NN, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales reached $131.1 million for Q3 2026, a 26.2% increase compared to $103.9 million in Q3 2025.
• GAAP net loss was $4.6 million, an improvement of 31.3% compared to a $6.7 million loss in Q3 2025.
• Adjusted net income was $5.3 million, an increase of $5.6 million compared to an adjusted net loss of $0.3 million in Q3 2025.
• Adjusted EBITDA was $18.5 million, up 49.7% from $12.4 million in Q3 2025, with an adjusted EBITDA margin of 14.1% (up 220 basis points).
• Adjusted income from operations was $8.5 million, up 109.5% from $4.0 million in Q3 2025.
• Adjusted gross margin percentage was 19.3%, up 50 basis points from 18.8% in Q3 2025.
• GAAP gross margin was $18.3 million, up 4.6% from Q3 2025.
• Working capital performance was 16.5% to 16.7% of sales over the trailing six months.

Guidance and Future Outlook:

• Full-year 2026 net sales guidance raised to a range of $480 million to $500 million, reflecting a $68 million improvement over 2025 (16% growth at midpoint).
• Full-year 2026 adjusted EBITDA guidance raised to a range of $64 million to $68 million, reflecting a $17 million improvement over 2025 (35% growth at midpoint).
• Full-year 2026 new business wins guidance raised to a range of $110 million to $130 million, reflecting a $50 million improvement over 2025 (71% growth at midpoint).
• The company expects to launch more than 150 new programs in 2026 worth approximately $100 million in peak annual sales.
• Management plans to provide more specific 2027 guidance after completing the 2027 business planning process.

Business Segments and Product Lines:

• Power Solutions: Net sales were $63.2 million, up 40.6% year-over-year. Adjusted income from operations was $12.4 million, up 53.1%.
• Mobile Solutions: Net sales were $68.2 million, up 15.3% year-over-year. Adjusted income from operations was $4.0 million, up 75.2%.
• Data Center: Identified as a top targeted end market with a growing $66 million pipeline, including liquid cooling components for next-generation chip designs. Over 50 new machines dedicated to this market will be installed through Q1 2027.
• Defense: Secured multiple new awards in 2026 and became a supplier to a leading firearm accessories OEM with multiple programs in ramp-up mode.
• Medical: Secured multiple new awards in 2026 and became a supplier to a leading medical equipment OEM with 30 core platforms.
• New Business: Secured $130 million of annualized new business awards on a trailing 12-month basis ended September 30, 2026, averaging more than one new program per day.
• Cost-Out Program: On track to deliver $12 million of cost savings via 335 global projects.

Market and Competitive Landscape:

• The company is strategically pivoting its portfolio toward high-growth, high-value markets including Data Center, Medical, and Defense.
• NN is exiting low-profit automotive programs and minimal margin, minimal ROI businesses to improve overall margins.
• The company is exploring logical, small bolt-on acquisitions to enhance growth trajectory.
• Strong underlying market growth is aiding the company's 5 Pillar growth program.

Risks and Challenges:

• Loss from operations increased to $3.3 million from $2.2 million in Q3 2025, primarily due to higher labor costs associated with increasing headcount and higher professional fees.
• Mobile Solutions reported a GAAP loss from operations of $6.3 million, a decline of $3.4 million from Q3 2025, driven by higher costs from volume increases, new program start-ups, material costs, and facility costs.
• The company notes that the last remaining balance sheet financial improvements relate to its ABL and Term Loan facilities.

Management Commentary and Tone:

• CEO Harold Bevis stated the company has completed a transformation of its equity and debt structure, paying off all preferred stock via debt-for-equity transactions and raising strategic capital totaling $143 million.
• Management expressed confidence in a "new reality" allowing faster movement and improvement on multiple fronts, citing a solid multi-year outlook.
• Bevis noted the company is disciplined about improving margins and walking away from dilutive business.
• The company has secured a refreshed investor roster with growth-minded investors aligned with forward goals.

Other Key Points:

• The company completed a multi-step balance sheet transformation, including the payoff of preferred stock and an equity raise, unlocking financial flexibility.
• A Brazil tax ruling and higher income from a joint venture in China contributed to the improvement in GAAP net loss.
• The company operates 27 global plants with a workforce of 2,700 people serving over 700 customers on four continents.
• A quarterly investor conference call was scheduled for October 29, 2026, at 9 a.m. ET.