NN (NN2) Q3 2026 Earnings Report
DE:NN2 Q3 2026 EPS Results
- Actual EPS
- EUR 0.06
- Consensus EPS
- EUR 0.02
- Beat/Miss
- Beat by +EUR 0.04
- One Year Ago EPS
- -EUR 0.01
DE:NN2 Q3 2026 Revenue Results
- Actual Revenue
- EUR 117.39M
- Expected Revenue
- EUR 105.75M
- Beat/Miss
- Beat by +EUR 11.64M
- YoY Revenue Growth
- +26.20%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
DE:NN2 Upcoming Earnings
NN's next earnings date is estimated for March 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:NN2 Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, driven by substantial year-over-year sales and profitability growth, broad-based end-market expansion, a $122 million reduction in net debt and preferred stock, raised fiscal 2026 guidance, and accelerating opportunities in data center, defense, medical, and grid markets. The company also reported strong Q4 visibility and multiple capacity-expansion initiatives. Challenges include raw-material pricing lags, automotive softness and low-margin legacy automotive customers, equipment lead times, higher one-time expenses, and the absence of finalized 2027 guidance, but these issues were outweighed by the reported operating momentum and growth opportunities.
Company Guidance
For 2026, NN raised net sales guidance from $460 million-$480 million to $480 million-$500 million with a midpoint of about $490 million, adjusted EBITDA guidance from 55-65 to 64-68 with a midpoint of 66, and new business wins guidance from $80 million-$100 million to $110 million-$130 million with a midpoint of $120 million, assuming current base metal costs are relatively flat with where they're at today as well as FX rates; the midpoint of 66 would be about a 35% increase from our 2025 actuals. The company’s multi-year plan targets $625 million in 2029 revenue and adjusted EBITDA growing from the current midpoint of $66 million to $87 million, with about $50 million of net sales growth a year and about $7 million of adjusted EBITDA growth a year; longer-term goals include 22% gross margin and, aspirationally, 25% gross margins and 15% EBITDA. For data center only, the goal is to get the current $35 million run rate to 100, while liquid connector capacity is expected to reach 55 machines in Q1 and has an objective of 180 machines.
- Strong Third-Quarter and Year-to-Date GrowthQ3 net sales increased 26% year-over-year to $131 million, while Q3 adjusted EBITDA increased 50% to $18.5 million. Through the first nine months of 2026, net sales rose 19% to $378.3 million and adjusted EBITDA increased 40% to $50.6 million.
- Improving Gross Margin and EBITDA MarginQ3 adjusted gross margin dollars increased 30% to $25.3 million, with adjusted gross margin of 19.3%, up 50 basis points year-over-year. Year-to-date adjusted gross margin dollars increased 27% to $74.5 million, with margin of 19.7%, up 130 basis points. Q3 adjusted EBITDA margin expanded 220 basis points to 14.1%, while year-to-date margin increased 200 basis points to 13.4%.
- Power Solutions Segment ExpansionPower Solutions Q3 net sales increased 41% to $63.2 million, driven by higher volumes and higher selling prices reflecting increased raw material costs, particularly precious metals. Year-to-date sales increased 36% to approximately $180.9 million. Q3 adjusted EBITDA rose 51% to $13.4 million, and quarterly adjusted EBITDA margin reached 21%; year-to-date margin was 20%, roughly 200 basis points above the prior-year period.
- Mobile Solutions Segment GrowthMobile Solutions Q3 net sales increased 15% to $68.2 million, driven primarily by higher volumes and favorable foreign exchange impacts. Year-to-date sales increased 7% to approximately $197.9 million. Q3 adjusted EBITDA increased 31% to $8.8 million, with adjusted EBITDA margin expanding 150 basis points to 12.9%.
- Significant Reduction in Debt and Preferred StockTotal net debt and preferred stock declined from $261 million at year-end 2025 to $139 million on a Q3 pro forma basis, a $122 million reduction. NN redeemed the remaining $35 million of preferred stock through a PIPE transaction, capturing a $5 million discount and eliminating all preferred stock obligations dating back to 2021.
- All End Markets Reported GrowthManagement stated that every company segment and every end market grew during the first nine months of 2026 versus the prior-year period, making the growth broader than a single-segment story.
- New Business Awards and Program LaunchesNN secured $106 million of new business awards during the first nine months of 2026 and is launching more than 150 programs during the year representing $100 million in annual sales. The company has secured launches for immediate 2026 production as well as 2027 and 2028 startups.
- Data Center and Grid Business MomentumData center and grid sales were stated at $87 million through Q3, making the market NN's second-largest. The company has a quoted pipeline of approximately $100 million in this area and is pursuing power infrastructure, rack components, in-rack cooling, liquid-cooling connectors, grid-edge power delivery, electrical switch components, and PCB test-probe components across North America, Europe, Asia Pacific, and South America.
