NN, Inc.: Repeated Guidance Raises Are Hard To Ignore (Ratings Upgrade)

NN, Inc. is upgraded to Buy as sales growth and end-market diversification materialize, especially in Data Center and Electric Grid. Management has raised 2026 guidance three times, with Q2 net sales up 19.3% and adjusted EBITDA margin expanding to 13.9%. AI-driven data center liquid cooling and new awards in medical and defense are accelerating NNBR's shift away from automotive cyclicality. Significant dilution from preferred stock refinancing addresses the costly overhang, but high leverage and execution on operating leverage remain critical.

NN, Inc. (NNBR) is a Charlotte-based precision manufacturer that produces high-tolerance metal components and assemblies for the automotive, electrical, data center, medical, defense, and industrial markets.