NN Inc (NNBR)
NASDAQ:NNBR
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NN
(NASDAQ:NNBR)
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Rating:56Neutral
Price Target:
$3.00
▲(29.31% Upside)
Action:Reiterated
Date:05/28/26
NNBR scores as a mid-range setup: strong operational momentum and raised guidance from the latest earnings call support the outlook, and the stock’s technical trend is positive. However, the overall score is constrained by persistent GAAP losses, elevated leverage, and recently weakened free cash flow, with valuation also unattractive due to the negative P/E.
Positive Factors
Data center growth
NN's established ~$70M LTM data-center franchise and a near-term $100M target reflect a durable shift into higher-TAM, higher-margin electronics and cooling markets. Investments in a liquid-cooling product line and production equipment signal scalable capacity and multi-year revenue visibility beyond cyclical auto demand.
Negative Factors
Persistent GAAP losses
NN remains GAAP-loss-making across recent years with very low gross margins and negative operating/net margins. Until GAAP profitability is consistently achieved, shareholder returns and reinvestment capacity are constrained and the company remains vulnerable to margin pressure or demand cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Data center growth
NN's established ~$70M LTM data-center franchise and a near-term $100M target reflect a durable shift into higher-TAM, higher-margin electronics and cooling markets. Investments in a liquid-cooling product line and production equipment signal scalable capacity and multi-year revenue visibility beyond cyclical auto demand.
Read all positive factors
NN (NNBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$162.54M
Dividend YieldN/A
Average Volume (3M)1.30M
Price to Earnings (P/E)―
Beta (1Y)2.70
Revenue Growth-3.08%
EPS Growth-9.56%
CountryUS
Employees2,600
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-1.00
Shares Outstanding52,773,514
10 Day Avg. Volume1,127,909
30 Day Avg. Volume1,302,492
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)0.43
Price to Sales (P/S)0.15
P/FCF Ratio8.75
Enterprise Value/Market Cap2.26
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit6.61
Enterprise Value/Ebitda19.46
Forecast
1Y Price Target
$5.00Price Target Upside115.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.05
Revenue Forecast (FY)$455.68M
NN Business Overview & Revenue Model
Company Description
NN, Inc., a diversified industrial company, designs, manufactures, and sells high-precision components and assemblies. It operates through two segments, Mobile Solutions and Power Solutions. The Mobile Solutions segment manufactures and sells syst...
How the Company Makes Money
NN, Inc. makes money by manufacturing and selling engineered components and assemblies to customers—primarily OEMs and tier suppliers—under production supply arrangements. Revenue is generated from fulfilling customer purchase orders and longer-te...
NN Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operational and financial momentum: double-digit revenue growth, substantial YoY improvement in adjusted operating income and adjusted EBITDA, strong Power Solutions performance, accelerating wins in data center and defense, and an improved full-year 2026 guide with long-term targets pulled in one year. Offsetting items include China automotive softness, commodity/tariff pass-through timing that can temporarily pinch margins, slower-than-expected progress in medical, and ongoing financing/refinancing uncertainty. Overall the positives—broader sales strength, margin expansion, record LTM EBITDA traction, and visible new-business pipeline—significantly outweigh the identified challenges.Positive Updates
Revenue Growth
Net sales of $118.5M in Q1 2026, up $12.8M or 12.1% year-over-year; sequential sales growth of roughly $12–13M (~12%), driven by broader mix and wins in grid, data center, defense and electronics.
Negative Updates
China Automotive Softness
Automotive volumes in China are soft; management expects China market weakness to persist through 2026. This softness partially offset global growth and reduced contribution from a previously growing China automotive business.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Net sales of $118.5M in Q1 2026, up $12.8M or 12.1% year-over-year; sequential sales growth of roughly $12–13M (~12%), driven by broader mix and wins in grid, data center, defense and electronics.
