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Tennant Co
(NYSE:TNC)
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Rating:56Neutral
Price Target:
$90.00
â–²(14.90% Upside)
Action:Reiterated
Date:06/18/26
The score is held back primarily by weakened cash generation and sharply lower margins/returns versus prior years, despite a workable balance sheet. Technicals are supportive with the stock trading above key moving averages and positive momentum indicators. Valuation is a headwind due to a high P/E and modest yield, while the latest earnings call adds moderate support from reaffirmed guidance and improving order/AMR trends, tempered by ongoing ERP-related operational and cash-flow pressure.
Positive Factors
Robotics (AMR) Business Acceleration
Rapid AMR growth and a target of $250M by 2028 reflect a structural shift toward recurring, higher‑value automation revenue. Scale, product pipeline and exclusivity rights support durable competitive advantage, diversify revenue away from one‑time equipment sales, and can improve long‑term margins.
Negative Factors
Weakened Cash Generation
Operating and free cash flow have deteriorated sharply, shrinking internal financing for capex, R&D and AMR rollouts. Lower cash conversion elevates reliance on debt or capital markets for growth and buybacks, reducing margin for error if operational recovery stalls and increasing funding cost sensitivity.
Read all positive and negative factors
Positive Factors
Negative Factors
Robotics (AMR) Business Acceleration
Rapid AMR growth and a target of $250M by 2028 reflect a structural shift toward recurring, higher‑value automation revenue. Scale, product pipeline and exclusivity rights support durable competitive advantage, diversify revenue away from one‑time equipment sales, and can improve long‑term margins.
Read all positive factors
Tennant Co Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Breaks down sales by region (for example North America, EMEA, APAC), showing where Tennant is strongest and where it can expand. Geographic mix exposes currency and macro risks, regional demand cycles for commercial and industrial cleaning equipment, and potential growth markets that could drive future revenue.
Breaks down sales by region (for example North America, EMEA, APAC), showing where Tennant is strongest and where it can expand. Geographic mix exposes currency and macro risks, regional demand cycles for commercial and industrial cleaning equipment, and potential growth markets that could drive future revenue.
Data provided by:
The Fly
The FlyTennant Co (TNC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.49B
Dividend Yield1.59%
Average Volume (3M)212.51K
Price to Earnings (P/E)52.3
Beta (1Y)0.91
Revenue Growth-4.29%
EPS Growth-54.01%
CountryUS
Employees4,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.67
Shares Outstanding17,038,902
10 Day Avg. Volume141,714
30 Day Avg. Volume212,511
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)2.25
Price to Sales (P/S)1.12
P/FCF Ratio31.26
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit3.71
Enterprise Value/Ebitda15.93
Forecast
1Y Price Target
$99.00Price Target Upside26.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.03
Revenue Forecast (FY)$1.27B
Tennant Co Business Overview & Revenue Model
Company Description
Tennant Company, a global entity operating its design, manufacturing, and marketing efforts across the Americas, Europe, the Middle East, Africa, and Asia Pacific, specializes in sophisticated floor cleaning machinery. Its comprehensive portfolio ...
How the Company Makes Money
Tennant primarily makes money by selling cleaning equipment to businesses and institutions. A second major source of revenue is the recurring aftermarket tied to that installed base, including replacement parts, consumable supplies, and service/ma...
Tennant Co Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but constructive picture: meaningful operational disruption from the North America ERP implementation drove notable short-term revenue, margin, EPS and cash-flow headwinds in Q1, but management reported clear stabilization progress, sequential margin improvement, strong order momentum and accelerating robotics growth (85% YoY for AMR). The company reaffirmed full-year guidance, emphasized liquidity and disciplined capital allocation (including opportunistic buybacks), and laid out credible steps for margin recovery and AMR expansion. Given the balanced set of significant near-term challenges and offsetting strategic/operational positives with guidance intact, the tone is cautious but constructive.Positive Updates
Strong Order Momentum and Backlog Growth
Orders of $327 million, up 10% year-over-year, with backlog increasing approximately $32 million to $109 million, signaling strong demand momentum and healthy customer relationships.
Negative Updates
ERP Implementation Disruption and Financial Impact
ERP disruption reduced Q1 net sales by approximately $23 million and gross margin by about $17 million (≈$11M lost volume + ≈$6M elevated labor, freight and expediting costs); included a 2-week manufacturing/distribution shutdown in January and $8.8 million of ERP project spend in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Order Momentum and Backlog Growth
Orders of $327 million, up 10% year-over-year, with backlog increasing approximately $32 million to $109 million, signaling strong demand momentum and healthy customer relationships.
