NN (NNBR) investor relations material

Strategic transformation and growth outlook

• Entering a growth phase after recent transformation, focusing on high-margin, high-growth markets and next-generation equipment for multiple end-markets.

• 2026 guidance projects net sales of $445–$465 million and adjusted EBITDA of $50–$60 million, with a 12% margin.

• Over $200 million in new business wins secured from 2023–2025, with a pipeline exceeding $800 million and 100+ growth programs launching in 2026.

• Key markets include automotive, electric grid, data centers, defense, electronics, and medical equipment.

• Global footprint aligns with major markets, with significant presence in North America and China.

Financial performance and guidance

• Adjusted EBITDA has grown 41% over 10 quarters, with 2026 expected to be a record year for both sales and EBITDA.

• 2025 net sales reached $422 million with an adjusted gross margin of 18.5%; 2026 targets further margin expansion.

• Cost-out and continuous improvement programs aim to offset inflation and drive profitability, with a $10 million cost reduction planned for 2026.

• New business wins in 2026 are expected to be margin accretive, strengthening the sales mix and reducing auto sector exposure.

• Long-term goal is $600 million in sales by 2030, with a focus on sustainable shareholder value and improved capital structure.

Market trends and business drivers

• Automotive, electric grid, and data center markets are large and growing, with strong demand for precision components.

• Data center and grid demand offsetting softness in other sectors; EV growth driving grid capacity expansion.

• Defense and electronics markets are expanding, with U.S. defense spending at record highs and a focus on modernization.

• Medical equipment market is growing, with the company reentering and gaining traction in this segment.

• Global supply chain and manufacturing platform enable flexibility and repurposing of equipment across markets.