NN’s (NASDAQ:NNBR) Q2 CY2026: Strong Sales, Stock Soars

Industrial components supplier NN (NASDAQ:NNBR) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 19.3% year on year to $128.7 million. The company expects the full year’s revenue to be around $465 million, close to analysts’ estimates. Its non-GAAP profit of $0.11 per share was significantly above analysts’ consensus estimates.

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Harold Bevis, President and Chief Executive Officer, said, “NN delivered strong financial performance in the second quarter with record results in many areas. Additionally, after the quarter ended, we implemented a game-changing improvement to our balance sheet.

Company Overview

Formerly known as Nuturn, NN (NASDAQ:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, NN’s demand was weak and its revenue declined by 1.1% per year. This was below our standards and is a sign of poor business quality.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. NN’s recent performance shows its demand remained suppressed as its revenue has declined by 2.7% annually over the last two years.

This quarter, NN reported year-on-year revenue growth of 19.3%, and its $128.7 million of revenue exceeded Wall Street’s estimates by 10.9%.

Looking ahead, sell-side analysts expect revenue to grow 5.7% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.

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Operating Margin

Although NN broke even this quarter from an operational perspective, it’s generally struggled over a longer time period. Its expensive cost structure has contributed to an average operating margin of negative 4.8% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.

On the plus side, NN’s operating margin rose by 2.4 percentage points over the last five years. Still, it will take much more for the company to reach long-term profitability.

In Q2, NN’s breakeven margin was 0.8%, up 2.1 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for NN, its EPS declined by 16.2% annually over the last five years, more than its revenue. However, its operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.

We can take a deeper look into NN’s earnings to better understand the drivers of its performance. A five-year view shows NN has diluted its shareholders, growing its share count by 13.1%. This dilution overshadowed its increased operational efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For NN, its two-year annual EPS growth of 62.2% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history.

In Q2, NN reported adjusted EPS of $0.11, up from $0.02 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects NN’s full-year EPS to grow 29.2% from $0.12 to $0.16.

Key Takeaways from NN’s Q2 Results

It was good to see NN beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 7.2% to $4.18 immediately after reporting.

NN may have had a good quarter, but does that mean you should invest right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).