NN (NNBR) Investor presentation summary

Strategic transformation and growth focus

• Undergoing a major transformation with breakout growth in high-value markets, especially data centers and defense.

• Five-pillar growth strategy targets vehicle parts, electric grid & data center, medical, defense & electronics, and high-value stampings.

• Replacing declining auto sales with expansion in electric grid, data center, defense, medical, and industrial sectors.

• Accelerated long-term goal attainment from 2030 to 2029 due to strong performance.

• Global footprint aligns with supply chain trends, serving 700 customers from 27 facilities, with major markets in North America and China.

Financial performance and outlook

• Q1 2026 sales and adjusted EBITDA exceeded prior periods, driven by strong mix, operating performance, and cost control.

• 2026 full-year guidance targets $460M in sales (+$100M JV) and $57M adjusted EBITDA (12% margin).

• Adjusted gross margin improved to 19.5% in Q1 2026 from 16.9% in Q1 2025.

• Non-GAAP adjusted EBITDA for Q1 2026 was $14.1M (11.9% margin), up from $10.6M (10.0%) in Q1 2025.

• Power Solutions segment achieved 18.7% adjusted EBITDA margin in Q1 2026; Mobile Solutions held steady at 13.0%.

Market and operational highlights

• Data center business is the #2 market, with trailing 12-month sales of $73M and a near-term goal of $100M.

• Launched new liquid cooling connector parts in Q1 2026, leveraging stainless steel expertise and high-end metrology.

• Added dedicated assets and certifications in electric grid, data center, and defense, fueling faster-than-expected growth.

• End-market outlooks for 2026 are strong in electric grid, data center, defense, and medical, with breakthrough wins and growth expected.

• Operational improvements and cost leadership have led to steady gains in gross margin and EBITDA rates.