Read all positive updates
Company Guidance
Tennant reaffirmed 2026 guidance calling for net sales of $1.24–$1.28 billion (organic growth 3.0%–6.5%), adjusted EBITDA $175–$190 million (14.1%–14.8% margin), GAAP diluted EPS $4.05–$4.65 and adjusted diluted EPS $4.70–$5.30 (ex‑ERP/amortization), CapEx ~ $25 million and an adjusted effective tax rate of 24%–29% (ex‑ERP/amortization); management expects results to be back‑weighted with sequential quarterly improvement and gross margin expansion into the low‑40% range in H2 (enterprise March exit ≈40%). For context Q1 included orders $327M (+10% y/y) and backlog $109M (+~$32M), net sales $297.9M (+2.7% y/y; organic −1.9%), adjusted EBITDA $29.1M (9.8%), GAAP net income $0.2M, adjusted EPS $0.58, AMR sales ≈$27M (9% of sales, +85% y/y), an estimated Q1 ERP drag of ~$23M sales and ~$17M gross margin, cash $82.6M, ~ $289M revolver capacity, net leverage 1.78x, Q1 buybacks $60M (~950k shares at $63 avg) with an expected ≈$0.15 full‑year EPS benefit and a new 2M‑share authorization (total repurchase capacity ≈2.56M shares, ~15% of shares).Tennant Co Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
60
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.20B | 1.29B | 1.24B | 1.09B | 1.09B |
| Gross Profit | 477.90M | 484.30M | 550.00M | 527.80M | 420.90M | 438.00M |
| EBITDA | 111.30M | 125.60M | 169.00M | 188.40M | 135.30M | 134.50M |
| Net Income | 30.90M | 43.80M | 83.70M | 109.50M | 66.30M | 64.90M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.27B | 1.19B | 1.11B | 1.09B | 1.06B |
| Cash, Cash Equivalents and Short-Term Investments | 82.60M | 106.40M | 99.60M | 116.90M | 77.20M | 123.10M |
| Total Debt | 392.50M | 344.60M | 254.30M | 242.40M | 332.40M | 309.40M |
| Total Liabilities | 743.60M | 665.50M | 568.00M | 535.10M | 613.00M | 626.60M |
| Stockholders Equity | 531.20M | 601.60M | 620.80M | 577.00M | 470.80M | 433.80M |
Cash Flow | ||||||
| Free Cash Flow | 16.00M | 43.30M | 68.30M | 164.40M | -54.40M | 46.30M |
| Operating Cash Flow | 34.20M | 65.00M | 89.70M | 188.40M | -25.10M | 69.40M |
| Investing Cash Flow | -26.10M | -22.70M | -78.40M | -23.20M | -24.50M | 1.70M |
| Financing Cash Flow | -7.80M | -38.70M | -25.20M | -122.60M | 8.10M | -84.50M |
Tennant Co Technical Analysis
Positive
78.33
Price Trends
84.97
Positive
77.79
Positive
77.12
Positive
Market Momentum
1.07
Positive
52.17
Neutral
24.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNC, the sentiment is Positive. The current price of 78.33 is below the 20-day moving average (MA) of 87.46, below the 50-day MA of 84.97, and above the 200-day MA of 77.12, indicating a bullish trend. The MACD of 1.07 indicates Positive momentum. The RSI at 52.17 is Neutral, neither overbought nor oversold. The STOCH value of 24.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNC.
Tennant Co Risk Analysis
Tennant Co disclosed 19 risk factors in its most recent earnings report. Tennant Co reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tennant Co Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.22B | 37.70 | 14.30% | 1.49% | 4.62% | 31.96% | |
74 Outperform | $2.99B | 49.18 | 6.59% | 0.64% | 10.45% | 64.56% | |
69 Neutral | $3.97B | 39.79 | 13.78% | 0.57% | 18.33% | 61.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $1.49B | 52.34 | 5.10% | 1.59% | -4.29% | -54.01% |
* Industrials Sector Average
TNC
Tennant Co
87.48
7.86
9.87%
GRC
Gorman-Rupp Company
84.06
46.70
125.02%
SXI
Standex International
327.87
165.49
101.92%
HLIO
Helios Technologies
82.39
47.22
134.29%
Tennant Co Corporate Events
Executive/Board Changes
Tennant Company Appoints Richard Zay as Chief Operating Officer
Positive
Jun 17, 2026
On June 17, 2026, Tennant Company announced that Richard H. (Rusty) Zay will become Chief Operating Officer, effective July 1, 2026, marking a continuation of his advancement since joining the company in 2010 and holding roles in global marketing,...
Executive/Board ChangesShareholder Meetings
Tennant Shareholders Approve Directors, Auditor and Compensation
Positive
May 1, 2026
Tennant Company reported the results of its 2026 Annual Meeting of shareholders, where investors voted on director elections, auditor ratification, and executive compensation matters. Shareholders elected three Class I directors to three-year term...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.