NN, Inc. (NASDAQ: NNBR), a Charlotte, North Carolina-based precision components manufacturer, announced it has entered the U.S. Tier 1 contract manufacturing market for firearm components, securing a contract to mass produce completed firearms products for an unnamed U.S. firearms provider.

According to a company press release, the new business is expected to generate between $12 million and $15 million in sales. Production begins in the third quarter of 2026 and is expected to ramp up through 2028. The products, described as suppressor components and assemblies, are priced between $200 and $500 per unit, which the company said makes them the highest-priced items in its new product portfolio.

The firearms manufacturing effort is part of NN's broader Defense & Electronics segment, which the company said currently accounts for nearly $60 million in annual sales. NN has set a five-year target to grow that segment to $100 million.

The company said it has won more than 20 new programs worth more than $30 million to $35 million per year over the past three years, and reported a pipeline of $75 million in additional Defense & Electronics opportunities. NN also said it is evaluating the manufacturing of munitions for attack drones.

To support its entry into the firearms market, NN said it has established ATF and FFL compliance, ITAR compliance, CMMC Tier 2 certification, and TISAX Tier 2 certification programs. The company said eight of its U.S. plants are now ITAR compliant.

President and CEO Harold Bevis said in the statement, "This is a nice advancement for NN's sales growth program into new markets. It is another direct payoff on the investments we are making to establish premier positions in high-value markets."

NN said it plans to update its 2026 guidance for sales, adjusted EBITDA, and new wins, if needed, when it reports second-quarter 2026 earnings on August 6.