NN, Inc. (NNBR) Earnings
NN, Inc. is expected to report next earnings on November 4, 2026 (in NaN days), with a consensus EPS estimate of $0.02. NNBR has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise +543.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $-0.00 | $0.11 | +3403.3% | $129M | +10.9% |
| May 7, 2026 | $-0.05 | $0.02 | +140.0% | $118M | +11.1% |
| Mar 5, 2026 | $0.02 | $-0.25 | -1368.1% | $105M | -2.7% |
| Oct 29, 2025 | $-0.01 | $-0.01 | +0.0% | $104M | -1.4% |
| Aug 6, 2025 | $-0.01 | $0.02 | +300.0% | $108M | -2.6% |
| Mar 5, 2025 | $-0.06 | $-0.02 | +66.7% | $107M | -1.9% |
| Oct 30, 2024 | $-0.03 | $-0.05 | -51.5% | $114M | +4.6% |
| Mar 11, 2024 | $-0.05 | $-0.10 | -100.0% | $113M | -7.1% |
| Aug 3, 2023 | $-0.07 | $-0.08 | -23.1% | $125M | -7.1% |
| May 4, 2023 | $-0.06 | $-0.12 | -100.0% | $127M | -2.8% |
| Mar 9, 2023 | $-0.02 | $-0.12 | -500.0% | $118M | -10.9% |
| Nov 1, 2022 | $0.01 | $0.03 | +200.0% | $127M | -2.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- New Medical Business Expansion * Completed multi-year investments to launch a new medical business segment that is expected to double the company's overall business, with further upside potential * Current pipeline for the medical segment stands at ~$75 million, with a dedicated, high-performing team in place * The company has secured all required regulatory approvals to enter the Chinese robotic assisted surgery market (the second-largest globally for this segment) and is currently evaluating market entry - Data Center Market Growth * The company has expanded its product offerings beyond core component manufacturing to include cold plates, nickel plating, and heat pump coupling stampings, covering multiple product areas across the data center ecosystem * The total data center prospect pipeline is approaching $100 million, with long-term potential for $100 million in annual revenue from connector products alone * 50 new manufacturing machines for data center components will be fully installed by November, with monthly revenue expected to exceed $1 million starting that month and continuing to ramp into Q1 of the next fiscal year - Manufacturing Capacity Expansion * The company currently operates 2 wholly-owned foreign facilities and 1 joint venture plant in China, with sampling and certification for data center customer products completed at its Wuxi machining facility near Shanghai * 50 machines have already been ordered for Wuxi, with an additional batch planned; the current facility can accommodate up to 80 machines total, and the company is actively searching for a new facility to hold an additional 200 machines, targeting completion within 12 months * Multiple new business wins are driving demand for additional skilled labor and capital equipment to increase production capacity - Balance Sheet Strategy * The company recently completed a strategic preferred share swap that reduced outstanding preferred equity by ~$19 million in exchange for 5.5 million new common shares * The company is in early discussions to refinance its existing term loan to secure more competitive interest rates and greater financial flexibility to support growth, with no final agreements to announce yet - Operational Discipline * The company maintains minimum internal thresholds of 25% for gross margin and 25% for internal rate of return on new capital projects, and has consistently achieved returns above these floors * Over 150 new programs are currently in ramp-up mode across all company facilities, with the highest priority placed on high-growth end markets including data center, defense/electronics/grid, and medical * The company prioritizes multi-year customer commitments and avoids overexposure to any single customer, selectively pursuing higher-return opportunities
Guidance
- Full-year sales guidance is maintained at $460 million to $480 million - Full-year EBITDA guidance is maintained at $55 million to $65 million - The upper end of the full-year new business wins guidance range was increased from the prior 80 million to 80 to 100 million; through July, new business wins have already reached $80 million, which is a company record - Management maintained long-term adjusted EBITDA margin guidance of 14% to 16%, driven by improved product mix; new business wins carry an average 5 percentage point higher gross margin than the existing product portfolio - Management will continue to evaluate guidance as additional second-half results become available; current full-year guidance includes slight conservatism due to limited visibility into Q4 demand, offset by expected ramp-up of newly won business in the second half
Segment performance
No breakdown of financial performance by product segment, including absolute revenue values or revenue contribution percentages, is provided in the call transcript.
Risks & headwinds
- Q4 is seasonally the company's weakest quarter as large customers reduce inventory to clean up year-end balance sheets, though new business ramp-up is expected to partially offset this seasonal trend - Global metal prices (precious metals, steel, copper) have experienced year-over-year inflation, and steel is also subject to tariffs; while the company has contractual rights to pass through cost changes and seeks full cost recovery, inflation still impacts working capital requirements - Expanding manufacturing capacity in China faces timing uncertainty due to widespread industry competition for equipment and facility space - While the company is pursuing term loan refinancing to improve terms, there is no guarantee that improved terms will be finalized - The company has nearly exhausted its authorized common share capacity, with remaining authorized shares reserved for existing compensation plans and warrants, limiting near-term common stock issuance capacity
Analyst Q&A
Q: What is the current scale and composition of the company's data center market pipeline, and what areas is the company targeting? /
A: The company offers a range of products across the data center ecosystem, including transformer parts, cold plates, heat pump coupling stampings, and cabling components, leaning into its core welding and brazing expertise. The active prospect pipeline for data center is approaching $100 million, with long-term potential for $100 million in annual revenue from connector products alone. The market opportunity is large and growing, and the company is still evaluating partnership and capital placement decisions.
Q: What portion of recent new business wins will flow into the P&L in the second half, and why is guidance only moderately updated? /
A: All three large new business segments (medical, data center, defense) had no impact on first-half results, and will ramp up starting in the second half. Through the end of July, $80 million in new business has been won, with most of this amount ramping up immediately to contribute to second-half revenue. While the seasonal Q4 slowdown is expected to be offset by new ramping business, management maintained moderately conservative guidance due to limited visibility into Q4 pull orders, outside of already committed data center demand.
Q: What raw materials are most volatile currently, and how does the company manage cost volatility? /
A: The highest dollar-value volatile inputs are precious metals (gold and silver), and the highest tonnage volatile inputs are steel and copper, all of which have seen year-over-year price inflation, with additional tariffs on steel. The company has contractual rights to pass through input cost changes to customers, and targets full cost recovery to avoid losing money on these changes. Inflation does increase working capital requirements, but management expects metal prices to calm over time, which will support margin performance.
Q: What is the company's unique competitive advantage that has driven the recent surge of new business wins across diverse markets? /
A: The company shifted from its prior passive strategy of serving automotive customers to actively targeting high-growth markets that fit its existing manufacturing expertise, hired new industry-specific sales and leadership, and systematically tracks win/loss data to refine its strategy. The company now has established customer references in new target markets, which has accelerated new prospecting. Management maintains discipline, winning ~30% of pursued opportunities (above manufacturing industry averages) and turning down opportunities that do not meet financial thresholds. The company currently has enough existing growth opportunities and does not plan to enter additional new markets in the near term.