NN, Inc.: Refinancing and Data Center Pivot Fuel a 149% Surge

NN, Inc. (NNBR) has been on a tear, with shares up nearly 149% in the last 90 days as the company executes a transformative refinancing and presses its advantage in data center infrastructure. The August 6 earnings call provided the clearest evidence yet that the turnaround is not just about cost cutting—it's about a new growth platform.

A New Capital Structure

The headline event was the retirement of $89 million of preferred stock through a multi-leg transaction: a $70 million cash redemption funded by a PIPE, $19 million equitized into common, and the remaining stub re-priced at a lower 10% PIK rate. Chris Bohnert framed it as the culmination of a long process: “We concluded that this was the best path to creating a capital structure that allows more of the value we have created through our transformation to accrete to common equity holders.” — Christopher Bohnert, Chief Financial Officer · 2026-08-06 This removes a heavy overhang and reduces annual PIK interest by ~$13 million. The company also noted the term loan remains, but with greater optionality. Harold Bevis added details on the share count: 82.6 million shares outstanding, with almost all authorized shares now in use—a constraint that could matter if further equity is needed. The balance sheet is still leveraged, but improving: net sales reached $128.7M in Q2, up 19% y/y, following a Q1 of $118M, and the company's effective net cash position has improved sequentially.

Riding the Data Center Wave

Beyond the financing, the growth story is accelerating. The company's targeted markets—data centers, defense electronics, and medical—now represent over $150 million of sales, about a third of the company. In data center infrastructure specifically, NN is expanding beyond connectors into cold plate plating, busbars, and stampings. Harold Bevis discussed a pipeline approaching $100 million: “we have a large expanding pipeline on this chart here at the bottom, I mentioned that we're now approaching $100 million on prospecting.” — Harold Bevis, Chief Executive Officer · 2026-08-06 The company is bringing 50 machines online and scouting new space in China, and the ramp is expected to hit stride in November. This theme was already building in prior quarters—in May, Harold noted, “We are not falling in love with any particular product. We are selling a product basket.” — Harold C. Bevis, CEO or President · 2026-05-07 The market is recognizing this globally, as PIPE transaction and data center keywords echo across many reporting companies.

Raising the Bar

Guidance was raised to $460-480M sales, $55-65M EBITDA, and $80-100M new business wins. New business wins are already at $80M through July. The company is winning at a 27% hit rate, above industry average. Margins are expanding: adjusted EBITDA margin up 190 basis points to 13% year-to-date. Management even hinted that long-term EBITDA margin could reach 14-16%, above the prior 14% target. The stock market has responded, with shares up 149% in 90 days, though the stock is still 88% off its 2017 peak. The strategic pivot is clear, and the financial foundation is finally in place to support it. As Harold said,

We're more being balanced, if you will, across a set of customers versus just getting married to one customer.