NN Inc. Q3 2026: Balance Sheet Reset Fuels Raised Guidance
As seen on the 24/7 Wall St. homepage on October 28, 2026.
A $356 million company just retired all of its preferred stock, cutting pro forma preferred plus net debt to $139 million from $261 million at year-end 2025. Management raised full-year guidance to $480 million to $500 million on data center and defense wins.
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NN posted adjusted earnings per share of $0.07 for the third quarter, beating expectations, with net sales of $131.1 million also ahead of estimates and Power Solutions growing revenue 40.6%.
NN retired all of its preferred stock through debt-for-equity transactions over four months, cutting pro forma preferred stock plus net debt to $139 million. CEO Harold Bevis said the company now has the financial capacity to act on opportunities that were previously on hold.
Adjusted EBITDA climbed 49.7% for the quarter, even as GAAP results stayed in the red on start-up labor, facility costs in Mobile Solutions and restructuring-related facility charges. The GAAP diluted net loss per share of $0.13 included preferred dividends that will not recur now that the preferred has been retired.
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With the balance sheet reset in place, management raised full-year 2026 net sales guidance to $480 million to $500 million and lifted its adjusted EBITDA and new business win guidance as well.
The wins powering that guidance are concentrated in data centers, defense, and medical equipment, spanning AI chip liquid-cooling connector components, firearm and anti-drone munitions assemblies, and robotic surgery equipment parts. Management reiterated its 2029 targets and said it is now actively exploring small bolt-on acquisitions.
The remaining balance sheet work centers on refinancing the ABL and term loan, which management flagged as still outstanding. Mobile Solutions posted a GAAP operating loss of $6.3 million, a segment to monitor as new program launch costs work through the income statement.
Mentioned: NNBR