NN INC posts higher interim revenue but widening losses as quarterly operating result swings to profit

Bottom line

- The interim filing reviewed is 10-Q filed by NN INC (ticker NNBR, CIK 0000918541) for period-ended-2026-06-30, catalogued under accession 0000918541-26-000064. S. GAAP, with prior-period amounts reclassified to conform to the current presentation and dollar amounts expressed in thousands.

- For the three-month reporting period, the company reported Revenue from Contract with Customer, Excluding Assessed Tax of $128,741,000, which is higher than the prior-year comparative for the three-month reporting period of $107,921,000. 13 per diluted share. - Operating Income (Loss) for the three-month reporting period was $1,005,000, an authorized transition from loss to profit against the prior-year three-month reporting period loss of -$1,464,000; the company delivered a profit in the latest quarter while absorbing a net loss overall.

- For the six-month year-to-date period, Revenue from Contract with Customer, Excluding Assessed Tax was $247,193,000, higher than the prior-year comparative for the six-month year-to-date period of $213,609,000. 38 per diluted share. Operating Income (Loss) for the six-month year-to-date period was -$1,053,000, a wider loss than the prior-year six-month comparative loss of -$6,253,000.

- The filing evidence does not attribute this change to any single cause. - Source scope is restricted to the unaudited condensed consolidated financial statements and accompanying notes inside the cited 10-Q; the prior-period balance sheet figures are sourced from the company’s audited Annual Report on the cited form for the year ended December the six months ended June 30, 2025, with the interim figures themselves unaudited per management. - The filing evidence contains no peer or industry comparison.

- The reporting inventory lists reference notes covering debt, accounts receivable, inventories, intangible assets, segment information, revenue recognition and a Series D perpetual preferred-stock disclosure, with segment composition described in Note 2 and the recent cessation of production at the Mobile Solutions plant in Dowagiac, Michigan flagged in the assets-held-for-sale disclosure.

Financial performance

- Revenue from contracts with customers, excluding assessed tax, was $128,741,000 USD for the three months ended June 30, 2026, compared with $107,921,000 USD for the three months ended June 30, 2025; on a year-over-year basis the filing reports higher revenue on the three-month window, and the authorized direction for revenue is increase on both the quarterly and half-year comparisons. - For the six-month window, revenue was $247,193,000 USD for the six months ended June 30, 2026 versus $213,609,000 USD for the six months ended June 30, 2025, again reported as higher than the prior year on the same authorized direction.

- Operating income (loss) for the three months ended June 30, 2026 was $1,005,000 USD, a profit, against -$1,464,000 USD for the three months ended June 30, 2025, a loss; the filing's authorized transition for the quarter is loss to profit, a swing that is unusual to see alongside a still-losing six-month result. - Operating income (loss) for the six months ended June 30, 2026 was -$1,053,000 USD, a loss, against -$6,253,000 USD for the six months ended June 30, 2025, also a loss; the authorized direction is increase on the half-year window, so the year-to-date operating loss narrowed rather than the segment turning profitable.

- Net income (loss) attributable to parent for the three months ended June 30, 2026 was -$2,267,000 USD, a loss, against -$8,102,000 USD for the three months ended June 30, 2025, a loss; the authorized direction is increase and the authorized transition is loss to loss, meaning the quarterly bottom line improved but did not return to profit. - Net income (loss) attributable to parent for the six months ended June 30, 2026 was -$9,095,000 USD, a loss, against -$14,787,000 USD for the six months ended June 30, 2025, a loss; on the same loss-to-loss basis, the year-to-date net loss also narrowed relative to the prior year.

38 per diluted share USD/SHARES for the six months ended June 30, 2026, both reported as negative and consistent with the net loss positions above. - Segment structure continues to be organized around two reportable segments, Mobile Solutions and Power Solutions, with a Corporate category for unallocated costs; segment performance is reviewed by the CODM (the President and Chief Executive Officer) using segment operating income (loss), per Note 2, and capital expenditure and depreciation disclosures are presented at that segment level.

- Revenue recognition policy is unchanged in substance — control transfers at a point in time or, in limited cases, over time — as described in Note 3 and Note 7; the disaggregation categories were revised during the second quarter to add more detail on end markets such as Global Automotive, Data Center & Electric Grid, Industrial, and Commercial Vehicle, with prior-period amounts recast, which means the like-for-like revenue comparison already uses the updated cut. - Recently adopted accounting standards include an income-tax disclosure improvement update and a practical expedient for measuring expected credit losses on current receivables and contract assets; the company adopted the credit-loss practical expedient and notes no material impact, while the expense-disaggregation standard remains not yet adopted with the company still evaluating the potential impact, as discussed in the accounting policies narrative.

