Tennant Co (TN1) AI Stock Analysis

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Tennant Co

(Frankfurt:TN1)

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Positive Factors

Recurring Aftermarket RevenueTennant's installed base supports repeat revenue from parts, consumables, repairs, and maintenance after the initial equipment sale. This recurring component can improve customer retention, increase revenue visibility, and provide a durable earnings stream alongside more cyclical capital-equipment demand.

Negative Factors

Negative Free Cash FlowRecent cash generation has deteriorated sharply from positive free cash flow in prior years, leaving earnings unsupported by internally generated cash. Persistent working-capital demands or elevated investment could reduce funding flexibility, increase reliance on borrowing, and constrain capital allocation over the coming quarters.

Tennant Co (TN1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.24B
Dividend Yield: 1.69%
Average Volume (3M): 56
Price to Earnings (P/E): 54.3
Beta (1Y): 0.37
Revenue Growth: -5.38%
EPS Growth: -55.22%
Country: Germany
Employees: 4,484
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

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 enc...

Tennant Co Earnings Call Summary

Earnings Call Date:Nov 01, 2026(Q3-2026)|% Change Since:5.53%|Next Earnings Date:Feb 24, 2027

Earnings Call SentimentPositive

The call was broadly positive. Management reported record third-quarter sales, strong order growth, improved normalized margins, substantially lower ERP-related inefficiencies, accelerating robotics revenue, continued product launches, and reaffirmed full-year guidance. These positives were tempered by APAC weakness, a decline in EMEA orders, lower parts and consumables revenue, persistent parts availability constraints, year-over-year margin and adjusted EBITDA pressure, working-capital demands, and higher inflation and freight costs.

Positive Updates

Record Third-Quarter Sales and Strong Order Growth

Net sales reached a third-quarter record of $322.3 million, up 6.2% year over year, with organic sales growth of 5.7%, including 4.1 percentage points from volume and 1.6 percentage points from price. Orders grew 9.5% in the quarter, led by North America at 18%, and orders were up 9% year to date after growing in every quarter of the year.

Negative Updates

APAC Sales Decline and Soft Demand

APAC organic sales declined 4.8%, although this was an improvement from the second quarter, and performance remained below expectations. Orders grew 7%, but soft demand in China, Australia, and parts of Southeast Asia kept distributor inventories elevated and slowed deal conversions. The company is reassessing its domestic China commercial strategy.

Company Guidance

For full year 2026, Tennant reaffirmed net sales in the range of $1.27 billion to $1.31 billion, reported growth of 5.5% to 9%, organic sales growth of 3.5% to 7%, adjusted EBITDA of $155 million to $170 million, an adjusted EBITDA margin between 12.2% to 13%, GAAP diluted EPS of $2.15 to $2.80, adjusted diluted EPS of $3.80 to $4.45, an adjusted tax rate guidance range of 24% to 29%, and robotics revenue of $130 million to $145 million, in line with its goal of $250 million in robotics revenue by 2028; at the midpoint, fourth quarter net sales are implied at $346 million and adjusted EBITDA at approximately $49 million or about 14% of net sales, with roughly half of the sequential sales increase expected from existing backlog, ERP-related inefficiencies expected to be $2 million or less, and even with a moderate shortfall in both the pace of backlog conversion as parts availability improve and the recovery in EMEA orders, Tennant would expect to remain within its guidance range.

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.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

Tennant Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:TN1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	73Outperform	$9.95B	21.82	27.71%	1.45%	5.28%	26.51%
ALH	67Neutral	$4.41B	25.23	60.27%	―	9.90%	125.99%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALG	58Neutral	$1.81B	22.34	6.62%	0.94%	1.81%	-33.54%
CMCO	55Neutral	$524.53M	-1.54	-27.30%	1.51%	80.70%	-7545.95%
HY	50Neutral	$524.11M	-4.58	-25.53%	4.83%	-11.14%	-614.21%

* Industrials Sector Average

Performance Comparison

DE:TN1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:TN1	Tennant Company	62.00	-1.39	-2.19%
ALG	Alamo Group Inc.	144.12	-27.64	-16.09%
CMCO	Columbus Mckinnon	18.59	3.18	20.67%
DCI	Donaldson	85.52	0.71	0.83%
HY	Hyster-Yale Materials Handling	30.02	-3.12	-9.41%
ALH	Alliance Laundry Holdings, Inc.	22.96	-3.43	-13.00%

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.

Tennant Co AI Stock Analysis