up 13% versus last year's second quarter results of $8.7 million, with the segment's adjusted EBITDA margin of $14.7 million, expanding 100 basis points versus 13.7%. Adjusted EBITDA first half of the 2026 has seen a similar theme play out with $18 million at nearly 14% margin rate, improving versus $16.8 million or just over 13% of sales. With that, I'll turn the call back over to Harold. Harold? Harold Bevis: Thank you, Chris. I appreciate it. I wanted to talk a minute about our growth program and our portfolio objectives that we have. In the second quarter, we continued advancement in that regard, and automotive has now declined to about 40% of the company. Our ultimate goal is to have that be about 1/3, not really by shrinking, but by the other areas growing more quickly. And that is, in fact, happening. The top 3 growth markets that we're focused on are listed here, data center electric grid, defense electronics and medical products. We had decent wins in each of those 3 segments in the second quarter and year-to-date. And those areas now are over $150 million of our sales, about 1/3 of the company, and we have near-term targets to increase that percentage. And it obviously starts with prospecting and then bidding on new awards and then winning on close opportunities. And we've been winning at an above expectation rate and the highest rate that we've ever done. And our prospecting is expanding actually. And I wanted to give just some vignette updates on each one of these segments, turning to the next page, starting with just an overview of our 5-pillar program. The 5 components are the 3 areas I just mentioned, plus high-value vehicle parts where we have a curated portfolio that we attack in the commercial vehicle, recreational vehicle and passenger vehicle space, where we believe that it's very profitable and high return on investment for us and it helps us push our technology and then high-value stamping. So we have a few niches that we're in on the stamping side as well, and we're staying close to them. Many of them in the smart home area, smoke detectors, alarm systems, switches. So those are the 5 areas that we're focused on, on a go-forward basis, and that's how we've organized our sales team, our business development teams, our engineering, and we're allocating our capital to those areas as well. So on the next page, I want to dive down a little more deeply into data center electric grid. As seen on the prior page, it's an $80 million business already on a trailing 12-month basis with a near-term goal of $120 million. We have multiple large opportunities that we're evaluating in this space right now. Everyone knows that AI and data center is one of the biggest things happening in the world, and it's the biggest thing happening to our company. We are getting very large asks to us. We're a well-known precision metal part maker, and that finds itself in a lot of aspects of the data centers, especially with the liquid management regarding the cold plates as well as the pumps to make sure that system is good. But on the top end of the system is electrical, and that also plays into our electrical business, our stamping business and assemblies business. So it's our second largest market right now behind the high-value vehicle parts. But it's closing the gap. And our goal is to have it to be our largest segment. Recent news in the quarter that we gave out via a specific press release, we had some big wins here. We're focused on establishing supply chain positions with the right people and the right platforms, and it's expanding. We started off in Asia. It's now expanded to Europe and into North America. And we're leveraging our assets and technical know-how to have leakproof metal parts and also the aesthetic qualities are quite high on these parts as well, and we know how to do that. We have many ramp-ups underway. If you had a chance to look at our 10-Q, you'll note that in Note 3, we expanded the look into the end markets that we serve. And you'll notice that we don't have a lot of sales showing up yet in our machine products business for grid and data center and the wins that we've had are primarily going to be a second half ramp-up for us, and those ramp-ups are underway. We were -- and the third point here is we've secured significant new awards that will be ramping up into the beginning of '27. We already have about 50 machines, we're bringing online. We have about 25 in-house already. And we are running out of space. Tim French is not on the call today because he's in China, and he's looking at new space in the area of our -- one of our plants, Wuxi, we'd like to just be 10 or 15 minutes away. We need about another 100,000 square feet to accommodate the equipment that we're going to need. And this business is on track with expanding opportunities. On the next page, I wanted to talk about Defense & Electronics for a minute. That's already at $60 million on a trailing 12-month basis. Our near-term goal there is $90 million. We supply critical components in weapon systems, guided systems, and we're evaluating anti-drone munitions, making the munitions themselves for shooting down drones. Recent news we announced in the quarter was that we have secured a multiyear agreement to produce parts of weapons. And that alone is expected to be about another $12 million to $15 million just with that one customer, and we are ramping up now. We have many, many new firsts associated with that. It took us -- it's a multiyear project. We had a lot of advancements on surface coatings as well as mastering high-volume titanium machining. And if you don't know much about metal fabricating, titanium retains heat and swells and changes its dimensions as you're forming it. So there's a lot of things that get right to be able to do high-volume titanium machining, but we were able to master that after a few quarters. We're expanding our Defense & Electronics growth platform. We've won a bunch of programs over the last few years, but it's an expanding area for us. And we have a $75 million working pipeline. We've achieved a lot of credentials with the Department of Defense and ITAR and other types of certifications they need in order to compete here. And we have a very, very big aspiration in this area. It's not exploding in demand like data center is, but it's right behind it. And so we're opportunity-rich in this segment as well. And then on the next page, I wanted to talk about Medical. It's smaller than the others. It's about $15 million on a trailing 12-month basis. We have a near-term goal of $40 million, but it is coming from behind, and it's taken us a while to get the credentials that we needed here. It's very clean manufacturing required, as you would guess. It took us a while to get the plant certifications. The parts themselves are not that hard to make. But we did have some breakthroughs this year, and we are approved to make surgical tips, if you will, in the ends and pieces that go into the robotic machines to do surgery, and we received our initial purchase orders. And so we're underway with the ramp-up there in our Kentwood, Michigan plant. And we are -- we have had to renovate our quality system. It's taken a multiyear investment program from us. And we've done it. And that new business that we announced effectively will double the business itself, and it's upward from there. Our pipeline is now about $75 million in this area also. And we have a dedicated team who's found its stride, and we're now evaluating the market in China, the second largest market for robotic-assisted surgery, and we have all the approvals we need to go in with the exact same customers. So this business is gaining momentum for us, and we have a strong team in place, and we have high aspirations for our medical business. So with that in the next page, Chris gave you an overview of the really exciting and fundamental improvement we've done to our balance sheet with the refinancing, coupled with the growing business. We wanted to let you know that we're raising our guidance for this year. And if you look at it, we raised it in the last quarter also due to our actual results, and we were asked about how we think about our guidance. And really, we're letting the results flow before we're changing our outlooks, and we're doing it again here. So we do expect our sales to be $460 million to $480 million this year, our EBITDA $55 million to $65 million and our new business wins $80 million to $100 million. In our earnings release that we put out this morning, you'll see that through July, our new business wins are already $80 million. So we increased the high end of the range there and the expectations. And those are all records for us, and they're bringing along the need for talented people. And also capital equipment to put in place to be able to produce at a higher level as we add to the capacity. So that's our new guidance, and we're very happy about it. And as events unfold, we'll look at our guidance further as we go along through the second half of the year. With that, we'd like to turn it over and open up the webcast to a question-and-answer period. Operator: [Operator Instructions] Our first question comes from the line of Rob Brown with Lake Street Capital Markets. Robert Brown: Congratulations on all the progress and great to see the steps that have been taken. Just wanted to follow up on the kind of start with the data center market. You've had some nice wins in the quarter. Could you kind of characterize the pipeline in that market? What's sort of the building pipeline? What areas are you most interested in? And just maybe the scale of the pipeline? Harold Bevis: Yes. That's Christine at page 10 in the deck. So -- our products right now, Rob, we're making transformer parts, busbar parts, test probes, the liquid connector parts. We branched into the cold plate itself, plating of the cold plate, it actually is plated with a nickel kind of plating. And we are looking at couplings that go into the heat pumps. The heat pump system itself, there's a lot of well-known people in that area, Danfoss, Parker and Stäubli kind of well-known fluid management people and all the couplings are also metal. So we are looking at the