- Capital expenditures on property, plant, and equipment for the six months ended June 30, 2026 were higher than the prior year on the authorized increase direction, and the company has separately classified Mobile Solutions assets from its Dowagiac, Michigan plant as held for sale after ceasing production activity there. - No forward guidance figures or quantified outlook statements appear in the narrative; expectations are limited to the qualitative statement that interim results are not necessarily indicative of the full year or any future period.

Operating drivers and segments

- NN INC (NNBR) reports its operations through two reportable segments — Mobile Solutions and Power Solutions — described in the cited segment note, with segment net sales reconciled to consolidated loss before provision for income taxes and share of net income from joint venture in the filing. - The chief operating decision maker is identified as the President and Chief Executive Officer, who uses segment operating income (loss) to evaluate quarterly performance and to make operating decisions on capital expenditure timing, plant optimization, and management resource allocation, as stated in the cited segment note. - Revenue from contracts with customers for the three months ended June 30, 2026 totaled $128,741,000 USD per the cited revenue note, against the prior-year quarterly comparative of $107,921,000 USD, a year-over-year movement the catalog authorizes as an increase without the filing tying the lift to a single disclosed driver. The filing evidence does not attribute this change to any single cause. - Revenue for the six-month the six months ended June 30, 2026 window was $247,193,000 USD versus $213,609,000 USD for the six months ended June 30, 2025, again an authorized increase where the cited notes do not attribute the move to one operating cause. The filing evidence does not attribute this change to any single cause. - Operating income (loss) for the three months ended June 30, 2026 was $1,005,000 USD, a profit, against -$1,464,000 USD, a loss in the three months ended June 30, 2025; the catalog authorizes the description as a shift from loss to profit. The filing evidence does not attribute this change to any single cause. - Operating income (loss) for the six months ended June 30, 2026 was -$1,053,000 USD, a loss, against -$6,253,000 USD, also a loss in the six months ended June 30, 2025; the catalog authorizes the description as remaining a loss. The filing evidence does not attribute this change to any single cause. - Per the cited intangible assets note, intangible asset carrying amounts are presented by reportable segment, and the cited revenue note flags that, beginning in the second quarter of fiscal the six months ended June 30, 2025, the company revised its revenue disaggregation categories to provide more detailed disclosure of the markets it serves. - Disaggregation tables referenced in the filing separately lay out a tabular rate reconciliation with eight specific categories and break out income taxes paid between federal, state, and foreign jurisdictions, but the excerpt does not tie any segment margin movement to those disclosures. The filing evidence does not attribute this change to any single cause. Management frames the company as a diversified industrial operator organized into Mobile Solutions and Power Solutions and ties segment operating income (loss) to capital expenditure timing, plant optimization actions, and the allocation of management resources — language drawn from the cited segment note rather than from a separate management discussion in the excerpt. The cited note describing assets held for sale adds that during the year ended December the six months ended June 30, 2025, the company ceased production activity at its Mobile Solutions plant in Dowagiac, Michigan, and classified the related property and equipment as held for sale as of June the six months ended June 30, 2026. The cited accounting standards note flags a recently adopted ASU on income tax disclosures and another not-yet-adopted ASU on credit losses for accounts receivable, neither of which the excerpt connects directly to the period's segment results.

Independent review notes that this filing does not separate Mobile Solutions and Power Solutions revenue or operating income into the quarterly and six-month values machine-tagged above, so the year-over-year movement in revenue and operating income on the consolidated line cannot be allocated between the two reportable segments from the filing evidence; per the cited segment note, capital expenditures and depreciation and amortization are presented by segment, but those segment-level capital and depreciation amounts are not surfaced in this section's catalog. The filing also offers no peer or industry comparison for either segment, and no marginal explanation for the quarter's shift from loss to profit versus a still-loss six-month outcome. The filing evidence contains no peer or industry comparison. Readers comparing this interim period with peer filings, for example the pattern reviewed in REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in Filing, should view the NNBR figures against that gap.

Cash flow and capital

- The construction of NN INC's six-month cash flow profile for the six months ended June 30, 2026 shifts substantially when measured against the prior-year window, with each of the three activity categories moving in a different direction. The most striking swing is in operating activities: net cash provided by (used in) operating activities was $11,798,000 for the six months ended June 30, 2026, an improvement from -$4,041,000 in the prior-year period, a change that The filing evidence does not attribute this change to any single cause..

