Tennant Co (TNC) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: 1.59%
• Average Volume (3M): 183.23K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.90
• Revenue Growth: -2.24%
• EPS Growth: -48.77%
• Country: US
• Employees: 4,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.48
• Shares Outstanding: 17,846,682
• 10 Day Avg. Volume: 363,951
• 30 Day Avg. Volume: 183,234
• PEG Ratio: -0.66
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 31.26
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 2.81
• Enterprise Value/Ebitda: 10.85
• 1Y Price Target: $91.00
• Price Target Upside: 16.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.98
• Revenue Forecast (FY): $1.28B

• Rating: 53 Neutral
• Price Target: $64.00 ▼(-18.29% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held back primarily by weakening 2025 financial performance (lower revenue, margins, and cash flow) and clearly bearish technicals (price far below major moving averages with weak momentum). Earnings call guidance points to improvement in 2026, but ERP-related disruption and elevated remediation spend keep near-term risk elevated, while valuation remains rich versus the current fundamentals.

Positive Factors

Robotics (AMR) Growth

Tennant’s dedicated robotics unit and an explicit roadmap to ~$250M in AMR revenue by 2028 show a structural shift to higher‑growth, technology‑led offerings. Recurring autonomy fees and scale economics can raise long‑term revenue visibility and margins as adoption of automated cleaning expands across facilities.

Recurring Aftermarket & Service Revenue

Aftermarket parts, consumables and service growth provide high‑frequency, stickier revenue tied to an installed base. This recurring mix supports cash flow stability, improves customer retention, and cushions cyclicality in capital equipment sales, sustaining margins and valuation of the fleet business over time.

Strong Balance Sheet & Liquidity

Material liquidity and modest leverage give Tennant the financial flexibility to fund ERP remediation, invest in robotics, and maintain shareholder returns. A conservative capital structure reduces refinancing risk and enables strategic investments without forcing disruptive asset sales or severe cost cuts.

Negative Factors

ERP Implementation Disruption

The North America ERP go‑live breakdown materially interrupted core operations, harming fulfillment, parts flow and service. Such execution failures can damage customer relationships, depress sales and margins for multiple quarters, and require sustained management focus away from growth initiatives.

Weakening Profitability and Cash Generation

A multi‑year deterioration in margins and cash flow reduces internal funding for R&D, capex and buybacks. Lower free cash flow and compressed net margin signal weaker operating leverage and ROI, limiting the firm’s ability to sustain investments in robotics and aftermarket expansion without rebuilding profitability.

Ongoing ERP Remediation Costs

Significant cumulative ERP spend and rising remediation budgets create lingering margin and cash‑flow drag. Continued project costs and potential further disruptions increase execution risk, absorb management time and capital, and could depress returns until the system stabilizes and efficiency benefits are realized.

Tennant Co Business Overview & Revenue Model

Company Description

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, specialty surface coatings, and asset management solutions. It also provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IRIS, VLX, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets, and other environments. It markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

How the Company Makes Money

Tennant generates revenue primarily through the sale of its cleaning equipment, which includes floor scrubbers, sweepers, and pressure washers. The company also offers a variety of cleaning solutions, including detergents and chemicals. Key revenue streams include direct product sales, service and maintenance contracts, and parts sales. Additionally, Tennant engages in leasing arrangements that provide customers with flexible payment options for acquiring equipment. The company has established significant partnerships with distributors and retailers, enhancing its market presence and accessibility. Factors contributing to its earnings include ongoing demand for industrial cleaning solutions, growth in e-commerce and logistics sectors, and increasing emphasis on hygiene in public spaces.

Tennant Co Financial Statement Overview

Summary

Fundamentals softened in 2025: revenue declined and profitability compressed (net margin down to ~3.6% vs ~6.5% in 2024), while cash generation cooled materially (operating cash flow down to $65M; free cash flow $43M). The balance sheet remains a partial offset with manageable leverage (~0.57 debt-to-equity), though rising debt and lower ROE (~7.3%) are watch items.

Income Statement

Revenue growth has been inconsistent, including a decline in 2025 (annual) after modest growth in 2024 and a stronger year in 2023. Profitability has also weakened: net margin fell to ~3.6% in 2025 (annual) from ~6.5% in 2024 and ~8.8% in 2023, alongside lower operating and EBITDA margins. Gross margin remains solid (~40%+), but the recent compression in operating profitability is a clear negative.

Balance Sheet

Leverage looks manageable with debt-to-equity at ~0.57 in 2025 (annual), and equity remains sizable relative to the asset base. However, debt has risen versus 2023–2024, and returns on equity have moderated to ~7.3% in 2025 (annual) from mid-teens to high-teens in prior years, signaling weaker efficiency/profit generation. Overall balance sheet risk is moderate, but the direction of leverage and returns bears watching.

