Tennant Co (TNC)

Tennant Company Names Richard H. Zay Chief Operating OfficerJune 17, 2026 9:15 AM
Business Wire Tennant Company (NYSE: TNC), a world leader in cleaning equipment and solutions, today announced that Richard H. (Rusty) Zay has been appointed Chief Operating Officer, effective July 1, 2026. Zay, currently serving as the organization’s Chief Commercial Officer, has been on the company’s leadership team since 2010. An industry veteran with more than 25 years of experience in sales, marketing, and operations, he previously held leadership roles in other companies, including Whirlpool Corporation and Maytag Corporation. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260617821070/en/Tennant Company announces that Richard H. Zay, pictured, is being promoted to Chief Operating Officer for the company. In his new role, Zay will expand his leadership of Tennant’s global customer-facing business units, supply chain, manufacturing operations, R&D, and marketing. He will be tasked with driving strong financial results and value creation through rigorous execution, continuously improving cross-functional interaction, and driving efficiency throughout the business. “Rusty has a proven track record of creating alignment across our business units to drive execution of new and existing strategies,” said Dave Huml, Tennant Company President and Chief Executive Officer. "He is a strategic and innovative thinker who is committed to finding new ways to leverage technology to enhance our organizational efficiency. Importantly, he is deeply committed to customer satisfaction, and to ensuring that Tennant remains a market leader through differentiated service to our customers in every interaction.” Zay joined Tennant Company in June of 2010, initially serving as Vice President, Global Marketing. In 2014, he was promoted to Vice President of Americas Sales and Service. Following that, he served as the Senior Vice President, Innovation & Technology before assuming his current role as Chief Commercial Officer. Throughout his career with Tennant, Zay has been instrumental in driving growth and adding value to the company’s performance. Most notably, he has led efforts focused on advancing new channel and customer expansion, increasing adoption of new technology like robotics in the market, scaling enterprise operating models to support growth and profitability, and enhancing the organization’s capabilities to deliver a superior customer experience. “Tennant’s leadership position in the industry provides unique opportunities to serve more customers in new and existing markets as we continue to reinvent how the world cleans,” said Zay. “I’m honored to lead a very talented team that is focused on leveraging our recognized capabilities and scale, along with innovative ideas about how to reach and serve our customers, to continue driving our growth strategy.” Zay holds a Bachelor of Science in Management from Purdue University. Zay’s leadership has extended beyond Tennant Company through his service as President and Secretary of the Association of American Cleaning Equipment Manufacturers, where he has contributed to broader industry leadership and advancement. He also served on the Holy Family Catholic High School Board of Directors and Finance Committee, reflecting his commitment to community leadership, governance, and financial stewardship. About Tennant Company Founded in 1870, Tennant Company (TNC), headquartered in Eden Prairie, Minnesota, is a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; detergent-free and other sustainable cleaning technologies; and cleaning tools and supplies. Tennant's global field service network is the most extensive in the industry. Tennant Company had sales of $1.20 billion in 2025 and has approximately 4,500 employees. Tennant has manufacturing operations throughout the world and sells products directly in more than 21 countries and through distributors in more than 100 countries. For more information, visit www.tennantco.com and www.ipcworldwide.com. The Tennant Company logo and other trademarks designated with the symbol “®” are trademarks of Tennant Company registered in the United States and/or other countries. View source version on businesswire.com: https://www.businesswire.com/news/home/20260617821070/en/ MEDIA CONTACT:
Jason Peterson
Director of Communications
jason.peterson@tennantco.com
1.651.216.0859 Original: Tennant Company Names Richard H. Zay Chief Operating Officer

Tennant Company Board Authorizes Repurchase of Additional 2 Million Shares, Bringing Total Repurchase Capacity to Over 2.5 Million SharesMay 4, 2026 4:30 PM
Business Wire Directors of Tennant Company (NYSE: TNC) authorized a new share repurchase program of up to 2,000,000 shares of the Company’s common stock, effective April 29, 2026. This authorization is in addition to approximately 560,000 shares remaining under the Company’s current repurchase program. With this new authorization, the company now has capacity to repurchase up to 2,560,000 shares which represents 15% of the basic shares currently outstanding. "The Board's authorization of a new two-million-share repurchase program reflects strong confidence in Tennant's strategic direction and reinforces our commitment to disciplined, balanced capital allocation," said Dave Huml, Tennant President and Chief Executive Officer. "This program gives us greater flexibility to manage capital priorities with a clear focus on driving sustainable, long-term shareholder value, while preserving the financial capacity to invest in our growth agenda." Share repurchases under these programs may be made through open-market and privately negotiated transactions from time to time and in amounts that management deems appropriate. The timing of share repurchases will depend upon market conditions and other corporate considerations. Tennant has approximately 17,000,000 basic shares outstanding. Company Profile Founded in 1870, Tennant Company (TNC), headquartered in Eden Prairie, Minnesota, is a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; detergent-free and other sustainable cleaning technologies; and cleaning tools and supplies. Tennant's global field service network is the most extensive in the industry. Tennant Company had sales of $1.20 billion in 2025 and has approximately 4,500 employees. Tennant has manufacturing operations throughout the world and sells products directly in more than 21 countries and through distributors in more than 100 countries. For more information, visit www.tennantco.com and www.ipcworldwide.com. The Tennant Company logo and other trademarks designated with the symbol “®” are trademarks of Tennant Company registered in the United States and/or other countries. View source version on businesswire.com: https://www.businesswire.com/news/home/20260504074189/en/ INVESTOR CONTACT:
Lorenzo Bassi
Vice President, Finance and Investor Relations

