Tennant Company (TNC)
NYSE:TNC
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Tennant Co
(NYSE:TNC)
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Rating:55Neutral
Price Target:
$89.00
▲(13.62% Upside)
Action:Reiterated
Date:05/09/26
Overall score reflects pressured fundamentals and weak cash generation as the primary negatives (margin compression, sharply lower operating cash flow, and rising leverage). Technicals are supportive but overbought, and valuation is a significant risk given the extremely high P/E. The earnings call adds partial support via reaffirmed guidance, improving margin trajectory, and strong orders/AMR growth, but near-term ERP execution and cash-flow headwinds remain key.
Positive Factors
Recurring Aftermarket & Service Revenue
Tennant’s parts, consumables and service lines grew faster than equipment in Q1 (service & other +10.6%), reflecting a durable installed-base revenue stream. Recurring aftermarket and service revenue smooths cyclicality, supports gross margins, and provides predictable cash flow over equipment lifecycles.
Negative Factors
Weak Cash Generation
Operating cash flow has deteriorated dramatically versus 2023, reducing internal funding for capex, working capital and shareholder returns. Persistently weak cash conversion increases reliance on external liquidity and heightens vulnerability to operational shocks or prolonged margin pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Aftermarket & Service Revenue
Tennant’s parts, consumables and service lines grew faster than equipment in Q1 (service & other +10.6%), reflecting a durable installed-base revenue stream. Recurring aftermarket and service revenue smooths cyclicality, supports gross margins, and provides predictable cash flow over equipment lifecycles.
Read all positive factors
Tennant Co Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Breaks down sales by region (for example North America, EMEA, APAC), showing where Tennant is strongest and where it can expand. Geographic mix exposes currency and macro risks, regional demand cycles for commercial and industrial cleaning equipment, and potential growth markets that could drive future revenue.
Breaks down sales by region (for example North America, EMEA, APAC), showing where Tennant is strongest and where it can expand. Geographic mix exposes currency and macro risks, regional demand cycles for commercial and industrial cleaning equipment, and potential growth markets that could drive future revenue.
Data provided by:
The Fly
The FlyTennant Co (TNC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend Yield1.59%
Average Volume (3M)263.38K
Price to Earnings (P/E)1457.4
Beta (1Y)0.91
Revenue Growth-4.29%
EPS Growth-54.01%
CountryUS
Employees4,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.67
Shares Outstanding17,038,902
10 Day Avg. Volume160,149
30 Day Avg. Volume263,384
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)2.25
Price to Sales (P/S)1.12
P/FCF Ratio31.26
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue1.41
Enterprise Value/Gross Profit3.58
Enterprise Value/Ebitda15.37
Forecast
1Y Price Target
$99.00Price Target Upside26.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.03
Revenue Forecast (FY)$1.27B
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 maintenanc...
How the Company Makes Money
Tennant makes money primarily by selling its floor cleaning equipment and related solutions to end customers through a mix of direct sales and channel partners. A core revenue stream is the one-time sale of capital equipment (e.g., scrubbers, swee...
Tennant Co Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but constructive picture: meaningful operational disruption from the North America ERP implementation drove notable short-term revenue, margin, EPS and cash-flow headwinds in Q1, but management reported clear stabilization progress, sequential margin improvement, strong order momentum and accelerating robotics growth (85% YoY for AMR). The company reaffirmed full-year guidance, emphasized liquidity and disciplined capital allocation (including opportunistic buybacks), and laid out credible steps for margin recovery and AMR expansion. Given the balanced set of significant near-term challenges and offsetting strategic/operational positives with guidance intact, the tone is cautious but constructive.Positive Updates
Strong Order Momentum and Backlog Growth
Orders of $327 million, up 10% year-over-year, with backlog increasing approximately $32 million to $109 million, signaling strong demand momentum and healthy customer relationships.
Negative Updates
ERP Implementation Disruption and Financial Impact
ERP disruption reduced Q1 net sales by approximately $23 million and gross margin by about $17 million (≈$11M lost volume + ≈$6M elevated labor, freight and expediting costs); included a 2-week manufacturing/distribution shutdown in January and $8.8 million of ERP project spend in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Order Momentum and Backlog Growth
Orders of $327 million, up 10% year-over-year, with backlog increasing approximately $32 million to $109 million, signaling strong demand momentum and healthy customer relationships.
