NN, Inc. (NASDAQ:NNBR) shares climbed 8% on Monday after the precision components manufacturer announced new contract manufacturing agreements to supply firearms components to a leading U.S. firearms company.
The agreements mark the company’s entry into Tier 1 contract manufacturing for firearm components following a multi-year development programme focused on advanced titanium machining and surface treatment technologies. NN expects the new business to contribute between $12 million and $15 million in revenue, beginning in the third quarter and expanding through 2028.
New contracts expand defence manufacturing business
To support the programme, NN invested in capabilities including turnkey contract manufacturing, high-volume titanium machining, laser welding, assembly operations and multiple surface treatment processes.
The company also established compliance programmes covering ATF, FFL, ITAR and CMMC Tier 2 certification requirements, strengthening its ability to serve customers across the defence sector.
Defence growth strategy gains momentum
The firearms manufacturing agreements form part of NN’s broader Defence & Electronics growth strategy.
During the past three years, the company has secured more than 20 new programmes with an estimated annual value of between $30 million and $35 million. The Defence & Electronics segment currently generates almost $60 million in annual revenue, with management targeting $100 million over the next five years.
NN now operates eight ITAR-compliant manufacturing facilities across the United States, producing machined components, stamped parts, plated components and assemblies for defence, electronics and weapons applications.
The newly awarded firearms components are expected to carry unit prices ranging from $200 to $500, making them the highest-value products currently manufactured by the company.
Company to update guidance with second-quarter results
Harold Bevis, President and Chief Executive Officer, said the latest contract awards reflect the company’s long-term investment in expanding into higher-value industrial markets. He added that NN worked closely with the customer over several years to develop the next generation of products.
The company expects to provide updated 2026 sales and adjusted EBITDA guidance when it reports second-quarter financial results on August 6.
Separately, Craig-Hallum analyst Greg Palm initiated coverage of NN, Inc. with a Buy rating and a $7.00 price target.
NN stock price