stampings that are also inside that go into the racks, both up and down and as well as the WICs and cabling that controls the electricity inside of the center. So we have a multiproduct look at the data center ecosystem. But basically, we're focused in on our core markets. We're getting pulled into a few new areas of welding and brazing, and that's fine because we know how to do that, and then you have to be able to automate it. So it's not a one-product story. It's to bring everything the company has to the game plan story. And we have a large expanding pipeline on this chart here at the bottom, I mentioned that we're now approaching $100 million on prospecting. And just to delineate that, we talk about pipeline figures if we rendered an RFQ and it's -- and the customer has an RFQ from us. But prospecting begins before that. So we have discussions underway that are large. And in our last call, someone asked, how big are you trying to get in these connectors. And we think we could do $100 million in that alone over time. The real thing for us is who to partner with, what type of assets do we want to put in place, where do we want to put them. So it's an evolving market for us. And it's quite fulsome. It's quite fulsome. It's a big story for us. Robert Brown: Great. And just on the kind of the gross margin improvement, nice to see there. How do you sort of see it? Is it sustainable at this level? Or can you continue to move that up as you change your product mix? Harold Bevis: Yes. Chris, do you want to take that? Christopher Bohnert: Sure, sure. Thanks, Rob. Yes. So we've benefited in a lot of areas with our margins. We took a lot -- as you know, Rob, we took a lot of cost out over the last 8 quarters or more. So we've got some leverage based on the overall cost structure reduction. Additionally, we've got new business ramp-ups. We talked in the past quarters about those new business pieces are accretive. We are benefiting from higher precious metals pass-through as well. I think the dependencies on the improvements going forward are going to be just more new business brought on at accretive levels, dependency on precious metals and then getting in these new business segments like medical and data center. If we keep diversifying in these other verticals, I think you'll see margins moving up. Obviously, precious metals can drag it down a little bit in the near term if prices come down. But I think overall, we've got some tailwinds with these new verticals. And so keep an eye on these verticals and the revenue they're generating as well as new business, and I think that will help guide the margins going forward. Operator: Your next question comes from the line of Greg Palm with Craig-Hallum. Greg Palm: Congrats on all the positive news and frankly, just really impressive progress. So pretty impressive stuff. Can we maybe just start a little bit time to the last kind of answer around new business wins. And I'm wondering, at this point, how much of that is currently flowing through the P&L? It sounds like there's actually a pretty big chunk that's still yet to come, at least on the stuff that you've announced, the liquid cooling connectors, the firearms accessories. I think you talked about that ramping up in Q3. I only ask in light of really positive first half results, it's -- I'm guessing you're just maybe building some extra conservatism in the second half guide, but maybe you can just address that as those -- some of these newer business opportunities start to ramp up. Harold Bevis: Yes. Good point. So Greg, if all things being equal, if we weren't winning new business and things were just steady state, the second quarter usually is our strongest quarter. That's when we have our highest production volumes on existing contracts. And then the next quarter is Q3 and then Q1 and then Q4. So Q4 is usually our lightest quarter just because our customers are big and they try to free up their balance sheet and inventory positions before they report their year-end results. This year is going to be a little different because we have a lot of new wins that we're ramping up in the second half. And your posit is true. The announcements we made, all 3 of them, Medical, Data Center, and Defense, they are not impacting the first half at all. So they ramp up in the second half. For instance, the 50 machines to make data center parts will start to hit stride in November. We'll have all the machines installed in and the sales outlook in November is going to go over $1 million a month and keep building into Q1. We don't have any benefit from that right now and the same with Medical and the same with Defense. So through the end of July, we won $80 million worth of business. And the majority of it is immediate ramp-up. So we will benefit from that in the second half. And so the way we're playing it right now, Greg, is we know that Q4 is usually light, but we have offsetting wins. So that's what's led us to think through our guidance and how much to increase it or not. It -- you're right that it's slightly conservative, but we don't really control our demand. So we have to get pull signals. So our visibility is really in this quarter. We don't have pulls going into the fourth quarter yet with the exception of data center, where basically they're saying we want everything to make as soon as we can make it. But we're comfortable right now with the guidance that we've given, Greg, and it will have those variables playing out. Greg Palm: Yes. Okay. Makes sense. And I know you're not addressing the longer-term EBITDA margin guidance here today, but you just realized a 14% EBITDA margin on the quarter on revenue that's significantly lower than what your long-term target is on a quarterly basis. So I don't know, maybe you could just talk about that in light of those targets because it seems like there could be some pretty meaningful upside to that as well. Harold Bevis: Well, we have -- the business is definitely going to the next level right now, and it looks sustainable. And to Chris' point, we're mapping out the metal and every part of our cost structure and that sort of thing. So it's looking like we're a couple of points light right now, Greg. It looks like the goal is more like 14% to 16% longer term, if you're talking about the adjusted EBITDA margin. And that's really going to be pulled through by a better mix. So the mix of the products is going to drive that. And we're still maintaining about 5 points higher on gross margins on our new wins versus the existing. And we'll -- that's a good point. I think in our next update, Greg, we'll give an update on the longer-term goals. But I would say right now, you're right, our longer-term guidance should be more like 14% to 16% on adjusted EBITDA. Operator: Your next question comes from the line of Joe Gomes with NOBLE Capital. Unknown Analyst: This is George Proost. I'm filling in for Joe this morning. Congratulations on the quarter. I'm curious about the manufacturing expansion you guys mentioned earlier in China and what that looks like in terms of production and time line to hopefully bring that online? Harold Bevis: Right now, we have 2 facilities in China that are wholly owned, what's called locally as WFOE's wholly owned foreign entities. And then we have one JV plant. And the machining plant is in Wuxi, China, which is a suburb of Shanghai. And that's the plant where we have been doing all of the sampling for all of the data center customers that we're prospecting with, and it's where we have our approvals. So we kind of chose that location to get our certifications, approvals and equipment organized. We believe we can get in about 80 machines into that facility. We've already ordered 50. We're getting ready to order the next batch. As we think it through, we think that we need space for at least another 200 machines from our estimates. And the timing is hard to understand right now because everyone is kind of in a feeding frenzy to get equipment lined up, parts lined up, parts supply. And so the size of the facility that we're looking for would be a facility that can accommodate another 200 machines after we have filled up our current envelope. And the timing, you mentioned the timing. We need to get this done by -- within 12 months. Unknown Analyst: Okay. Thank you for a little background on that. A follow-up is, so what materials are the most volatile for you guys right now? And where are you -- is that altering any of your sourcing decisions? Harold Bevis: Yes. So there's tonnage and then there's dollar value. You're probably wondering about the dollar value. The biggest dollar value of materials is precious metals, gold and silver. The biggest tonnage is steel and then copper. So we have year-over-year inflation in all metals, and we track it. And we also have tariffs on steel, and we track that. I do not believe there are any tariffs on gold or silver. And so we have our procurement team, and we have a Chief Procurement Officer, and he's very knowledgeable on all the tariffs and surcharges that are underway right now, and it's a moving target. But we have the right to pass through basis cost changes, and we do, and we monitor our behavior there. And so we don't -- we see full recovery. So we don't make money on it, but we try not to lose money on it. It impacts working capital when you have inflation. It actually makes our percent go down. Greg was asking about percentages of EBITDA margins on a go-forward basis. They're being negatively impacted right now by having such high metal pass-through costs. So kind of a secret good thing here is that our percentages are going up even while passing through a big cost at 0. So when I answered Greg's question, I was thinking through the outlook for metals over time, and they are to calm down, which will also help our percentages. So those are the main -- the metals are our main raw materials of company. Operator: Your next question comes from the line of Barry Haimes with Sage Asset Management. Barry Haimes: Congrats on all the progress. I had a couple of questions on the financing. One is, could you tell us how the share count will change? And then secondly, you alluded to the Phase 2, if you will, in terms of renegotiating