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 2026 guidance for net sales, adjusted EBITDA, and new business wins, accelerating long-term goals by one year 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 footprint optimization are improving margins and operational efficiency.

• Cost of sales and SG&A increased due to higher volumes and compensation expenses.

Financial highlights

• Q1 2026 net sales were $118.5M, up $12.8M or 12.1% year-over-year, driven by improved sales mix, higher precious metals pass-through, and favorable FX.

• Adjusted operating income was $5.8M, up $3.8M or 184% year-over-year; adjusted EBITDA was $14.1M, up $3.5M or 33.7%, with margin at 11.9%.

• 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).

• New business wins totaled $42.9M, up $19.4M or 83% year-over-year, concentrated in Electric Grid & Data Center.

Outlook and guidance

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

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

• Expect record annual performance in 2026 across sales, adjusted EBITDA, margins, EPS, and new business wins.

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