Read all positive updates
Company Guidance
NN, Inc. raised its 2026 outlook, now guiding full-year net sales of $450–$470 million (midpoint ~$460M, ~9% growth vs. prior year) and adjusted EBITDA of $52–$62 million (midpoint ~$57M, ~16% growth at midpoint), driven by a strong Q1 and new-business momentum; Q1 results included net sales of $118.5M (+$12.8M, +12.1% YoY and up ~$12–13M sequentially), adjusted operating income of $5.8M (+$3.8M, +184% YoY), adjusted EBITDA of $14.1M (+$3.5M, +33.7% YoY) and an adjusted EBITDA margin of 11.9% (vs. 10.0% a year ago). Segment metrics: Power Solutions Q1 sales $55.4M (+27%), adjusted EBITDA $10.4M (+65.1%) and margin 18.7% (vs. 14.5% prior year); Mobile Solutions Q1 sales $63.1M (+1.4%), adjusted EBITDA $8.2M and margin 13%. New business wins totaled $42.9M in Q1 (Power $29.3M; Mobile $13.6M). Management said LTM adjusted EBITDA has risen ~61% from the mid-2023 trough (~$35M, 7.4% margin) to the midpoint of 2026 guidance (~$57M, ~12.4% margin), is pulling its long-term targets forward from 2030 to 2029 (aspiring to ~$600M net sales, ~20% adjusted gross margin and ~ $80M adjusted EBITDA at ~13% margin), and highlighted a data‑center business already >$70M LTM with a near‑term $100M goal.NN Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
45
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 434.97M | 422.21M | 464.29M | 489.27M | 498.74M | 477.58M |
| Gross Profit | 55.50M | 59.36M | 69.48M | 70.09M | 77.63M | 87.59M |
| EBITDA | 18.86M | 17.07M | 20.72M | 13.46M | 31.20M | 36.42M |
| Net Income | -34.15M | -34.00M | -38.27M | -50.15M | -26.10M | -13.22M |
Balance Sheet | ||||||
| Total Assets | 453.43M | 440.78M | 456.89M | 510.88M | 546.13M | 579.10M |
| Cash, Cash Equivalents and Short-Term Investments | 8.47M | 11.38M | 18.13M | 21.90M | 12.81M | 28.66M |
| Total Debt | 218.70M | 211.34M | 196.96M | 212.83M | 209.41M | 211.13M |
| Total Liabilities | 309.48M | 294.38M | 382.37M | 308.08M | 359.86M | 354.92M |
| Stockholders Equity | 143.95M | 146.41M | 74.52M | 202.80M | 186.26M | 224.19M |
Cash Flow | ||||||
| Free Cash Flow | -4.77M | 7.23M | -7.24M | 8.85M | -10.23M | -2.63M |
| Operating Cash Flow | 395.00K | 5.67M | 11.07M | 29.34M | 7.72M | 15.59M |
| Investing Cash Flow | -10.50M | -11.03M | -1.01M | -17.60M | -17.49M | -36.10M |
| Financing Cash Flow | 4.92M | -2.45M | -13.24M | -2.88M | -5.19M | 2.56M |
NN Technical Analysis
Positive
2.32
Price Trends
2.13
Positive
1.81
Positive
1.81
Positive
Market Momentum
0.19
Negative
66.74
Neutral
88.47
Negative
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 2.32 is below the 20-day moving average (MA) of 2.53, above the 50-day MA of 2.13, and above the 200-day MA of 1.81, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 66.74 is Neutral, neither overbought nor oversold. The STOCH value of 88.47 is Negative, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $154.63M | -2.28 | -27.50% | ― | -69.74% | 63.94% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $162.54M | -4.32 | -22.42% | ― | -3.08% | -9.56% | |
56 Neutral | $844.65M | 85.98 | 1.89% | 3.87% | -28.90% | ― | |
54 Neutral | $859.19M | -3.76 | -46.27% | 20.53% | 7.52% | -1.67% | |
51 Neutral | $1.81B | 70.72 | 118.50% | ― | 167.61% | ― | |
50 Neutral | $153.16M | 10.29 | 37.76% | ― | 9.30% | 22.99% |
* Industrials Sector Average
NNBR
NN
2.97
0.77
35.00%
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NN Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
NN Shareholders Approve Expanded Equity Incentive Plan
Positive
May 20, 2026
At its ANNual Meeting of Stockholders held on May 20, 2026, NN, Inc. shareholders approved an Amended and Restated 2022 Omnibus Incentive Plan, increasing the pool of common shares available for equity awards by 2,000,000, thereby expanding the co...
Business Operations and StrategyFinancial Disclosures
NN Raises 2026 Guidance, Highlights Diversified Growth Drivers
Positive
May 11, 2026
On May 11, 2026, NN, Inc. posted an updated investor presentation to its website ahead of participation in the ROTH virtual roadshow, outlining raised full-year 2026 guidance for net sales of $450–$470 million and adjusted EBITDA of $52̵...
Business Operations and StrategyFinancial Disclosures
NN Raises 2026 Outlook After Strong First Quarter
Positive
May 6, 2026
On May 6, 2026, NN, Inc. reported first-quarter 2026 results that showed a sharp improvement in sales and profitability versus a year earlier, with net sales up 12.1% to $118.5 million and adjusted EBITDA rising 33.0% to $14.1 million. While the c...
Business Operations and StrategyFinancial Disclosures
NN Highlights Growth Strategy at 38th ROTH Conference
Positive
Mar 23, 2026
On March 23, 2026, NN, Inc. posted an updated investor presentation to its website for use at the 38th Annual ROTH Conference, outlining its strategy as a precision components supplier focused on powering and cooling solutions from the grid edge t...
Business Operations and StrategyFinancial Disclosures
NN Reports Stronger 2025 Results, Eyes 2026 Growth
Positive
Mar 4, 2026
On March 4, 2026, NN, Inc. reported fourth‑quarter 2025 net sales of $104.7 million and full‑year 2025 net sales of $422.2 million, with Q4 adjusted EBITDA rising to $12.9 million and full‑year adjusted EBITDA reaching $49.0 mill...
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.