the term loan. Could you talk a little bit about the progress and possible timing on that? Christopher Bohnert: Yes. Thanks for the question. So yes, the share count in the details in the docs, but we swapped about -- well, we swapped 5.5 million shares for that roughly $19 million of reduction in the pref. So that will increase the overall share count. As far as the refinance of the term loan, I mean, obviously, we're thinking about that. Again, lots going on in the background. I'm very pleased with our relationship with Marathon right now, and we're hopeful that we're able to work out some better terms based on how the business is doing. Nothing to announce at this point, but I think with where the business is performing, the lower debt that we've been able to achieve over this transaction as well as expectations in the future, I think that will bode well for reducing rate and so forth and getting us more flexibility with -- and being able to take control of the growth that we're seeing. And that's really one thing that's very critical for us. With all this new business, we want to have a capital stack that allows for growth, gives us the flexibility to either buy or lease equipment and get much better and more competitive rates, not only on the senior note, but on the leasing or buying of equipment. So Harold and I and the team will be working on that diligently in the coming weeks and quarter. So more to come on that. Harold Bevis: Barry, I'll also give you a couple of numbers. So right now, we -- through this swap, we have 82.6 million shares outstanding, 82.6 million out of an authorized of 90, and the gap there is a reserve for comp plans and previously issued warrants. So right now, we're -- we've used all the available common stock that the company had access to. Operator: Your next question comes from the line of Robert Sussman with Bentley Capital. Robert Sussman: I'm absolutely staggered listening to this call and the number of wins and the pipeline that you have. For a company your size, it's just staggering. I'd like to ask you, what is it about the company that is enabling all these wins in such diverse markets. Is there a unique skill set that you have? Harold Bevis: It's a good question. Most of the wins have been multiyear in nature, Robert. And you know it from being a professional investor, one of the differentiators of a small company is their ability to organically grow sales. And for us, if you spin back 3 years, the company was really focused on satisfying automotive customers and then other customers that they called us. And so we kind of flipped that around and said, geez, what's the best use of these assets and this know-how that we have. And there are several blaring markets that you just do a simple ChatGPT on where is the best use of these assets. And so we had to go hire executives that we didn't have from the industry. And then we had to start prospecting and then understand what our gaps were to being able to become an approved supplier and then start quoting, find your way. You don't start off low, you start off high and then kind of find where the market is. And then you start running a program, and we're using salesforce.com as our organizing software tool. And then you track why do you win and why do you lose? And then you try to work around those findings and you drive to outcomes. What's happened this year is we've had some multiyear kind of marquee things that we're working on with some big people that we thought would help our credentials and establish us as a real competitor and that helped us. So we have references now. And it's fun. And another question you could say is what's big enough, what's too big, what's too small? It's -- we're definitely winning higher amount than we thought, which brings with it more working capital, more CapEx than we thought. We're not in trouble or anything like that, but we have to be careful on what we want to do. And we're staying disciplined about the pricing. And so we're running a 27% hit rate year-to-date on closed opportunities, 27%. That compares favorably. If you research and benchmark that number, that's above industry average for a manufacturing company. But the reason -- and we're losing over 70%. And the reason why we lose is we're being disciplined about the financials. So I mentioned in the dialogue that our prospecting is expanding, and it's really due to the fact that we're getting credentials now in these targeted areas, and we're starting -- we're getting more looks now. So we're not going to go into different areas really. There's one other area that we're evaluating, Robert, and it's the automotive aftermarket. But right now, we kind of have our hands full with the markets that are performing for us. Robert Sussman: One follow-up. I assume that there's some lag in passing precious metal prices through. Can you tell us what that lag is? And I assume there has to be some drag on profitability from that lag. Harold Bevis: We're allowed to true up to actuals. So the show-me part of this, Chris is from Missouri, so I should have probably had an answer. It's a show-me deal. So if we can show that we incurred inflation to deliver their order, it's a true-up. So the onus is upon us to match up and be transparent with what our input costs are and the performance of producing for those POs. So it's not much, Robert. It's smaller than you think because the company is pretty good at not letting that happen. Operator: Your next question comes from the line of Barry Haimes with Sage Asset Management. Barry Haimes: One other follow-up. Harold, on your comment you just made on the new business, obviously, creating demand for machines and capital. When you're going through that exercise, what sort of ROIC target or target range do you have in terms of saying, okay, this capital is worth spending on the session such a program. Harold Bevis: Yes. So the bottom -- the floors -- the floor on gross margin is 25% and the floor on IRR, if spending is needed is 25%. Those are the floors. We've been averaging quite a bit above those floors. The real -- the financials are there, though, to be honest, Barry. The real decision-making is around how solid of a commitment are they willing to make to us on a multiyear basis for volume. And you really -- you can see when the customer has plenty of suppliers bidding because they don't really want to make a commitment or if you kind of have a me-too value proposition. And so you see a lack of commitment to each other. They want to date, they don't want to get married. And so it's different when you can tell that you have a differentiated value that you're bringing to the table because they want to lock you out. And so we have a giant opportunity we're looking at right now with a big data center customer, and they've requested us to kind of be exclusive with them. And if we do that, they'll give us this huge amount of business, but they don't want us working with others. And so what that means to us is, hey, wait a minute, we're pretty special in this space here. We're not doing that. We're more being balanced, if you will, across a set of customers versus just getting married to one customer. But that's where the real play is, is how much do you want to do versus the commitment that they're offering. The numbers are all there predominantly. And we're able -- we're lucky that we're able to be selective and kind of cherry pick the better return programs. And this year, we've won about 100 -- I think yesterday -- through yesterday, it was 132 programs. We're into August now. And we're launching programs we've previously won, and we're winning programs that are immediate ramp up. I'm going to say we have well over 150 programs in ramp-up mode now -- right now on this call. And I'm also going to say that we probably have every single plant and some sort of a new business ramp-up. The biggest and the most exciting ones are obviously the 3 areas we talked about, data center grid, defense, electronics, and Medical because it's good business, it's high growth and it's acceptable to the stock market. So we're definitely focused on those 3 areas with a differentiated push. Operator: This concludes the question-and-answer session. I will now turn the call back to Harold Bevis for closing remarks. Harold Bevis: Yes. Let's -- Chris, let's tack team. You want to give a summary on the balance sheet and the financials, and then I'll do the business wrap up. Christopher Bohnert: Sure, sure. Thanks, Harold. Yes. So as I mentioned, we're very pleased with the strategic refinancing of the balance sheet and more to come with the senior note and so forth. So like I mentioned before, I think we really -- we've got another step to go to get the balance sheet fine-tuned for the growth that we're experiencing, and we'll be working hard on that. Harold Bevis: Thank you, Chris. And I'm sure that you've detected from our comments here and from the Q&A that our momentum has not peaked. Our momentum is building and things have traction here at the company. We're proud of the quarter, but we have bigger aspirations, and we look forward to reporting Q3 with you guys in 90 days. Thank you very much for calling in today. And with that, we'll end the call. Christine? Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Nn, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nn wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. NN (NNBR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in NN, Inc.? Here are five stocks we like better. NN delivered strong second-quarter growth: Sales rose 19% to $128.8 million, while adjusted EBITDA increased 36% to $17.9 million as margins expanded in both Power Solutions and Mobile Solutions. The company strengthened its balance sheet: A $124 million preferred-equity refinancing retired most preferred stock, converted about $19 million into common shares, and is expected to reduce annual PIK interest expense by approximately $13 million. NN raised its 2026 outlook to $460 million–$480 million in sales and $55 million–$65 million in adjusted EBITDA, supported by growth initiatives in data centers, defense and medical markets and $80 million–$100 million in expected new-business awards. NN (NASDAQ:NNBR) reported second-quarter sales growth of 19% and adjusted EBITDA growth of 36%, while raising its full-year outlook and completing a refinancing transaction that retired a substantial portion of its preferred stock. President and Chief Executive Officer Harold Bevis said the company’s first-half performance exceeded expectations, supported by growth in both reporting segments, new program launches and improved product mix. NN secured $65 million in new business awards during the first half and said awards had reached $80 million through July. