NN’s first quarter results were well received by the market, driven by broad-based revenue growth and a mix shift toward higher-margin end markets. Management attributed the strong performance to increased sales in electric grid, data center, and defense electronics, which offset weakness in automotive markets, particularly in China. CEO Harold C. Bevis highlighted that the company achieved its highest trailing twelve-month adjusted EBITDA in five years, noting, “The performance in the quarter was led by a very good mix, which was a main driver of our improved results.” Operational improvements and cost discipline further supported profitability, as the company’s transformation efforts began to materialize across most production sites.
Is now the time to buy NNBR? Find out in our full research report (it’s free for active Edge members).
NN (NNBR) Q1 CY2026 Highlights:
- Revenue: $118.5 million vs analyst estimates of $106.6 million (12.1% year-on-year growth, 11.1% beat)
- Adjusted EPS: $0.02 vs analyst estimates of -$0.05 (significant beat)
- Adjusted EBITDA: $14.15 million vs analyst estimates of $10.15 million (11.9% margin, 39.4% beat)
- The company lifted its revenue guidance for the full year to $460 million at the midpoint from $455 million, a 1.1% increase
- EBITDA guidance for the full year is $57 million at the midpoint, above analyst estimates of $54.97 million
- Operating Margin: -1.7%, up from -4.5% in the same quarter last year
- Market Capitalization: $125.1 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From NN’s Q1 Earnings Call
- Rob Brown (Lake Street Capital Markets) asked about the steps needed to reach the $100 million sales goal in data centers. CEO Harold C. Bevis explained that NN is not relying on a single product line but expanding its offerings and aiming for greater content per data center through new products and increased penetration.
- Analyst (Noble Capital Markets) requested a breakdown of the drivers behind the 12% sales growth. Bevis responded that growth came from new program launches across diverse customers and markets, with only a temporary boost from precious metals and volume growth expected to be the main driver going forward.
- John Edward Franzreb (Sidoti & Company) inquired about delays in the medical segment and the status of the wire harness program. Bevis and COO Timothy M. French noted that medical is progressing after plant certifications, while the wire harness program is nearing launch with equipment investments underway.
- Analyst (B. Riley) asked about the cadence of new business wins and the future mix between automotive and growth markets. Bevis stated that the company is targeting automotive to fall below 30% of sales over time as diversification efforts accelerate.
- Analyst (Bentley Capital Management) questioned why long-term margin targets remain conservative despite mix improvements. Bevis acknowledged the targets are cautious and explained the focus is on accelerating the timeline rather than raising percentage goals at this stage.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be tracking (1) progress toward scaling data center and grid sales, including new product launches and increased content per customer, (2) the pace of diversification into defense electronics and medical markets as these programs move from development to production, and (3) margin expansion as higher-value segments grow and operational improvements are realized. Execution on pass-through of material cost inflation and the ramp-up of key equipment investments will also be important signposts.
NN currently trades at $2.46, down from $2.52 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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