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NN, Inc.

Q32026

10/29/2026

speaker
Christine
Conference Operator

Hello, everyone. Thank you for joining us and welcome to the NN, Inc. Third Quarter Earnings Call and Webcast. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Joseph Caminiti, Investor Relations. Joseph, please go ahead.

speaker
Joseph Caminiti
Investor Relations

Thank you, Christine. Good morning, everyone, and thanks for joining us. I'm Joe Caminiti with NN, Inc.'s investor relations team, and I'd like to thank you for attending today's earnings call and business update. Last evening, we issued a press release announcing our financial results for the third quarter ended September 30th, If anyone needs a copy of the press release or the supplemental presentation, you may contact Alpha IR Group at nnbr at alpha-ir.com. Joining us from NN Management today are Harold Bevis, President and Chief Executive Officer, Chris Bohnert, Senior Vice President and Chief Financial Officer, and Chief Operating Officer Tim French will be joining us for Q&A. Please turn to slide two, where you'll find the forward-looking statements and disclosure information. Before we begin, I'd like to ask that you take note of the cautionary language regarding forward-looking statements contained in today's press release, supplemental presentation, and in the risk factors in the company's annual report on Form 10-Q for the third fiscal quarter ended September 30th, 2026. The same language applies to the comments made on today's conference call, including the Q&A session, as well as the live webcast. Our presentation today will contain forward-looking statements regarding sales, margins, inflation, supply chain constraints, foreign exchange rates, tax rates, acquisitions and investitures, synergies, cash and cost savings, future operating results, performance of our worldwide markets, general economic conditions, and economic conditions in the industrial sector, including the potential impacts and ramifications of tariffs, the impacts of pandemics and and other topics. These statements should be of caution and are subject to various risks and uncertainties, many of which are outside of the company's control, which may cause actual results to be materially different from such forward-looking statements. The presentation also includes certain non-GAAP measures as defined by SEC rules. A reconciliation of such non-GAAP measures is contained in the tables in the final section of the press release and supplemental presentation. Please turn to slide three and I will now turn the call over to our CEO, Harold Bevis.

speaker
Harold Bevis
President and Chief Executive Officer

Thank you, Joe. Good morning, everyone. We had a pretty eventful quarter in the last four months, and we're going to recap our results for you. I want to start off by saying that we had a great Q3, and the results show significant progress with a strong momentum continuing into 2027. Our Q3 net sales increased 26% year over year. Our Q3 adjusted EBITDA increased 50% year over year. bringing us to Q3 year-to-date net sales up 19% over the same period prior year and our Q3 year-to-date adjusted EBITDA up 40% year-over-year so we're getting the flow through that we want to on that incremental sales growth. We also have secured $106 million of new business awards during this year in the first nine months and we have a strong looking fourth quarter as we close out the fiscal year and the momentum is building, setting up an even stronger 2027. Turning up to slide four, I wanted to just highlight the key messages for today's session. Number one, our sales are growing and we are increasing our profits. Number two, we're winning new business both for immediate launch in 2026 as well as securing launches for 2027 startup and 2028 startup. And we are increasing our gross margin rates and our adjusted EBITDA margin rates. And it's leading us to be comfortable to raise our guidance again for 2026 and creating solid momentum going into 2027. With that, I'd like to turn it over to Chris Bond, our CFO, for a moment to review the company's financial results more at a lower level of detail.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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