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth NN reported second-quarter net sales of $128.8 million, an increase of $20.8 million, or roughly 19%, from the prior-year period. First-half sales rose 16% to $247.2 million. Chief Financial Officer Chris Bohnert said quarterly growth was driven by new business launches, volume gains, higher precious-metal pass-through pricing and slightly favorable foreign-exchange translation. Adjusted gross margin dollars increased 24% to $26.1 million, while adjusted gross margin rose 80 basis points year over year to 20.3%. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Second-quarter adjusted EBITDA was $17.9 million, up $4.7 million, or 36%, from a year earlier. Adjusted EBITDA margin expanded 170 basis points to 13.9%. For the first six months of 2026, adjusted EBITDA increased 35% to $32.1 million, with the year-to-date margin reaching 13%, compared with 11.1% in the first half of 2025. Bohnert said earnings growth reflected higher sales, improved mix, volume leverage from prior cost-reduction actions and ongoing cost-out initiatives, partly offset by higher selling, general and administrative expenses. Power Solutions: Quarterly sales rose 40% to $62.3 million, driven by higher precious-metal pass-through pricing and volumes. Adjusted EBITDA increased 40% to $12.7 million, and the segment posted a 20% adjusted EBITDA margin. Mobile Solutions: Quarterly sales increased 5% to $66.6 million, supported by new program launches and favorable foreign exchange. Adjusted EBITDA rose 13% to $9.8 million, while adjusted EBITDA margin increased 100 basis points to 14.7%. → Ulta's Growth Is Real, But So Are the Risks Following the quarter, NN completed a $124 million refinancing transaction focused on its preferred equity. The company previously raised $75 million through a private investment in public equity, or PIPE, transaction. Bohnert said NN used $70 million in PIPE proceeds to redeem a large portion of the outstanding preferred stock and converted approximately $19 million of preferred equity into common shares. The remaining preferred balance of roughly $35 million will carry a 10% paid-in-kind interest rate for one year, down from 14.5%. NN can also receive a $5 million discount on the remaining preferred balance if it is repaid or refinanced by Dec. 31, 2026. The company expects the transaction to reduce annual PIK interest by about $13 million. It does not affect NN’s existing term loan. Bohnert said management is considering options for the term loan and other debt, but did not announce a specific refinancing plan or timeline. During the question-and-answer session, Bohnert said the preferred conversion added approximately 5.5 million common shares. Bevis said the company had 82.6 million shares outstanding following the swap. Bevis said NN’s automotive exposure has fallen to about 40% of the business, with a longer-term goal of approximately one-third as other markets grow faster. The company is concentrating its commercial and capital-allocation efforts on five areas: data centers and electric grid infrastructure, defense electronics, medical products, high-value vehicle parts and high-value stamping applications. The company’s data-center and electric-grid business generated about $80 million in trailing-12-month sales, according to Bevis, who said NN is targeting $120 million in the near term. The company supplies components including transformer parts, busbar parts, test probes, liquid connectors and cold-plate-related products. NN has about 50 machines being brought online to support data-center opportunities, including about 25 already in-house, Bevis said. The company is evaluating approximately 100,000 square feet of additional space near its Wuxi, China, facility and said it needs to complete the expansion within 12 months. Bevis said sales from certain data-center program wins are expected to ramp in the second half and into early 2027. Defense and electronics represented about $60 million of trailing-12-month sales, with a near-term target of $90 million. NN recently secured a multiyear agreement to produce weapon components that Bevis said could generate an additional $12 million to $15 million with one customer. The company also cited a $75 million working pipeline in the market. NN’s medical business totaled about $15 million in trailing-12-month sales, and management is targeting $40 million. The company has received initial purchase orders for surgical tips and other components used in robotic surgery systems, with production ramping at its Kentwood, Michigan, plant. NN raised its full-year guidance, now expecting 2026 sales of $460 million to $480 million and adjusted EBITDA of $55 million to $65 million. The company also lifted its new-business-award outlook to $80 million to $100 million. Bevis said the company expects new programs in data centers, defense and medical to contribute more meaningfully in the second half. He noted that the fourth quarter has historically been NN’s lightest period, though new program ramps could offset some of that seasonal pattern. Looking beyond the current year, Bevis said management sees longer-term adjusted EBITDA margin potential in the range of 14% to 16%, driven primarily by improved sales mix. He added that new business wins have maintained gross-margin floors of 25% and internal-rate-of-return floors of 25% when capital spending is required. NN, Inc (NASDAQ: NNBR) is a diversified industrial manufacturing company specializing in engineered metal components, powder metal parts and friction materials. Through its subsidiaries, the company develops and produces precision-rolled products for powertrain and chassis applications, engineered friction products for brake and transmission systems, and various metal powders used in automotive, industrial and energy markets. Its offerings span a wide range of component sizes and complexity, from thin‐gauge strips for hybrid and electric vehicle applications to high‐volume sintered parts for commercial and consumer products. The company's operations are organized into three business segments. 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 [email protected]. The article "NN Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

NN Inc. (NNBR) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +175.00%. A quarter ago, it was expected that this industrial parts maker would post a loss of $0.05 per share when it actually produced earnings of $0.02, delivering a surprise of +140%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. NN, which belongs to the Zacks Metal Products - Procurement and Fabrication industry, posted revenues of $128.74 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.98%. This compares to year-ago revenues of $107.92 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. NN shares have added about 200.8% since the beginning of the year versus the S&P 500's gain of 13%. While NN has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for NN was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.06 on $116 million in revenues for the coming quarter and $0.16 on $465.95 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Metal Products - Procurement and Fabrication is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Century Aluminum (CENX), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This aluminum producer is expected to post quarterly earnings of $2.40 per share in its upcoming report, which represents a year-over-year change of +4900%. The consensus EPS estimate for the quarter has been revised 10% lower over the last 30 days to the current level. Century Aluminum's revenues are expected to be $835.3 million, up 33% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NN, Inc. (NNBR) : Free Stock Analysis Report Century Aluminum Company (CENX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NN Delivers Strong Second Quarter, Raises Outlook for 2026, Announces Refinancing 5 Pillar Growth Program Delivering Above Expectations; Data Center and Earnings Growing Fast CHARLOTTE, N.C., Aug. 05, 2026 (GLOBE NEWSWIRE) --  NN, Inc. (NASDAQ: NNBR) (“NN” or the “Company”), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today reported results for the second quarter ended June 30, 2026. Q2 2026 Financial Highlights, compared to Q2 2025 Net sales of $128.7 million, up $20.8 million or 19.3% Gross margin of $21.9 million, up $3.7 million or 20.1% Adjusted gross margin of $26.1 million, up $5.0 million or 23.9% Adjusted gross margin percentage of 20.3%, up 80 basis points Income from operations $1.0 million, up $2.5 million from a loss of $1.5 million Adjusted income from operations of $8.5 million, up $3.6 million or 73.9% GAAP net loss of $2.3 million, improving by $5.8 million or 72.0% Adjusted net income of $5.5 million, up $4.7 million or 636.5% Adjusted EBITDA of $17.9 million, up $4.8 million or 36.1% Adjusted EBITDA margin percentage of 13.9% up 170 basis points 5 Pillar Growth Highlights: 5 Pillar growth program delivered material results in Q2, approximately $40 million in new wins in Data Center, Medical, and Defense. Data Center business is fast growing for NN, and the Company is on pace to install approximately 50 new machines during 2026 and has a $50+ million, growing pipeline. July year-to-date new business awards were over 100 programs valued at approximately $80 million per year. NN is raising full year guidance for new business awards during 2026 to $80 million to $100 million, up 29% at the midpoint compared to 2025. Harold Bevis, President and Chief Executive Officer, said, “NN delivered strong financial performance in the second quarter