TNC
Tennant Company76.47
+0.09+0.12%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Robotics pricing pressure emerges
Q&A spotlighted robotics pricing pressure from nimble Asian upstarts, prompting the new TNC group's push for faster NPD, self-deployment efficiency, ROI proofs, and broader demand gen to chase $250M by 2028 while prioritizing unit share. ERP details confirmed $15M of the $30M sales hit as unrecoverable—mostly parts, where downtime frustration exceeds equipment delays—but customers haven't bolted, with trust rebuild via transparency. Management pledged aggressive buybacks if shares dip post-ERP, absent M&A. Board added two directors from activist talks, eyeing de-staggering. Answers reaffirmed ERP recovery path. Customers demand delivery.
Key Stats
Market Cap
1.41BP/E (TTM)
26.19Basic EPS (TTM)
2.92Dividend Yield
0.02%Recent Filings
10-K
FY2025 results
Tennant Company's FY2025 net sales fell 6.5% y/y to $1,203.5M amid North America volume declines lapping prior backlog benefits and Q4 ERP disruptions that slashed order entry and parts shipping for three weeks, though December rebounded. Gross margin contracted 250bps to 40.2% from mix shift, ERP inefficiencies, and material costs, partially offset by pricing; operating income dropped to $68.3M (5.7% margin). Q4 saw aggressive $87.7M share repurchases (1.1M shares) while lifting the dividend 5% to $1.195/share. Cash from operations slowed to $65M on lower earnings and working capital use. ERP stabilization pressures Q1 2026 margins, but pricing and cost actions target improvement. Long-term economic downturns threaten demand momentum.
8-K
ERP disruptions tank Q4 results
Tennant Company reported Q4 2025 net sales of $291.6M, down 11.3% year-over-year, with adjusted EPS cratering to $0.48 after a $0.91 ERP hit from North America go-live in November. Full-year sales fell 6.5% to $1,203.5M; ERP disruptions shaved ~$30M off Q4 revenue, $22M from adjusted EBITDA. ERP woes linger into 2026 Q1. Repurchased $88.5M shares. Guides 2026 sales $1.24-1.28B.
8-K
Tennant adds two directors
Tennant Company signed a cooperation agreement with Vision One Fund on February 12, 2026, appointing Patrick E. Allen as Class II director and James T. Glerum, Jr. as Class III director, expanding the board to 11. Both join the Executive Committee immediately and Audit Committee March 1; the firm commits to declassifying the board by 2027. Vision One, holding 344,585 shares, agrees to standstill and board support. New voices sharpen capital allocation focus.
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