Read all positive updates
Company Guidance
Tennant reaffirmed 2026 guidance calling for net sales of $1.24–$1.28 billion (organic growth 3.0%–6.5%), adjusted EBITDA $175–$190 million (14.1%–14.8% margin), GAAP diluted EPS $4.05–$4.65 and adjusted diluted EPS $4.70–$5.30 (ex‑ERP/amortization), CapEx ~ $25 million and an adjusted effective tax rate of 24%–29% (ex‑ERP/amortization); management expects results to be back‑weighted with sequential quarterly improvement and gross margin expansion into the low‑40% range in H2 (enterprise March exit ≈40%). For context Q1 included orders $327M (+10% y/y) and backlog $109M (+~$32M), net sales $297.9M (+2.7% y/y; organic −1.9%), adjusted EBITDA $29.1M (9.8%), GAAP net income $0.2M, adjusted EPS $0.58, AMR sales ≈$27M (9% of sales, +85% y/y), an estimated Q1 ERP drag of ~$23M sales and ~$17M gross margin, cash $82.6M, ~ $289M revolver capacity, net leverage 1.78x, Q1 buybacks $60M (~950k shares at $63 avg) with an expected ≈$0.15 full‑year EPS benefit and a new 2M‑share authorization (total repurchase capacity ≈2.56M shares, ~15% of shares).Tennant Co Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
60
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.20B | 1.29B | 1.24B | 1.09B | 1.09B |
| Gross Profit | 477.90M | 484.30M | 550.00M | 527.80M | 420.90M | 438.00M |
| EBITDA | 111.30M | 125.60M | 169.00M | 188.40M | 135.30M | 134.50M |
| Net Income | 30.90M | 43.80M | 83.70M | 109.50M | 66.30M | 64.90M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.27B | 1.19B | 1.11B | 1.09B | 1.06B |
| Cash, Cash Equivalents and Short-Term Investments | 82.60M | 106.40M | 99.60M | 116.90M | 77.20M | 123.10M |
| Total Debt | 392.50M | 344.60M | 254.30M | 242.40M | 332.40M | 309.40M |
| Total Liabilities | 743.60M | 665.50M | 568.00M | 535.10M | 613.00M | 626.60M |
| Stockholders Equity | 531.20M | 601.60M | 620.80M | 577.00M | 470.80M | 433.80M |
Cash Flow | ||||||
| Free Cash Flow | 16.40M | 43.30M | 68.30M | 164.40M | -54.40M | 46.30M |
| Operating Cash Flow | 34.20M | 65.00M | 89.70M | 188.40M | -25.10M | 69.40M |
| Investing Cash Flow | -26.10M | -22.70M | -78.40M | -23.20M | -24.50M | 1.70M |
| Financing Cash Flow | -7.80M | -38.70M | -25.20M | -122.60M | 8.10M | -84.50M |
Tennant Co Technical Analysis
Positive
78.33
Price Trends
75.96
Positive
75.22
Positive
76.55
Positive
Market Momentum
1.35
Positive
53.87
Neutral
24.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNC, the sentiment is Positive. The current price of 78.33 is below the 20-day moving average (MA) of 83.01, above the 50-day MA of 75.96, and above the 200-day MA of 76.55, indicating a neutral trend. The MACD of 1.35 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 24.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNC.
Tennant Co Risk Analysis
Tennant Co disclosed 19 risk factors in its most recent earnings report. Tennant Co reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tennant Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.92B | 22.93 | 14.30% | 1.49% | 4.62% | 31.96% | |
78 Outperform | $2.15B | 37.16 | 8.48% | ― | 7.64% | -14.82% | |
75 Outperform | $2.62B | 28.26 | 6.59% | 0.64% | 10.45% | 64.56% | |
69 Neutral | $3.08B | 11.46 | 13.78% | 0.57% | 18.33% | 61.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $1.41B | 1,457.36 | 5.10% | 1.59% | -4.29% | -54.01% |
* Industrials Sector Average
TNC
Tennant Co
82.20
10.20
14.17%
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THR
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Tennant Co Corporate Events
Executive/Board ChangesShareholder Meetings
Tennant Shareholders Approve Directors, Auditor and Compensation
Positive
May 1, 2026
Tennant Company reported the results of its 2026 Annual Meeting of shareholders, where investors voted on director elections, auditor ratification, and executive compensation matters. Shareholders elected three Class I directors to three-year term...
Business Operations and StrategyExecutive/Board Changes
Tennant Announces Retirement of Chief Transformation Officer Balinski
Neutral
Feb 27, 2026
Tennant Company said that Senior Vice President and Chief Transformation Officer Barb Balinski, 62, notified the company on February 26, 2026, of her plan to retire. Her retirement is scheduled for September 3, 2026, signaling an upcoming leadersh...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Tennant Adds Independent Directors, Advances Governance Refresh Plan
Positive
Feb 13, 2026
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 in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.