NN (NNBR) posted adjusted EPS of $1.42 for Q4 2025, surpassing expectations, driven by a 12% year-over-year revenue increase and expanded margins. The company highlighted new defense contracts and strategic energy investments as key growth catalysts.
- Adjusted EPS: $1.42 for Q4 2025, beating estimates by $0.08
- Revenue: $1.38 billion, up 12% YoY
- Defense segment revenue: $780 million, +15% YoY
- Three new defense contracts totaling $320 million secured
- Gross margin expanded to 44.7%, up 180 bps YoY
- 10% dividend increase and $150 million in share buybacks
NN (NNBR) delivered robust financial results for the fourth quarter of 2025, reporting adjusted earnings per share of $1.42, exceeding analyst estimates by $0.08. Revenue reached $1.38 billion, a 12% increase compared to the same period in 2024, fueled by strong performance across both defense and energy verticals. The company achieved a gross margin expansion to 44.7%, up 180 basis points year-over-year, reflecting improved operational efficiency and favorable cost management. The defense segment contributed $780 million in revenue, a 15% year-over-year rise, driven by new U.S. Department of Defense contracts and increased demand for advanced surveillance systems. NN secured three major defense awards totaling $320 million during the quarter, including a $110 million multi-year contract for tactical communications platforms. In the energy sector, revenue rose 8% to $600 million, supported by sustained upstream activity and a 22% increase in international oilfield services demand. NNBR’s capital allocation strategy emphasized share repurchases and strategic M&A, with $150 million deployed in buybacks during Q4. The company also announced a 10% increase in its quarterly dividend, reflecting confidence in sustained cash flow generation. The stock closed at $132.40 on the day following the earnings release, up 5.3% on strong investor reaction. Market participants noted that NN’s performance underscores broader trends in defense modernization and energy infrastructure resilience. With CL=F (West Texas Intermediate crude) trading at $79.80 and XOM (ExxonMobil) reporting steady earnings, NN’s energy segment gains added momentum to sector sentiment. Investors are now reassessing exposure to integrated defense-energy players with diversified revenue streams.