NNBR is an asymmetric, high-leverage industrial turnaround: real momentum in AI data center cooling and grid modernization, but the common equity hinges on refinancing a dangerous preferred-stock overhang before 2027.
Overview
NN, Inc. is a global precision components manufacturer serving automotive, electrical, grid, data center, defense, and medical markets through 27 facilities across four continents. The company is transitioning away from historically cyclical, lower-margin automotive exposure toward higher-growth Power Solutions applications, including electric grid infrastructure and AI data center liquid cooling. FY2025 revenue declined 9.1% to $422.2M, but adjusted EBITDA remained meaningfully higher than GAAP results due to transformation costs. The thesis is a high-risk operational turnaround constrained by a heavily leveraged capital structure.