Tennant Company Reports First Quarter 2026 ResultsMay 4, 2026 4:15 PM
Business Wire Operational Performance Improved Sequentially as ERP Recovery Progressed Net Sales of $298 Million, a 2.7% Growth over Prior-Year Period Adjusted EBITDA of $29 Million as Operational Stabilization Progressed through Quarter Orders Increased 10% Year over Year, Reflecting Strong End-Market Demand Tennant Company ("Tennant" or the "Company") (NYSE: TNC) today reported its financial results for the quarter ended March 31, 2026. (In millions, except per share data) Three Months Ended
March 31,     2026       2025     Incr /
(Decr) Net sales $ 297.9     $ 290.0     2.7 % Net income $ 0.2     $ 13.1     (98.5 )% Diluted EPS $ 0.01     $ 0.69     (98.6 )%             Adjusted diluted EPS(a) $ 0.58     $ 1.12     (48.2 )% Adjusted EBITDA(a) $ 29.1     $ 41.0     (29.0 )% Adjusted EBITDA(a) margin %   9.8 %     14.1 %   (430) bps Highlights ERP recovery progressed steadily throughout the quarter, with core operational and customer-facing processes showing clear improvement and performance strengthening meaningfully as the quarter progressed. Orders of $327 million increased 10% year over year, demonstrating strong and broad-based demand momentum. Net sales of $297.9 million increased 2.7% year over year, reflecting broad-based pricing realization and favorable foreign currency effects, partially offset by lower volumes in North America related to ERP recovery impacts earlier in the quarter. Adjusted EBITDA(a) of $29.1 million, or 9.8% of net sales, exceeded expectations and improved sequentially as operating performance strengthened throughout the quarter, while elevated labor and freight costs tied to ERP recovery activities and ongoing ERP-related inefficiencies continued to pressure results. Adjusted diluted EPS(a) of $0.58 declined compared to the prior year, primarily due to lower gross margin rates and ERP-related operating costs, partially offset by disciplined spending and the benefit of share repurchases. Returned capital to shareholders through share repurchases, with approximately $60 million deployed year to date, equivalent to about 5% of shares outstanding at the start of the year. (a) See supplemental non-GAAP financial tables below for a reconciliation of adjusted non-GAAP financial measures to GAAP. “Our first quarter results reflect strong net sales growth and solid order demand as we advanced key strategic priorities across the business,” said Dave Huml, Tennant President and Chief Executive Officer. “We saw robust order momentum throughout the quarter, along with strong robotics growth and other exciting developments that underscore the advancement of our key growth initiatives. During the quarter, we achieved meaningful ERP stabilization, with margin impacts decreasing each month as recovery efforts progressed, and we are now turning our focus toward optimization and efficiency. We are encouraged by this positive trajectory exiting the quarter and reaffirm our 2026 expectations.” Net Sales Consolidated net sales for the first quarter of 2026 totaled $297.9 million, a 2.7% increase compared to consolidated net sales of $290.0 million in the first quarter of 2025. The components of the consolidated net sales change were as follows:     Three Months Ended
March 31,     2026 vs. 2025 Price   4.2% Volume   (6.1)% Organic decline   (1.9)% Acquisitions   0.5% Foreign currency   4.1% Total   2.7% Organic Sales Organic sales, which exclude the effects of foreign currency and acquisitions, decreased 1.9% in the first quarter compared to the prior year. This decrease was primarily due to volume declines in North America related to ERP impacts earlier in the quarter, partially offset by pricing realization in North America and EMEA.   Three Months Ended March 31, 2026   Americas   EMEA   APAC   Total Organic sales (decline) / growth (3.0)%   1.0%   (2.0)%   (1.9)% (a) See supplemental non-GAAP financial tables below for a reconciliation of adjusted non-GAAP financial measures to GAAP. Americas(b): The 3.0% decrease in the first quarter was primarily driven by lower volumes in North America related to ERP impacts earlier in the quarter, partially offset by pricing realization in North America and increased rental and equipment volumes in Latin America. EMEA(c): The 1.0% increase in the first quarter was primarily due to price realization and equipment volume increases in France and Germany. APAC(d): The 2.0% decrease in the first quarter was primarily driven by lower pricing in China equipment sales and softer underlying demand, particularly in China, Australia, and Southeast Asia, partially offset by volume growth in India and Korea. Operating Results The gross profit margin of 38.1% in the first quarter of 2026 was 330 basis points lower compared to the first quarter of 2025. The margin rate decline was driven primarily by incremental labor, freight, and expediting costs associated with ERP recovery efforts earlier in the quarter, as well as a shift in customer mix toward strategic accounts, which carry a different margin profile. Tariff and other inflationary pressures were fully offset by price realization and cost-out initiatives. Selling and administrative ("S&A") expense totaled $98.1 million in the first quarter of 2026, a $7.4 million increase compared to the first quarter of 2025. The increase in S&A expense was primarily driven by unfavorable foreign currency, legal and financial advisory costs, higher compensation and benefits, and software subscription fees. S&A expense as a percentage of sales was 32.9% in the first quarter of 2026, compared to 31.3% in the first quarter of 2025. Adjusted S&A(a) as a percentage of net sales increased to 29.6% in the first quarter of 2026, compared to 28.7% in the first quarter of 2025. Adjusted EBITDA(a) was $29.1 million in the first quarter of 2026, compared to $41.0 million in the prior-year period. The decrease in Adjusted EBITDA(a) was primarily due to gross margin declines coupled with S&A deleverage. Adjusted EBITDA margin(a) for the first quarter of 2026 was 9.8%, down 430 basis points compared to 14.1% in the prior-year period. Net income was $0.2 million in the first quarter of 2026, compared to $13.1 million in the first quarter of 2025. Adjusted net income(a) was $10.3 million in the first quarter of 2026, a decrease of $10.9 million compared to the first quarter of 2025. The decrease was primarily driven by lower operating performance from gross margin compression coupled with S&A deleverage. (a) See supplemental non-GAAP financial tables below for a reconciliation of adjusted non-GAAP financial measures to GAAP. (b) Includes North America and Latin America. (c) Includes Europe, the Middle East, and Africa. (d) Includes China, Australia, Japan, and other Asian markets. Adjusted diluted EPS(a) was $0.58 in the first quarter of 2026, compared to $1.12 in the first quarter of 2025. The decrease was driven by lower operating performance from ERP recovery activities and ongoing operational stabilization efforts in the quarter. Cash Flow, Liquidity and Capital Allocation Tennant used $31.2 million of cash flow for operating activities during the first quarter of 2026, a $30.8 million decrease compared to the prior-year period, primarily due to lower operating performance and higher working capital investment, including timing-related increases in accounts receivable and inventory builds associated with ERP recovery. Liquidity remained strong with a balance of $82.6 million in cash and cash equivalents at the end of the first quarter, and $289.3 million of unused borrowing capacity under the Company's revolving credit facility. The Company continues to strategically deploy cash flow to meet operational capital requirements and to return capital to shareholders in alignment with its capital allocation priorities. During the first quarter of 2026, the Company invested $3.2 million in capital expenditures and returned $65.5 million to shareholders through $60.0 million of share repurchases and $5.5 million of dividends. The Company remains diligent in managing its debt and maintaining a strong balance sheet. The Company had a net leverage ratio (Adjusted Net Debt(a) / trailing twelve months (TTM) Adjusted EBITDA(a)) of 1.78 times as of March 31, 2026. (a) See supplemental non-GAAP financial tables below for a reconciliation of adjusted non-GAAP financial measures to GAAP. 2026 Guidance Our first quarter results support our reaffirmation of our expected full-year outlook. Following the two-week shutdown of our North American facilities to complete the physical inventory, operational execution improved meaningfully through February and March as ERP stabilization advanced and production and fulfillment capabilities normalized. Order momentum was robust throughout the quarter, with double-digit growth across both the Americas and EMEA reflecting healthy underlying demand. Pricing discipline held firm across product categories, helping to mitigate the ongoing cost pressures from tariffs and ERP recovery-related activities. With demand trends and operational progress consistent with our expectations for the year, we are reaffirming our full-year 2026 guidance as follows. (In millions, except per share data) 2026 Guidance Ranges Net sales $1,240 - $1,280 Organic net sales growth 3.0% - 6.5% Diluted net income per share $4.05 - $4.65 Adjusted diluted net income per share** $4.70 - $5.30 Adjusted EBITDA** $175 - $190 Adjusted EBITDA margin** 14.1% - 14.8% Capital expenditures ~$25 Adjusted effective tax rate** 24% - 29% **Non-GAAP Measures: see supplemental non-GAAP financial tables below for a reconciliation of adjusted non-GAAP financial measures to GAAP. Conference Call Tennant will host a conference call to discuss its 2026 first quarter results on May 5, 2026, at 9 a.m. Central Time (10 a.m. Eastern Time). The conference call and accompanying slides will be available via webcast on Tennant's investor website. To listen to the call live and view the slide presentation, go to investors.tennantco.com and click on the link at the bottom of the overview page. A replay of the conference call, with slides, will be available at investors.tennantco.com. Company Profile Founded in 1870, Tennant Company (TNC), headquartered in Eden Prairie, Minnesota, is a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; detergent-free and other sustainable cleaning technologies; and cleaning tools and supplies. Tennant's global field service network is the most extensive in the industry. Tennant Company had sales of $1.20 billion in 2025 and has approximately 4,500 employees. Tennant has manufacturing operations throughout the world and sells products directly in more than 21 countries and through distributors in more than 100 countries. For more information, visit www.tennantco.com and www.ipcworldwide.com. The Tennant Company logo and other trademarks designated with the symbol “®” are trademarks of Tennant Company registered in the United States and/or other countries. Forward-Looking Statements Certain statements contained in this document are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. These include factors that affect all businesses operating in a global market as well as matters specific to us and the markets the Company serves. Particular risks and uncertainties presently facing it include: geopolitical and economic uncertainty throughout the world; our ability to comply with global laws and regulations; changes in foreign currency exchange rates; our ability to adapt to customer pricing sensitivities; the competition in our business; fluctuations in the cost, quality or availability of raw materials and purchased components; our ability to adjust pricing to respond to cost pressures; unforeseen product liability claims or product quality issues; our ability to attract, retain and develop key personnel and create effective succession planning strategies; our ability to effectively develop and manage strategic planning and growth processes and the related operational plans; our ability to successfully upgrade and evolve our information technology systems; our ability to successfully protect our information technology systems from cybersecurity risks; complications with our new ERP system; the occurrence of a significant business interruption; our ability to maintain the health and safety of our workers; our ability to integrate acquisitions; our ability to develop and commercialize new innovative products and services; and risks related to our business transformation and strategic initiatives. The Company cautions that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Information about factors that could materially affect the Company's results can be found in its 2025 Form 10-K. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Investors are advised to consult any further disclosures by the Company in its filings with the Securities and Exchange Commission and in other written statements on related subjects. It is not possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties. Non-GAAP Financial Measures This news release and the related conference call include presentation of Non-GAAP measures that include or exclude special items of a nonrecurring and/or nonoperational nature (hereinafter referred to as “special items”). Management believes that the Non-GAAP measures provide useful information to investors regarding the Company’s results of operations and financial condition because they permit a more meaningful comparison and understanding of Tennant Company’s operating performance for the current, past or future periods. Management uses these Non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of the comparative operating performance of the Company. The Company believes that disclosing S&A expense – as adjusted, S&A expense as a percent of net sales – as adjusted, operating income – as adjusted, operating margin – as adjusted, income before income taxes – as adjusted, income tax expense – as adjusted, net income – as adjusted, net income per diluted share – as adjusted, EBITDA – as adjusted, and EBITDA margin – as adjusted (collectively, the “Non-GAAP measures”), excluding the impacts from special items, is useful to investors as a measure of operating performance. The Company uses these measures to monitor and evaluate operating performance. The Non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). The Company calculates the Non-GAAP measures by adjusting for legal contingency costs, ERP modernization costs, ERP amortization costs, legal and financial advisory costs, restructuring-related costs, transaction-related costs and amortization expense. The Company calculates income tax expense – as adjusted by adjusting for the tax effect of these Non-GAAP measures. The Company calculates net income per diluted share – as adjusted by adjusting for the after-tax effect of these Non-GAAP measures and dividing the result by the diluted weighted average shares outstanding. The Company calculates EBITDA margin – as adjusted by dividing EBITDA – as adjusted by net sales. FINANCIAL TABLES FOLLOW TENNANT COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)   (In millions, except shares and per share data) Three Months Ended