Cash Flow

Cash generation has cooled materially: operating cash flow fell to $65M in 2025 (annual) from $189M in 2023 and $90M in 2024, and free cash flow dropped to $43M with a steep decline versus 2024. Free cash flow is still positive, but it covers a smaller portion of earnings (~0.67x in 2025), and the prior history includes a notably weak 2022 with negative operating and free cash flow. The cash flow profile is positive but less reliable than earlier years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.20B	1.29B	1.24B	1.09B	1.09B
Gross Profit	484.30M	550.00M	527.80M	420.90M	438.00M
EBITDA	125.60M	169.00M	188.40M	135.30M	134.50M
Net Income	43.80M	83.70M	109.50M	66.30M	64.90M
Balance Sheet
Total Assets	1.27B	1.19B	1.11B	1.09B	1.06B
Cash, Cash Equivalents and Short-Term Investments	106.40M	99.60M	116.90M	77.20M	123.10M
Total Debt	344.60M	254.30M	242.40M	332.40M	309.40M
Total Liabilities	665.50M	568.00M	535.10M	613.00M	626.60M
Stockholders Equity	601.60M	620.80M	577.00M	470.80M	433.80M
Cash Flow
Free Cash Flow	43.30M	68.30M	164.40M	-54.40M	46.30M
Operating Cash Flow	65.00M	89.70M	188.40M	-25.10M	69.40M
Investing Cash Flow	-22.70M	-78.40M	-23.20M	-24.50M	1.70M
Financing Cash Flow	-38.70M	-25.20M	-122.60M	8.10M	-84.50M

Tennant Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNC, the sentiment is Negative. The current price of 78.33 is above the 20-day moving average (MA) of 74.86, above the 50-day MA of 75.72, and above the 200-day MA of 77.21, indicating a bearish trend. The MACD of -4.42 indicates Positive momentum. The RSI at 25.77 is Positive, neither overbought nor oversold. The STOCH value of 6.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNC.

Tennant Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THR	82 Outperform	$1.53B	16.64	11.45%	―	3.08%	35.81%
HLIO	70 Outperform	$2.32B	37.53	3.75%	0.64%	-1.46%	-10.03%
GRC	69 Neutral	$1.71B	23.68	13.45%	1.49%	3.19%	31.51%
SXI	68 Neutral	$3.21B	308.57	7.72%	0.57%	18.51%	-28.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TNC	53 Neutral	$1.12B	30.90	7.17%	1.59%	-2.24%	-48.77%

Tennant Co Corporate Events

Tennant Adds Independent Directors, Advances Governance Refresh Plan

On February 12, 2026, Tennant Company entered into a cooperation agreement with Vision One Fund and appointed Patrick E. Allen to its board as a Class II director, while also appointing James T. Glerum, Jr. as a Class III director. Both join as independent directors, will serve on the Executive and Audit Committees, and will receive standard non-employee director compensation for their partial terms through the 2026 annual meeting.

Under the agreement with Vision One, the investor has accepted customary standstill, voting and non-disparagement commitments, while Tennant’s board pledged to cap its size at 11 members until the 2027 annual meeting and to seek shareholder approval to declassify the board by 2027, moving to annual elections. The moves deepen the board’s financial and strategic expertise via Glerum’s four-decade investment banking background and Allen’s CFO experience at major industrial and aerospace companies, signaling a governance refresh aimed at supporting Tennant’s growth strategy and long-term shareholder value.

Tennant disclosed that with these appointments its board now comprises 11 directors, 10 of whom are independent, and it plans to present its slate of nominees for the 2026 annual meeting, expected on April 29, 2026, in its forthcoming proxy materials. The company highlighted constructive engagement with Vision One and framed the governance changes, including the planned declassification proposal, as consistent with its emphasis on strong corporate governance practices.

The most recent analyst rating on (TNC) stock is a Buy with a $107.00 price target. To see the full list of analyst forecasts on Tennant Co stock, see the TNC Stock Forecast page.

Tennant Sets Key Deadlines for 2026 Annual Meeting

Tennant Company has scheduled its 2026 annual meeting of shareholders for Wednesday, April 29, 2026, with the specific time to be announced in its forthcoming proxy materials. The company also set February 13, 2026, as the deadline for shareholders to submit information required to nominate director candidates, signaling the formal start of the timetable for investor participation in board elections and corporate governance matters for the 2026 meeting cycle.

The most recent analyst rating on (TNC) stock is a Buy with a $107.00 price target. To see the full list of analyst forecasts on Tennant Co stock, see the TNC Stock Forecast page.