1. NN is like a specialized Illinois Tool Works (ITW), making high-precision components for everything from cars and airplanes to medical devices.

2. NN is like TE Connectivity for a broader range of critical precision metal and plastic parts in industrial, automotive, aerospace, and medical markets.

• System Critical Components: High-precision components for automotive systems such as power steering, braking, transmissions, fuel, and emissions, also used in general industrial and HVAC applications.
• High-Precision Metal & Plastic Components: Components, assemblies, and finished devices, including electrical contacts, connectors, and precision stampings, for power control, aerospace, defense, and medical markets.
• Medical Tools & Instruments: Specialized tools and instruments designed for orthopaedic and medical/surgical applications.

NN, Inc. (NNBR) is a business-to-business (B2B) company that designs, manufactures, and sells high-precision components and assemblies to other companies, rather than directly to individuals.

Based on its public filings, NNBR does not publicly disclose the specific names of its major customers. This is because, as stated in its 10-K filings, no single customer accounted for more than 10% of its net sales in recent fiscal years (e.g., 2023 or 2022). However, the company does indicate that its top 10 customers collectively represent a significant portion of its net sales (e.g., approximately 42% in 2023).

While specific customer company names are not disclosed, NNBR's customer base is concentrated within the following key industries and end markets, which represent the types of companies that would be its major customers:

• Automotive Industry: This includes vehicle manufacturers and their Tier 1 suppliers. NNBR provides components for critical automotive systems such as power steering, braking, transmissions, gasoline fuel systems, diesel injection, diesel emissions treatment, and heating, ventilation, and air conditioning (HVAC).
• Aerospace & Defense Industry: This segment includes manufacturers of aircraft, flight control systems, and military devices. NNBR supplies components like high-precision metal and plastic parts, assemblies, and finished devices for these applications.
• Medical Industry: NNBR serves companies in the medical/surgical and orthopaedics sectors, providing various tools, instruments, and precision components for medical devices.
• Electrical & General Industrial Industry: This broad category includes manufacturers of power control systems, electrical equipment (requiring electrical contacts, connectors, and precision stampings), and a wide range of other industrial machinery and applications.

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The key risks to NN, Inc.'s business (NNBR) include:

1. Customer Concentration Risk: NN, Inc. faces significant risk due to its high customer concentration. In 2025, the ten largest customers accounted for approximately 49% of the company's consolidated net sales. The potential loss of any major customer could materially impact NN, Inc.'s revenues and profitability.
2. Automotive Market Volatility and Electric Vehicle (EV) Transition: The Mobile Solutions segment manufactures components for traditional internal combustion engine (ICE) vehicles, including gasoline fuel systems, diesel injection, and diesel emissions treatment applications. While NN, Inc. is actively expanding into the electric vehicle market, the overall U.S. auto parts market is expected to remain volatile due to supply chain disruptions and affordability issues. The broader industry shift toward EVs means these vehicles have significantly fewer parts than ICE cars, posing a substantial risk to NN, Inc.'s legacy business in ICE components.
3. Raw Material Price and Supply Risks: As a manufacturing company, NN, Inc. is exposed to elevated risks from fluctuating prices and potential shortages of key raw materials such as steel, aluminum, alloys, copper, and precious metals. Volatility in these commodity markets has already impacted the company's liquidity and operating profits, and sustained cost increases could further pressure margins if not offset by price adjustments or sourcing efficiencies.

The automotive industry's accelerating transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs). NN's Mobile Solutions segment manufactures system critical components for gasoline fuel systems, diesel injection, diesel emissions treatment applications, and traditional transmissions, which are significantly different or become obsolete in the shift to electric vehicles.

NN, Inc. (symbol: NNBR) operates in several addressable markets through its Mobile Solutions and Power Solutions segments. Here's an overview of the estimated market sizes for their main products and services:

Mobile Solutions Segment

• Automotive Components Market: The global automotive parts and components market was valued at approximately USD 1,844.47 billion in 2024 and is projected to grow to USD 2,182.08 billion by 2032, with Asia-Pacific being the largest market.
• Automotive Steering System Market: The global automotive steering system market size was estimated at USD 28.08 billion in 2024 and is projected to reach USD 45.79 billion by 2033. Asia Pacific dominated this market with a 38.94% revenue share in 2024.
• Automotive Braking System Market: The global automotive brake system market is expected to increase from US$45.8 billion in 2025 to US$66.6 billion by the end of 2032. Asia Pacific dominated the market with a 48.32% share in 2025, with the U.S. market projected to reach an estimated value of USD 11.06 billion by 2032.
• Automotive Transmission Market: The global automotive transmission market size was valued at USD 183.5 billion in 2025 and is set to expand to USD 311.5 billion by 2035. Asia Pacific is identified as the largest market in this sector.
• Automotive Fuel System Market (including Gasoline Fuel System, Diesel Injection, and Diesel Emissions Treatment applications): The global automotive fuel system market is estimated at US$76.37 billion in 2024 and is forecast to rise to US$106.69 billion by the end of 2034.
• Automotive HVAC Market (Heating, Ventilation, and Air Conditioning): The global automotive HVAC market size was estimated at USD 51.16 billion in 2023 and is projected to reach USD 79.59 billion by 2030. Asia Pacific registered the largest market revenue share, accounting for 49.0% in 2023.

