NN (NNBR) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales rose 19.3% year-over-year to $128.7 million, with adjusted EBITDA up 36% to $17.9 million and net loss narrowing to $2.3 million, driven by new business launches, higher volumes, and favorable FX.

• First half 2026 net sales reached $247.2 million, up 15.7% year-over-year, and adjusted EBITDA increased 35% to $32.1 million.

• $65 million in new business awards in the first half, with major refinancing including $124 million in preferred stock, reducing leverage and expanding the institutional investor base.

• Net loss improved 72% to $2.3 million, with adjusted net income rising to $5.5 million.

• Full-year guidance was raised, reflecting strong momentum in Data Center, Medical, and Defense segments.

Financial highlights

• Q2 2026 net sales: $128.7 million, up $20.8 million or 19.3% year-over-year; six months: $247.2 million, up 15.7%.

• Q2 2026 adjusted gross margin: $26.1 million (20.3%), up from $21.1 million (19.5%) prior year.

• Q2 2026 adjusted EBITDA: $17.9 million, up $4.7 million or 36% year-over-year, with margin expanding 170 basis points to 13.9%.

• Q2 2026 net loss: $2.3 million, improved by $5.8 million year-over-year; adjusted net income: $5.5 million.

• Operating cash flow for six months: $11.8 million (vs. $(4.0) million prior year); cash and equivalents at June 30, 2026: $16.5 million.

Outlook and guidance

• Full-year 2026 sales guidance raised to $460–$480 million, with adjusted EBITDA expected at $55–$65 million.

• New business wins guidance increased to $80–$100 million, with $80 million already secured through July.

• Longer-term adjusted EBITDA margin target set at 14%–16%, driven by improved product mix and new business ramp-ups.

• Management expects continued benefits from plant rationalization and cost optimization, with annual savings of $5.4 million.

• Sufficient liquidity is anticipated for the next 12 months, supported by recent equity raise and improved cash flows.