with record results in many areas. Additionally, after the quarter ended, we implemented a game-changing improvement to our balance sheet. Our 5 pillar growth program is delivering results. These new sales are higher margin, attached to higher growth rate end markets, and mostly immediate 2026 startup. The second half of 2026 is expected to reflect continued momentum and strong financial performance. We have completed a refinancing of the preferred stock put in place over five years ago. Amongst other benefits, we paid off approximately $89 million of the preferred stock. This refinancing was enabled by sustained multi-year performance of the company in the right market areas. I am also happy to report that, as part of this refinancing, we have expanded our investor roster with new institutional investors. This is a gratifying turning point for the company and NN investors and is indicative of a future based upon sales-driven earnings growth in attractive end-markets.” Bevis continued, "Our 3 part execution on current production, new business startups, and new business prospecting continues to be very good. In the quarter, our mastery of high-volume titanium machining was noteworthy. Our gross margins and adjusted EBITDA margins continue to climb. We are achieving many multi-year goals and revising our outlooks based upon our actual results. We now believe that we can deliver higher margins than previously estimated. During the quarter, NN secured significant 2026 immediate-supply awards for Data Center liquid cooling products, robotic surgery medical products, and defense products. Our year-to-date 5 Pillar growth program performance has delivered above expectations and our prospecting is expanding." Bevis concluded, "We are encouraged by the business results and refinancing results that we have delivered this year. We see continuation into the second half. We believe the second half of 2026 and 2027 will continue to benefit from our multi-year strategic growth focus and operational execution processes. Our 5 pillar growth program is delivering strong results. We are also reengineering our balance sheet right now, reducing leverage and reducing rates. We have a goal to refinance the current securities and convert NN to normal credit statistics. We believe that we are just at the beginning of common stock value-creation and it is an exciting time at NN.” Second Quarter NN Results Net sales for the second quarter were $128.7 million, an increase of 19.3% compared to net sales of $107.9 million for the same period in 2025. The increase was primarily driven by contribution of new business launches, higher precious metals pass-through pricing, higher volumes and favorable foreign exchange effects. Income from operations for the second quarter was $1.0 million, an increase of $2.5 million compared to a loss from operations of $1.5 million for the same period in 2025. The improvement was due to improved operating performance and improved sales mix. These improvements are partially offset by an increase in depreciation and amortization costs. Net loss for the second quarter was $2.3 million an improvement of 72.0% compared to net loss of $8.1 million for the same period in 2025. The improvement was primarily driven by improved operating performance in the second quarter of 2026 and the loss on extinguishment of debt recognized during the second quarter of 2025. Second Quarter 2026 NN Adjusted Results Adjusted EBITDA was $17.9 million, an increase of 36.1% compared to adjusted EBITDA of $13.2 million for the same period in 2025, primarily driven by improved sales mix and operating performance. Adjusted income from operations was $8.5 million, an increase of 73.9% compared to adjusted income from operations of $4.9 million for the same period in 2025. The increase was driven primarily by stronger gross margin and partially offset by increased selling, general and administrative expenses. Adjusted net income was $5.5 million, or $0.11 per diluted common share, an increase of $4.7 million or $0.09 per diluted common share, compared to adjusted net income of $0.7 million, or $0.02 per diluted common share for the same period in 2025 . Second Quarter Power Solutions Results Net sales for the second quarter of 2026 were $62.3 million, an increase of 39.5% compared to net sales of $44.6 million for the same period in 2025. The increase is primarily due to higher precious metal pass-through pricing, higher volumes and favorable foreign exchange effects. Income from operations for the second quarter of 2026 was $9.0 million, an increase of 56.5% compared to income from operations of $5.8 million for the same period in 2025. The increase is primarily due to higher precious metals pass-through pricing and higher volumes. Adjusted income from operations for the second quarter of 2026 was $11.7 million, an increase of 39.1% compared to adjusted income from operations of $8.4 million for the same period in 2025. The increase is primarily due to solid operating performance. Second Quarter Mobile Solutions Results Net sales for the second quarter of 2026 were $66.6 million, an increase of 5.0% compared to net sales of $63.4 million in the same period of 2025. The increase is primarily due to higher volumes and favorable foreign exchange effects. Loss from operations for the second quarter was $1.9 million, an increase of 75.4% compared to loss from operations of $1.1 million for the same period in 2025. The increase was primarily was primarily due to higher costs associated with product mix. Adjusted income from operations for the second quarter was $4.9 million, an increase of 11.2% compared to adjusted income from operations of $4.4 million in the same period of 2025. The increase in adjusted income from operations was primarily due to rationalization efforts. 2026 OutlookNN is revising its guidance ranges upward in several areas. Net sales expected to range between $460 to $480 million, 10% growth over 2025 at midpoint Adjusted EBITDA expected to range between $55 and $65 million, 22% growth over 2025 at midpoint New business wins are expected to increase to $80 to $100 million, 29% growth over 2025 at midpoint Chris Bohnert, Senior Vice President and Chief Financial Officer commented, “Supported by the continued strength of our financial results year-to-date, the solid momentum we have established in immediate supply business in high-growth markets such as Data Center, Defense, and Medical, and the strong outlook for the remainder of the year, we are again revising our guidance ranges. For fiscal 2026, we are now guiding net sales in the range of $460 million to $470 million and adjusted EBITDA in the range of $55 million to $65 million, reflecting strong, profitable growth versus prior year. We are also raising our high end expectations for new business wins, expecting these new awards to range between $80 million to $100 million for the full year. We are also very happy to report the conclusion to the refinancing of our preferred stock.” Conference Call NN will discuss its results during its quarterly investor conference call on August 6, 2026, at 9 a.m. ET. The call and supplemental presentation may be accessed via NN's website, www.nninc.com. The conference call can also be accessed by dialing (833) 461-5787 (domestic) or (585) 542-9983 (international) and entering Conference ID number 186058461. For those who are unavailable to listen to the live broadcast, a replay will be available shortly after the call. NN discloses in this press release the non-GAAP financial measures of adjusted gross margin, adjusted gross margin %, adjusted income from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans, reorganizational and impairment charges. The financial tables found later in this press release include a reconciliation of adjusted gross margin, adjusted gross margin %, adjusted income from operations, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share to the U.S. GAAP financial measures of gross margin, income (loss) from operations, net income (loss), net income (loss) per diluted common share. About NN, Inc. NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, South America, Europe and China. For more information about the company and its products, please visit www.nninc.com. This press release may contain forward-looking statements regarding our business, operations, and financial performance. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our most recently filed Form 10-K and our Form 10-Q for the period following that Form 10-K, including the risk factors described therein. We undertake no obligation to update any forward-looking statement, except as required by law. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements. Investor & Media Contacts: Joseph Caminiti [email protected] Financial Tables Follow (1)   Personnel costs include recruitment, retention, relocation, severance and start-up costs for new programs (2)   Facility costs include costs of opening / closing facilities, relocation / exit of manufacturing operations and start-up costs related to new programs (3)   Non-GAAP adjusted operating margin = Non-GAAP adjusted income from operations / GAAP net sales This presentation contains certain financial measures not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including adjusted gross margin, adjusted gross margin %, adjusted income (loss) from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per diluted common share, and free cash flow (collectively, the “non-GAAP financial measures”). These non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered in isolation from, or as a substitute for, the most directly comparable GAAP measures, and may not be comparable to similarly titled measures used by other companies. Management uses these non-GAAP financial measures, together with the comparable GAAP measures, to evaluate the Company’s operating performance and underlying business trends across periods on a consistent basis, and to assist in operational and financial decision-making, including with respect to internal budgeting and resource allocation. Reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure are set forth in the tables accompanying this presentation.

