NN, Inc. Q1 FY2026 earnings call

Harold mentioned a strong Q1 with good mix driving improved results, highest trailing twelve-month adjusted EBITDA in five years. Growth programs in electric grid, data center, defense electronics, medical are delivering results. Cost blueprint is generating good profits. Raising 2026 guidance, accelerating five-year model to four-year. Sales growth broad with 22 of top 30 customers up. Expecting record annual performance in 2026 with strong metrics across many areas. Overcoming global automotive and commercial vehicle weakness and tariff turmoil with new sales in other markets.

Power Solutions segment: Net sales for the first quarter were $55.4 million, up $11.9 million or 27% compared to prior-year period. Adjusted EBITDA was $10.4 million, an increase of $4.1 million or 65.1% versus prior-year quarter. New business wins totaled $29.3 million. Mobile Solutions segment: Net sales for the first quarter were $63.1 million, an increase of $0.9 million or about 1.4% compared to last year's first quarter. Adjusted EBITDA was $8.2 million, up slightly versus last year's first quarter. New business wins totaled $13.6 million

Revising 2026 guidance ranges higher for net sales, adjusted EBITDA, and new business wins. Pulling long-term financial goals forward from 2030 to 2029. Full year 2026 net sales guidance $450 million to $470 million, adjusted EBITDA $52 million to $62 million

Global automotive weakness, global commercial vehicle weakness, tariff turmoil, impacts of pandemics and other public health crises, military conflicts on financial condition

Q: Congratulations on the progress. Just following up on your data center activity and wins there. To get to the $100 million goal, what are the steps you need to take?

A: Have multiple items like new products for busbar and power whips, growing current content.

Q: Could you break out factors behind 12% sales growth into precious metals pass-through, FX, product mix?

A: Hard to break out exactly as up with 22 of top 30 customers, new programs won.

Q: When you talk about increasing content per rack, what is the potential?

A: TAM is big, pipeline is multiples of current $70 million business, but hard to give exact dollar figure now.

Q: Talk a little bit about what is going on in medical?

A: Medical pipeline is fine but development had more plant certifications than expected, expected to report positively this year.

Q: How are you dealing with regular metals cost escalation?

A: Have right to pass through, show POs of incurred inflation, been able to keep up with margin compression.

Q: How should we think about the cadence of wins as the year goes on, and what does that split look like between Power Solutions and Mobile Solutions?

A: Pipeline covers areas uniformly, hit rates similar, goal skewed toward growth areas.

Q: Could you share how the split might look between the growth end markets and the auto end market in 2029?

A: Trying to get automotive to be 30% or less over time, hard work to stay flat in automotive.

Q: Did you talk this morning about the strategic options program? Any update?

A: Ongoing process, nothing material to report yet.

Q: Can you talk about new program wins in Power?

A: Prospecting for more grid business, outperformed on data center side, focusing on busbars with plating acquisition.

Q: Why is your goal only a 1.5% improvement from 2025 to 2029 for margins?

A: Being conservative, changed time period to achieve goals instead of margin percent.

Q: Are there still plans or businesses to exit that are marginally profitable?

A: At this point, nothing scheduled for closure.

Q: How are you paying for the plating acquisition, and is it going to be a meaningful add to your revenues?

A: Medium-sized, in base plan for year, equipment to come online end of year