March 31,     2026       2025   Net sales $ 297.9     $ 290.0   Cost of sales   184.3       170.0   Gross profit   113.6       120.0   Selling and administrative expense   98.1       90.7   Research and development expense   10.6       9.7   Operating income   4.9       19.6   Interest expense, net   (3.4 )     (2.3 ) Net foreign currency transaction loss   (0.4 )     (0.2 ) Other (expense) income, net   (0.2 )     0.1   Income before income taxes   0.9       17.2   Income tax expense   0.7       4.1   Net income $ 0.2     $ 13.1           Net income per share       Basic $ 0.01     $ 0.70   Diluted $ 0.01     $ 0.69           Weighted average shares outstanding       Basic   17,558,556       18,702,438   Diluted   17,804,603       18,960,007   GEOGRAPHICAL NET SALES(1) (Unaudited)     Three Months Ended
March 31,     2026       2025     % Change Americas $ 194.0   $ 197.3   (1.7 )% Europe, Middle East and Africa   86.9       76.0     14.3 % Asia Pacific   17.0       16.7     1.8 % Total $ 297.9     $ 290.0     2.7 % (1) Net of intercompany sales. TENNANT COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited)   (In millions, except shares and per share data) March 31,
2026   December 31,
2025 ASSETS       Cash and cash equivalents $ 82.6     $ 106.4   Receivables, less allowances of $10.5 and $10.4, respectively   280.6       256.8   Inventories   204.6       198.5   Prepaid and other current assets   43.3       38.0   Total current assets   611.1       599.7   Property, plant and equipment, less accumulated depreciation of $297.1 and $289.0, respectively   185.4       189.8   Operating lease assets   55.6       56.9   Goodwill   209.9       208.6   Intangible assets, net   52.5       52.6   Other assets   162.1       161.3   Total assets $ 1,276.6     $ 1,268.9   LIABILITIES AND EQUITY       Current portion of long-term debt $ 0.4     $ 0.4   Accounts payable   123.1       127.5   Employee compensation and benefits   39.6       40.9   Other current liabilities   125.5       124.3   Total current liabilities   288.6       293.1   Long-term debt   358.3       273.2   Long-term operating lease liabilities   33.8       35.5   Employee benefits   15.4       15.7   Deferred income taxes   4.2       3.3   Other liabilities   43.3       44.7   Total long-term liabilities   455.0       372.4   Total liabilities $ 743.6     $ 665.5   Common Stock, $0.375 par value; 60,000,000 shares authorized; 17,037,788 and 17,846,681 shares issued and outstanding, respectively   6.4       6.7   Additional paid-in capital   —       —   Retained earnings   562.1       628.1   Accumulated other comprehensive loss   (37.3 )     (33.2 ) Total Tennant Company shareholders' equity   531.2       601.6   Noncontrolling interest   1.8       1.8   Total equity   533.0       603.4   Total liabilities and total equity $ 1,276.6     $ 1,268.9   TENNANT COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)   (In millions) Three Months Ended
March 31,     2026       2025   OPERATING ACTIVITIES       Net income $ 0.2     $ 13.1   Adjustments to reconcile net income to net cash used in operating activities:       Depreciation expense   11.4       10.6   Amortization expense   3.5       3.4   Deferred income tax benefit   3.3       0.5   Share-based compensation expense   1.5       3.2   Bad debt and returns expense   0.5       0.7   Other, net   0.1       0.2   Changes in operating assets and liabilities:       Receivables   (25.2 )     10.9   Inventories   (11.7 )     (8.2 ) Accounts payable   (2.5 )     (8.7 ) Employee compensation and benefits   (2.1 )     (14.5 ) Other assets and liabilities   (10.2 )     (11.6 ) Net cash used in operating activities   (31.2 )     (0.4 ) INVESTING ACTIVITIES       Purchases of property, plant and equipment   (3.2 )     (7.0 ) Payments made in connection with business acquisition, net of cash acquired   (7.2 )     —   Investment in leased assets   (0.1 )     (0.1 ) Cash received from leased assets   0.2       0.2   Net cash used in investing activities   (10.3 )     (6.9 ) FINANCING ACTIVITIES       Proceeds from borrowings   105.0       15.0   Repayments of borrowings   (20.0 )     (0.8 ) (Repurchases) proceeds from exercise of stock options, net of employee tax withholdings obligations of $2.9 and $2.6, respectively   (2.3 )     (2.1 ) Repurchases of common stock   (60.0 )     (20.2 ) Dividends paid   (5.5 )     (5.6 ) Net cash provided by (used in) financing activities   17.2       (13.7 ) Effect of exchange rate changes on cash and cash equivalents   0.5       0.7   Net decrease in cash and cash equivalents   (23.8 )     (20.3 ) Cash and cash equivalents at beginning of period   106.4       99.8   Cash and cash equivalents at end of period $ 82.6     $ 79.5   TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES   Reported to Adjusted Net Income and Net Income Per Share   (In millions, except per share data) Three Months Ended
March 31,       2026     2025   Net income - as reported $ 0.2   $ 13.1 Adjustments:       Amortization expense   2.6     2.5   Restructuring-related charge (S&A expense) (2)   0.4     1.1   ERP modernization costs (S&A expense) (3)   4.1     4.5   ERP amortization costs (S&A expense) (4)   0.5     —   Transaction and integration-related costs (S&A expense) (5)   0.1     —   Legal contingency costs (S&A expense) (6)   0.2     —   Legal and financial advisory costs (S&A expense) (7)   2.2     —   Net income - as adjusted $ 10.3   $ 21.2           Net income per share - as reported:       Diluted $ 0.01   $ 0.69   Adjustments:       Amortization expense   0.14     0.13   Restructuring-related charge (S&A expense) (2)   0.02     0.06   ERP modernization costs (S&A expense) (3)   0.24     0.24   ERP amortization costs (S&A expense) (4)   0.03     —   Legal contingency costs (S&A expense) (6)   0.01     —   Legal and financial advisory costs (S&A expense) (7)   0.13     —   Net income per diluted share - as adjusted $ 0.58   $ 1.12   (2) Restructuring expenses represent the execution of a multi-year enterprise strategy to drive increased productivity throughout our operations.   (3) Enterprise Resource Planning (ERP) modernization initiative investment. Represents the expense component of our broader ERP investment, excluding capitalized costs. This investment is expected to drive future operational efficiencies across the organization.   (4) Amortization of ERP modernization costs represent the amortization of capitalized implementation costs related to cloud computing arrangements, which primarily relate to our implementation of a new ERP system.   (5) Due diligence and integration costs associated with the acquisition of Reinigungstechnik 4 You and Clean Machine Falkenberg AB and Repax AB.   (6) Incremental expense associated with the legal settlement accrual related to the Oxygenator Water Technologies, Inc. (OWT) intellectual property dispute regarding ec-H2O™ technology, as described in Note 13, Commitments and Contingencies, of the Form 10-Q for the quarter ended March 31, 2026.   (7) Represents third-party legal and advisory fees incurred in connection with the negotiation and execution of a cooperation agreement with Vision One, a shareholder of the Company, and excludes ordinary-course investor relations activities and routine legal expenses. TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES   Reported Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)   (In millions) Three Months Ended
March 31,     2026       2025   Net income - as reported $ 0.2     $ 13.1   Less:       Interest expense, net   3.4       2.3   Income tax expense   0.7       4.1   Depreciation expense   11.4       10.6   Amortization expense   3.5       3.4   EBITDA   19.2       33.5   Adjustments:       Restructuring-related charge (S&A expense) (2)   0.5       1.5   ERP modernization costs (S&A expense) (3)   5.6       6.0   ERP amortization costs (S&A expense) (4)   0.6       —   Transaction and integration-related costs (S&A expense) (5)   0.1       —   Legal contingency costs (S&A expense) (6)   0.2       —   Legal and financial advisory costs (S&A expense) (7)   2.9       —   EBITDA - as adjusted $ 29.1     $ 41.0   EBITDA margin - as adjusted   9.8 %     14.1 % TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES   Reported to Adjusted Selling and Administrative Expense (S&A expense) and Operating Income   (In millions) Three Months Ended
March 31,     2026       2025   S&A expense - as reported $ 98.1     $ 90.7   S&A expense as a percent of net sales - as reported   32.9 %     31.3 % Adjustments:       Restructuring-related charge (S&A expense) (2)   (0.5 )     (1.5 ) ERP modernization costs (S&A expense) (3)   (5.6 )     (6.0 ) ERP amortization costs (S&A expense) (4)   (0.6 )     —   Transaction and integration-related costs (S&A expense) (5)   (0.1 )     —   Legal contingency costs (S&A expense) (6)   (0.2 )     —   Legal and financial advisory costs (S&A expense) (7)   (2.9 )     —   S&A expense - as adjusted $ 88.2     $ 83.2   S&A expense as a percent of net sales - as adjusted   29.6 %     28.7 %         Operating income - as reported $ 4.9     $ 19.6   Operating margin - as reported   1.6 %     6.8 % Adjustments:       Restructuring-related charge (S&A expense) (2)   0.5       1.5   ERP modernization costs (S&A expense) (3)   5.6       6.0   ERP amortization costs (S&A expense) (4)   0.6       —   Transaction and integration-related costs (S&A expense) (5)   0.1       —   Legal contingency costs (S&A expense) (6)   0.2       —   Legal and financial advisory costs (S&A expense) (7)   2.9       —   Operating income - as adjusted $ 14.8     $ 27.1   Operating margin - as adjusted   5.0 %     9.3 % TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES   Reported to Adjusted Income Before Income Taxes and Income Tax Expense   (In millions) Three Months Ended
March 31,     2026       2025   Income before income taxes - as reported $ 0.9     $ 17.2   Adjustments:       Amortization expense   3.5       3.4   Restructuring-related charge (S&A expense) (2)   0.5       1.5   ERP modernization costs (S&A expense) (3)   5.6       6.0   ERP amortization costs (S&A expense) (4)   0.6       —   Transaction and integration-related costs (S&A expense) (5)   0.1       —   Legal contingency costs (S&A expense) (6)   0.2       —   Legal and financial advisory costs (S&A expense) (7)   2.9       —   Income before income taxes - as adjusted $ 14.3     $ 28.1           Income tax expense - as reported $ 0.7     $ 4.1   Effective tax rate - as reported   80.5 %     23.8 % Adjustments (8):       Amortization expense   0.9       0.9   Restructuring-related charge (S&A expense) (2)   0.1       0.4   ERP modernization costs (S&A expense) (3)   1.5       1.5   ERP amortization costs (S&A expense) (4)   0.1       —   Legal and financial advisory costs (S&A expense) (7)   0.7       —   Income tax expense - as adjusted $ 4.0     $ 6.9   Effective tax rate - as adjusted   28.9 %     24.6 % (8) In determining the tax impact, we applied the statutory rate in effect for each jurisdiction where income or expenses were generated. TENNANT COMPANY SUPPLEMENTAL NON-GAAP FINANCIAL TABLES   Net Leverage Ratio Based on TTM Adjusted EBITDA   Adjusted Net Debt   (In millions) March 31, 2026   December 31, 2025 Long-term debt $ 358.3     $ 273.2   Current portion of long-term debt   0.4       0.4   Cash and cash equivalents   (82.6 )     (106.4 ) Adjusted net debt $ 276.1     $ 167.2   Net Leverage Ratio   The following table shows the calculation of the net leverage ratio (in millions, except for the net leverage ratio).     March 31, 2026   December 31, 2025 Adjusted net debt (numerator) $ 276.1   $ 167.2 TTM adjusted EBITDA (denominator) (9)   155.5       167.4   Net leverage ratio   1.78       1.00   (9) TTM Adjusted EBITDA is defined as Adjusted EBITDA for the most recent twelve-month period.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260504692698/en/ INVESTOR RELATIONS CONTACT: Lorenzo Bassi
Vice President, Finance and Investor Relations

