NN, Inc. Expects Q1 2026 Net Sales Growth to $80M-$90M
NN, Inc. announced that its preliminary Q1 2026 net sales results are expected to demonstrate growth versus the prior year and the company's forecast. Harold Bevis, CEO and president of NN, Inc., commented, "NN's sales are growing as expected and trending towards the high end of our previously guided range. Electric Grid, Data Center, Defense, and Electronics end markets are doing well, while global auto is stabilizing. Additionally, we are underway with industrializing a large portion of our previously awarded growth programs. This is expected to support our sales growth targets for 2026 and beyond. These sales are being produced through a lower cost operating model that is strengthening margins. With the large value of Electric Grid and Data Center new awards in Q1, we are increasing our guidance in this area to approximately $80 to $90 million of expected new sales wins secured during 2026. We are targeting strong sales growth in 2026 and beyond as well as increasing the amount and share of non-commodity auto business at the Company. Overall, our end markets and customers are healthy while global auto undergoes changes. We are currently running ahead of both our 2026 and long-term goals. We look forward to providing more information on the performance of the business when we release Q1 2026 earnings, which is planned for May 6, 2026."
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- Strong Performance: NN's Q1 revenue reached $118.5 million, exceeding analyst expectations of $106.6 million with a 12.1% year-on-year growth, showcasing robust sales in electric grid, data center, and defense electronics despite weakness in the automotive sector, particularly in China.
- Record Adjusted EBITDA: The company reported an adjusted EBITDA of $14.15 million, surpassing analyst estimates of $10.15 million, with an 11.9% margin, reflecting significant improvements in operational efficiency and cost discipline, thereby enhancing profitability.
- Upgraded Full-Year Guidance: NN raised its full-year revenue guidance to $460 million from $455 million, indicating management's confidence in future growth, while also increasing EBITDA guidance to $57 million, above analyst expectations.
- Market Capitalization Insight: With a market capitalization of $125.1 million, NN's stock price dipped slightly post-earnings, yet the company's strategic diversification efforts and potential for new product launches continue to present long-term growth opportunities for investors.
- CPI and Oil Price Impact: The April Consumer Price Index (CPI) rose to 3.8%, and Brent crude oil prices climbed to approximately $107, resulting in a 7.4% drop in NN's stock during the afternoon session, indicating heightened cost pressures faced by manufacturers.
- Rising Manufacturing Costs: The ISM Prices Index reached 84.6% in April, a four-year high, with input costs increasing by 25.6 percentage points over three months, and 69% of manufacturer comments expressed negative sentiment about the future, highlighting concerns over passing costs to consumers.
- Capital Expenditure Pressure: With Treasury yields rising to a high of 4.43%, manufacturers face increased borrowing costs when financing new equipment and factory expansions, which could suppress future capital expenditures and further compress gross margins.
- Market Volatility Analysis: NN's shares have experienced 54 moves greater than 5% over the past year; while today's drop is seen as a significant market reaction, it does not fundamentally alter perceptions of the company's business, reflecting cautious investor sentiment regarding future growth.
- Earnings Beat: NNBR reported a Q1 non-GAAP EPS of $0.02, surpassing expectations by $0.07, indicating strong profitability growth that boosts investor confidence.
- Significant Revenue Growth: The company achieved revenue of $118.5 million, a 12.1% year-over-year increase, exceeding market expectations by $11.91 million, demonstrating NNBR's sustained competitive strength in the market.
- Substantial EBITDA Increase: Adjusted EBITDA reached $14.1 million, up $3.5 million or 33.0% year-over-year, reflecting significant improvements in operational efficiency and further solidifying the company's financial health.
- Optimistic Future Outlook: NNBR raised its 2026 new business outlook to a range of $80–90 million, indicating strong confidence in future growth, which may attract more investor interest.
- Financial Outlook: The forecast for free cash flow is projected to be between USD 450 million and USD 470 million.
- Market Expectations: This financial outlook indicates a positive trend in cash generation for the company, potentially influencing investor confidence.
- Tax Refund Impact: NN Inc. announced that its CARES Act refund exceeding $10 million has been processed, which will effectively offset the $10 million borrowed in Q1 2026, thereby enhancing the company's cash flow and future growth capacity.
- Growth Strategy Advancement: The company is implementing a deliberate growth program focused on high-value auto parts and electric grid components, aiming to improve profit margins and reposition its market exposure for higher growth potential.
- Market Positioning Optimization: NN plans to elevate the electric grid and data center parts market to its top market, indicating a strategic focus on high-growth sectors while also emphasizing its commitment to critical markets like defense and medical equipment.
- Financial Outlook Update: NN will update its financial outlook on May 6, 2026, expected to further disclose Q1 net sales and new business wins, reflecting the company's positive performance in the market and future growth potential.
- Earnings Release Schedule: NN, Inc. will announce its Q1 2026 financial results after market close on May 6, 2026, covering data up to March 31, which is expected to provide investors with key performance metrics and market trend analyses.
- Conference Call Timing: The related conference call is scheduled for May 7, 2026, at 9:00 a.m. E.T., with participants required to register 5 to 10 minutes prior to ensure smooth participation in discussions regarding the company's performance and future outlook.
- Webcast Participation: The conference call will be webcast in its entirety through NN's Investor Relations website, allowing shareholders and media representatives to register and participate, enhancing transparency and fostering interaction with investors.
- Replay Availability: For those unable to listen live, a replay will be available shortly after the call on NN's website until May 7, 2027, ensuring all stakeholders can access important information.