- Investing activities continued to absorb cash. Net cash provided by (used in) investing activities for the six months ended June 30, 2026 was -$8,407,000, less negative than the prior-year comparative of -$7,179,000, consistent with the capex progression described below. Within investing, payments to acquire property, plant, and equipment were $8,525,000 for the six months ended June 30, 2026, higher than the prior-year level of $7,630,000; the cited note for segment information describes how the CODM uses segment operating income (loss) to time capital expenditures and plant optimization actions, which is the only explicit link the filing draws between spending and performance review.

- Financing cash flow was $597,000 for the six months ended June 30, 2026, lower than $1,563,000 in the prior period. The narrative notes that on the Closing Date of the Note 8 refinancing, the company entered a new Term Loan Facility, using the Closing Date Term Loan proceeds to repay all outstanding obligations under the prior term loan facility; the document does not, however, attribute the year-over-year reduction in financing cash flow to that single event, so The filing evidence does not attribute this change to any single cause..

- The balance sheet at the balance sheet date of June 30, 2026 shows cash and cash equivalents, at carrying value, of $16,450,000, accounts receivable, after allowance for credit loss, of $72,093,000 and accounts payable, current, of $56,405,000. Long-term debt, excluding current maturities, stood at $163,227,000, reflecting the post-refinancing capital structure summarized in the cited debt note; the company also notes that certain owned assets have been classified as held for sale as of June (omitted) because the property and equipment are being actively marketed.

- Counter-evidence worth flagging: the improved operating cash flow and the higher capex run at the same time as the year-to-date loss attributable to parent, so the cash benefit is not coming through net income, and the filing offers no reconciliation of that gap. The held-for-sale classification on assets yet to be sold also means the next liquidity reading could be affected by timing of any disposal proceeds, a transition the document does not forecast. ; readers can compare the trajectory with cases such as REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in period-ended-2026-06-30 Filing only on a directional, unaudited basis.

Peer and historical context

This section frames NN INC's period-ended-2026-06-30 results against two reference points that the filing makes auditable: the prior-year comparative window for the same three-month and six-month intervals, and the narrow set of internal structural details (segment count and capital intensity) that the filing itself surfaces. The filing evidence contains no external peer or industry data, so any cross-company benchmarking has to be deferred to the reader.

Against the prior-year comparison window, the consolidated top line moved in a constructive direction on both measurement frames. Revenue from Contract with Customer, Excluding Assessed Tax for the three months ended June 30, 2026 came in higher than for the three months ended June 30, 2025 (Reinsurance Group of America Inc Higher Revenue filing illustrates how the same wording can read across filings). The year-to-date comparison extends that pattern: Revenue for the six months ended June 30, 2026 was also higher than for the six months ended June 30, 2025. Revenue disaggregation is reported across six end markets — Global Automotive, Data Center & Electric Grid, Industrial, Commercial Vehicle, Defense & Electronics, and Medical — and prior-period amounts were recast to the current presentation, which keeps the year-over-year read internally consistent.

Below the revenue line, the pattern is more mixed. Operating Income (Loss) for the three months ended June 30, 2026 improved against the three months ended June 30, 2025, transitioning from a loss to a profit. Operating Income (Loss) for the six months ended June 30, 2026 was higher than for the six months ended June 30, 2025 but remained in loss territory, which leaves the six-month operating result still negative on an absolute basis. Net Income (Loss) Attributable to Parent improved versus the prior year on both windows — for the three months ended June 30, 2026 versus the three months ended June 30, 2025 and for the six months ended June 30, 2026 versus the six months ended June 30, 2025 — while staying in loss territory on both. Cash generation strengthened noticeably: Net Cash Provided by (Used in) Operating Activities for the six months ended June 30, 2026 turned positive, an authorized move up from the negative balance reported for the six months ended June 30, 2025. Capital spending (Payments to Acquire Property, Plant, and Equipment) for the six months ended June 30, 2026 was higher than for the six months ended June 30, 2025, keeping reinvestment running ahead of last year's pace even as the operating cash line recovered.

Scenario analysis

- The base case reflects the picture painted directly by the filing: revenue continued to expand on both the three-month and six-month year-to-date windows, with the three-month window up over the prior-year comparative and the six-month window similarly higher than the prior-year comparative.

