Industrial components supplier NN (NASDAQ: NNBR) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 12.1% year on year to $118.5 million. The company’s full-year revenue guidance of $460 million at the midpoint came in 2.1% above analysts’ estimates. Its non-GAAP profit of $0.02 per share was significantly above analysts’ consensus estimates.

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Harold Bevis, President and Chief Executive Officer of NN, Inc., said, "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. Our performance is being strengthened by the success of our strategic growth programs that we have been internally funding. We are also benefitting from the results of our aggressive and ongoing operational improvements. Additionally, our sales growth programs continue to build momentum and increase velocity."

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

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, NN struggled to consistently increase demand as its $435 million of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and suggests it’s a low quality business.

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 5.1% annually over the last two years.

This quarter, NN reported year-on-year revenue growth of 12.1%, and its $118.5 million of revenue exceeded Wall Street’s estimates by 11.1%.

Looking ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below average for the sector.

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Operating Margin

NN’s operating margin has more or less stayed the same over the last 12 months , averaging negative 4.9% over the last five years. Unprofitable industrials companies that fail to improve their losses or grow sales rapidly deserve extra scrutiny. For the time being, it’s unclear if NN’s business model is sustainable.

Looking at the trend in its profitability, NN’s operating margin might fluctuated slightly but has generally stayed the same over the last five years, which doesn’t help its cause.

In Q1, NN generated a negative 1.7% operating margin. The company's consistent lack of profits raise a flag.

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 30.1% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.

Diving into the nuances of NN’s earnings can give us a better understanding of its performance. A five-year view shows NN has diluted its shareholders, growing its share count by 16.5%. This 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 45.6% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history.

In Q1, NN reported adjusted EPS of $0.02, up from negative $0.03 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 of $0.03 to grow 344%.

Key Takeaways from NN’s Q1 Results

It was good to see NN beat analysts’ revenue, EBITDA, and EPS expectations this quarter by large magnitudes. We were also excited that the company lifted full-year revenue guidance and issued full-year EBITDA guidance that outperformed Wall Street’s estimates. Zooming out, we think this quarter featured many important positives. The stock traded up 30.6% to $3.27 immediately after reporting.

Sure, NN had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).