NN, Inc.

What they do

NN combines materials science with high-precision machining, progressive stamping, laser welding and assembly to make tight-tolerance, system-critical parts. Mobile Solutions serves automotive, general industrial and medical markets with components for power steering, braking, transmissions, fuel systems and HVAC. Power Solutions serves electrical, general industrial, automotive and medical markets with electrical contacts, connectors, contact assemblies, precision stampings, aerospace and defense parts, and orthopedic and medical/surgical tools and instruments.

Revenue drivers

• Mobile Solutions — Manufactures high-volume components for automotive and general industrial applications, including power steering, braking, transmissions, gasoline fuel systems, diesel injection and emissions, and HVAC; used across battery electric, hybrid and internal combustion vehicles.
• Power Solutions — Produces electrical contacts, connectors, contact assemblies and precision stampings for the electrical end market, plus high-precision products for aerospace and defense.
• Medical — Power Solutions' medical business makes tools and instruments for the orthopedics and medical/surgical end markets; the Q2 2026 release cites robotic surgery medical products among new 2026 awards.
• Data Center — A fast-growing area per the Q2 2026 release, tied to liquid cooling products; company says it is on pace to install approximately 50 new machines during 2026 with a $50+ million pipeline.

Recent performance

Q2 2026 net sales were $128.7 million, up 19.3% from $107.9 million in Q2 2025, driven by new business launches, higher precious metals pass-through pricing, higher volumes and favorable foreign exchange. Gross margin rose 20.1% to $21.9 million and adjusted gross margin was $26.1 million, or 20.3% of sales, up 80 basis points. Income from operations was $1.0 million versus a $1.5 million loss a year earlier, and adjusted EBITDA was $17.9 million, up 36.1%, at a 13.9% margin. GAAP net loss was $2.3 million, an improvement of $5.8 million year over year, while adjusted net income was $5.5 million. Full-year 2025 revenue was $422.2 million and operating cash flow was $5.7 million.

Strategy

Management is executing a 5 Pillar growth program targeting Data Center, Medical and Defense, reporting approximately $40 million in new wins in Q2 2026 and more than 100 programs valued at roughly $80 million per year in July year-to-date awards. The company raised full-year 2026 new business award guidance to $80–$100 million, about 29% above 2025 at the midpoint. It is adding capacity for Data Center work, with approximately 50 new machines planned in 2026. On the balance sheet, it completed a $70.4 million net private placement of 24,509,804 shares at $3.06 per share in July 2026 and an August 2026 exchange of 9,850 Series D preferred shares for 5,500,000 common shares, with the holder cutting the cash dividend and preference accrual rates to 10% through August 5, 2027. Management states a goal to refinance remaining securities and convert NN to normal credit statistics.

Risks

• Customer concentration — Sales to the ten largest customers were approximately 49% of 2025 consolidated net sales, so losing a major customer would materially reduce revenue and margins.
• Long-term agreements — Some major customers are not party to long-term agreements and/or can terminate on short notice, per the 10-K risk factors.
• Supply chain and operations — The company depends on a complex network of suppliers and owned, leased and co-manufacturing locations; disruptions, raw material shortages or labor unrest could interrupt operations.
• Debt and leverage — At June 30, 2026, total liabilities were $305.3 million against $21.2 million of shareholder equity, with $163.2 million of long-term debt, and the 10-K cites restrictions in debt agreements and refinancing risk.

Outlook

Management said the second half of 2026 is expected to show continued momentum and strong financial performance, and that it now believes it can deliver higher margins than previously estimated. It raised full-year 2026 new business award guidance to $80–$100 million, up 29% at the midpoint versus 2025, with most new sales described as higher margin, tied to faster-growing end markets and mostly starting up in 2026. The company also said it sees benefits continuing into 2027 and aims to refinance current securities and reduce leverage and rates.