- Rapid Data Center Expansion OpportunityData center-only sales were approximately $35 million on a run-rate basis, up from virtually nothing at the beginning of the prior year. Management's forward-looking objective is to reach $100 million, supported by quoted opportunities and a prospecting list several multiples of the current business.
- Expansion of Liquid-Cooling CapacityNN is ramping liquid-cooling connector production, averaged 19 machines installed and commissioned in Q3, and stated that it had 17 machines in the quarter elsewhere in the discussion. Capacity is expected to reach 55 machines in Q1, with an objective of 180 machines. The company is adding 50 new machines in China, adding capacity in North Attleborough, Massachusetts, and currently ships data center products from four plants globally.
- Defense Electronics Growth and New Munitions ContractDefense electronics represented $62 million of trailing twelve-month sales through Q3, with $10 million of wins during the year and an $85 million quoted pipeline. NN registered plants to ITAR and ATF levels, expanded its product portfolio, and began ramping firearm products and a new munitions contract for NATO, the Department of Defense, and specifically the Marine Corps.
- Medical Market Re-entry and Robotic Surgery ProgramMedical sales were stated at $13 million, supported by new plant certifications and approval as a supplier to a very large medical equipment maker with 30 machine platforms. Initial purchase orders have been received for a robotic orthopedic surgery platform, and management said that customer alone could almost triple the current medical business.
- Growth in Electric Grid and High-Value Vehicle PartsManagement described strong demand across the electric-grid product portfolio and continued focus on high-value vehicle parts, including business with gross margins above 40%. The company is targeting higher-value automotive work while planning to minimize lower-margin automotive activity.
- Raised Fiscal 2026 GuidanceRevenue guidance was raised from $460 million-$480 million to $480 million-$500 million, with a midpoint of about $490 million. Adjusted EBITDA guidance increased from $55 million-$65 million to $64 million-$68 million, with a midpoint of $66 million, approximately 35% above 2025 actuals. New-business-win guidance increased from $80 million-$100 million to $110 million-$130 million, with a midpoint of $120 million.
- Long-Term Revenue and EBITDA TargetsWith the current guidance midpoint of $490 million in revenue and $66 million of adjusted EBITDA, NN is targeting $625 million of revenue and $87 million of adjusted EBITDA in 2029. Management also described approximately $50 million of annual net sales growth and approximately $7 million of annual adjusted EBITDA growth as broadly achievable long-term objectives.
- Strong Near-Term Visibility and BacklogManagement reported that October was strong, with no slowdown, sufficient material, available personnel and machines for the next eight weeks, and backlog particularly in data center operations in China and North Attleborough. Management expects a strong Q4 and stated that the typical Q4 seasonal decline of 7% may not occur this year.
- Healthy New-Business Economics and Win RatesNN reported a win rate above 25% and expects to remain around a 25%-28% win rate on closed opportunities. The company maintains a 25% gross-margin floor and targets 35% gross margins on new business, while maintaining a 25% floor for return on invested capital.
- Mexico Plant and Cable Assembly ExpansionNN is launching its Juarez, Mexico plant with machined products and plans to add cable assembly as a second activity. Machinery has been ordered, a launch customer is in place for the machined-products side, and the company expects machinery for both activities by the end of 2026 or beginning of 2027, with ramp-up completion during Q1.
- Potential Capability- and Customer-Expansion AcquisitionManagement identified an acquisition opportunity involving medical and defense customers, INDEX machines, gun-drilling capabilities, and multi-axis EDM machines. NN stated that an acquisition would need to expand capabilities or the customer roster in its existing five growth pillars and be accretive at the purchase multiple.
- Low Cash Tax OutlookBecause of a large tax-loss carryforward, management expects to remain in a tax-loss-deferral position for the next couple of years. Cash taxes are expected to be approximately $4 million-$5 million, primarily from foreign repatriated dividends, other non-U.S. taxes, and U.S. franchise taxes.
DE:NN2 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 11, 2027 | 2026 (Q4) | 0.01- | 0 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.020.06 | -0.01 | 800.00% (+0.07) | |
| Aug 05, 2026 | 2026 (Q2) | -0.000.10 | 0.02 | 450.00% (+0.08) | |
| May 06, 2026 | 2026 (Q1) | -0.050.02 | -0.03 | 166.67% (+0.04) | |
| Mar 04, 2026 | 2025 (Q4) | 0.010.00 | -0.02 | 100.00% (+0.02) | |
| Oct 29, 2025 | 2025 (Q3) | 0.01-0.01 | -0.04 | 80.00% (+0.04) | |
| Aug 06, 2025 | 2025 (Q2) | -0.000.02 | -0.02 | 200.00% (+0.04) | |
| May 07, 2025 | 2025 (Q1) | -0.03-0.03 | -0.07 | 62.50% (+0.04) | |
| Mar 05, 2025 | 2024 (Q4) | -0.10-0.02 | -0.09 | 80.00% (+0.07) | |
| Oct 30, 2024 | 2024 (Q3) | -0.03-0.04 | 0.01 | -600.00% (-0.05) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
