NN stock barely flinched after earnings, slipping less than 1% to about US$3.87, even though the company just printed one of its cleanest quarters in years. Revenue reached US$128.7m in Q2 2026 and adjusted EBITDA came in at US$17.9m, which matters for an industrial supplier still working through a multi year loss profile.

The short term move looks modest. The bigger story for long term holders is a business that is growing sales, lifting margins and trading on a low P/S multiple, while past losses and balance sheet scars remain fresh in investors’ minds.

Love that NN is printing cleaner earnings and higher adjusted EBITDA but still wary of the multi year loss profile and balance sheet scars? Take a look at our curated list of list of solid balance sheet and fundamentals stocks (49 results).

Q2 2026 Earnings Summary

• Revenue, Q2 2026 vs. Q2 2025: US$128.7m vs. US$107.9m (higher year on year)
• Net Loss, Q2 2026 vs. Q2 2025: US$2.3m loss vs. US$12.7m loss (loss narrowed year on year)
• Basic EPS, Q2 2026 vs. Q2 2025: US$0.05 loss per share vs. US$0.26 loss per share (loss per share narrowed year on year)
• Adjusted EBITDA, Q2 2026 vs. Q2 2025: US$17.9m vs. US$13.2m (higher year on year)

Tired of scrolling through dense earnings tables and raw figures trying to piece together what NN is really doing quarter to quarter? Get a clear visual breakdown of NN's financial picture, with a spotlight on its valuation in the company report for NN.

NN Earnings Put Mix-Shift Story To The Test

Bulls argue NN is steadily shifting from legacy auto work toward higher margin programs in data centers, medical and defense. Q2 results give that claim real footing. Power Solutions revenue reached US$62.3m with adjusted EBITDA of US$12.7m and roughly 20% margin, helped by precious metals and higher value programs that management links directly to grid and data center wins.

Mobile Solutions, still heavily tied to vehicles, grew sales to US$66.6m and lifted margin to about 14.7%. Management now pegs auto at roughly 40% of sales and is targeting closer to one third, which aligns with the ramp plan for liquid cooling and defense work discussed on the call. New business wins of US$80m through July already match the low end of the renewed US$80m to US$100m goal. That indicates NN is landing the contracts needed to support the mix shift narrative.

Compare how this mix shift story lines up against institutional expectations and whether analysts see the same upside in NN, and then check the consensus price target analysis for NN.

Evaluating NN’s Bears On Cyclicality And Execution

Bears argue NN is still too tied to cyclical auto demand, faces heavy execution risk on new programs and could see margins squeezed by metals and capacity strain. Q2 results partially push back on that, but do not close the file. Management says auto is about 40% of sales and wants that closer to one third. Yet the key AI data center and medical contracts that should do the heavy lifting mostly ramp in the second half and into early 2027, so the mix is not de risked yet.

Execution risk also remains live. The Wuxi facility is “running out of space” and needs roughly 100,000 sq ft and more machines to service fully pre sold data center work. That is exactly the kind of capital and timing pressure bears worry about. Higher precious metals pass through helps revenue now, but also keeps working capital and margin volatility on the table.

After capacity constraints, unprofitable earnings and a volatile share price, you might wonder what else is lurking. Review our risk analysis for NN which shows 2 important warning signs.

Stay Ahead With Simply Wall St

If NN’s cleaner Q2 earnings and ongoing mix shift story have your attention, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch how the thesis develops. When you decide to take a position, use the Portfolio Command Center to cut through market noise and focus on the key updates that matter to your holdings. For a wider view on NN and similar stocks, tap into crowd insights through the Community and see how other investors are thinking about the same risks and opportunities. By surfacing hidden catalysts and potential red flags early, Simply Wall St helps you stay prepared and a step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.