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About

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

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📈 Growth Pattern

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📊 MIXED Tennant reports Q1 2026 orders up 10% to $327M, AMR revenue up 85% to $27M; reaffirms FY guidance.

Revenue & Profitability

First-quarter 2026 net sales rose 2.7% year-over-year to $297.9M. GAAP net income was $0.2M, down from $13.1M a year ago. Adjusted diluted EPS was $0.58 versus $1.12. Adjusted EBITDA was $29.1M (9.8% margin) versus $41M (14.1%) in the prior year. The company reaffirmed full-year 2026 guidance: net sales $1.24B-$1.28B, adjusted EBITDA $175M-$190M, GAAP diluted EPS $4.05-$4.65, and adjusted diluted EPS $4.70-$5.30.

Outlook

Management sees robust demand momentum, with orders up 10% year-over-year to $327M and backlog building by $32M to $109M. The global robotic cleaning market is experiencing double-digit growth rates. The company expects results to be weighted to the second half of the year with sequential improvement each quarter. Full-year 2026 guidance was reaffirmed, reflecting confidence in underlying demand.

Growth Drivers

Key growth levers include the AMR and robotics business, which grew 85% year-over-year to $27M in Q1. New products such as the X16 SWEEP (industrial robotic sweeper) and X2 ROVR (small-format scrubber) expand the addressable market. International regions were strong: Latin America (up 9% organically), EMEA (up 1% organically with double-digit growth in France and Germany), and resilience in parts and consumables outside North America.

Balance Sheet & CapEx

Capital expenditure guidance for 2026 is approximately $25M. The company also invests around 3%-3.5% of sales in R&D. In Q1, Tennant deployed $60M to repurchase ~950,000 shares (5% of shares outstanding) at an average price of $63 per share, using borrowing capacity but remaining within its 1x-2x leverage target.

Margins

Q1 gross margin was 38.1%, down 330 basis points year-over-year, driven by ERP-related labor, freight, and expediting costs ($6M) and lost volume ($11M). Margins improved sequentially each month, exiting March at approximately 40%. Management expects gross margin to expand progressively, with second-half margins in the low-40% range, consistent with a long-term target of roughly 43%.

Key Risks

Key risks flagged include the ongoing impact of the North America ERP implementation, which reduced Q1 sales by ~$23M and gross margin by ~$17M. The company faces macro headwinds from tariffs (offset by pricing and cost-out actions) and potential freight cost increases due to the Middle East situation. The elevated Q1 effective tax rate (80.5%) due to discrete items is expected to normalize to 24%-29% for the full year.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-08-06

Q2 2026 saw strong demand and robotics growth, but profitability lagged due to ERP and cost pressures. Full-year sales guidance was raised, while EBITDA and EPS outlooks were lowered. Robotics is expected to accelerate in H2, with ERP normalization now targeted for H1 2027.

Q1 2026 Q1 2026 2026-05-05

Orders rose 10% year-over-year with strong robotics growth and a $32 million backlog increase. ERP recovery stabilized North America, but Q1 net income and margins declined due to disruption costs. Full-year guidance is reaffirmed, with margin expansion and robust capital allocation plans.

Q4 2025 Q4 2025 2026-02-24

Q4 and full year 2025 results were heavily impacted by a disruptive North America ERP go-live, causing significant sales and margin declines, though international growth and robotics momentum provided some offset. 2026 guidance anticipates recovery, margin expansion, and continued capital returns.

Q3 2025 Q3 2025 2025-11-04

Q3 2025 saw net sales of $303M with a 5.4% organic decline, but order growth continued and gross margin expanded. Tariff volatility and cost inflation pressured North America industrial demand, while new products and AMR robotics drove growth. Adjusted EBITDA margin improved 120 bps.

Q2 2025 Q2 2025 2025-08-07

Q2 2025 saw a 4.5% organic sales decline due to lapping a strong prior year, but order rates grew 4% and guidance was reaffirmed. Margin pressure from mix and tariffs is being offset by pricing and cost actions, with strong AMR and new product momentum supporting a positive second-half outlook.

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