NN (NNBR) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with record trailing 12-month adjusted EBITDA, highest in five years, and broad-based sales growth across Electric Grid & Data Center, Defense & Electronics, and Medical markets, reducing reliance on automotive.

• Raised full-year 2026 guidance for net sales, adjusted EBITDA, and new business wins, accelerating long-term targets to 2029.

• Portfolio transformation is shifting mix from automotive to higher-margin growth markets, now 44–56% of business, up from 35% in 2023.

• New lower-cost operating footprint and ongoing cost optimization are improving margins and operational efficiency.

• Net sales rose 12.1% year-over-year to $118.5 million, driven by new business launches, higher pass-through pricing, and favorable FX.

Financial highlights

• Q1 2026 net sales: $118.5M, up $12.8M or 12.1% year-over-year; adjusted EBITDA: $14.1M, up $3.5M or 33.7%; adjusted operating income: $5.8M, up $3.8M or 184%.

• Adjusted gross margin improved to 19.5% from 16.9% year-over-year.

• Adjusted net income was $1.0M ($0.02/share), compared to a loss of $1.4M in Q1 2025; GAAP net loss was $6.8M ($0.25/share).

• Power Solutions: Net sales $55.4M (+27.3%), adjusted EBITDA $10.4M (+65.1%), margin 18.7%.

• Mobile Solutions: Net sales $63.1M (+1.4%), adjusted EBITDA $8.2M, margin 13%.

Outlook and guidance

• FY2026 net sales guidance raised to $450–$470M (9% growth at midpoint); adjusted EBITDA $52–$62M (16% growth at midpoint); new business wins $80–$90M.

• Long-term targets for 2029: $600M net sales, 20% adjusted gross margin, $80M adjusted EBITDA at 13% margin.

• Automotive expected to decline to 30% or less of mix by 2029 as growth markets expand.

• Further cost reduction initiatives and footprint optimization expected to yield $5.4M in annual benefits.