NN | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 128.74 M

Revenue: As of FY2026 Q2, the actual value is USD 128.74 M, beating the estimate of USD 116.09 M.

EPS: As of FY2026 Q2, the actual value is USD -0.13, beating the estimate of USD -0.1567.

EBIT: As of FY2026 Q2, the actual value is USD 6.725 M.

Consolidated Financial Performance

Net Sales

[NN, Inc.] reported Q2 2026 net sales of $128.7 million, an increase of $20.8 million or 19.3% compared to Q2 2025 net sales of $107.9 million. For the first half of 2026, net sales reached $247.2 million, an increase of $33.6 million or 16% year-over-year from $213.6 million in the first half of 2025.

Gross Margin

GAAP gross margin for Q2 2026 was $21.9 million, up $3.7 million or 20.1%. Adjusted gross margin for Q2 2026 was $26.1 million, an increase of $5.0 million or 23.9% from $21.1 million in Q2 2025. The adjusted gross margin percentage for Q2 2026 was 20.3%, an increase of 80 basis points from 19.5% in Q2 2025. For the first half of 2026, adjusted gross margin was $49.2 million, an increase of $10.3 million from $38.9 million in the first half of 2025. The adjusted gross margin percentage for the first half of 2026 was 19.9%, up 170 basis points from 18.2% in the first half of 2025.

Operating Profit / Income

Income from operations for Q2 2026 was $1.0 million, improving by $2.5 million from a loss of - $1.5 million in Q2 2025. Adjusted income from operations increased by $3.6 million or 73.9% to $8.5 million in Q2 2026.

Net Income

GAAP net loss for Q2 2026 was - $2.3 million, an improvement of $5.8 million or 72.0% compared to a net loss of - $8.1 million in Q2 2025. Adjusted net income for Q2 2026 was $5.5 million, up $4.7 million or 636.5%.

Adjusted EBITDA

Adjusted EBITDA for Q2 2026 was $17.9 million, a $4.8 million or 36.1% increase from $13.2 million in Q2 2025. The adjusted EBITDA margin percentage for Q2 2026 was 13.9%, up 170 basis points from 12.2% in Q2 2025. For the first half of 2026, adjusted EBITDA was $32.1 million, an increase of $8.3 million or 35% year-over-year from $23.8 million in the first half of 2025. The adjusted EBITDA margin for the first half of 2026 was 13.0%, up 190 basis points from 11.1% in the first half of 2025.

Segment Performance (Q2 2026 vs Q2 2025)

Power Solutions

Net sales for the Power Solutions segment were $62.3 million in Q2 2026, an increase of 39.5% compared to $44.6 million in Q2 2025. For the first half of 2026, net sales were $117.7 million, representing a 40% year-over-year growth. Income from operations for this segment rose by 56.5% to $9.0 million from $5.8 million in Q2 2025. Adjusted income from operations was $11.7 million, an increase of 39.1% compared to $8.4 million in Q2 2025. Adjusted EBITDA for this segment was $12.7 million in Q2 2026 and $23.0 million for the first half of 2026, showing a 34% year-over-year growth for the first half. The adjusted EBITDA margin was 20% in both Q2 2026 and the first half of 2026.

Mobile Solutions

Net sales for the Mobile Solutions segment were $66.6 million in Q2 2026, an increase of 5.0% compared to $63.4 million in Q2 2025. For the first half of 2026, net sales were $129.7 million, with a 5% year-over-year growth. The segment reported a loss from operations of - $1.9 million in Q2 2026, an increase of 75.4% from a loss of - $1.1 million in Q2 2025. Adjusted income from operations for Mobile Solutions was $4.9 million, an increase of 11.2% compared to $4.4 million in the prior year period. Adjusted EBITDA for this segment was $9.8 million in Q2 2026 and $18.0 million for the first half of 2026, reflecting a 3% year-over-year growth for the first half. The adjusted EBITDA margin was 15% in Q2 2026 and 14% in the first half of 2026.

Cash Flow (Six Months Ended June 30, 2026 vs 2025)

Net cash provided by operating activities was $11,798 thousand, a significant improvement from net cash used in operating activities of - $4,041 thousand in the prior year period. Net cash used in investing activities was - $8,407 thousand, compared to - $7,179 thousand in 2025. Net cash provided by financing activities was $597 thousand, down from $1,563 thousand in 2025. The net change in cash and cash equivalents was $5,073 thousand, a positive shift from a - $8,586 thousand change in 2025. Cash and cash equivalents at the end of the quarter stood at $16,450 thousand, up from $9,542 thousand in 2025.

Other Key Operational Metrics

[NN, Inc.]’s 5 Pillar growth program delivered approximately $40 million in new wins across Data Center, Medical, and Defense sectors in Q2. The Data Center business is on pace to install approximately 50 new machines during 2026 and has a pipeline exceeding $50 million. Year-to-date new business awards through July totaled over 100 programs, valued at approximately $80 million per year. New business awards for the first half of 2026 totaled $65 million. The company completed a refinancing of preferred stock, paying off approximately $89 million, consisting of $70 million cash from a PIPE transaction and $19 million through equitization to common stock. The remaining approximately $35 million preferred stock has a 10% PIK interest rate for one year and a $5 million discount if refinanced by December 31, 2026, with annual PIK interest expected to be reduced by approximately $13 million. Trailing twelve months (TTM) Q2 net sales for key growth markets include approximately $80 million for Data Center & Electric Grid, approximately $60 million for Defense & Electronics, and approximately $15 million for Medical Products. [NN, Inc.] secured $15 million in new awards for AI Data Center racks in 2026 year-to-date and expects to add $12–$15 million in sales starting Q3 2026 from a multi-year agreement in Defense & Electronics.

2026 Outlook / Guidance

[NN, Inc.] has revised its full-year 2026 guidance upwards across several areas. Net sales are now expected to range between $460 million and $480 million, representing 10% growth over 2025 at the midpoint of $470 million. Adjusted EBITDA is projected to be between $55 million and $65 million, indicating 22% growth over 2025 at the midpoint of $60 million. New business wins are anticipated to increase to a range of $80 million to $100 million, reflecting a 29% increase from the prior guidance at the midpoint of $90 million.