NN Q2 profit beats analyst expectations on new business launches - NNBR News | RalliesNN Q2 profit beats analyst expectations on new business launches
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NNBR• Outlook raised for 2026
NN raised its 2026 net sales guidance to $460 million-$470 million, up 10% at the midpoint over 2025.
The company also lifted its 2026 adjusted EBITDA guidance to $55 million-$65 million, which implies 22% growth at the midpoint.
NN expects 2026 new business wins of $80 million-$100 million, up 29% at the midpoint over 2025.
Q2 results beat estimates
NN Inc said second-quarter revenue rose 19% to $128.70 million, beating analyst expectations of $116.09 million.
Adjusted earnings per share came in at $0.11, compared with a consensus estimate of -$0.003.
Adjusted EBITDA was $17.90 million, above the $13.64 million estimate. Adjusted net income was $5.50 million, also ahead of expectations.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy", with 3 "strong buy" or "buy" ratings, 1 "hold", and no "sell" or "strong sell" ratings.
The median 12-month price target is $6.00, about 55.8% above the August 4 closing price of $3.85.
The stock recently traded at 22 times next-12-month earnings, versus 19 times three months ago.
Growth drivers and financing update
The company said revenue growth was primarily driven by contribution from new business launches.
Higher precious metals pass-through pricing also contributed to increased sales, especially in Power Solutions.
NN attributed material results to its 5 Pillar growth program, with new wins in Data Center, Medical, and Defense.
The company also completed $89 million of preferred stock refinancing.
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