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NN
(NASDAQ:NNBR)
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Rating:58Neutral
Price Target:
$4.00
▲(13.31% Upside)
Action:Reiterated
Date:10/08/26
NNBR scores moderately: improved momentum and a strong, guidance-raising earnings narrative (including operational acceleration and capital-structure clean-up) are meaningful positives. These are offset by weak underlying financial performance (ongoing losses, pressured margins) and elevated balance-sheet risk, while valuation is constrained by a negative P/E and no dividend support.
Positive Factors
Preferred stock elimination
Eliminating the remaining preferred stock removes a senior equity layer and its associated obligations from the balance sheet. This should improve capital-structure flexibility, simplify future refinancing, and reduce claims that previously competed with common shareholders for the company’s financial resources.
Negative Factors
Weak profitability and leverage
NN remains exposed to financial strain because losses have weakened equity while debt remains high relative to that smaller capital base. Negative profitability limits internal capital generation, and continued refinancing needs could constrain investment or increase financing costs if operating results weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Preferred stock elimination
Eliminating the remaining preferred stock removes a senior equity layer and its associated obligations from the balance sheet. This should improve capital-structure flexibility, simplify future refinancing, and reduce claims that previously competed with common shareholders for the company’s financial resources.
Read all positive factors
NN (NNBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$370.29M
Dividend Yield4.15%
Average Volume (3M)2.37M
Price to Earnings (P/E)―
Beta (1Y)2.82
Revenue Growth5.09%
EPS Growth14.61%
CountryUS
Employees2,300
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-0.97
Shares Outstanding93,744,210
10 Day Avg. Volume3,626,991
30 Day Avg. Volume2,366,071
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)0.43
Price to Sales (P/S)0.15
P/FCF Ratio8.75
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue1.10
Enterprise Value/Gross Profit8.47
Enterprise Value/Ebitda19.30
Forecast
1Y Price Target
$6.67Price Target Upside88.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.11
Revenue Forecast (FY)$479.43M
NN Business Overview & Revenue Model
Company Description
NN, Inc. operates as a diversified industrial enterprise specializing in the engineering, production, and distribution of high-precision components and intricate assemblies. Its operations are structured into two distinct segments: Mobile Solution...
How the Company Makes Money
NN, Inc. generates revenue by manufacturing and selling engineered components and assemblies to OEMs and other industrial customers. Its core revenue model is B2B contract manufacturing: customers provide technical specifications (and sometimes lo...
NN Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented multiple clear signs of positive operational momentum: double-digit top-line growth, margin expansion, strong adjusted EBITDA improvement, meaningful new-business wins and a strategically important refinancing that materially reduces PIK interest and de-levers the balance sheet. Management raised full-year guidance and articulated a credible multi-vertical growth strategy (data center, defense, medical) with sizable pipelines. Offsetting risks include residual preferred exposure, remaining debt/term loan refinement needs, share dilution from equitization, raw material pass-through volatility that pressures working capital and margins, and near-term capacity/CapEx requirements to support rapid ramps. Overall, the positive financial and strategic developments materially outweigh these execution and financing risks.Positive Updates
Revenue Growth – Q2 and Year-to-Date
Q2 net sales of $128.7M, up ~19% year-over-year; first half net sales of $247.2M, up ~$33.6M or ~16% versus prior year, demonstrating sustained top-line momentum.
Negative Updates
Precious Metals and Raw Material Volatility
High pass-through costs for precious metals (gold/silver) and inflation in tonnage materials (steel, copper) increase working capital needs and introduce margin volatility; metals pass-through can negatively affect reported margin percentages even when fully passed to customers.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth – Q2 and Year-to-Date
Q2 net sales of $128.7M, up ~19% year-over-year; first half net sales of $247.2M, up ~$33.6M or ~16% versus prior year, demonstrating sustained top-line momentum.
Read all positive updates
Company Guidance
Management raised 2026 guidance to net sales of $460–480 million, adjusted EBITDA of $55–65 million, and new business wins of $80–100 million (management noted new business wins through July already total $80 million and the company secured $65 million of new awards in H1). The upgrade is supported by strong operating results — Q2 net sales $128.7M (+19% YoY), H1 net sales $247.2M (+16%); Q2 adjusted gross margin $26.1M (20.3%, +80 bps YoY) and H1 adjusted gross margin $49.2M (19.9%, +170 bps YTD); Q2 adjusted EBITDA $17.9M (+36%) and H1 adjusted EBITDA $32.1M (+35%) with Q2 adjusted EBITDA margin 13.9% (YTD 13.0%, +190 bps YTD). Management also cited a $124M refinancing (including a $75M PIPE), $70M cash redemption, $19M equitization, a ~$35M remaining preferred with PIK cut to 10% for one year and an estimated ~$13M annual PIK interest reduction as materially delevering the balance sheet to support the guided growth.NN Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
28
Negative
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 455.79M | 422.21M | 464.29M | 489.27M | 498.74M | 477.58M |
| Gross Profit | 59.15M | 59.36M | 69.48M | 70.09M | 77.63M | 87.59M |
| EBITDA | 25.95M | 17.07M | 20.72M | 13.46M | 31.20M | 36.42M |
| Net Income | -32.59M | -34.00M | -38.27M | -50.15M | -26.10M | -13.22M |
Balance Sheet | ||||||
| Total Assets | 448.62M | 440.78M | 456.89M | 510.88M | 546.13M | 579.10M |
| Cash, Cash Equivalents and Short-Term Investments | 16.45M | 11.38M | 18.13M | 21.90M | 12.81M | 28.66M |
| Total Debt | 206.39M | 211.34M | 196.96M | 212.83M | 209.41M | 211.13M |
| Total Liabilities | 305.28M | 294.38M | 382.37M | 308.08M | 359.86M | 354.92M |
| Stockholders Equity | 21.21M | 146.41M | 74.52M | 202.80M | 186.26M | 224.19M |
Cash Flow | ||||||
| Free Cash Flow | 11.12M | 7.23M | -7.24M | 8.85M | -10.23M | -2.63M |
| Operating Cash Flow | 21.51M | 5.67M | 11.07M | 29.34M | 7.72M | 15.59M |
| Investing Cash Flow | -12.26M | -11.03M | -1.01M | -17.60M | -17.49M | -36.10M |
| Financing Cash Flow | -3.42M | -2.45M | -13.24M | -2.88M | -5.19M | 2.56M |
NN Technical Analysis
Positive
3.53
Price Trends
3.69
Positive
3.41
Positive
2.56
Positive
Market Momentum
0.13
Negative
54.31
Neutral
33.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNBR, the sentiment is Positive. The current price of 3.53 is below the 20-day moving average (MA) of 3.73, below the 50-day MA of 3.69, and above the 200-day MA of 2.56, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 33.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NNBR.