TriMas (TRS) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.12%. A quarter ago, it was expected that this maker of packaging materials, aerospace components and other engineered parts would post earnings of $0.18 per share when it actually produced earnings of $0.24, delivering a surprise of +33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. TriMas, which belongs to the Zacks Metal Products - Procurement and Fabrication industry, posted revenues of $174.58 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.89%. This compares to year-ago revenues of $274.76 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TriMas shares have added about 10.9% since the beginning of the year versus the S&P 500's gain of 6.9%. While TriMas has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TriMas was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.52 on $173.91 million in revenues for the coming quarter and $1.67 on $678.63 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Metal Products - Procurement and Fabrication is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, NN Inc. (NNBR), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This industrial parts maker is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. NN Inc.'s revenues are expected to be $116 million, up 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TriMas Corporation (TRS) : Free Stock Analysis Report NN, Inc. (NNBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NN’s first quarter results were well received by the market, driven by broad-based revenue growth and a mix shift toward higher-margin end markets. Management attributed the strong performance to increased sales in electric grid, data center, and defense electronics, which offset weakness in automotive markets, particularly in China. CEO Harold C. Bevis highlighted that the company achieved its highest trailing twelve-month adjusted EBITDA in five years, noting, “The performance in the quarter was led by a very good mix, which was a main driver of our improved results.” Operational improvements and cost discipline further supported profitability, as the company’s transformation efforts began to materialize across most production sites. Is now the time to buy NNBR? Find out in our full research report (it’s free). Revenue: $118.5 million vs analyst estimates of $106.6 million (12.1% year-on-year growth, 11.1% beat) Adjusted EPS: $0.02 vs analyst estimates of -$0.05 (significant beat) Adjusted EBITDA: $14.15 million vs analyst estimates of $10.15 million (11.9% margin, 39.4% beat) The company lifted its revenue guidance for the full year to $460 million at the midpoint from $455 million, a 1.1% increase EBITDA guidance for the full year is $57 million at the midpoint, above analyst estimates of $54.97 million Operating Margin: -1.7%, up from -4.5% in the same quarter last year Market Capitalization: $125.1 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Rob Brown (Lake Street Capital Markets) asked about the steps needed to reach the $100 million sales goal in data centers. CEO Harold C. Bevis explained that NN is not relying on a single product line but expanding its offerings and aiming for greater content per data center through new products and increased penetration. Analyst (Noble Capital Markets) requested a breakdown of the drivers behind the 12% sales growth. Bevis responded that growth came from new program launches across diverse customers and markets, with only a temporary boost from precious metals and volume growth expected to be the main driver going forward. John Edward Franzreb (Sidoti & Company) inquired about delays in the medical segment and the status of the wire harness program. Bevis and COO Timothy M. French noted that medical is progressing after plant certifications, while the wire harness program is nearing launch with equipment investments underway. Analyst (B. Riley) asked about the cadence of new business wins and the future mix between automotive and growth markets. Bevis stated that the company is targeting automotive to fall below 30% of sales over time as diversification efforts accelerate. Analyst (Bentley Capital Management) questioned why long-term margin targets remain conservative despite mix improvements. Bevis acknowledged the targets are cautious and explained the focus is on accelerating the timeline rather than raising percentage goals at this stage. In the coming quarters, the StockStory team will be tracking (1) progress toward scaling data center and grid sales, including new product launches and increased content per customer, (2) the pace of diversification into defense electronics and medical markets as these programs move from development to production, and (3) margin expansion as higher-value segments grow and operational improvements are realized. Execution on pass-through of material cost inflation and the ramp-up of key equipment investments will also be important signposts. NN currently trades at $2.46, down from $2.52 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

Interested in NN, Inc.? Here are five stocks we like better. Strong Q1 and raised guidance: NN reported Q1 net sales of $118.5 million (up 12.1%) and adjusted EBITDA of $14.1 million (up 33.7%), and raised 2026 guidance to $450–470 million in net sales and $52–62 million in adjusted EBITDA while pulling long‑term targets forward to 2029 (about $600 million sales and ~$80 million adjusted EBITDA). Portfolio shift into higher‑growth end markets: Electric grid, data center, defense and medical businesses were up 28% YoY and now make up 44% of sales (versus 35% in 2023), with the data center/electric grid opportunity already >$70 million TTM and a near‑term goal of $100 million. Power Solutions driving margin expansion and new wins: Power Solutions sales rose to $55.4 million (up 27%) with adjusted EBITDA of $10.4 million (up 65%) and an 18.7% margin, supported by $29.3 million of new Power awards, investments in plating capacity and expanded production for liquid‑cooling connectors. NN (NASDAQ:NNBR) reported higher first-quarter 2026 sales and profitability and raised its full-year outlook, with executives pointing to an improving sales mix, strength in electrical grid and data center end markets, and benefits from multi-year cost-out actions. Senior Vice President and Chief Financial Officer Chris Bohnert said first-quarter net sales were $118.5 million, up $12.8 million, or 12.1%, from the prior-year period. Bohnert attributed the growth to a “positive shift” in sales mix, higher precious metals pass-through, and favorable foreign exchange, partially offset by softness in China automotive. He added that outside China, global automotive sales were “up slightly.” → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Profitability improved sharply. Bohnert said adjusted operating income was $5.8 million, up $3.8 million from $2.0 million a year earlier. Adjusted EBITDA increased to $14.1 million from $10.6 million, a gain of 33.7%, with adjusted EBITDA margin rising to 11.9% from 10.0%. Chief Executive Officer Harold Bevis said the quarter reflected a “very good mix” and noted the company achieved its “highest trailing 12-month adjusted EBITDA” in five years. He also said NN’s adjusted gross margin and adjusted EBITDA were higher both year-over-year and sequentially, driven by mix and operating performance. → Light Speed Returns: Corning Cashes In on NVIDIA Growth In Power Solutions, Bohnert reported net sales of $55.4 million, up $11.9 million, or 27%, from $43.5 million in the prior-year quarter. He said growth was driven by improved mix from higher volumes in targeted growth areas, higher precious metals pass-through pricing, and favorable FX, partially offset by softness in certain stamped product lines. Power Solutions adjusted EBITDA was $10.4 million, up 65.1% from $6.3 million, and adjusted EBITDA margin improved to 18.7% from 14.5%. Bohnert cautioned that NN sees “a short lag” in passing through inflation impacts to precious metals pricing, tariffs, and other surcharges, which can temporarily pressure profitability. → Years in the Making, AMD’s Upside Movement Has Just Begun In Mobile Solutions, Bohnert said net sales rose modestly to $63.1 million from $62.2 million, up 1.4%, with growth supported by new program launches and strength across North America, South America, Europe, and automotive markets, as well as favorable FX. China automotive softness partially offset those gains. Segment adjusted EBITDA was $8.2 million with an adjusted EBITDA margin of 13%, which Bohnert described as flat due to China-related headwinds. Bevis said NN’s diversification strategy is centered on three markets: electric grid and data center, defense electronics, and medical. He said these growth markets were collectively up 28% versus the first quarter of 2025 and now represent 44% of the company’s mix, up from 35% in 2023, as automotive declined to 44% from 56%. Bevis emphasized that growth is not concentrated in a single customer or program, noting sales were higher with 22 of the company’s top 30 customers and that NN is launching “over 100 small and medium-sized programs” while adding new customers, “specifically in the data center arena.” He described NN’s automotive approach as “disciplined,” focused on maintaining profitable volumes rather than chasing share. On the data center and electric grid opportunity, Bevis said the business is already “over $70 million” on a trailing 12-month basis and the near-term goal is to reach $100 million. He said NN supplies components including transformer components, electrical disconnects, circuit breaker components, smart meter components, and liquid cooling components. Bevis discussed liquid cooling connector components—also referred to as quick disconnect couplings or fluid connectors—and described them as stainless steel connectors that route coolant through data center rack cooling systems. He said market size estimates for the area NN participates in range from $1.5 billion to $6 billion and referenced growth rates “at 40% per annum” in some estimates, while also noting wide variability in published figures. He also said NN has been expanding manufacturing capability for these products, including that the company already had “over 100 machines” capable of making similar components and added another 17, with “about half” received so far. In defense electronics, Bevis said the business is already “over $50 million” on a trailing 12-month basis and that growth