NNBR News & Events

NN, Inc. announced that it has acquired the large-scale automated plating operations from a global provider of electrical infrastructure solutions. This seller is an existing customer which is moving from in-house manufacturing to outsourced operations with this decision. The equipment acquisition will enable NN to significantly expand its processing capabilities in silver-plated busbars and terminals among other capabilities, which are ideal electrical components for electric grid and data center equipment. The plating line being acquired is substantially larger and more automated than NN's current capabilities, featuring large plating baths designed for high-volume, low-cost production. The automated plating line will enable NN to process larger parts representing an expansion of its product offering in terms of size, volume, and type of plated metal products that NN will be able to deliver to its electrical customers. NN expects this new capability to be operational at an existing facility in the fall of 2026. Financially, the new business won from this line will be inclusive to the company's prior guidance of $70M to $80M of new business wins in 2026. The capex associated with this project is inclusive to the company's capex guidance of $20M to $22M in 2026. The company is funding this strategic addition from operating cash flow.

The company states: "NN has secured multiple new awards with a leading global provider of AI infrastructure and data center computing equipment. As this industry moves into liquid cooled equipment, it transitions into a natural market for NN. AI reasoning racks are based on an industry-leading chip that requires liquid cooling, and NN has secured liquid cooling positions on these AI reasoning racks which will be installed in the US for AI cloud computing. NN's existing liquid management products precisely fit the requirements of these applications, and the demanding performance and quality requirements of AI data center and cloud customers are a direct use of the Company's existing capabilities. Furthermore, next generation computing designs require even higher power use and even higher heat generation, which will lead to next-generation liquid-cooled computing systems and components. The Company can already make products that are advanced beyond today's requirements. NN has delivered six sigma quality, micron-level tolerance parts for combustion engines for decades. The Company's decades of global experience and footprint are directly applicable to this new area."

Sees FY26 adjusted EBITDA $50M-$60M. Sees FY26 new business wins up $70M-$80M. Bevis continued, "We expect 2026 to be a meaningful inflection point, and we are guiding to a fourth consecutive year of improved adjusted EBITDA which we expect to range between $50 million to $60 million. Our forecasted sales growth is already underway in the first quarter of 2026, and we plan to launch approximately 100 new programs in 2026. These new programs carry accretive margins that will strengthen our EBITDA and cash flow profile as they ramp. Critically, the success of our new wins program, our planned launches, and more stable markets will return NN's annual net sales growth. We expect real commercial momentum, and we are also increasing our goals for new business wins for the year to a range of $70 million to $80 million."