Power Solutions Segment

• Electrical Contacts Market: The global electrical contacts and contact materials market size was valued at USD 5.07 billion in 2023 and is estimated to reach USD 8.02 billion by 2032. Furthermore, the global electrical contacts market is expected to be worth around USD 18.6 billion by 2034, increasing from USD 10.6 billion in 2024. Asia-Pacific held the dominant position in 2024, accounting for 38.7% of the global share, with a market value of USD 4.1 billion.
• Electrical Connectors Market: The global electrical connectors market is projected to reach approximately USD 85 billion in 2023 and is anticipated to escalate to over USD 130 billion by 2032. Another source indicates the global connector market was valued at USD 82.2 billion in 2023 and is projected to reach USD 141.1 billion by 2032. Asia-Pacific garnered the largest share of 7.11%.
• Precision Stampings Market (across various end markets including Electrical, General Industrial, Automotive, Aerospace, Defense, and Medical): While a specific market size for "precision stampings" across all these diverse end markets is not readily available, NN's contributions are part of broader markets. For instance, the global automotive parts and components market was valued at approximately USD 1,844.47 billion in 2024, and the global medical component manufacturing market was valued at USD 10.36 billion in 2020 and is projected to reach USD 15.93 billion by 2030.
• Orthopedic and Medical/Surgical Instruments Market: The global orthopedics instruments market size was valued at USD 60.92 billion in 2023 and is predicted to grow to around USD 88.82 billion by 2032. North America is projected to dominate this market, generating approximately 44% of the global market revenue in 2023. Additionally, the global orthopedic devices market size was valued at USD 65.28 billion in 2025 and is projected to grow to USD 105.45 billion by 2034. North America dominated the orthopedic devices market with a market share of 54.92% in 2025.

NN, Inc. (NNBR) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives:

1. New Business Wins and Program Launches: The company has a strong focus on securing new business, having accumulated over $200 million in new business awards since mid-2023, with a pipeline exceeding $800 million in opportunities. NN anticipates 2026 to be a record year for program launches, with approximately 100 new programs expected to be introduced. These new programs and business wins are projected to be margin-accretive and primarily benefit revenue growth in 2027 and 2028.
2. Strategic Shift Towards Higher-Value End Markets: NN is actively evolving its sales portfolio to concentrate on higher-value markets and capabilities, moving away from more commodity-oriented automotive products. Key growth areas include the electrical grid, data centers, defense, electronics, and medical applications. The company recently achieved its first win in the data center market, signaling successful penetration into new, high-potential sectors. This strategic shift aims to boost annual net sales growth and improve the overall sales mix.
3. Increased Capital Expenditure for Growth Initiatives: NN plans to significantly increase its capital spending in 2026, roughly doubling the amount compared to 2025. This increased capital expenditure is specifically allocated to support growth programs and new business launches, which are expected to materialize into higher sales in the coming years. The ability to fund more CapEx-based growth is enabled by improved adjusted EBITDA and the completion of operational restructuring.

Share Issuance

• In March 2021, NN, Inc. completed a new financing arrangement that included a $65 million preferred stock issuance.
• The company's share count grew by 17.4% over the last five years, indicating shareholder dilution.
• NN is actively pursuing initiatives to refinance its preferred equity.

Inbound Investments

• In March 2021, NN, Inc. secured new financing from J.P. Morgan, Oaktree Capital Management, L.P., and Morgan Stanley Tactical Value, which included a $50 million asset-based credit line and a $150 million term loan, in addition to the preferred stock issuance.
• In April 2025, NN completed a debt refinancing initiative, securing a $65 million ABL facility with PNC Bank and a new $118 million term loan facility with Marathon Asset Management.
• In December 2025, NN's Board of Directors formed a Strategic Committee to evaluate a broad range of strategic and financial alternatives, including a potential private equity buyout or acquisition by a larger industrial peer, to enhance shareholder value.

Outbound Investments

• NN has an active mergers and acquisitions program and is engaged in M&A diligence, evaluating opportunities for both transformational and smaller tuck-in acquisitions aimed at accelerating growth and cost agendas.
• Since mid-2023, the company has won over $200 million in new business.

Capital Expenditures

• NN planned to invest $18 to $20 million on capital projects in 2025, focusing on lowering costs and increasing growth.
• For 2026, the company plans to roughly double its capital spending compared to 2025, primarily for growth programs that will benefit 2026 and especially 2027.
• By the end of 2025, NN completed the majority of the capital-intensive portion of its transformation plan, which included plant closures and headcount realignment.