has been “faster and bigger” than expected, including work with a “marquee OEM” in the U.S. to expand as a tier 1 manufacturer of weapons components, requiring new specialized equipment. In medical, Bevis said NN restarted the business in fall 2023 and has implemented a turnaround plan and growth plan. He said it has been slower than expected relative to the other diversification areas, in part due to needing more plant certifications, but added that momentum is increasing and that the company is already profitable in medical. He told analysts medical was “not a source of our sales increase” in the quarter, but the company expects to “report positively” in medical this year. NN reported a strong quarter for new business awards. In Power Solutions, Bohnert said wins totaled $29.3 million, concentrated in electrical grid, data center, defense, and electronics products. In Mobile Solutions, he said wins were $13.6 million, including liquid cooling connector components now in production. Management also discussed investment to support growth. Bohnert said the company acquired additional plating equipment “to advance our growth in electrical grid and data center markets.” Bevis later said the plating equipment supports busbar-related opportunities, enabling NN to quote a fuller bill of materials. He characterized the equipment as “medium-sized,” with expensive installation requirements, and said it is included in the company’s plan and guidance for the year, with availability expected “towards the end of the year.” On capacity, Chief Operating Officer Tim French said Power Solutions has “significant capacity available” and that facilities are not running 24/7, allowing the business to “adapt and assimilate new business fairly quickly,” with ramp-ups that “can be extremely quickly” on the power side once tooling is created. French also said there are no plant closures scheduled at this time, and Bevis added that while some plants rank lower than others, closures do not currently meet the company’s return thresholds compared with other uses of capital. Management raised 2026 guidance following the first-quarter performance and visibility into the rest of the year. Bohnert said NN now expects full-year 2026: Net sales of $450 million to $470 million (about 9% growth at the midpoint versus the prior year) Adjusted EBITDA of $52 million to $62 million (about 16% growth at the midpoint) Bevis said NN is revising guidance ranges higher for net sales, adjusted EBITDA, and new business wins compared with prior expectations communicated earlier in the year. NN also pulled forward the timing of its long-term targets by one year. Bohnert said the company now expects to reach its long-term goals in 2029 rather than 2030, while keeping the targets themselves unchanged: approximately $600 million in net sales at a 20% adjusted gross margin, and about $80 million of adjusted EBITDA at a 13% margin. He said that compared with 2025, those targets imply more than 40% net sales growth and more than 60% adjusted EBITDA growth. During Q&A, Bevis acknowledged analyst questions about whether the margin targets appear conservative given the portfolio shift, saying the company opted to pull forward the timing rather than raise margin commitments, but that revisiting those targets is “top of mind.” Bevis also said the company’s longer-term goal is to reduce automotive exposure to “30% or less” over time, while emphasizing that maintaining a stable automotive base requires ongoing program work and disciplined quoting. On raw material inflation and tariffs, Bevis said NN has pass-through rights but experiences some lag due to the need to document incurred costs. He said the company has been able to keep up and has not seen “any material compression” from metals escalation. Finally, Bevis provided an update on liquidity, stating NN received “the CARES Act proceeds,” which he said helped liquidity and reduced pressure as the board evaluates financing and other strategic alternatives. He said there was “nothing material to report” on the broader process at this time. NN, Inc (NASDAQ: NNBR) is a diversified industrial manufacturing company specializing in engineered metal components, powder metal parts and friction materials. Through its subsidiaries, the company develops and produces precision-rolled products for powertrain and chassis applications, engineered friction products for brake and transmission systems, and various metal powders used in automotive, industrial and energy markets. Its offerings span a wide range of component sizes and complexity, from thin‐gauge strips for hybrid and electric vehicle applications to high‐volume sintered parts for commercial and consumer products. The company's operations are organized into three business segments. The article "NN Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

NN delivers strong growth in first quarter sales, profitability and new wins; results outpaced expectations NN raises full-year 2026 guidance ranges for net sales, adjusted EBITDA, new wins target CHARLOTTE, N.C., May 06, 2026 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR) (“NN” or the “Company”), a global diversified industrial company that engineers, co-develops and manufactures high-precision components and assemblies with six sigma quality, today reported results for the first quarter ended March 31, 2026. Key results include (compared with the first quarter 2025): Q1 2026 Financial Highlights: Net sales of $118.5 million, increased $12.8 million, up 12.1% Gross profit of $19.4 million, increased $5.4 million, up 38.3% Adjusted gross profit of $23.1 million, increased $5.2 million, up 29.2% Loss from operations of $2.1 million, improved by $2.7 million, up 57.0% Adjusted income from operations of $5.8 million, increased $3.8 million, up 183.5% GAAP net loss of $6.8 million or $0.25 per diluted common share Adjusted net income of $1.0 million, or $0.02 per diluted common share Adjusted EBITDA of $14.1 million, increased $3.5 million, up 33.0% Trailing twelve-month adjusted EBITDA of $52.6 million rose to the highest level in approximately five years Business Highlights Raising guidance ranges on full-year net sales, adjusted EBITDA, new business wins (previously announced) Improved timing on achievement of long-term targets; now estimating that 2030 targets will be achieved in 2029 Adjusted gross margin and adjusted EBITDA margin are nearing multi-year goals of 20% and 13%, respectively NN is achieving wins and sales growth in the targeted end-markets of Electric Grid & Data Center, Defense & Electronics, and Medical. Strategic mix shift is occurring. NN expanded its Electric Grid & Data Center product line in Q1 2026 with the introduction of liquid cooling connector components (previously announced) and launched production with several multi-year awards. Forecast is for continued investment and expansion. Harold Bevis, President and Chief Executive Officer of NN, Inc., said, "NN delivered a strong start to 2026, with first quarter results rising to the high side of expectations across many metrics, including sales growth, adjusted EBITDA, margin rates, and new business wins. Our performance is being strengthened by the success of our strategic growth programs that we have been internally funding. We are also benefitting from the results of our aggressive and ongoing operational improvements. Additionally, our sales growth programs continue to build momentum and increase velocity." Bevis concluded, "NN’s progression into its targeted growth end markets and new products is working well as is our cost leadership blueprint. As a result of our strong first quarter and healthy forecasts for the remainder of the year, we are raising our guidance ranges for net sales, adjusted EBITDA, and new business wins targets. We are excited about our performance and look forward to reporting out on progress as we go along the journey to creating shareholder value." First Quarter NN Results Net sales were $118.5 million, an increase of 12.1% compared to the first quarter of 2025 net sales of $105.7 million, driven primarily by the contribution of new business launches, higher precious metals pass-through pricing, higher volumes in certain areas and favorable foreign exchange effects. Loss from operations for the first quarter was $2.1 million compared to a loss from operations of $4.8 million for the same period in 2025. The improvement was due to improved operating performance, and improved sales mix. These improvements were partially offset by an increase in selling, general, and administrative costs. Net loss for the first quarter was $6.8 million compared to net loss of $6.7 million for the same period in 2025. The decline is primarily due to non-cash derivative mark-to market loss recognized during the first quarter of 2026 compared to non-cash derivative mark-to-market gain the first quarter of 2025. The loss is partially offset by improvement in loss from operations. First Quarter 2026 NN Adjusted Results Adjusted EBITDA was $14.1 million, an increase of 33.0%, compared to the first quarter of 2025 adjusted EBITDA of $10.6 million, driven primarily by improved sales mix and operating performance. Adjusted income from operations was $5.8 million, an increase of 183.5%, compared to the first quarter of 2025, driven primarily by stronger gross profit, and partially offset by selling, general, and administrative costs. Adjusted net income was $1.0 million, or $0.02 per diluted common share, an increase of $2.4 million or $0.05 per diluted common share, compared to adjusted net loss of $1.4 million, or ($0.03) per diluted common share, compared to the first quarter of 2025. First Quarter Power Solutions Results Net sales for the first quarter of 2026 were $55.4 million compared to $43.5 million in the same period in 2025, an increase of 27.3%. The increase is primarily due to a good sales mix, an increase in precious metal pass-through pricing, higher volumes in certain areas, and favorable foreign exchange effects. Income from operations for the first quarter was $6.3 million compared to income from operations of $3.0 million for the same period of 2025, an increase of 110%. The increase is primarily due to a better sales mix and solid operating performance. Adjusted income from operations for the first quarter was $10.0 million compared to adjusted income from operations of $5.5 million for the same period of 2025, an increase of 81.8%. The increase is primarily due to better sales mix and solid operating performance. First Quarter Mobile Solutions Results Net sales for the first quarter of 2026 were $63.1 million compared to $62.2 million in the first quarter of 2025, an increase of 1.4%. The increase was primarily due to favorable growth in North America, South America and Europe, foreign exchange positive effects of $2.6 million partially offset by soft China volumes. Loss from operations for the first quarter was $2.1 million compared to loss from operations of $2.7 million for the same period in 2025. The increase was primarily due to improved operating performance partially offset by an increase in selling, general, and administrative costs. Adjusted income from operations for the first quarter of 2026 was $1.3 million compared to adjusted income from operations of $1.6 million for the same period of 2025. The decrease in adjusted income from operations was primarily due to lower sales volumes. 