Tennant Company Declares Regular Quarterly Cash DividendApril 29, 2026 4:15 PM
Business Wire
Directors of Tennant Company (NYSE: TNC) today declared a regular quarterly cash dividend of $0.31 per share payable June 15, 2026, to shareholders of record at the close of business on May 29, 2026.


Company Profile


Founded in 1870, Tennant Company (TNC), headquartered in Eden Prairie, Minnesota, is a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; detergent-free and other sustainable cleaning technologies; and cleaning tools and supplies. Tennant's global field service network is the most extensive in the industry. Tennant Company had sales of $1.20 billion in 2025 and has approximately 4,500 employees. Tennant has manufacturing operations throughout the world and sells products directly in more than 21 countries and through distributors in more than 100 countries. For more information, visit www.tennantco.com and www.ipcworldwide.com. The Tennant Company logo and other trademarks designated with the symbol “®” are trademarks of Tennant Company registered in the United States and/or other countries.


Category: Dividends

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429728264/en/
INVESTOR CONTACT:

Lorenzo Bassi

Vice President, Finance and Investor Relations

investors@tennantco.com

763-540-1242


Original: Tennant Company Declares Regular Quarterly Cash Dividend

Tennant Company to Report First Quarter 2026 Results on May 4, 2026April 21, 2026 8:45 AM
Business Wire
Tennant Company (NYSE: TNC) today announced that the company will report its first quarter 2026 financial results after the market closes on Monday, May 4, 2026, with a conference call to follow at 10:00 a.m. Eastern Time/9 a.m. Central Time on Tuesday, May 5, 2026. The conference call will be webcast and can be accessed on the company’s website at investors.tennantco.com. A replay of the webcast and accompanying slides will be available on the company’s website.


Company Profile


Founded in 1870, Tennant Company (TNC), headquartered in Eden Prairie, Minnesota, is a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; detergent-free and other sustainable cleaning technologies; and cleaning tools and supplies. Tennant's global field service network is the most extensive in the industry. Tennant Company had sales of $1.20 billion in 2025 and has approximately 4,500 employees. Tennant has manufacturing operations throughout the world and sells products directly in more than 21 countries and through distributors in more than 100 countries. For more information, visit www.tennantco.com and www.ipcworldwide.com. The Tennant Company logo and other trademarks designated with the symbol “®” are trademarks of Tennant Company registered in the United States and/or other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260421402755/en/
INVESTOR CONTACT:

Lorenzo Bassi

Vice President, Finance and Investor Relations

investors@tennantco.com

763-540-1242


Original: Tennant Company to Report First Quarter 2026 Results on May 4, 2026

TNC Legal Alert: Tennant Company Investors Are Encouraged to Act in Ongoing Securities Fraud Investigation – Contact BFA Law If You Lost MoneyMarch 26, 2026 6:37 AM
Business Wire
BFA Law is investigating Tennant Company after its stock plummeted 23% due to issues with its ERP system, potentially violating federal securities laws.


Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Tennant Company (NYSE:TNC) for potential violations of the federal securities laws.


If you invested in Tennant, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.


Key Details of the Tennant ($TNC) Class Action Investigation:



Investigation Overview: Securities fraud related to Tennant’s implementation and rollout of its new, company-wide enterprise resource planning (“ERP”) system



Stock Decline: February 24, 2026 – 23.4% Stock Drop



Action: Contact BFA Law to discuss your rights



Why is Tennant Being Investigated for Securities Fraud?


Tennant manufactures industrial cleaning equipment, including large mechanical floor scrubbers and sweepers used in warehouses, retail stores, and other commercial facilities.


BFA is investigating whether Tennant made false and misleading statements to investors regarding the implementation and rollout of a large-scale ERP system. For instance, Tennant assured investors the project was “progressing as we’ve anticipated,” was “on time and on budget,” and that the launch of the ERP in its Asia-Pacific region had been “successful,” with Tennant stating it had “mitigated disruptions and stabilized operations.”


Why did Tennant’s Stock Drop?


On February 24, 2026, Tennant revealed that the rollout of its new ERP system in North America caused severe operational disruptions, including that it was unable to process and ship customer orders following the launch of the system. As a result, Tennant lost roughly $30 million in sales and would need to spend more than $20 million in 2026 to remediate the issues, compared to roughly $5 million the company had planned to spend.


This news caused the price of Tennant stock to drop $19.28 per share, more than 23%, from a closing price of $82.30 per share on February 23, 2026, to $63.02 per share on February 24, 2026.


Click here for more information: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.


What Can You Do?


If you invested in Tennant, you may have legal options and are encouraged to submit your information to the firm.


All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.


Submit your information by visiting:


https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit


Or contact:

Adam McCall

adam@bfalaw.com

212.789.3619


Why Bleichmar Fonti & Auld LLP?


BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.


For more information about BFA and its attorneys, please visit https://www.bfalaw.com.


https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit


Attorney advertising. Past results do not guarantee future outcomes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260326124462/en/
Adam McCall

adam@bfalaw.com

212.789.3619


Original: TNC Legal Alert: Tennant Company Investors Are Encouraged to Act in Ongoing Securities Fraud Investigation – Contact BFA Law If You Lost Money

TNC Stock Drop: Tennant Company Investors with Losses Notified of Rights in Pending Securities Fraud Investigation After Stock Plummeted 23%March 24, 2026 6:35 AM
PR Newswire (US)

BFA Law is investigating Tennant Company after its stock plummeted 23% due to issues with its ERP system, potentially violating federal securities laws.NEW YORK, March 24, 2026 /PRNewswire/ -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Tennant Company (NYSE:TNC) for potential violations of the federal securities laws.  







If you invested in Tennant, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.Key Details of the Tennant ($TNC) Class Action Investigation:Investigation Overview: Securities fraud related to Tennant's implementation and rollout of its new, company-wide enterprise resource planning ("ERP") systemStock Decline: February 24, 2026 – 23.4% Stock DropAction: Contact BFA Law to discuss your rightsWhy is Tennant Being Investigated for Securities Fraud? Tennant manufactures industrial cleaning equipment, including large mechanical floor scrubbers and sweepers used in warehouses, retail stores, and other commercial facilities.BFA is investigating whether Tennant made false and misleading statements to investors regarding the implementation and rollout of a large-scale ERP system. For instance, Tennant assured investors the project was "progressing as we've anticipated," was "on time and on budget," and that the launch of the ERP in its Asia-Pacific region had been "successful," with Tennant stating it had "mitigated disruptions and stabilized operations."Why did Tennant's Stock Drop?On February 24, 2026, Tennant revealed that the rollout of its new ERP system in North America caused severe operational disruptions, including that it was unable to process and ship customer orders following the launch of the system.  As a result, Tennant lost roughly $30 million in sales and would need to spend more than $20 million in 2026 to remediate the issues, compared to roughly $5 million the company had planned to spend.  This news caused the price of Tennant stock to drop $19.28 per share, more than 23%, from a closing price of $82.30 per share on February 23, 2026, to $63.02 per share on February 24, 2026.Click here for more information: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.What Can You Do?If you invested in Tennant, you may have legal options and are encouraged to submit your information to the firm.All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.Submit your information by visiting:https://www.bfalaw.com/cases/tennant-company-class-action-lawsuitWhy Bleichmar Fonti & Auld LLP?BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named "Elite Trial Lawyers" by the National Law Journal, "Litigation Stars" by Benchmark Litigation, among the top "500 Leading Plaintiff Financial Lawyers" by Lawdragon, "Titans of the Plaintiffs' Bar" by Law360 and "SuperLawyers" by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.For more information about BFA and its attorneys, please visit https://www.bfalaw.com.https://www.bfalaw.com/cases/tennant-company-class-action-lawsuitAttorney advertising. Past results do not guarantee future outcomes.



View original content to download multimedia:https://www.prnewswire.com/news-releases/tnc-stock-drop-tennant-company-investors-with-losses-notified-of-rights-in-pending-securities-fraud-investigation-after-stock-plummeted-23-302722791.htmlSOURCE Bleichmar Fonti & Auld LLP

Original: TNC Stock Drop: Tennant Company Investors with Losses Notified of Rights in Pending Securities Fraud Investigation After Stock Plummeted 23%

TNC Securities Fraud Investigation: Tennant Company is being Investigated after ERP System Issues Lead to 23% Stock DropMarch 19, 2026 6:07 AM
PR Newswire (US)

BFA Law is investigating Tennant Company after its stock plummeted 23% due to issues with its ERP system, potentially violating federal securities laws.NEW YORK, March 19, 2026 /PRNewswire/ -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Tennant Company (NYSE: TNC) for potential violations of the federal securities laws.







If you invested in Tennant, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.Key Details of the Tennant ($TNC) Class Action Investigation:Investigation Overview: Securities fraud related to Tennant's implementation and rollout of its new, company-wide enterprise resource planning ("ERP") systemStock Decline: February 24, 2026 – 23.4% Stock DropAction: Contact BFA Law to discuss your rightsWhy is Tennant Being Investigated for Securities Fraud? Tennant manufactures industrial cleaning equipment, including large mechanical floor scrubbers and sweepers used in warehouses, retail stores, and other commercial facilities.BFA is investigating whether Tennant made false and misleading statements to investors regarding the implementation and rollout of a large-scale ERP system. For instance, Tennant assured investors the project was "progressing as we've anticipated," was "on time and on budget," and that the launch of the ERP in its Asia-Pacific region had been "successful," with Tennant stating it had "mitigated disruptions and stabilized operations."Why did Tennant's Stock Drop?On February 24, 2026, Tennant revealed that the rollout of its new ERP system in North America caused severe operational disruptions, including that it was unable to process and ship customer orders following the launch of the system. As a result, Tennant lost roughly $30 million in sales and would need to spend more than $20 million in 2026 to remediate the issues, compared to roughly $5 million the company had planned to spend.This news caused the price of Tennant stock to drop $19.28 per share, more than 23%, from a closing price of $82.30 per share on February 23, 2026, to $63.02 per share on February 24, 2026.Click here for more information: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.What Can You Do?If you invested in Tennant, you may have legal options and are encouraged to submit your information to the firm.All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.Submit your information by visiting:https://www.bfalaw.com/cases/tennant-company-class-action-lawsuitWhy Bleichmar Fonti & Auld LLP?BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named "Elite Trial Lawyers" by the National Law Journal, "Litigation Stars" by Benchmark Litigation, among the top "500 Leading Plaintiff Financial Lawyers" by Lawdragon, "Titans of the Plaintiffs' Bar" by Law360 and "SuperLawyers" by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.For more information about BFA and its attorneys, please visit https://www.bfalaw.com.https://www.bfalaw.com/cases/tennant-company-class-action-lawsuitAttorney advertising. Past results do not guarantee future outcomes.



View original content to download multimedia:https://www.prnewswire.com/news-releases/tnc-securities-fraud-investigation-tennant-company-is-being-investigated-after-erp-system-issues-lead-to-23-stock-drop-302718248.htmlSOURCE Bleichmar Fonti & Auld LLP

Original: TNC Securities Fraud Investigation: Tennant Company is being Investigated after ERP System Issues Lead to 23% Stock Drop

TNC Investigation Alert: BFA Law Investigates Tennant Company After 23% Stock DropMarch 18, 2026 1:17 PM
Business Wire
BFA Law is investigating Tennant Company after its stock plummeted 23% due to issues with its ERP system, potentially violating federal securities laws.


Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Tennant Company (NYSE:TNC) for potential violations of the federal securities laws.


If you invested in Tennant, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.


