Monday, May 11, 2026
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Transformation Working. NN delivered a strong start to 2026, with first-quarter results rising to the high side of expectations across many metrics, including sales growth, adjusted EBITDA, margin rates, and new business wins. The performance is a direct result of the transformation plan implemented by management in 2023. There are two sides to the coin here: a successful strategic growth program that is being internally funded and an aggressive and ongoing operational improvement program that is generating rising margins.
More To Come. Sales growth is broad. NN’s sales are up with 22 of its top 30 customers. Overall, NN has some 700 customers, and beneath the top 30 customers, business is up with that group as well. And the sales are transforming the Company from its historic automotive orientation to higher growth, higher margin specialties, such as electric grid and data centers, defense electronics, and medical. Collectively, these three markets were up 28% year-over-year in the first quarter. On a consolidated basis, the growth markets accounted for 35% of revenue in 2023 and now constitute 56% of revenue, while automotive has shrunk to 44%.
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