2026 Outlook NN is revising its guidance ranges upward in several areas. Net sales expected to range between $450 to $470 million, 9% growth over 2025 at midpoint Adjusted EBITDA expected to range between $52 and $62 million, 16% growth over 2025 at midpoint New business wins are expected to increase to $80 to $90 million, 14% growth over 2025 at midpoint Long-term goal attainment is expected to be in 2029, versus 2030, a 1-year acceleration Chris Bohnert, Senior Vice President and Chief Financial Officer commented, “Given the strength of our first quarter results and solid outlook for the remainder of the year, we are modestly revising our guidance ranges. For fiscal 2026, we are now guiding net sales in the range of $450 million to $470 million and adjusted EBITDA in the range of $52 million to $62 million, reflecting solid growth versus prior year. Our current forecast and guidance is supported by strong results and momentum thus far in 2026. We are forecasting a continuation of this trend and Q2 is off to a good start.” Conference Call NN will discuss its results during its quarterly investor conference call on May 7, 2026, at 9 a.m. ET. The call and supplemental presentation may be accessed via NN's website, www.nninc.com. The conference call can also be accessed by dialing 800-715-9871 (US) or 646-307-1963 (International). For those who are unavailable to listen to the live broadcast, a replay will be available shortly after the call. NN discloses in this press release the non-GAAP financial measures of adjusted gross profit, adjusted gross margin, adjusted income from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans, reorganizational and impairment charges. The financial tables found later in this press release include a reconciliation of adjusted gross profit, adjusted gross margin, adjusted income from operations, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share to the U.S. GAAP financial measures of gross profit, income (loss) from operations, net income (loss), net income (loss) per diluted common share. About NN, Inc. NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, South America, Europe and China. For more information about the company and its products, please visit www.nninc.com.This press release contains express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for full year 2026 and the impact of, and our ability to execute, our corporate strategies and business initiatives. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project”, “achieve”, “growth”, “enable”, “improve”, or the negative of those terms, and similar words, phrases or expressions that convey uncertainty of future events or outcomes. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; inflationary pressures and material changes in the cost or availability of raw materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the restrictions contained in our debt agreements; the level of our indebtedness and our ability to obtain financing at favorable rates, if at all, or to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; the impact of climate change on our operations; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; and uncertainty of government policies and actions in respect to global trade and tariffs, including the potential impacts of tariffs on the United States economy, the economy of other countries in which we conduct operations and our industry, cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements. With respect to any non-GAAP financial measures included in the following document, the accompanying information required by SEC Regulation G can be found in the back of this document or in the “Investors” section of the Company’s web site, www.nninc.com, under the heading “News & Events” and subheading “Presentations.” Investor & Media Contacts: Joe Caminiti or Abe Plimpton [email protected] 312-445-2870 (1) Personnel costs include recruitment, retention, relocation, severance and start-up costs related to new programs (2) Facility costs include costs of opening / closing facilities, relocation / exit of manufacturing operations and start-up costs related to new programs (3) Non-GAAP adjusted gross margin = Non-GAAP adjusted gross profit / GAAP net sales (1) Personnel costs include recruitment, retention, relocation, severance and start-up costs related to new programs (2) Facility costs include costs of opening / closing facilities, relocation / exit of manufacturing operations and start-up costs related to new programs (3) Non-GAAP adjusted operating margin = Non-GAAP adjusted income (loss) from operations / GAAP net sales (1) Personnel costs include recruitment, retention, relocation, severance and start-up costs related to new programs (2) Facility costs include costs of opening / closing facilities, relocation / exit of manufacturing operations and start-up costs related to new programs (3) Non-GAAP adjusted EBITDA margin = Non-GAAP adjusted EBITDA / GAAP net sales Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Income and GAAP Net Loss per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share The Company discloses in this presentation the non-GAAP financial measures of adjusted gross profit, adjusted gross margin, adjusted income (loss) from operations, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share. Each of these non-GAAP financial measures provides supplementary information about the impacts of acquisition, divestiture and integration related expenses, foreign-exchange impacts on inter-company loans, reorganizational and impairment charges. The costs we incur in completing acquisitions, including the amortization of intangibles and deferred financing costs, and divestitures are excluded from these measures because their size and inconsistent frequency are unrelated to our commercial performance during the period, and we believe are not indicative of our ongoing operating costs. We exclude the impact of currency translation from these measures because foreign exchange rates are not under management’s control and are subject to volatility. Other non-operating charges are excluded as the charges are not indicative of our ongoing operating cost. We believe the presentation of adjusted gross profit, adjusted gross margin, adjusted income (loss) from operations, adjusted EBITDA and adjusted EBITDA margin, adjusted net income (loss), and adjusted net income (loss) per diluted common share provides useful information in assessing our underlying business trends and facilitates comparison of our long-term performance over given periods The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual income growth derived from income amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. (a) Non-GAAP adjusted gross margin represents GAAP gross profit, adjusted to exclude the effects of restructuring and integration expense and non-operational charges related to acquisition and transition expense. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted gross margin is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP gross margin. (b) Non-GAAP adjusted income (loss) from operations represents GAAP income (loss) from operations, adjusted to exclude the effects of restructuring and integration expense; non-operational charges related to acquisition and transition expense, intangible amortization costs for fair value step-up in values related to acquisitions, and when applicable, our share of income from joint venture operations. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted income (loss) from operations is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from operations. (c) Non-GAAP adjusted EBITDA represents GAAP net income (loss), adjusted to include income taxes, interest expense, write-off of unamortized debt issuance costs, change in fair value of preferred stock derivatives and warrants, depreciation and amortization, charges related to acquisition and transition costs, non-cash stock compensation expense, foreign exchange gain (loss) on inter-company loans, restructuring and integration expense, costs related to divested businesses and litigation settlements, income from discontinued operations, and other charges, to the extent applicable. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry. Non-GAAP adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to GAAP income (loss) from continuing operations. (d) This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the respective table. NN, Inc. estimates the tax effect of the adjustment items identified in the reconciliation schedule above by applying the applicable statutory rates by tax jurisdiction unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment. (e) Non-GAAP adjusted net income (loss) represents GAAP net income (loss) adjusted to exclude the tax-affected effects of charges related to acquisition and transition costs, foreign exchange gain (loss) on inter-company loans, restructuring and integration charges, amortization of intangibles costs for fair value step-up in values related to acquisitions and amortization of deferred financing costs, write-off of unamortized debt issuance costs, change in fair value of preferred stock derivatives and warrants, costs related to divested businesses and litigation settlements, income (loss) from discontinued operations, preferred stock cumulative dividends and deemed dividends and other charges. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating, and investment recommendations of companies in the industrial industry. We use this information for comparative purposes within the industry.