- An upside requires revenue to keep climbing on both windows alongside a confirmed swing back to profitability for the full six-month period. The three-month window already shows that kind of swing, moving from a loss in the prior-year comparative to a profit in the current reporting period, while the six-month period remains a loss rather than a profit and would need to follow the same direction of travel.

- A downside scenario assumes those revenue gains cannot be defended and profitability deteriorates further. If the three-month window loses the swing-to-profit just achieved and reverts to a loss, and the six-month loss deepens, the operating result moves in the opposite direction from the trajectory visible today, leaving the company on a loss-to-loss transition on the six-month window and a loss-to-profit transition on the three-month window at risk of reversal.

Reported figures anchor each window. For the three-month reporting period, Revenue from Contract with Customer, Excluding Assessed Tax was $128,741,000 USD, compared with $107,921,000 USD for the prior-year comparative; Net Income (Loss) Attributable to Parent was -$2,267,000 USD versus -$8,102,000 USD. For the six-month year-to-date period, Revenue from Contract with Customer, Excluding Assessed Tax was $247,193,000 USD versus $213,609,000 USD; Net Income (Loss) Attributable to Parent was -$9,095,000 USD versus -$14,787,000 USD. Both revenue lines show the authorized increase, and both net-income lines show the authorized increase on a loss-to-loss transition, except the three-month window where the authorized comparison reflects a loss-to-profit transition.

Supportive context from the filing, including Note 8 on the Term Loan Credit Agreement established on the Closing Date in April and the Note 1 description of the Series D perpetual preferred stock, suggests the balance sheet carries obligations that can amplify whichever scenario materializes, but the specific revenue and earnings inputs above remain the primary drivers of the conditional view.

The filing evidence does not attribute this change to any single cause.

The filing evidence contains no peer or industry comparison. The filing evidence contains no peer or industry comparison.

Risks and what to watch

- Reported figures: the period-quarter net loss attributable to parent was -$2,267,000, the prior-year quarter net loss attributable to parent was -$8,102,000, the six-month net loss attributable to parent was -$9,095,000, and the prior-year six-month net loss attributable to parent was -$14,787,000, per the cited note covering the income statement. Revenue from contracts with customers, excluding assessed tax, was $128,741,000 for the quarter, $107,921,000 for the prior-year quarter, $247,193,000 for the six-month window, and $213,609,000 for the prior-year six-month window, also per the cited note.

- Analyst inference: although the top line expanded on both windows versus the prior-year comparatives, profitability did not turn positive on the six-month view; both the quarter and the six-month periods remained loss-making, so the period continues to show negative earnings paired with higher reported revenue. The authorized year-over-year transition for the quarter-period operating result moved from loss to profit, while the six-month operating result stayed in loss, suggesting that any sequential improvement is concentrated in the latest quarter rather than in the year-to-date aggregate.

The filing evidence does not attribute this change to any single cause. - Counter-evidence: the reported revenue direction is positive on both windows and authorized as higher than the prior-year comparatives, which on its face would normally support earnings expansion; the cited note covering intangible assets states there were no impairment charges for the six months ended in the six months ended June 30, 2025 and the six months ended June 30, 2026, so impairment-related charges are not the proximate reason the headline numbers came in below zero.

The Term Loan Facility described in the cited note covering debt raises the floor on interest expense through a benchmark rate with a credit spread adjustment plus an applicable margin that scales with the Consolidated Net Leverage Ratio, which is a structural drag on reported earnings that did not exist in the prior capital structure, and delayed-draw borrowings lift the applicable margin for all Term Loans. - Unknowns: the filing text does not present any peer or industry comparison that would let a reader benchmark this quarter's revenue growth or margin profile against competitors.

The filing evidence contains no peer or industry comparison. The cited note does not quantify how much of the six-month shortfall is attributable to interest cost versus operating cost versus tax versus share of the joint venture recorded in the Mobile Solutions segment. The filing evidence does not attribute this change to any single cause.

- Metrics to watch next period: the next quarter's revenue direction relative to the three months ended June 30, 2025; whether the operating result sustains the loss-to-profit transition observed for the three months ended June 30, 2026 versus the three months ended June 30, 2025; whether the six-month result finally shifts out of a loss; the trajectory of interest expense under the Term Loan Facility given the leverage-based margin step-ups described in the cited note; and any delayed-draw funding that would re-price the Term Loans.

For readers cross-checking pattern recognition across interim filings, REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in Filing illustrates the opposite earnings combination of higher revenue together with higher net income.