Hello, thank you for joining us for the iAccess Alpha Virtual Best Ideas Summer Investment Conference 2026. iAccess Alpha hosts virtual investor conferences featuring small and micro-cap companies sourced directly from investors and industry professionals. Today, you will hear presentations from a curated group of selected companies. iAccess Alpha holds four virtual Best Ideas investor conferences annually, one per quarter. Our next event will be the iAccess Alpha Virtual Best Ideas Fall Investment Conference, scheduled for September 15th and September 16th, 2026. We would also like to thank the many investors who contribute ideas and help source companies. These conferences would not be as valuable or high quality without your ongoing support. Now let's begin with our first presenting company, NN, Inc. If you would like to ask a question during the webcast, you may do so at any point during the presentation by clicking the Ask Question button on the left side of your screen. Type your question into the box and click Send. I'd now like to turn the floor over to today's host, Harold Bevis, CEO at NN, Inc. Please go ahead. Thank you, Holly, thank you for the participants in today's call. I also have joining me our CFO, Chris Bohnert, and he and I are going to take you through about a 20-minute overview, touching on the basics for some of you that don't know us that well. We are a company that is involved with breakout growth right now in data centers and defense, and we're going to highlight that today. Again, myself and Chris and Tim French, who's not with us today, the three of us joined about three years ago to initiate a ramp-up in cost reduction and sales growth, and we are achieving those goals right now. I'll take you through some of the numbers. On slide four here, just a quick overview of our company. We are profitably growing in high-value markets. We are having breakout growth in data center and defense markets. Our business model is to partner with OEs and provide customized metal components and metal assemblies. We use a shared global manufacturing footprint with equipment choice standardization as well as the softwares that we use. Our top growth markets, we have a few, and that we find ourselves wherever there is very discriminating and precise metal componentry. High-value vehicle components, steering and braking, electric grid and data center for liquid cooling connectors and other components, and electronics for guidance sections and weapon sections, and then medical components for equipment and tools that are metal based. We're known for exceptional repetitive quality, and we produce at high volume scale. We make billions of parts a year. We have a high use of robotics and automation, and we use AI. In terms of our guidance for this year, through the end of Q1, our midpoints are $460 million in sales. We have another JV, a 49% ownership in a JV that we don't consolidate, that JV is another $100 million. Our adjusted EBITDA is midpoint $50 million, and we have about 700 customers. In terms of our performance year-to-date through Q1, which is our last reported results, we had strong year-over-year performance, and we're building momentum in our targeted growth areas. We grew our sales with 20- 30 customers, predominantly in data and electric grid. For the full-year, our full-year also was looking strong through year-to-date and building through the quarters as we launch new programs that we're winning. Therefore, we raised our guidance for the year for sales and EBITDA, and we also improved our longer-term outlook by pulling in our goal attainment by a full-year because we're running ahead of our expectations. On the next slide, I just wanted to touch upon our growth area. For those of you who may or may not know us, there's five main areas that we pursue for growth with this metal part making capability that we have globally. The high-value metal vehicle parts, we find ourself into very precise applications. If you look at vehicles, the control, the braking, the steering, emissions, they're not made out of plastic, these type of parts. They're made out of specialized steels with a lot of heat treating and secondary processes also, and they're at micron-level precision. Number two here is grid and data center is fast-growing. We've had an ongoing business here for a long period of time. It's $73 million in sales on an LTM basis, and our near-term goal is $100 million. Really the goal here is to be debris-free, leak-free, and energy efficient. We deal with a lot of copper as well as plated copper, gold, and silver. Medical applications is double-digit growth also. Parts are a little easier to make, but the quality systems are much more demanding. We certify the plants one at a time, having breakout performance in both the data center area and the medical area. Defense and electronics, weapons-grade type of products. Biggest end platform we're on is the Patriot system. The biggest end customer we support is Raytheon, and we do just a tremendous amount of parts and pieces in this area, and assemblies. High-value stampings. We have smoke alarm systems, switches, sensitive electro and electric applications. Those are the main areas that we're growing in. I wanted to just say a few comments about the markets that we participate in. I know a lot of you track a lot of markets. Just to give you an update on our view here on grid and data center, the market has gone vertical. Those of you who follow NVIDIA and their five-year trillion-dollar backlog, we're in the NVIDIA supply chain, so our parts go into NVIDIA racks, for liquid cooling globally. We're also on the grid, so we go from the grid edge to the rack, with a bunch of components, which I'm going to talk about on the next page. That's a very strong market for us, and it's helping us achieve wins for this year and a full-year effect into 2027. Defense electronics is at record levels in the U.S. That's where we participate in this market, and we have five-year growth plans with many of our customers, and we're ramping up production on a lot of different types of products. It's a