Nn — Business Overview

What does NN, Inc. do?

NN, Inc. is a precision manufacturing company that makes highly engineered metal components and assemblies for industrial customers worldwide. Rather than selling to consumers, NN supplies parts that go inside larger systems — think automotive steering and braking components, electrical contacts, or surgical instruments. The company employs roughly 2,300 full and part-time employees plus 250 temporary workers across 27 facilities on four continents.

The business is organized into two segments:

How does NN, Inc. make money?

NN sells custom-manufactured precision components directly to industrial manufacturers, generating revenue through long-term customer relationships rather than one-off transactions. Customers are typically large engineering-driven manufacturers — think automotive OEMs (original equipment manufacturers, i.e., carmakers) and electrical systems companies. The top ten customers accounted for about 49% of net sales in 2025, and relationships with many of the largest customers span more than ten years.

The revenue model is built around being designed into a customer's product platform early, which creates sticky, recurring revenue streams. Customers typically fund development, prototyping, and tooling costs upfront. Once NN's components are qualified and specified into a design, switching suppliers is costly and disruptive for customers — creating durable, multi-year revenue visibility. The company also passes through raw material cost changes (including volatile precious metals used in Power Solutions) directly to customers as pricing adjustments, limiting its exposure to commodity swings.

What market does NN, Inc. operate in?

NN operates across several industrial end markets rather than a single industry, which provides some insulation from any one sector's slowdown. Key end markets include automotive (both traditional internal combustion and electric vehicles), electrical infrastructure, general industrial manufacturing, medical devices, and aerospace and defense. Each of these markets has its own demand drivers and growth profile.

The automotive and electrification angle is particularly relevant. NN explicitly states its capabilities apply to battery electric, hybrid electric, and traditional internal combustion vehicles — meaning it is not solely dependent on one powertrain technology. The broader trend toward vehicle electrification and tighter regulatory standards for precision in electrical and mechanical systems generally favors manufacturers with high-tolerance production capabilities. The medical and aerospace segments tend to be slower-growing but more stable and less price-sensitive, given the high cost of failure in those applications.

Who are NN, Inc.'s main competitors?

The two segments compete in meaningfully different competitive landscapes. Mobile Solutions faces a more concentrated set of competitors, while Power Solutions operates in a highly fragmented market with many players across niche segments.

• Mobile Solutions competitors include Anton Häring KG, A. Berger Holding GmbH & Co. KG, Brovedani Group, Burgmaier Technologies, CIE Automotive, IMS Gear, and MacLean-Fogg Component Solutions — mostly European and North American precision parts specialists.
• Power Solutions competitors include Checon Corporation, Deringer-Ney, Interplex Industries, Owens Industries, and Eaton Corporation, among others — a mix of small specialists and one large conglomerate.

NN's claimed competitive advantage is its ability to produce parts with tolerances of less than one micron (one-thousandth of a millimeter) at high volumes — a combination few manufacturers can match. The company argues that its deep involvement in the customer design process, proprietary tooling know-how, and broad global manufacturing footprint make it difficult for customers to switch suppliers once NN is embedded in a product platform.

Where does NN, Inc. operate?

North America is NN's largest market and manufacturing base, accounting for 60% of net sales in 2025. The company has facilities in the United States and Mexico serving major North American customers, with the U.S. home to roughly 900 of its approximately 2,300 employees.

International operations span three additional regions, each serving distinct customer bases. Asia (primarily China) accounted for 19% of sales, Europe for 11%, and South America for 10% in 2025. Manufacturing facilities outside North America are located in France, Poland, China, and Brazil. The filing notes that China and South America are viewed as growth opportunities as local demand for high-precision components expands in those regions.

The company flags geopolitical and supply chain risks as live concerns. Some raw materials — including metals sourced from China and Europe — are subject to tariff exposure, commodity price volatility, and potential supply disruptions. NN's general policy of passing material cost changes through to customers provides a partial buffer, but the filing acknowledges that geopolitical conflicts and tariffs have increased metals price volatility and could continue to affect operations.