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NN
(NASDAQ:NNBR)
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Rating:59Neutral
Price Target:
$4.00
▲(13.31% Upside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by weak financial performance—ongoing losses and balance-sheet leverage/equity deterioration—despite positive operating cash flow. Offsetting this, technicals are supportive with the stock in an uptrend, and the latest earnings call was notably constructive with raised guidance, strong growth/margin progress, and capital-structure improvements. Valuation remains less supportive due to negative earnings and no dividend yield provided.
Positive Factors
Diversification into higher-value markets
Expansion into data center, electric grid, defense, electronics and medical markets reduces reliance on global autos and targets faster-growing, higher-value applications. This broader mix can improve resilience, customer reach and long-term margin potential.
Negative Factors
High leverage and weak equity cushion
Elevated leverage and a shrinking equity base leave NN with limited protection against earnings volatility. Although refinancing helped, residual obligations and weak internally generated capital could constrain investment and increase sensitivity to operating setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversification into higher-value markets
Expansion into data center, electric grid, defense, electronics and medical markets reduces reliance on global autos and targets faster-growing, higher-value applications. This broader mix can improve resilience, customer reach and long-term margin potential.
Read all positive factors
NN (NNBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$291.51M
Dividend YieldN/A
Average Volume (3M)5.19M
Price to Earnings (P/E)―
Beta (1Y)2.83
Revenue Growth5.09%
EPS Growth14.61%
CountryUS
Employees2,300
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-0.97
Shares Outstanding82,580,864
10 Day Avg. Volume1,702,450
30 Day Avg. Volume5,185,681
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$6.67Price Target Upside88.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.1
Revenue Forecast (FY)$469.55M
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. primarily makes money by manufacturing and selling engineered components and assemblies to customers, generally under contractual supply arrangements tied to customer production programs. Revenue is generated from (1) sales of precision m...
NN Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 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
Neutral
3.53
Price Trends
3.44
Positive
2.94
Positive
2.18
Positive
Market Momentum
0.06
Positive
47.43
Neutral
5.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NNBR, the sentiment is Neutral. The current price of 3.53 is below the 20-day moving average (MA) of 3.70, above the 50-day MA of 3.44, and above the 200-day MA of 2.18, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 5.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $288.63M | 18.29 | 37.92% | ― | 11.24% | 31.12% | |
66 Neutral | $151.12M | 212.84 | 0.28% | ― | -57.96% | 75.86% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $291.51M | -3.68 | -27.83% | ― | 5.09% | 14.61% | |
55 Neutral | $856.19M | -5.43 | -21.01% | 2.49% | 8.37% | 51.01% | |
44 Neutral | $1.25B | -96.99 | -6.61% | ― | 181.39% | -194.74% | |
43 Neutral | $672.64M | -22.61 | -5.81% | 3.61% | -31.82% | 55.14% |
* Industrials Sector Average
NNBR
NN
3.57
1.11
45.12%
CODI
Compass Diversified Holdings
11.25
4.06
56.47%
MATW
Matthews International
21.03
-2.22
-9.53%
RCMT
Rcm Technologies
40.97
13.75
50.51%
TUSK
Mammoth Energy Services
3.15
0.81
34.62%
FBYD
Falcon's Beyond Global
9.99
2.66
36.29%
NN Corporate Events
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...
Private Placements and FinancingRegulatory Filings and Compliance
NN Announces $75 Million Private Stock Placement
Neutral
Jul 1, 2026
On June 30, 2026, NN, Inc. entered into a Securities Purchase Agreement with institutional investors to sell 24,509,804 shares of its common stock in a private placement at $3.06 per share, for expected gross proceeds of $75 million. The closing o...
Business Operations and StrategyFinancial Disclosures
NN Updates Outlook, Highlights Growth in High-Value Markets
Positive
Jun 22, 2026
On June 22, 2026, NN, Inc. posted an updated investor presentation outlining its growth trajectory and used it the following day at the iAccess Alpha Best Ideas Summer Investment Conference, where senior executives including the CEO, CFO and COO p...
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.