Key Highlights

  • Net sales rose 26.2% to USD 131.1 million and exceeded the USD 118.10 million consensus estimate.
  • GAAP loss per common share narrowed to USD 0.13 from USD 0.23, with a net loss of USD 4.6 million.
  • Power Solutions sales jumped 40.6% to USD 63.2 million, while Mobile Solutions posted a USD 6.3 million operating loss.
  • Private placements and cash funded redemption of all Series D preferred stock, completed October 7, 2026.

NN, Inc. (NASDAQ:NNBR) reported third-quarter 2026 net sales of USD 131.1 million, up 26.2% from USD 103.9 million a year earlier and above a consensus estimate of USD 118.10 million. Net loss was USD 4.6 million versus USD 6.7 million, and the loss per common share was USD 0.13 after preferred dividends, compared with USD 0.23 a year earlier. That compares with a consensus estimate of USD 0.02 per share, a benchmark that may rest on an adjusted basis the company does not report.

Management attributed the sales gain to higher selling prices that pass through raw material costs, higher volumes and favorable currency effects. Loss from operations widened to USD 3.3 million from USD 2.2 million, as cost of sales rose 30.6% on volume and labor tied to new business wins.

Segment Split and Below-the-Line Items

Power Solutions sales rose 40.6% to USD 63.2 million, and its operating income grew to USD 9.2 million from USD 5.4 million on pricing and volume. Mobile Solutions sales increased 15.3% to USD 68.2 million, but the segment's operating loss deepened to USD 6.3 million from USD 2.9 million on start-up labor for new programs, material costs, depreciation and repairs.

Selling, general and administrative expense rose USD 2.2 million to USD 13.3 million on professional fees tied to strategic initiatives. Other income of USD 2.9 million included a gain from a favorable value added tax ruling in Brazil, and equity income from the 49% owned joint venture rose to USD 3.2 million from USD 2.0 million. Interest expense eased to USD 5.5 million, and the effective tax rate was negative 31.9%.

Capital Structure and Disclosed Risks

The company closed a private placement of 24,509,804 shares at USD 3.06 on July 2, raising USD 70.4 million net, then redeemed 36,750 Series D shares for USD 70.0 million in cash on August 5 and exchanged 9,850 shares for 5,500,000 common shares. After quarter end, an October 5 private placement added about USD 53.1 million of gross proceeds, and on October 7 the remaining 18,400 Series D shares were redeemed for about USD 30.7 million, reflecting a USD 5.0 million price reduction.

Common shares outstanding stood at 93,744,244 as of October 5, excluding pre-funded warrants. Liquidity at September 30 was USD 47.0 million, made up of USD 12.3 million of cash and USD 34.7 million of undrawn commitments, against total debt of USD 168.8 million. The filing flags tariffs, volatile steel, copper and precious metal prices and supply chain disruption as risks, notes that fourth-quarter sales are typically lower, and gave no numerical guidance.

Watch List for the Coming Quarter

Four items frame the next report. First is seasonality: the company states that fourth-quarter net sales are usually lower than other quarters, against USD 131.1 million in the third quarter. Second is Mobile Solutions profitability, with the segment loss at USD 6.3 million as new programs ramp and a reopening of the Juarez facility anticipated in 2027. Third is the post-redemption capital base, with 93,744,244 shares outstanding and no Series D preferred remaining. Fourth is liquidity of USD 47.0 million at quarter end, before the roughly USD 49.8 million of net October proceeds and the USD 30.7 million redemption payment.