Key Details of the Tennant ($TNC) Class Action Investigation:



Investigation Overview: Securities fraud related to Tennant’s implementation and rollout of its new, company-wide enterprise resource planning (“ERP”) system



Stock Decline: February 24, 2026 – 23.4% Stock Drop



Action: Contact BFA Law to discuss your rights



Why is Tennant Being Investigated for Securities Fraud?


Tennant manufactures industrial cleaning equipment, including large mechanical floor scrubbers and sweepers used in warehouses, retail stores, and other commercial facilities.


BFA is investigating whether Tennant made false and misleading statements to investors regarding the implementation and rollout of a large-scale ERP system. For instance, Tennant assured investors the project was “progressing as we’ve anticipated,” was “on time and on budget,” and that the launch of the ERP in its Asia-Pacific region had been “successful,” with Tennant stating it had “mitigated disruptions and stabilized operations.”


Why did Tennant’s Stock Drop?


On February 24, 2026, Tennant revealed that the rollout of its new ERP system in North America caused severe operational disruptions, including that it was unable to process and ship customer orders following the launch of the system. As a result, Tennant lost roughly $30 million in sales and would need to spend more than $20 million in 2026 to remediate the issues, compared to roughly $5 million the company had planned to spend.


This news caused the price of Tennant stock to drop $19.28 per share, more than 23%, from a closing price of $82.30 per share on February 23, 2026, to $63.02 per share on February 24, 2026.


Click here for more information: https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit.


What Can You Do?


If you invested in Tennant, you may have legal options and are encouraged to submit your information to the firm.


All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.


Submit your information by visiting:


https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit


Or contact:

Adam McCall

adam@bfalaw.com

212.789.3619


Why Bleichmar Fonti & Auld LLP?


BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.


For more information about BFA and its attorneys, please visit https://www.bfalaw.com.


https://www.bfalaw.com/cases/tennant-company-class-action-lawsuit


Attorney advertising. Past results do not guarantee future outcomes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260318872351/en/
Adam McCall

adam@bfalaw.com

212.789.3619


Original: TNC Investigation Alert: BFA Law Investigates Tennant Company After 23% Stock Drop

Tennant Company Reports 2025 Fourth-Quarter and Full-Year ResultsFebruary 23, 2026 7:00 PM
Business Wire

Operations and Financial Performance Impacted by ERP System Implementation



Fourth Quarter Adjusted EPS(a) of $0.48, including Estimated $0.91 Impact from ERP Implementation



Full Year 2025 Adjusted EPS of $4.57



Share Repurchases Totaled ~$88 million in 2025, About 6% of Outstanding Shares



Issues Outlook for 2026



Tennant Company (NYSE: TNC), a global leader in floor-care equipment and cleaning solutions, today announced results for the fourth quarter and full year ended December 31, 2025. The Company also provided an operational update following the North America go-live of its new enterprise resource planning (ERP) system during the fourth quarter.




(In millions, except per share data)






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








 






 






2025






 






 






 






2024






 






 






Incr /

(Decr)






 






 






2025






 






 






 






2024






 






 






Incr /

Decr)








Net sales






$






291.6






 






 






$






328.9






 






 






(11.3






)%






 






$






1,203.5






 






 






$






1,286.7






 






 






(6.5






)%








Net (loss) income






$






(4.4






)






 






$






6.6






 






 






(166.7






)%






 






$






43.8






 






 






$






83.7






 






 






(47.7






)%








Diluted EPS






$






(0.23






)






 






$






0.35






 






 






(165.7






)%






 






$






2.36






 






 






$






4.38






 






 






(46.1






)%








 






 






 






 






 






 






 






 






 






 






 






 








Adjusted diluted EPS(a)






$






0.48






 






 






$






1.52






 






 






(68.4






)%






 






$






4.57






 






 






$






6.57






 






 






(30.4






)%








Adjusted EBITDA(a)






$






25.6






 






 






$






47.4






 






 






(46.0






)%






 






$






167.4






 






 






$






208.8






 






 






(19.8






)%








Adjusted EBITDA margin(a)






 






8.8






%






 






 






14.4






%






 






(560) bps






 






 






13.9






%






 






 






16.2






%






 






(230) bps







“Our fourth-quarter performance fell short of expectations due to production disruptions during the North America ERP transition,” said Dave Huml, Tennant President and Chief Executive Officer. “We have taken targeted and decisive actions to stabilize operations, and we are seeing steady improvement across our core processes. As we continue to strengthen system performance and support our customers, we expect to return to a more normalized operating rhythm and predictable performance through the first half of 2026.


"While the near-term impact from the ERP transition is meaningful, we are closely managing our recovery efforts and believe we will achieve the long-term benefits of this ERP modernization. Our ERP investment will ultimately strengthen our operational foundation, enable scalable growth and operating efficiency, improve data consistency, and enhance how we serve customers. In addition to this digital transformation, we have continued to make investments in and executed on our growth strategies including the expansion of our robotics portfolio, targeted go-to-market initiative and strategic pricing actions. As we anticipate operational stabilization in the first half of 2026, we believe that disciplined execution of these initiatives, supported by ongoing cost-out and productivity efforts, will position us to deliver growth and return to margin expansion consistent with our long-term commitments.”


ERP System Implementation Update


Tennant went live with the ERP system in its largest region, North America, in the first week of November 2025. The transition introduced unexpected challenges that constrained operating capacity, including:



Order-management and fulfillment disruptions



Manufacturing scheduling issues and reduced inventory visibility, particularly in Parts and Consumables and Service



Slower transaction processing and prolonged customer delays



Customers experienced challenges as ERP-related constraints in November limited our ability to fulfill orders or provide reliable shipment visibility. To help limit further customer impact, Tennant deployed cross-functional recovery teams, implemented interim workarounds, increased on-site ERP support, and prioritized production scheduling to restore throughput.


As a result, core workflows, including order management, production scheduling, and fulfillment, have improved. December revenue recovered from November levels and performed in line with expectations; however, achieving this stabilization required incremental labor and other operating costs during the month.


Financial Highlights


Fourth Quarter 2025



Net sales of $291.6 million, down 13.9% organically, reflecting November shipment constraints, the lapping of prior-year backlog reduction, as well as demand softness in our North America industrial business.



Adjusted EBITDA(a) of $25.6 million, down 46.0% year over year due to lower volume, operating deleverage, and incremental ERP stabilization costs.



We estimate the ERP implementation disruption had an unfavorable impact of roughly $30 million on net sales and approximately $22 million on adjusted EBITDA(a).



Full Year 2025



Net sales of $1,203.5 million, including a 0.7% foreign currency tailwind, a 7.3% organic decline and below the $1.21–$1.25 billion guidance range, primarily driven by fourth quarter results.



Adjusted EBITDA(a) of $167.4 million, a 19.8% decline versus prior year and below the $196–$209 million guidance range, reflecting lower volume, operating deleverage, and the impact of the ERP operational disruption that took place in the fourth quarter.



Orders grew by approximately 4% and backlog increased by roughly $15 million.





(a)See Supplemental non-GAAP financial tables below for a reconciliation of adjusted non-GAAP financial measures to GAAP.







Net Sales


Consolidated net sales for the fourth quarter of 2025 totaled $291.6 million, an 11.3% decrease compared to consolidated net sales of $328.9 million in the fourth quarter of 2024. Consolidated net sales for the full year 2025 totaled $1,203.5 million, a 6.5% decrease compared to consolidated net sales of $1,286.7 million in 2024. The components of the consolidated net sales change were as follows:




 






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








 






2025 vs. 2024








Price






1.2%






 






1.4%








Volume






(15.1)%






 






(8.7)%








Organic decline






(13.9)%






 






(7.3)%








Acquisitions






—%






 






0.1%








Foreign currency






2.6%






 






0.7%








Total decline






(11.3)%






 






(6.5)%







Organic Sales


Organic sales, which exclude the effects of foreign currency and acquisitions, declined in both the fourth quarter and full year 2025 compared to 2024. The decrease in the fourth quarter of 2025 was driven by volume declines in North America, primarily related to transitional impacts related to the new ERP implementation, and softer underlying demand for industrial equipment and aftermarket products, partially offset by volume increases in EMEA and APAC and price realization in the Americas. Full year 2025 net sales decline was driven by volume declines in North America, which lapped a significant backlog-reduction benefit in the prior-year period and was affected by transitional impacts related to the new ERP implementation, partly offset by price realization in the Americas and EMEA.




 






Three Months Ended December 31, 2025






 






Twelve Months Ended December 31, 2025








 






Americas






 






EMEA






 






APAC






 






Total






 






Americas






 






EMEA






 






APAC






 






Total








Organic net sales (decline) growth






(22.3)%






 






3.0%






 






11.0%






 






(13.9)%






 






(10.5)%






 






0.5%






 






(2.2)%






 






(7.3)%







Americas: The 22.3% decline in the Americas during the fourth quarter was driven primarily by volume declines in North America primarily related to the new ERP implementation and Latin America volume declines in both equipment and parts and consumables. The volume declines were partly offset by price realization.


The 10.5% decline during the full year was primarily due to volume declines in North America, as a result of lapping a significant backlog-reduction benefit in the prior-year period, order fulfillment disruptions associated with our fourth quarter 2025 ERP transition, and softer underlying demand primarily in industrial equipment in the second half of 2025. This was partially offset by price realization.


EMEA: The 3.0% increase in EMEA during the fourth quarter was primarily driven by equipment volume increases in France, the UK, and Spain. The 0.5% increase for the full year was due to price realization, partly offset by volume declines in Germany, Benelux, Scandinavia and France.


APAC: The 11.0% increase in APAC during the fourth quarter was driven by volume increases in Australia and China, primarily in equipment. The 2.2% decline during the full year reflects the impact of pricing actions and softer underlying demand primarily in China and Southeast Asia, partly offset by volume growth in Australia and India.


Operating Results


Gross profit margin decreased to 34.6% in the fourth quarter of 2025, down from 41.3% in the fourth quarter of 2024. The decline was primarily due to effects of the ERP transition in North America, which resulted in an estimated $13.5 million of volume impact and approximately $8.5 million of incremental costs and deleverage. Margin was further pressured by increased tariff-related material costs and roughly $4.5 million of other charges, including inventory write-downs, recognized in the quarter. This was partially offset by a favorable impact of price realization and foreign exchange.


