Tennant Company (TNC)
NYSE:TNC
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Tennant Co
(NYSE:TNC)
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Rating:63Neutral
Price Target:
$87.00
▲(11.07% Upside)
Action:ReiteratedDate:04/26/26
The score is held back primarily by weakened 2025 profitability and cash flow and by near-term ERP-related execution risk despite a manageable balance sheet. Technicals are supportive with strong trend and momentum, but overbought signals add pullback risk. Valuation is a headwind given the high P/E and only modest dividend yield.
Positive Factors
Strong liquidity and manageable leverage
Tennant’s sizable cash balance and large undrawn revolver give the company durable financial flexibility to fund working capital, ERP remediation, and AMR investments without forcing distress financing. Net leverage near 1.0x preserves optionality for capex, buybacks, or opportunistic M&A over the next 2–6 months.
Negative Factors
ERP implementation disrupted operations
The North America ERP cutover halted order entry and shipping for weeks, producing direct lost sales and margin hits. Such systems failures are structural execution risks that can depress revenue realization, complicate forecasting, and require sustained remediation resources, weighing on results for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and manageable leverage
Tennant’s sizable cash balance and large undrawn revolver give the company durable financial flexibility to fund working capital, ERP remediation, and AMR investments without forcing distress financing. Net leverage near 1.0x preserves optionality for capex, buybacks, or opportunistic M&A over the next 2–6 months.
Read all positive factors
Tennant Co (TNC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.47B
Dividend Yield1.59%
Average Volume (3M)298.88K
Price to Earnings (P/E)30.9
Beta (1Y)0.87
Revenue Growth-6.47%
EPS Growth-47.02%
CountryUS
Employees4,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.48
Shares Outstanding18,007,425
10 Day Avg. Volume238,803
30 Day Avg. Volume298,883
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 Cap1.17
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit3.56
Enterprise Value/Ebitda13.72
Forecast
1Y Price Target
$91.00Price Target Upside16.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.98
Revenue Forecast (FY)$1.26B
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 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 Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Negative
The call highlights meaningful strategic progress (notably the dedicated robotics organization, $85M in AMR sales and a clear roadmap to $250M by 2028), disciplined capital returns (share repurchases and dividend history) and a strong balance sheet. However, the North America ERP implementation caused a material operational and financial setback (lost sales ~$30M, adjusted EBITDA hit ~$22M, multi-week order-entry outage), pressured margins and reduced near-term cash generation. Management has stabilized critical issues, provided 2026 guidance assuming recovery weighted to the back half of the year, and increased near-term ERP remediation spend. Given the magnitude of the operational disruption and its impact on quarterly and full-year results, the negatives materially outweigh the positives in the short term even as strategic initiatives remain promising.Positive Updates
Robotics (AMR) Momentum and Dedicated Organization
Tennant launched a dedicated TNC Robotics group to accelerate autonomous/mobile robotics (AMR) adoption and scale. AMR delivered approximately $85 million in 2025 sales (inclusive of recurring autonomy fees). Management targets roughly $250 million in AMR revenue by 2028 and will increase product, commercial and deployment investment to capture market growth.
Negative Updates
North America ERP Go-Live Disruption
ERP cutover in North America (first week of November) caused severe system issues that prevented order entry, shipping and servicing. Company lost ~3 full weeks of order entry/parts shipping capability, forced manual stopgap procedures and remains in hypercare. EMEA go‑live paused to prioritize North America recovery.
Read all updates
Q4-2025 Updates
Positive
Negative
Robotics (AMR) Momentum and Dedicated Organization
Tennant launched a dedicated TNC Robotics group to accelerate autonomous/mobile robotics (AMR) adoption and scale. AMR delivered approximately $85 million in 2025 sales (inclusive of recurring autonomy fees). Management targets roughly $250 million in AMR revenue by 2028 and will increase product, commercial and deployment investment to capture market growth.
Read all positive updates
Company Guidance
Tennant guided 2026 net sales of $1.24 billion to $1.28 billion (organic growth 3.0%–6.5%, with ~25% of growth from pricing and ~75% from volume), adjusted EBITDA of $175 million to $190 million (adjusted EBITDA margin 14.1%–14.8%), and adjusted EPS of $4.70 to $5.30 per diluted share (excluding ERP project costs and amortization), with an adjusted effective tax rate of 24%–29% (excluding ERP costs). Management warned North America ERP disruption will pressure Q1 (a two‑week physical inventory shutdown in early January will materially affect Q1 sales and costs and Q1 gross margin is expected to be roughly in line with Q4), expects system stability by end‑Q1 with efficiency gains into Q2 and results weighted to the back half of 2026, anticipates mid‑single‑digit growth across geographies, will increase absolute S&A and R&D spend (percent of sales comparable to 2025), factors known tariffs into guidance, and expects ERP remediation/hypercare spending in 2026 to exceed the ~$5 million initially planned and likely top $20 million.Tennant Co Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
54
Neutral
| 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
Positive
78.33
Price Trends
70.95
Positive
73.21
Positive
76.35
Positive
Market Momentum
3.01
Negative
70.72
Negative
83.29
Negative
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 above the 20-day moving average (MA) of 71.85, above the 50-day MA of 70.95, and above the 200-day MA of 76.35, indicating a bullish trend. The MACD of 3.01 indicates Negative momentum. The RSI at 70.72 is Negative, neither overbought nor oversold. The STOCH value of 83.29 is Negative, 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.78B | 16.64 | 11.42% | ― | 6.15% | 28.45% | |
78 Outperform | $2.02B | 22.93 | 13.26% | 1.49% | 4.62% | 31.96% | |
67 Neutral | $2.26B | 37.53 | 5.33% | 0.64% | 4.11% | 24.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $1.47B | 30.90 | 6.96% | 1.59% | -6.47% | -47.02% | |
63 Neutral | $3.31B | 308.57 | 7.68% | 0.57% | 21.02% | -2.86% |
* Industrials Sector Average
TNC
Tennant Co
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Tennant Co Corporate Events
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...
Shareholder Meetings
Tennant Sets Key Deadlines for 2026 Annual Meeting
Neutral
Feb 3, 2026
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 shareholder...
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.