growth market. Medical, again, we're having breakthrough new wins. We re-entered this market at the end of 2023, having a lot of good. It took a little longer than we thought, but it's really been an avalanche of wins and RFQs. Automotive in China is our one soft market that we have. If you follow the automotive industry in China, they're having a reset year. The local market in China was overstimulated with government incentives. Export market from China is still strong. We participate in both. We make parts that go onto the cars, and if the car is sold in China or outside of China, we benefit from that. One thing that we're doing with the slowdown of the China market, though, is we're repositioning and retooling our assets from automotive part making to data center part making, and we have a very active program underway with that. Commercial vehicles has been soft. We serve that market in Asia and in North America, and it's been soft, but the order rates in North America specifically started picking up in December, and this is turning out to be a second half growth story for us this year. Industrial kind of goes along with GDP, and we've had a couple kind of growth this year. Global auto, it was the mature markets, the North America, South America, Europe. The market's slightly down due to affordability and the impact of tariffs, and the China exports are having a big impact on the local markets as well. We're expecting a flat year. Overall, as a company, we're seeing stronger markets than we did last year. I'll talk a sec about data center. We get a lot of questions about that because it's a here-and-now investor topic. We have been in this market a long time. We start with the meter on the side of the building. We make components that go into meters and grid management systems. Our second largest customer in our company is a company named Itron. They make systems to monitor networks globally. We have stamped parts as well as machined parts. That's the two sides of our company, our reporting segments. Basically all of the components we supply into this market are seeing growth curves this year. In the first quarter, we came out with a brand-new product line, to directly use our machining capability to machine cooling connectors, liquid cooling connectors. The machines we have are ideal for that size. It's about 32 millimeters if you look at the diameters involved, and we have a lot of 32 millimeter machines and a lot of 32 millimeter know-how. It's a common stainless steel bar stock size, and we are a large scale steel bar stock for a long time due to our auto business. We use procurement leverage as well as our machine base to make these connectors, and we entered it in a big way in the first quarter, and we're still prospecting in the second quarter. We've ordered a lot of additional machines. The machines all have lead times. If you track this industry, equipment lead times that make parts and pieces for this industry are starting to go out and extend, and that applies to us also. We're a long-term buyer of this type of equipment. We have a couple thousand machines, we're a well-known equipment buyer. These are mainly six-axis CNC equipment that require special tooling and programming, but we know how to do it and have been doing it for a long period of time. We have a forward prospecting curve. We are going after the top 10 people that need these globally. Our first have been in Asia. Foxconn mainly does a production for NVIDIA out of their Vietnam and Taiwan plants, so we are involved in those supply chains, and most of the machines that we are associated with are going to the U.S., coming back to the U.S. for the big people putting in AI networks. It was a big new event for us in this quarter, and we are off to the races here. In terms of outcomes, as I mentioned, Chris and Tim and I came in about three years ago. We entered a declining situation, and we changed out most of the plant managers. We have 27 plants. We changed 25 plant managers out. I rotated top team, some people I worked with before. Chris and I have worked with both together and with Tim. We have a team that has been there, done that with the end path and had success together. We are underway with our fourth consecutive year of improvement, and the last couple of years, we really had to get rid of a lot of excess costs. We closed four plants and laid off almost 1,000 people to kind of right-size our cost structure, and we are having tremendous growth now. That growth is going across the lower cost platform, and our growth is kicking in now. The growth is happening a little faster than we expected because data center kind of recall. It was our plan to hit this inflection point this year. We announced it when we announced the year that we were going to have over 100 programs launching this year, and year-to-date, around 50 have already launched. Now the number is growing because we are having more wins. This year we will probably launch around 130 programs. We will update our guide here in a few weeks when we go through the second. The success we are having in accelerated sales really are causing us to hit our longer-term goals quicker. We also reset the models that were out there from the analysts on us, guided as hard as we could to bring those models in because we are running ahead of our metrics. If you look at our year-to-date performance, we are hitting these gross margin and EBITDA rates, so we are reassessing what our long-term goals are there because we are approaching those rates now. As an investment, if you followed us the last few years, you would be listening to us talk about taking costs out, programs that are going to the future, and that sort of a thing. If you follow recent events, we guided this year that the cost part of the program is kind of over. We are just going to do contemporary cost management now on an ongoing basis. The program here is all about launching growth and what type of growth. Our goal here, is to grow about two times the market. That is what the market is because the data center markets are growing so fast. We're participating