For the full year 2025, gross profit margin decreased to 40.2%, compared to 42.7% in 2024. The margin rate decrease was primarily driven by unfavorable volume and mix dynamics, including the North America ERP transition effects referenced above. Additional pressures included higher tariff costs, service-related cost deleverage, and the one-time charges recorded in the fourth quarter. The comparison to the prior year was further influenced by a significant backlog reduction in 2024 that carried a higher concentration of higher margin industrial products sold through direct channels. These factors were partially offset by favorable price realization, including pricing actions taken to address tariff-related cost increases, as well as benefits from foreign exchange.


Selling and Administrative ("S&A") expense was $93.8 million in the fourth quarter of 2025, a $22.6 million decrease compared to the fourth quarter of 2024. The decrease was primarily driven by lower legal expenses and lower compensation-related costs. S&A expense for the full year 2025 was $374.8 million, a $17.1 million decrease compared to 2024. The decrease was driven by lower compensation-related costs and reductions in certain legal, integration, and restructuring expenses, partially offset by higher ERP spending and increased bad debt expense. Adjusted S&A expense(a) as a percentage of net sales for the fourth quarter 2025 was mostly flat at 27.3% compared to 27.4% in 2024. Full-year adjusted S&A expense(a) as a percentage of net sales increased to 27.7%, compared to 27.4% in 2024, which was primarily due to net sales deleverage.


Adjusted EBITDA(a) was $25.6 million in the fourth quarter of 2025, compared to $47.4 million in 2024. Adjusted EBITDA margin(a) for the fourth quarter 2025 was 8.8%, a 560-basis-point decrease from 2024. For the full year 2025, Adjusted EBITDA(a) was $167.4 million, compared to $208.8 million in 2024, a decrease of $41.4 million. Adjusted EBITDA margin(a) for the full year 2025 was 13.9%, a 230-basis-point decrease from 2024. We estimate the ERP implementation challenges resulted in an approximate $22 million reduction in fourth quarter Adjusted EBITDA(a).


Net loss was $4.4 million in the fourth quarter of 2025, an $11.0 million decrease compared to the fourth quarter of 2024. The decrease was driven by margin compression and lower net sales that outpaced cost-out actions. Net income for the full year 2025 was $43.8 million, a decrease of $39.9 million compared to 2024. The decrease was primarily driven by decreased volumes and margin pressure from product mix, tariff-driven inflationary pressures, and challenges associated with our ERP transition that outpaced our pricing and cost-out initiatives.


Adjusted net income(a) was $8.5 million in the fourth quarter of 2025, a $20.5 million decrease compared to the fourth quarter of 2024. Adjusted net income(a) for the full year 2025 was $84.8 million, a decrease of $40.7 million compared to 2024. The decrease in both periods was primarily driven by lower sales volume and gross margin compression in 2025, resulting from volume deleverage, a shift in product and channel mix, higher material and tariff-related costs, and impacts from the North America ERP transition. Results were further pressured by unfavorable foreign exchange and a higher effective tax rate as compared to 2024. This was partially offset by operating expense reductions in S&A.


Cash Flow, Liquidity and Capital Allocation


Tennant generated $65.0 million in cash flow from operations in 2025 compared to $89.7 million in 2024. The decrease in cash provided by operating activities was primarily driven by lower operating performance, higher ERP spend, and increased consumption of working capital. Tennant generated free cash flow of $43.3 million in 2025, which included investments in ERP modernization of $59.1 million. The Company converted 157% of net income to free cash flow in 2025 when excluding ERP modernization cash flows.


Liquidity remained strong with a balance of $106.4 million in cash and cash equivalents as of the end of 2025, and $374.3 million of unused borrowing capacity under its revolving credit facility.


The Company continues to strategically deploy cash flow to meet operational capital requirements and to return capital to shareholders in alignment with its capital allocation priorities. In 2025, the Company invested $21.7 million in capital expenditures and returned $110.4 million to shareholders through $87.7 million of share repurchases and $21.9 million of dividends. The Company's net leverage ratio was 1.00 times Adjusted EBITDA(a), which is in line with its targeted range of 1x to 2x Adjusted EBITDA(a).


2026 Guidance


As we look ahead to 2026, we expect the overall macroeconomic backdrop and demand environment to remain broadly consistent with the conditions experienced in 2025. In North America, ERP-related operational challenges that arose in the fourth quarter of 2025 are expected to continue early in the year. As part of our recovery efforts, we conducted a comprehensive physical inventory that required a two-week shutdown of our manufacturing facilities in early January, which will significantly affect first-quarter sales and costs. Furthermore, we expect to temporarily operate below optimal efficiency as the new system stabilizes, leading to elevated costs and compressed margins, most notably in the first quarter. We project a return to a more normalized and efficient operating rhythm by mid-year, underpinned by ongoing process refinement and productivity initiatives. At the same time, we expect continued gross margin pressure from the tariffs implemented during the second half of 2025. We have implemented targeted cost-out initiatives across both our supply chain and commercial pricing processes to help mitigate these impacts. Against this backdrop, we expect margin performance to improve gradually through the year, beginning with a first quarter that is generally aligned with the run-rate levels we saw in the fourth quarter of 2025, followed by progressive expansion as operational momentum builds.




(a)See Supplemental non-GAAP financial tables below for a reconciliation of adjusted non-GAAP financial measures to GAAP.







For 2026, Tennant provides the following guidance ranges:





(In millions, except per share data)






2026




Guidance Ranges









Net sales






$1,240 - $1,280









Organic net sales growth






3.0% - 6.5%









Diluted net income per share






$4.05 - $4.65









Adjusted diluted net income per share*






$4.70 - $5.30









Adjusted EBITDA*






$175 - $190









Adjusted EBITDA margin*






14.1% - 14.8%









Capital expenditures






~$25









Adjusted effective tax rate*






24% - 29%









 



*Excludes ERP modernization costs and amortization expense.








Conference Call


Tennant will host a conference call to discuss its 2025 fourth-quarter and full-year results on February 24, 2026, at 9 a.m. Central Time (10 a.m. Eastern Time). The conference call and accompanying slides will be available via webcast on Tennant's investor website. To listen to the call live and view the slide presentation, go to investors.tennantco.com and click on the link at the bottom of the overview page. A replay of the conference call, with slides, will be available at investors.tennantco.com.


Company Profile


Founded in 1870, Tennant Company (TNC), headquartered in Eden Prairie, Minnesota, is a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; detergent-free and other sustainable cleaning technologies; and cleaning tools and supplies. Tennant's global field service network is the most extensive in the industry. Tennant Company had sales of $1.20 billion in 2025 and has approximately 4,500 employees. Tennant has manufacturing operations throughout the world and sells products directly in more than 21 countries and through distributors in more than 100 countries. For more information, visit www.tennantco.com and www.ipcworldwide.com. The Tennant Company logo and other trademarks designated with the symbol “®” are trademarks of Tennant Company registered in the United States and/or other countries.


Forward-Looking Statements


Certain statements contained in this document are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. These include factors that affect all businesses operating in a global market as well as matters specific to us and the markets the Company serves. Particular risks and uncertainties presently facing it include: geopolitical and economic uncertainty throughout the world; changes in trade policy; ability to comply with global laws and regulations; changes in foreign currency exchange rates; ability to adapt price sensitivity; competition in the Company's business; fluctuations in the cost, quality or availability of raw materials and purchased components; ability to adjust pricing to respond to cost pressures; unforeseen product liability claims or product quality issues; the Company's ability to attract, retain and develop key personnel and create effective succession planning strategies; the Company's ability to effectively develop and manage strategic planning and growth processes and the related operational plans; ability to implement our new enterprise risk management system; the Company's ability to successfully protect its information technology systems, including from cybersecurity risks the occurrence of a significant business interruption; the Company's ability to maintain the health and safety of its workers; the Company's ability to integrate acquisitions; the Company's ability to develop and commercialize new innovative products and services; and the Company ability to execute its business transformation strategy.


The Company cautions that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Information about factors that could materially affect the Company's results can be found in its 2025 Form 10-K. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.


The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Investors are advised to consult any further disclosures by the Company in its filings with the Securities and Exchange Commission and in other written statements on related subjects. It is not possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties.


Non-GAAP Financial Measures


This news release and the related conference call include presentation of Non-GAAP measures that include or exclude special items of a nonrecurring and/or nonoperational nature (hereinafter referred to as “special items”). Management believes that the Non-GAAP measures provide useful information to investors regarding the Company’s results of operations and financial condition because they permit a more meaningful comparison and understanding of Tennant Company’s operating performance for the current, past or future periods. Management uses these Non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of the comparative operating performance of the Company.


The Company believes that disclosing selling and administrative (“S&A”) expense – as adjusted, S&A expense as a percent of net sales – as adjusted, operating income – as adjusted, operating margin – as adjusted, income before income taxes – as adjusted, income tax expense – as adjusted, net income – as adjusted, net income per diluted share – as adjusted, EBITDA – as adjusted, and EBITDA margin – as adjusted (collectively, the “Non-GAAP measures”), excluding the impacts from special items, is useful to investors as a measure of operating performance. The Company uses these measures to monitor and evaluate operating performance. The Non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). The Company calculates the Non-GAAP measures by adjusting for legal contingency costs, ERP modernization costs, restructuring-related costs, transaction-related costs and amortization expense. The Company calculates income tax expense – as adjusted by adjusting for the tax effect of these Non-GAAP measures. The Company calculates net income per diluted share – as adjusted by adjusting for the after-tax effect of these Non-GAAP measures and dividing the result by the diluted weighted average shares outstanding. The Company calculates EBITDA margin – as adjusted by dividing EBITDA – as adjusted by net sales.


