GET DAILY SIGNALSNN, Inc. (NNBR) Delivers Strong Q3 2026 Results with +26.2% Sales Growth
Key Takeaways
- NN, Inc. reported third quarter 2026 net sales of $131.1 million, up 26.2% from $103.9 million a year earlier, exceeding Wall Street's consensus estimate of roughly $118.1 million.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 49.7% year over year to $18.5 million, topping analyst expectations.
- Non-GAAP (non-Generally Accepted Accounting Principles) adjusted earnings came in at $0.07 per share, well above the consensus estimate of $0.01.
- Management raised its full-year 2026 guidance across net sales, adjusted EBITDA, and new business wins, citing momentum in its targeted growth end markets.
- Both reporting segments grew, led by a 40.6% sales increase in Power Solutions and a 15.3% gain in Mobile Solutions.
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Putting the Earnings in Context
NN, Inc.'s third quarter 2026 report carries significant weight for investors tracking the company's multi-year transformation. The Charlotte, North Carolina-based precision components manufacturer has been pivoting away from a heavy reliance on the automotive sector toward higher-growth end markets such as electric grid, data center, defense, electronics, and medical. After several quarters of uneven revenue performance, this report offered evidence that the strategy is gaining traction. The company's earlier 2026 quarters already showed improving profitability, and the third quarter's results continued that trend with accelerating sales growth and expanding margins. For investors, the report served as a key test of whether management's "growth program" and cost leadership initiatives could translate into sustained top-line momentum and stronger financial performance. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Results
NN, Inc. reported net sales of $131.1 million for the third quarter of 2026, a 26.2% increase from $103.9 million in the same period of 2025. The gain was driven primarily by higher selling prices reflecting pass-through of increased raw material costs, higher volumes, and favorable foreign exchange effects. Revenue came in ahead of the consensus estimate of approximately $118.1 million.
Adjusted EBITDA rose 49.7% to $18.5 million, compared with $12.4 million a year earlier, reflecting an improved sales mix, stronger operating performance, and higher income from the company's joint venture in China. Non-GAAP adjusted earnings per share reached $0.07, a sharp improvement from a loss of $0.01 in the prior-year quarter and well above the consensus estimate of $0.01.
By segment, Power Solutions net sales climbed 40.6% to $63.2 million, while Mobile Solutions net sales increased 15.3% to $68.2 million. Mobile Solutions posted an adjusted income from operations of $4.0 million, up 75.2% year over year. Management also raised full-year guidance, now targeting net sales of $480 million to $500 million and adjusted EBITDA of $64 million to $68 million.
How the Market Reacted
Investor sentiment heading into the third quarter report had been cautiously optimistic, with analysts generally reconfirming estimates in the weeks before the announcement. The results validated that optimism, as NN, Inc. delivered a meaningful revenue beat, a significant adjusted EPS surprise, and an upward revision to full-year guidance. The combination of accelerating sales growth and expanding adjusted EBITDA signaled that the company's strategic shift into higher-margin end markets is translating into tangible financial improvement. That said, the quarter also carried mixed signals: free cash flow was negative at roughly $1.31 million, compared with a positive $7.74 million in the prior-year period, a metric some investors will watch closely given the company's ongoing capital investment and balance sheet initiatives.
Looking Ahead: Key Factors to Watch
Following this quarter, investors will be watching several factors that could shape NN, Inc.'s trajectory into year-end and 2027. Management raised full-year guidance meaningfully, now expecting net sales between $480 million and $500 million and adjusted EBITDA between $64 million and $68 million, alongside a new business wins target of $110 million to $130 million. These figures imply continued double-digit growth and suggest management sees sustained momentum in its electric grid, data center, defense, and medical end markets.
A key area to monitor is the ramp-up of new program wins and whether those contracts convert into realized revenue on schedule. The company has cited pushouts in certain automotive programs in past quarters, so execution timing remains an important variable. Raw material pass-through pricing, particularly for precious metals, is another factor that can flatter revenue growth without necessarily boosting underlying profitability.
Margin progress will also be central to the story. Management has pointed to multi-year goals for adjusted gross margin and adjusted EBITDA margin, and the third quarter's improvement suggests the company is moving in the right direction. Finally, investors should track free cash flow generation and any updates on the company's capital structure, which leadership has highlighted as a source of greater financial flexibility heading into 2027. From what I see, this remains an important watch item.
Exploring AI Tools for Stock Analysis
In my own research process, I often turn to Tickeron’s AI Screener when evaluating names like NNBR. It helps filter opportunities using technical patterns, fundamentals, and AI-driven signals, making it easier to compare performance across sectors and spot emerging trends without spending hours on manual screens. This kind of tool adds useful context when assessing how a company’s results stack up against peers.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
NNBR in -4.90% downward trend, falling for three consecutive days on October 23, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where NNBR declined for three days, in 259 of 291 cases, the price declined further within the following month. The odds of a continued downward trend are 89%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for NNBR moved out of overbought territory on October 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In 27 of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at 79%.
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on NNBR as a result. In 59 of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 74%.
The Moving Average Convergence Divergence Histogram (MACD) for NNBR turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In 31 of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at 77%.
NNBR moved below its 50-day moving average on October 20, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NNBR crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 78%.
NNBR broke above its upper Bollinger Band on October 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NNBR entered a downward trend on September 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +6.36% 3-day Advance, the price is estimated to grow further. Considering data from situations where NNBR advanced for three days, in 194 of 233 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. NNBR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 41 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 81 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.665) is normal, around the industry mean (-0.834). P/E Ratio (-3.619) is within average values for comparable stocks, (17.227). Projected Growth (PEG Ratio) (0.835) is also within normal values, averaging (0.772). Dividend Yield (0.080) settles around the average of (620.319) among similar stocks. P/S Ratio (0.358) is also within normal values, averaging (2.059).
The Tickeron SMR rating for this company is 99 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NNBR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock worse than average.
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General Information
a manufacturer of metal bearing components, plastic and rubber products and precisionmetal components
Industry IndustrialConglomerates
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