in that fully, and we look forward to discussing our second quarter results and updating our full-year outlook and give guidance on the next three years, too. That's real quick. That's just an overview of the company and our results. We can switch to Q&A, Holly, if that makes sense right now. Chris, are you there? Yeah, I'm here, Harold. I know a lot of folks are asking about. Any questions? Yeah. Pardon me, Chris? Yeah, a lot of folks. Oh, we've got one question there, Harold. I have a question. Electric grid and data center has become one of NN's most important growth initiatives. How large is that business today? Where do we believe it can ultimately grow over the next few years? Yep. Grid and data centers are our number two market right now at $73 million in sales. Our near-term goal is $100 million. We believe it can grow to be our number one market, which we have over $50 million in sales. For us, these type of sales bring machines with them, so there's a CapEx part to that question, too. We are not saying no to any good data center business, and the margins are accretive for our company. Overall, it's also a way for us to get our gross margin and EBITDA rates up. Next question. NN recently highlighted its first data center liquid cooling connector win. What are you seeing from customers? How significant could the data center opportunity be for the company? Similar in the financially I answered that what we're seeing from customers is panic of trying to have physical supply chain set up. The backlogs are so big. The industry is in need of additional supply, and we need to do more. We need to produce more, and we're working at it to produce more. These parts are tricky a little bit, so you can't really shortcut the quality processes. We're underway with multiple ramp-ups. We have our hands full with ramp-ups, and we're also prospecting for additional business. "NN discussed an opportunity pipeline approaching $800 million. What areas of the business are generating the strongest customer interest today?" Well, data center is one of them, we mentioned. Also, in the defense arena, defense and electronics, we're getting a tremendous amount of inquiries to make high-end parts that are around guidance and protection of the printed circuit boards. Typically, they're gold-plated so that they can't have a magnetic interference or jamming of any type, so that the excess EMI arena is attenuated by being grounded wholly through gold plating. That is happening a lot. We are seeing a lot of defense inquiries into us, and also medical. We recently have passed a critical medical audit, and we have received an avalanche of RFQs that we're kind of digging out of. We were happy and sad that we passed that. We were happy we passed it, and then we're like, "Whoa, we really got hammered here with RFQs." We're getting organized. We're going to have to probably hire a few more engineers to get through that. Next question. "Most recent program wins have carried margins above the company's historical average. As those programs ramp, how can investors think about the targets long term?" It's a good question. Our margins on our new business are averaging over 25%. Our gross margins right now are about 20%. You could expect our margins to be trending up. I don't know if we'll surpass 25%, but they'll be trending towards that number in the short term. I'm going to go to the next. Let's let it refresh. Hey, Chris, can you help me with the questions here? Yeah. The next question- Oh, I'm sorry. Yeah. "We recently raised our guidance and accelerated the timing of our long-term targets. What gives you confidence in achieving those goals despite ongoing macro uncertainty? Yep. Good question, Christopher. Obviously, for us, we want to become a beat and raise kind of equity. Confidence came from our forecasts that we see, and also the backlogs that we have, and stated goals from our customers on where they'd like us to get our production up to. If you do the trend lines, if you extrapolate our year-to-date performance, you would even say that we've been conservative with our guidance update, both short term and long term. We'll be updating that as we go. Another question, "You mentioned one large customer. Have you talked about other large customers? Can you list top customers and percentage of sales that they are?" I don't really want to give out percentage of sales, but I can tell you our top customer of our company is Cummins, and then Itron. We have a balance amongst our top 30. Our top 30 customers matter to us. Although we have 700 customers, our top 30 customers are a little over 70% of our sales, and they're balanced between grid, data center, automotive, industrial. We have a good balance. The biggest end market concentration we have at the moment is in our Q1 investor deck. We report out on this. It's automotive overall is 44% of our sales, and our goal is to get that down to under a third, primarily by holding automotive steady and growing the other areas. We're actually doing a shift now of repurposing equipment from auto to data. We might get in front of that transition point. In the past, some people have viewed us as an automotive part maker, but now that's becoming one of the smaller things that we do. Next question. When do we expect this new six-axis machines to be in service? Are we operating these around the clock?" Yes, we run 20/7 on those. From Larry Cabina. We have a delivery schedule. There are three main types of CNC equipment used in this industry. Three companies are Tsugami, Citizen, and Star. They're Japanese CNC companies, and they make the machines in China. The lead times on these machines have gone way out, primarily due to data center. We're in the queues to receive. We have a delivery schedule of machines. We've already received about eight of them, and we're going to be receiving them through the end of the year, a lot of them in this year, the ones that we've announced. "For having a conversation a year from today, what do we think will be the biggest driver of value creation for shareholders?" is the next question. Number one, we're