FINANCIAL TABLES FOLLOW




TENNANT COMPANY




CONSOLIDATED STATEMENTS OF INCOME (Unaudited)










 



(In millions, except shares and per share data)






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Net sales






$






291.6






 






 






$






328.9






 






 






$






1,203.5






 






 






$






1,286.7






 








Cost of sales






 






190.8






 






 






 






192.9






 






 






 






719.2






 






 






 






736.7






 








Gross profit






 






100.8






 






 






 






136.0






 






 






 






484.3






 






 






 






550.0






 








Selling and administrative expense






 






93.8






 






 






 






116.4






 






 






 






374.8






 






 






 






391.9






 








Research and development expense






 






11.2






 






 






 






12.0






 






 






 






41.2






 






 






 






43.8






 








Operating (loss) income






 






(4.2






)






 






 






7.6






 






 






 






68.3






 






 






 






114.3






 








Interest expense, net






 






(2.1






)






 






 






(1.6






)






 






 






(9.0






)






 






 






(9.1






)








Net foreign currency transaction (loss) gain






 






(0.7






)






 






 






—






 






 






 






(1.7






)






 






 






0.1






 








Other income (expense), net






 






1.0






 






 






 






(0.7






)






 






 






0.3






 






 






 






(0.5






)








(Loss) income before income taxes






 






(6.0






)






 






 






5.3






 






 






 






57.9






 






 






 






104.8






 








Income tax (benefit) expense






 






(1.6






)






 






 






(1.3






)






 






 






14.1






 






 






 






21.1






 








Net (loss) income






$






(4.4






)






 






$






6.6






 






 






$






43.8






 






 






$






83.7






 








 






 






 






 






 






 






 






 








Net (loss) income per share






 






 






 






 






 






 






 








Basic






$






(0.23






)






 






$






0.36






 






 






$






2.38






 






 






$






4.46






 








Diluted






$






(0.23






)






 






$






0.35






 






 






$






2.36






 






 






$






4.38






 








 






 






 






 






 






 






 






 








Weighted average shares outstanding:






 






 






 






 






 






 






 








Basic






 






17,947,760






 






 






 






18,775,004






 






 






 






18,366,216






 






 






 






18,786,871






 








Diluted






 






18,184,728






 






 






 






19,044,968






 






 






 






18,579,707






 






 






 






19,096,138






 









GEOGRAPHICAL NET SALES(1) (Unaudited)










 



 






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








 






 






2025






 






 






2024






 






% Change






 






 






2025






 






 






2024






 






% Change








Americas






$






177.6






 






$






226.4






 






(21.6






)%






 






$






792.0






 






$






888.5






 






(10.9






)%








Europe, Middle East and Africa






 






93.4






 






 






83.9






 






11.3






%






 






 






334.6






 






 






318.5






 






5.1






%








Asia Pacific






 






20.6






 






 






18.6






 






10.8






%






 






 






76.9






 






 






79.7






 






(3.5






)%








Total






$






291.6






 






$






328.9






 






(11.3






)%






 






$






1,203.5






 






$






1,286.7






 






(6.5






)%
























 



(1) Net of intercompany sales.


























TENNANT COMPANY




CONSOLIDATED BALANCE SHEETS (Unaudited)













 



(In millions, except shares and per share data)






 






 






 








December 31






 






2025






 






 






 






2024






 








ASSETS






 






 






 








Cash, cash equivalents, and restricted cash






$






106.4






 






 






$






99.8






 








Receivables, less allowances of $10.4 and $7.1, respectively






 






256.8






 






 






 






259.1






 








Inventories






 






198.5






 






 






 






183.8






 








Prepaid and other current assets






 






38.0






 






 






 






33.9






 








Total current assets






 






599.7






 






 






 






576.6






 








Property, plant and equipment, less accumulated depreciation of $289.0 and $310.9, respectively






 






189.8






 






 






 






184.4






 








Operating lease assets






 






56.9






 






 






 






54.6






 








Goodwill






 






208.6






 






 






 






185.6






 








Intangible assets, net






 






52.6






 






 






 






58.7






 








Other assets






 






161.3






 






 






 






130.2






 








Total assets






$






1,268.9






 






 






$






1,190.1






 








LIABILITIES AND TOTAL EQUITY






 






 






 








Current portion of long-term debt






$






0.4






 






 






$






1.3






 








Accounts payable






 






127.5






 






 






 






126.9






 








Employee compensation and benefits






 






40.9






 






 






 






53.1






 








Other current liabilities






 






124.3






 






 






 






110.9






 








Total current liabilities






 






293.1






 






 






 






292.2






 








Long-term debt






 






273.2






 






 






 






198.2






 








Long-term operating lease liabilities






 






35.5






 






 






 






36.3






 








Employee-related benefits






 






15.7






 






 






 






13.5






 








Deferred income taxes






 






3.3






 






 






 






4.9






 








Other liabilities






 






44.7






 






 






 






22.9






 








Total long-term liabilities






 






372.4






 






 






 






275.8






 








Total liabilities






$






665.5






 






 






$






568.0






 








Common Stock, $0.375 par value; 60,000,000 shares authorized; 17,846,681 and 18,849,456 shares issued and outstanding, respectively






 






6.7






 






 






 






7.1






 








Additional paid-in capital






 






—






 






 






 






76.7






 








Retained earnings






 






628.1






 






 






 






609.7






 








Accumulated other comprehensive loss






 






(33.2






)






 






 






(72.7






)








Total Tennant Company shareholders' equity






 






601.6






 






 






 






620.8






 








Noncontrolling interest






 






1.8






 






 






 






1.3






 








Total equity






 






603.4






 






 






 






622.1






 








Total liabilities and total equity






$






1,268.9






 






 






$






1,190.1






 









TENNANT COMPANY




CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)









 



(In millions)






 








December 31






 






2025






 






 






 






2024






 








OPERATING ACTIVITIES






 






 






 








Net income






$






43.8






 






 






$






83.7






 








Adjustments to reconcile net income to net cash provided by (used in) operating activities:






 






 






 








Depreciation expense






 






45.0






 






 






 






40.1






 








Amortization expense






 






13.7






 






 






 






15.0






 








Deferred income tax expense (benefit)






 






4.2






 






 






 






(9.8






)








Share-based compensation expense






 






10.4






 






 






 






11.9






 








Bad debt and returns expense






 






7.1






 






 






 






3.4






 








Other, net






 






1.3






 






 






 






0.6






 








Changes in operating assets and liabilities:






 






 






 








Receivables






 






4.1






 






 






 






(15.0






)








Inventories






 






(21.7






)






 






 






(33.0






)








Accounts payable






 






(1.9






)






 






 






15.4






 








Employee compensation and benefits






 






(13.8






)






 






 






(5.2






)








Other assets and liabilities






 






(27.2






)






 






 






(17.4






)








Net cash provided by operating activities






 






65.0






 






 






 






89.7






 








INVESTING ACTIVITIES






 






 






 








Purchases of property, plant and equipment






 






(21.7






)






 






 






(20.9






)








Proceeds from sale of property, plant and equipment






 






1.5






 






 






 






—






 








Purchase of investment






 






—






 






 






 






(32.1






)








Payments made in connection with business acquisition, net of cash acquired






 






(3.2






)






 






 






(25.7






)








Investment in leased assets






 






(0.4






)






 






 






(0.5






)








Cash received from leased assets






 






1.1






 






 






 






0.8






 








Net cash used in investing activities






 






(22.7






)






 






 






(78.4






)








FINANCING ACTIVITIES






 






 






 








Proceeds from borrowings






 






85.0






 






 






 






40.9






 








Repayments of borrowings






 






(10.8






)






 






 






(42.5






)








Payment of debt financing costs






 






—






 






 






 






(2.2






)








Proceeds from exercise of stock options, net of employee tax withholdings obligations of $3.1, and $3.8, respectively






 






(2.5






)






 






 






19.6






 








Repurchases of common stock






 






(88.5






)






 






 






(19.6






)








Dividends paid






 






(21.9






)






 






 






(21.4






)








Net cash (used in) provided by financing activities






 






(38.7






)






 






 






(25.2






)








Effect of exchange rate changes on cash, cash equivalents and restricted cash






 






3.0






 






 






 






(3.4






)








Net increase (decrease) in cash, cash equivalents and restricted cash






 






6.6






 






 






 






(17.3






)








Cash, cash equivalents and restricted cash at beginning of year






 






99.8






 






 






 






117.1






 








Cash, cash equivalents and restricted cash at end of year






$






106.4






 






 






$






99.8






 









TENNANT COMPANY




SUPPLEMENTAL NON-GAAP FINANCIAL TABLES




 




Reported to Adjusted Net Income and Net Income Per Share










 



(In millions, except per share data)






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








 






 






2025






 






 






 






2024






 






 






2025






 






 






2024








Net (loss) income - as reported






$






(4.4






)






 






$






6.6






 






$






43.8






 






$






83.7








Adjustments:






 






 






 






 






 






 






 








Amortization expense






 






2.5






 






 






 






2.6






 






 






10.0






 






 






11.0








Restructuring-related charge (S&A expense) (2)






 






2.9






 






 






 






5.6






 






 






4.7






 






 






6.0








ERP modernization costs (S&A expense) (3)






 






6.6






 






 






 






3.5






 






 






21.1






 






 






10.5








Amortization of ERP modernization costs (S&A expense) (4)






 






0.4






 






 






 






—






 






 






0.4






 






 






—








Transaction and integration-related costs (S&A expense) (5)






 






0.3






 






 






 






0.4






 






 






0.3






 






 






4.0








Legal contingency costs (S&A expense) (6)






 






0.2






 






 






 






10.3






 






 






4.5






 






 






10.3








Net income - as adjusted






$






8.5






 






 






$






29.0






 






$






84.8






 






$






125.5








 






 






 






 






 






 






 






 








Net (loss) income per share - as reported:






 






 






 






 






 






 






 








Diluted






$






(0.23






)






 






$






0.35






 






$






2.36






 






$






4.38








Adjustments:






 






 






 






 






 






 






 








Amortization expense






 






0.14






 






 






 






0.14






 






 






0.54






 






 






0.58








Restructuring-related charge (S&A expense) (2)






 






0.15






 






 






 






0.29






 






 






0.25






 






 






0.31








ERP modernization costs (S&A expense) (3)






 






0.37






 






 






 






0.18






 






 






1.14






 






 






0.55








Amortization of ERP modernization costs (S&A expense) (4)






 






0.02






 






 






 






—






 






 






0.02






 






 






—








Transaction and integration-related costs (S&A expense) (5)






 






0.02






 






 






 






0.02






 






 






0.02






 






 






0.21








Legal contingency costs (S&A expense) (6)






 






0.01






 






 






 






0.54






 






 






0.24






 






 






0.54








Net income per diluted share - as adjusted






$






0.48






 






 






$






1.52






 






$






4.57






 






$






6.57



















 



(2) Restructuring expenses reflect our global reorganization efforts to align our expense structure with key strategic initiatives and long-term business objectives.




 




(3) Enterprise Resource Planning (ERP) modernization initiative investment. In 2025, the Company invested $59.1 million in ERP initiatives. Of this amount, $30.6 million was capitalized, while the remaining $28.5 million was recorded as a Selling and Administrative expense in the Consolidated Statements of Income. This investment is expected to drive future operational efficiencies across the organization.




