NN, Inc. raises 2026 sales outlook to $480–500 million after quarterly growth of 26.2%
Key Facts
NN, Inc. reported results on October 28 for the third quarter ended September 30, 2026, and raised its annual outlook for sales, adjusted earnings and new-business awards for the second time. Net sales were $131.1 million, up 26.2% year over year from $103.9 million in the corresponding quarter of 2025. Adjusted EBITDA rose 49.7% to $18.5 million from $12.4 million. The company said the outlook revision reflects strong year-to-date results and continued momentum in its targeted growth markets. The update places the quarter’s performance within a broader growth trajectory, as the company raised its 2026 estimates alongside multi-year targets through 2029.
The company attributed the sales increase to higher selling prices, reflecting the pass-through of raw-material costs to customers, as well as sales-volume growth and a favorable impact from foreign-exchange movements. Adjusted EBITDA growth was linked to an improved sales mix, operating performance and higher income from its joint venture in China. For the nine months ended September 30, sales were $378.293 million, compared with $317.492 million in the same period of 2025. Net loss for the nine months narrowed to $13.682 million from $21.466 million. The company said the improvement in quarterly net loss was related to a gain from a favorable tax ruling in Brazil and higher income from its joint venture in China.
NN raised its 2026 sales range to $480–500 million, from $460–480 million. At the midpoint, this represents an improvement of $68 million compared with 2025, or annual growth of 16%. It also raised its adjusted EBITDA outlook to $64–68 million, an increase of $17 million at the midpoint over 2025, equivalent to annual growth of 35%. The company expects new-business awards to range from $110 million to $130 million, an increase of $50 million at the midpoint, or 71% year over year. The update shows that the higher guidance covers sales, profitability and the new-business awards metric, not revenue alone.
NN said it secured new-business awards with annual value exceeding $130 million during the twelve months ended September 30, 2026, and that a significant portion had not yet been reflected in its run rate. Its cost-reduction program is also expected to deliver $12 million in savings across 335 projects globally. The company expects to launch more than 150 new programs during 2026, with peak annual sales reaching about $100 million. The awards and new programs, together with cost reductions, are operating factors supporting the company’s stated growth and margin-improvement targets. At the same time, 2026 guidance assumes that base-metal costs and exchange rates remain near current levels.
The growth plan includes data centers among its target markets, alongside electrical grids, defense, electronics, medical and high-value vehicle components. The company described data centers as its largest targeted end market and one of its fastest-growing businesses, with a $66 million opportunity pipeline that includes liquid-cooling components for new generations of chip designs. NN plans to install more than 50 machines dedicated to this market through the first quarter of 2027. This is taking place alongside a shift in its capital structure that the company said involved transactions worth $143 million, including the redemption of preferred shares and an increase in equity capital. The chief financial officer said the new capital structure allows the company to enter 2027 “with a stronger balance sheet and greater financial flexibility.”
The multi-year plan targets sales of $625 million in 2029, an adjusted gross margin of 22% of sales and adjusted EBITDA of $87 million, or 14% of sales. The company links these targets to average annual sales growth of $50 million and an average annual increase in adjusted EBITDA of $7 million. The financial targets set out a path from 2026 guidance to the sales and margin levels the company aims to achieve in 2029. The operating drivers announced by the company include business awards and new programs, cost reductions, and expansion in the data-center market. Near-term guidance execution remains based on the company’s assumptions about stable metal costs and exchange rates.