going to refinance our preferred stock. That's on our active list of things to do. Chris Bohnert is leading that. We can't really say specifics because it's MNPI. That will be one that we look back at and we're happy that that happened. Another will be that automotive will be less than a third of our company, and we'll primarily be growing in other areas. Medical is going to be something we're going to be talking more about. Far, year to date has been defense and data center, but medical's coming on hard. You mentioned earlier being part of NVIDIA supply chain for liquid cooling. Are you working with other companies that you're willing to share? We're primarily tied into NVIDIA. We are bidding on other microprocessor-based designs, but our first wins are really in the NVIDIA supply chain. Next question. Investors continue to focus on speed for equity. Can you provide an update on your efforts to simplify the structure and strengthen the balance sheet? Chris, you want to take that one? Yeah, sure. As Harold mentioned, we're pretty active in our process to recap the balance sheet, primarily with the pref first. Then, it's going to be probably a multi-step process. We'll recap the pref here, hopefully between now and the end of the year, then we'll take a look at our senior note. We're pretty happy with our ABL and the rate on that. We've got a really good balance sheet program that we're working on over the next 12 months. So we'll be happy to report on that here in the coming quarters. Just know it's top of mind, and Harold and I and the team, as well as the board, are working actively on it. Next question. Thank you. If defense electronics continues to be an important growth platform for NN, what types of programs are driving demand, and where do you see the greatest opportunities going forward? We are an approved supplier at a lot of OEs in the defense area, Northrop, General Dynamics, Raytheon, others. And we primarily find ourself doing sophisticated pieces that require plating. Not all companies have in-house plating. It's something that specific chemicals, and gold plating and silver plating, you can't find it everywhere. We buy gold bullion and silver bullion, and we process it. It's a very involved process. We're vertically integrated. We're skewed towards part-making, defense, and electronics. And one of our largest customers that's not in defense electronics that we do this for is a company called IPG Photonics, and we do the same thing. We gold plate the main heart of the electronics of the devices so that they can't be interfered with electromagnetic interference. Next question. The company generated $43 million new business wins in Q1. Can you provide additional color on those awards and expected timing of revenue conversion? We've won about 70 programs so far year to date. I won't give the figure because we haven't released that yet. And they continue to assemble in that they're small-ish, over $1 million, and they're both with new and existing customers. We have an active prospecting program. We organize ourself by using salesforce.com, and we allocate out and give targets to individual people. We have a 40-person business development team globally, and they all have specific awards, and we give them incentive comp to land their share of the award program, and then they share in the overall number. It's a balanced program. And the second half of this on the expected timing of revenue conversion, generally speaking, the equipment that we're associated with, there's usually a three or four-quarter offset, sometimes longer for automotive. But data center has turned out to be an immediate type of a scenario. This year's version of that is it's immediate ramp-ups. We do expect to get contribution this year from the first quarter's wins, yes. Next question. For investors who may be hearing the NN story for the first time, what do you believe is the most misunderstood aspect of the company? If you look backwards at our stock performance, the company got into trouble during COVID and then stayed in trouble until they hired Chris and Tim and I. And it was like the world's longest turnaround underway, and we ended it, and some people just like, "Yeah, okay, NN. Oh, yeah, that's a company that's turnaround." Well, it's over, and we did everything. We end-gamed all the things that needed to be done, and we did it. And now it's just about growing. Think that's becoming less misunderstood, but the perception probably isn't quite there yet if people haven't looked at the name in a while. Why is China automotive so weak? I keep hearing about how much traction they have globally. What markets have too much supply? The China market, which I've followed for over 10 years, it has too much capacity, and the government over-stimulated. Basically, everyone in China who can afford a car has a car. That first time sale, that's done. It was stimulated, and it's in place. Now the market's entering a period of, like the U.S., for instance, of when cars wear out or you want a new model, you get one, but there's not that initial amount of demand to be snagged. The export market is now 30% of the production in China is now exported. The articles that are coming out now are saying everyone in the world seems to like Chinese cars except the Chinese, because their export markets are doing very well, but the indigenous market's pulling back. Believe there will be consolidation of the smaller names. If you look at the top 10 OEs in China, the year to date, I just looked at the May data last week, the biggest OE in China that's doing poorly is BYD. I think they got ahead of themselves and now it's still a huge market, way bigger than the U.S. is, but it's pulling back on a percentage of sales. We're not feeling it from a financial standpoint because we're toggling the capacity over to data center. Okay, I think that we wrapped it up there. I appreciate everybody's time. Really excited to speak with you individually or one-on-one as any follow-ups. With that, we will end the call for today. Thanks. That concludes NN, Inc.'s presentation. You may now disconnect.