NN, Inc. announced that it has secured multi‑year liquid‑cooling component awards from a global provider of AI infrastructure and data‑center computing equipment. The contracts are expected to add $70‑$80 million of accretive new business in 2026, a substantial portion of the company’s guidance for the year and a clear signal of its shift toward higher‑margin, high‑growth markets such as medical, defense and data‑center cooling.
The company will invest in 17 new high‑speed, high‑precision CNC machines in 2026 to meet the demand created by the new contracts. NN’s existing CNC machine portfolio now exceeds 100 units, a fact highlighted by CEO Harold Bevis: "We have secured a multi‑year set of awards which is leading NN to invest in a large installation of 17 next‑generation high‑speed, high‑precision CNC machines that will meet and exceed these requirements. This expansion and ramp up is happening now across 2026. These machines will add to NN's portfolio of over 100 of these similar machines already in‑house. We can do this type of production in the US, China, Europe, and South America. This is a gateway strategic win for NN globally."
Prior to this announcement, NN reported Q4 2025 net sales of $104.7 million and an EPS of –$0.29, missing consensus estimates. The company’s 2026 net‑sales guidance is $445 million to $465 million. The new contracts, contributing $70‑$80 million, therefore represent roughly 15‑18 % of the lower end of the guidance range, underscoring the importance of the win for meeting revenue targets.
CEO Harold Bevis also noted the strategic fit of the AI data‑center market: "The liquid‑cooled data center market is one of the Company's new end markets that it is pursuing along with medical, defense and electronics, and electric grid components. The AI data center market fits precisely into NN's decades of know‑how in fluid management and six sigma quality levels." The quote illustrates how the company is leveraging its long‑standing expertise in fluid management to enter a rapidly expanding high‑margin sector.
The contracts signal a decisive move away from the volatile automotive sector toward a high‑growth, high‑margin business line. By expanding its CNC capacity and applying its precision manufacturing capabilities to AI data‑center cooling, NN positions itself to capture a growing share of the AI infrastructure market while improving profitability through higher‑margin product mix and operational leverage. This development strengthens the company’s long‑term growth prospects and aligns with its broader transformation strategy.
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