Customer concentration
The top ten customers account for a large portion of net sales, so losing a major account would reduce revenue and operating leverage.
- Scope
- Top ten customers were about 49% of net sales in 2025.
- Materiality
- high
NN, Inc
NN, Inc. is a Delaware-based diversified industrial company that designs and manufactures high-precision components and assemblies for global end markets. Its business is organized around the Mobile Solutions and Power Solutions groups, with manufacturing operations spread across North America, South America, Europe, and China.
4,0 %
−8,1 %
−9,1 %
1.83
1.09
| % | |
|---|---|
| Mobile Solutions components | 55% Precision parts and assemblies for automotive, general industrial, and medical applications. |
| Power Solutions components | 45% Electrical and technically demanding precision components for industrial and power-related uses. |
NN, Inc. sells primarily to manufacturers that use its components in automotive, electrical, industrial, medical,...
- Automotive manufacturers and suppliersprimary
Buy precision parts for steering, braking, transmissions, fuel systems, and EV-related applications because the components are system-critical and embedded in vehicle platforms.
- Industrial and general manufacturing customersprimary
Buy engineered components for machinery, HVAC, fluid power, and other industrial uses where tight tolerances and repeatability matter.
- Electrical and power-related customerssecondary
Buy precision electrical contacts and related components for applications that require design capability and reliable delivery.
- Medical, aerospace, and defense customerssecondary
Buy high-spec components where quality, traceability, and process control are important to qualification and long product cycles.
NN, Inc. operates 27 facilities across North America, South America, Europe, and China, with North America representing...
- •27 facilities across four continents support local supply and service
- •North America is the largest manufacturing base, especially U.S. and Mexico
- •Europe operations include France and Poland for regional customers
- •China and Brazil provide exposure to local growth markets
- •Global footprint helps match production to customer locations
- •Regional manufacturing reduces freight time, cost, and supply risk
NN, Inc. is focused on winning business in targeted growth areas, improving its sales mix, and using its global...
01
Targeted growth-market expansionmedium-term
The company wants to concentrate resources where its technical capabilities and customer relationships can scale.
02
Footprint optimizationshort-term
Consolidating manufacturing capacity can improve utilization and align production with demand.
03
Program wins and customer retentionmedium-term
Long-life, embedded component programs create recurring demand and switching costs.
NN, Inc. is exposed to customer concentration, cyclical demand in automotive and industrial end markets, and...
End-market cyclicality
Demand is tied to automotive, industrial, and other cyclical manufacturing markets that can slow with economic conditions.
- Scope
- Automotive and general industrial end markets
- Materiality
- high
Supply chain and operational disruption
The company relies on a complex network of suppliers and facilities, so disruptions can delay deliveries and raise costs.
- Scope
- Global manufacturing and sourcing network
- Materiality
- high
Trade and tariff exposure
Cross-border manufacturing and sales make the business sensitive to tariffs, trade restrictions, and policy changes.
- Scope
- U.S., China, Europe, Mexico, Brazil
- Materiality
- medium
Foreign exchange and international operating risk
Revenue and costs in multiple currencies can create translation and transaction volatility.
- Scope
- North America, Europe, South America, China
- Materiality
- medium
Revenue recognition on customer programs
Can shift revenue between quarters and affect comparability
Pass-through pricing and precious metals pricing
Affects reported sales growth and margin interpretation
Deferred tax assets and tax valuation
Can materially affect tax expense and balance sheet assets
Long-lived asset impairment
Could create non-cash charges and reduce asset values
Seasonality and quarterly fluctuation
Makes quarter-to-quarter comparisons less representative of run-rate demand
: 29.4.2026