 




(4) Amortization of ERP modernization costs represent the amortization of capitalized implementation costs related to cloud computing arrangements, which primarily relate to our implementation of a new ERP system.




 




(5) Due diligence and integration costs associated with the acquisition of R4Y, TCS, and costs associated with the investment in Brain Corp, Inc., a privately held autonomous technology company.




 




(6) Legal settlement charge related to an intellectual property dispute regarding ec-H2O™ option on commercial floor cleaning machines sold between 2015 and 2023. For further details, see Note 17, Commitments and Contingencies, in "Item 8. Financial Statement and Supplementary Data" of the 2025 Form 10-K.









TENNANT COMPANY




SUPPLEMENTAL NON-GAAP FINANCIAL TABLES




 




Reported Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)










 



(In millions)






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Net (loss) income - as reported






$






(4.4






)






 






$






6.6






 






 






$






43.8






 






 






$






83.7






 








Less:






 






 






 






 






 






 






 








Interest expense, net






 






2.1






 






 






 






1.6






 






 






 






9.0






 






 






 






9.1






 








Income tax (benefit) expense






 






(1.6






)






 






 






(1.3






)






 






 






14.1






 






 






 






21.1






 








Depreciation expense






 






11.8






 






 






 






10.5






 






 






 






45.0






 






 






 






40.1






 








Amortization expense






 






3.5






 






 






 






3.6






 






 






 






13.7






 






 






 






15.0






 








EBITDA






 






11.4






 






 






 






21.0






 






 






 






125.6






 






 






 






169.0






 








Adjustments:






 






 






 






 






 






 






 








Restructuring-related charge (S&A expense) (2)






 






3.9






 






 






 






7.6






 






 






 






6.4






 






 






 






8.2






 








ERP modernization costs (S&A expense) (3)






 






9.1






 






 






 






4.8






 






 






 






28.5






 






 






 






14.0






 








Amortization of ERP modernization costs (S&A expense) (4)






 






0.5






 






 






 






—






 






 






 






0.5






 






 






 






—






 








Transaction and integration-related costs (S&A expense) (5)






 






0.4






 






 






 






0.5






 






 






 






0.4






 






 






 






4.1






 








Legal contingency costs (S&A expense) (6)






 






0.3






 






 






 






13.5






 






 






 






6.0






 






 






 






13.5






 








EBITDA - as adjusted






$






25.6






 






 






$






47.4






 






 






$






167.4






 






 






$






208.8






 








EBITDA margin - as adjusted






 






8.8






%






 






 






14.4






%






 






 






13.9






%






 






 






16.2






%









TENNANT COMPANY




SUPPLEMENTAL NON-GAAP FINANCIAL TABLES




 




Reported to Adjusted Selling and Administrative Expense (S&A expense) and Operating Income










 



(In millions)






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








S&A expense - as reported






$






93.8






 






 






$






116.4






 






 






$






374.8






 






 






$






391.9






 








S&A expense as a percent of net sales - as reported






 






32.2






%






 






 






35.4






%






 






 






31.1






%






 






 






30.5






%








Adjustments:






 






 






 






 






 






 






 








Restructuring-related charge (S&A expense) (2)






 






(3.9






)






 






 






(7.6






)






 






 






(6.4






)






 






 






(8.2






)








ERP modernization costs (S&A expense) (3)






 






(9.1






)






 






 






(4.8






)






 






 






(28.5






)






 






 






(14.0






)








Amortization of ERP modernization costs (S&A expense) (4)






 






(0.5






)






 






 






—






 






 






 






(0.5






)






 






 






—






 








Transaction and integration-related costs (S&A expense) (5)






 






(0.4






)






 






 






(0.5






)






 






 






(0.4






)






 






 






(4.1






)








Legal contingency costs (S&A expense) (6)






 






(0.3






)






 






 






(13.5






)






 






 






(6.0






)






 






 






(13.5






)








S&A expense - as adjusted






$






79.6






 






 






$






90.0






 






 






$






333.0






 






 






$






352.1






 








S&A expense as a percent of net sales - as adjusted






 






27.3






%






 






 






27.4






%






 






 






27.7






%






 






 






27.4






%








 






 






 






 






 






 






 






 








Operating (loss) income - as reported






$






(4.2






)






 






$






7.6






 






 






$






68.3






 






 






$






114.3






 








Operating margin - as reported






 






(1.4






)%






 






 






2.3






%






 






 






5.7






%






 






 






8.9






%








Adjustments:






 






 






 






 






 






 






 








Restructuring-related charge (S&A expense) (2)






 






3.9






 






 






 






7.6






 






 






 






6.4






 






 






 






8.2






 








ERP modernization costs (S&A expense) (3)






 






9.1






 






 






 






4.8






 






 






 






28.5






 






 






 






14.0






 








Amortization of ERP modernization costs (S&A expense) (4)






 






0.5






 






 






 






—






 






 






 






0.5






 






 






 






—






 








Transaction and integration-related costs (S&A expense) (5)






 






0.4






 






 






 






0.5






 






 






 






0.4






 






 






 






4.1






 








Legal contingency costs (S&A expense) (6)






 






0.3






 






 






 






13.5






 






 






 






6.0






 






 






 






13.5






 








Operating income - as adjusted






$






10.0






 






 






$






34.0






 






 






$






110.1






 






 






$






154.1






 








Operating margin - as adjusted






 






3.4






%






 






 






10.3






%






 






 






9.1






%






 






 






12.0






%









TENNANT COMPANY




SUPPLEMENTAL NON-GAAP FINANCIAL TABLES




 




Reported to Adjusted Income Before Income Taxes and Income Tax Expense










 



(In millions)






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








(Loss) income before income taxes - as reported






$






(6.0






)






 






$






5.3






 






 






$






57.9






 






 






$






104.8






 








Adjustments:






 






 






 






 






 






 






 








Amortization expense






 






3.5






 






 






 






3.6






 






 






 






13.7






 






 






 






15.0






 








Restructuring-related charge (S&A expense) (2)






 






3.9






 






 






 






7.6






 






 






 






6.4






 






 






 






8.2






 








ERP modernization costs (S&A expense) (3)






 






9.1






 






 






 






4.8






 






 






 






28.5






 






 






 






14.0






 








Amortization of ERP modernization costs (S&A expense) (4)






 






0.5






 






 






 






—






 






 






 






0.5






 






 






 






—






 








Transaction and integration-related costs (S&A expense) (5)






 






0.4






 






 






 






0.5






 






 






 






0.4






 






 






 






4.1






 








Legal contingency costs (S&A expense) (6)






 






0.3






 






 






 






13.5






 






 






 






6.0






 






 






 






13.5






 








Income before income taxes - as adjusted






$






11.7






 






 






$






35.3






 






 






$






113.4






 






 






$






159.6






 








 






 






 






 






 






 






 






 








Income tax (benefit) expense - as reported






$






(1.6






)






 






$






(1.3






)






 






$






14.1






 






 






$






21.1






 








Effective tax rate - as reported






 






26.2






%






 






 






(24.5






)%






 






 






24.3






%






 






 






20.1






%








Adjustments (7):






 






 






 






 






 






 






 








Amortization expense






 






1.0






 






 






 






1.0






 






 






 






3.7






 






 






 






4.0






 








Restructuring-related charge (S&A expense) (2)






 






1.0






 






 






 






2.0






 






 






 






1.7






 






 






 






2.2






 








ERP modernization costs (S&A expense) (3)






 






2.5






 






 






 






1.3






 






 






 






7.4






 






 






 






3.5






 








Amortization of ERP modernization costs (S&A expense) (4)






 






0.1






 






 






 






—






 






 






 






0.1






 






 






 






—






 








Transaction and integration-related costs (S&A expense) (5)






 






0.1






 






 






 






0.1






 






 






 






0.1






 






 






 






0.1






 








Legal contingency costs (S&A expense) (6)






 






0.1






 






 






 






3.2






 






 






 






1.5






 






 






 






3.2






 








Income tax expense - as adjusted






$






3.2






 






 






$






6.3






 






 






$






28.6






 






 






$






34.1






 








Effective tax rate - as adjusted






 






27.4






%






 






 






17.8






%






 






 






25.2






%






 






 






21.4






%






















 



(7) For determining the tax impact, the statutory tax rate was applied for each jurisdiction where income or expenses were generated.









TENNANT COMPANY




SUPPLEMENTAL NON-GAAP FINANCIAL TABLES




 




Free Cash Flow Conversion










 



(In millions)






Three Months Ended

December 31,






 






Twelve Months Ended

December 31,








 






 






2025






 






 






 






2024






 






 






 






2025






 






 






 






2024






 








Net income - as reported






$






(4.4






)






 






$






6.6






 






 






$






43.8






 






 






$






83.7






 








Adjustments:






 






 






 






 






 






 






 








ERP modernization costs (S&A expense) (3)






 






6.6






 






 






 






3.5






 






 






 






21.1






 






 






 






10.5






 








Amortization of ERP modernization costs (S&A expense) (4)






 






0.4






 






 






 






—






 






 






 






0.4






 






 






 






—






 








Net income - as adjusted






$






2.6






 






 






$






10.1






 






 






$






65.3






 






 






$






94.2






 








 






 






 






 






 






 






 






 








Cash provided by operating activities - as reported






$






14.2






 






 






$






37.5






 






 






$






65.0






 






 






$






89.7






 








Less:






 






 






 






 






 






 






 








Capital expenditures






 






(4.5






)






 






 






(9.4






)






 






 






(21.7






)






 






 






(20.9






)








Free cash flows (8)






$






9.7






 






 






$






28.1






 






 






$






43.3






 






 






$






68.8






 








Adjustments:






 






 






 






 






 






 






 








ERP modernization spend






 






16.7






 






 






 






11.7






 






 






 






59.1






 






 






 






37.3






 








Free cash flows - as adjusted






$






26.4






 






 






$






39.8






 






 






$






102.4






 






 






$






106.1






 








 






 






 






 






 






 






 






 








Net income to free cash flows conversion






 






1015






%






 






 






394






%






 






 






157






%






 






 






113






%






















 



(8) Free Cash Flow reflects cash provided by operating activities less capital expenditures.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260223955763/en/
INVESTOR RELATIONS CONTACT:


Lorenzo Bassi

Vice President, Finance and Investor Relations

investors@tennantco.com

763-540-1242


Original: Tennant Company Reports 2025 Fourth-Quarter and Full-Year Results