NN Risk Analysis
NN disclosed 34 risk factors in its most recent earnings report. NN reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NN Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $294.24M | 18.47 | 37.92% | 16.21% | 11.24% | 31.12% | |
66 Neutral | $135.72M | 190.54 | 0.29% | 3.42% | -57.96% | 75.86% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $370.29M | -4.07 | -27.83% | 4.15% | 5.09% | 14.61% | |
48 Neutral | $816.31M | -5.24 | -21.01% | 214.04% | 8.37% | 51.01% | |
45 Neutral | $580.88M | -20.01 | -5.81% | 5.48% | -31.82% | 55.14% | |
45 Neutral | $1.08B | -86.50 | -6.61% | ― | 181.39% | -194.74% |
* Industrials Sector Average
NNBR
NN
3.94
2.05
108.47%
CODI
Compass Diversified Holdings
10.78
2.30
27.12%
MATW
Matthews International
18.64
-2.57
-12.11%
RCMT
Rcm Technologies
40.99
17.55
74.87%
TUSK
Mammoth Energy Services
2.81
0.57
25.45%
FBYD
Falcon's Beyond Global
8.91
-3.67
-29.17%
NN Corporate Events
Business Operations and StrategyPrivate Placements and Financing
NN Completes Series D Preferred Stock Redemption
Positive
Oct 8, 2026
On October 7, 2026, NN, Inc. completed the final redemption of all 18,400 remaining shares of its Series D Perpetual Preferred Stock for approximately $30.7 million, eliminating the security from its balance sheet. The redemption, executed at a di...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
NN Raises $53 Million in Oversubscribed PIPE Financing
Positive
Oct 5, 2026
On October 1, 2026, NN, Inc. entered into a securities purchase agreement for a private investment in public equity, selling common stock and pre-funded warrants at about $3.30 per share to raise approximately $53 million in gross proceeds. The tr...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
NN shareholders approve charter amendments and share increase
Positive
Sep 30, 2026
On September 30, 2026, NN, Inc. stockholders at a special meeting approved an amended and restated Certificate of Incorporation that doubles the company’s authorized common stock from 90 million to 180 million shares and removes outdated boa...
Business Operations and StrategyFinancial Disclosures
NN Raises 2026 Sales and EBITDA Guidance Outlook
Positive
Sep 22, 2026
On September 22, 2026, NN, Inc. raised its full-year 2026 guidance ranges for net sales and adjusted EBITDA, signaling stronger than previously expected performance. The company now projects net sales of $470 million to $490 million and adjusted E...
Business Operations and StrategyFinancial Disclosures
NN unveils profitable growth strategy in investor presentation
Positive
Sep 9, 2026
On September 9, 2026, NN, Inc. published an updated investor presentation on its website ahead of its participation in the Lake Street Capital Markets Investor Conference on September 10, 2026. The presentation details a profitable growth program ...
Business Operations and StrategyFinancial Disclosures
NN Raises 2026 Outlook Amid Strong Non-Auto Growth
Positive
Aug 20, 2026
On August 20, 2026, NN, Inc. posted an updated investor presentation that highlights strong financial momentum and a reshaped portfolio toward high-value, non-automotive markets. The company reported Q2 2026 net sales of $128.7 million and adjuste...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
NN boosts outlook after strong Q2 2026 performance
Positive
Aug 5, 2026
NN, Inc. reported strong second‑quarter 2026 results on August 5, 2026, with net sales rising 19.3% year‑on‑year to $128.7 million and adjusted EBITDA climbing 36.1% to $17.9 million, driven by new business launches, favorable sa...
Business Operations and StrategyExecutive/Board Changes
NN Updates Governance Pact With Activist Legion Partners
Positive
Jul 31, 2026
On July 29, 2026, NN, Inc. and Legion Partners Asset Management entered into a letter agreement modifying their existing cooperation framework. NN agreed to accelerate the vesting of 49,079 restricted shares awarded to director Raymond T. White, w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.