NN, Inc. has secured initial purchase orders to manufacture precision components for a leading robotic-assisted surgery platform, marking a breakthrough in its Medical Products business. The company successfully passed a critical full-facility audit at its Kentwood, Michigan plant, enabling it to qualify for this new market segment. This development follows a multi-year investment program and the installation of a new quality system to meet medical industry standards.

The new customer has released purchase orders with immediate delivery and ramp-up requirements. This milestone complements NN's legacy medical work in surgical instruments, orthopedic tools, and electrosurgical products. With this advancement, NN's medical new business pipeline has increased by approximately $25 million, bringing the total to about $75 million. This figure represents a meaningful component of the company's total corporate new business pipeline, which exceeds $750 million across all products and markets.

Medical Products Growth Program

NN's strategy to penetrate the medical market includes several key components:

• Specialized quality control systems
• Dedicated CNC machining equipment
• Special purpose floor space
• Medical industry experts on staff
• State-of-the-art stainless steel machined products
• Global footprint in North America, China, South America, and Europe

Strategic Positioning

Robotic-assisted surgery is expanding at double-digit annual rates in the United States, presenting a secular growth opportunity for precision component suppliers. NN is leveraging its engineering capability, quality systems, and global manufacturing footprint to capture this demand. The company is actively investing in the medical market through dedicated staff, tradeshow attendance, and additional equipment.

Harold Bevis, President and Chief Executive Officer of NN, Inc., stated that the achievement is a direct payoff on investments made over the last three years. He noted that upgrading the quality system to the medical level was a necessary step that has now been completed. Bevis emphasized that the company is successfully executing on its growth goals in the medical products market and intends to grow with this new customer while participating in the broader medical market.

NN plans to combine this new win information with recent successes in the Data Center sector to adjust its 2026 sales, adjusted EBITDA, and New Wins guidance during its next business update in August.

NN, Inc. has secured a significant set of new multi-year awards for stainless-steel cooling products for NVIDIA's supply chain, tripling the size of its liquid cooling product line that launched in Q1 2026. The new awards are additive to prior communications and greatly increase the size of NN's liquid cooling product portfolio for AI data center racks. This expansion supports the company's goal to grow its Data Center and Electric Grid business into its largest by sales.

To support the increased demand, NN is procuring an additional 30 new machine centers on top of the 17 previously announced, and has repurposed 5 automotive CNC production centers for data center production. The company is on track to have 52 dedicated machines for liquid cooled products, with 50 for production and 2 for samples. NN has pre-sold 100% of this production capacity. The expansion is underway in Q2 2026 and will be additive to 2026 sales.

Harold Bevis, President and Chief Executive Officer of NN, Inc., stated that the company is building a meaningful position in the global supply chain for liquid cooled AI systems. The additional 47 machine centers will bring the total at the Wuxi, China plant to approximately 250 CNC machine centers. The facility supplies parts into NVIDIA's Asia supply chain in China, Taiwan, and Vietnam, which are then used in data centers being built in the United States.

The following table outlines the machine center expansion at the Wuxi plant:

These new awards fit within NN's previously issued guidance of achieving $80 to $90 million of accretive new business during 2026. The company intends to adjust its 2026 and 2027 sales and EBITDA guidance, if necessary, during its Q2 earnings update in early August. NN views the liquid-cooled AI data center market as a key growth area, leveraging its expertise in pressurized fluid management and stainless steel production.