NN (NNBR) Conference presentation summary

Strategic growth and market focus

• Profitable growth program targets Data Center, Defense, Medical, Electric Grid, and High-Value Vehicle Parts, with a shift from legacy auto business to higher-margin sectors.

• Five-pillar growth strategy emphasizes fast-growing, high-precision markets, leveraging automation and advanced manufacturing.

• Sales mix transformation underway: non-auto sales increased from 35% in 2023 to 60% by Q2 2026.

• Global manufacturing footprint concentrated in the US and China, supporting key market expansion.

• New business pipeline exceeds $750M, with a 25%+ win rate on closed opportunities.

Operational and financial performance

• Q2 2026 net sales grew 19% year-over-year to $128.7M; first half 2026 net sales up 16% to $247.2M.

• Adjusted EBITDA margin reached 13.9% in Q2 2026, up from 12.2% in Q2 2025; first half 2026 margin at 13%.

• 2026 guidance raised: midpoint net sales of $480M (+14% vs. 2025), adjusted EBITDA of $63M (+29%), and $100M in new business wins (+43%).

• Paid off substantial preferred stock in 2026, improving financial flexibility.

• Growth capex averages $0.30 per dollar of peak annual sales, with working capital at 18% of sales.

Segment and market updates

• Data Center and Electric Grid: $80M TTM Q2 sales, NTM target $120M; significant new awards and capacity expansion in China.

• Defense & Electronics: $60M TTM Q2 sales, NTM target $90M; new Tier 1 manufacturer status and multi-year agreements.

• Medical Products: $15M TTM Q2 sales, NTM target $40M; major wins in robotic-assisted surgery and a $77M new-business pipeline.

• High-value vehicle and other precision markets drive technology and margin improvements.

• Top 30 customers account for ~70% of sales, with ~700 total customers globally.