Tennant Co (TNC) Q3 2026 Earnings Report

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.

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.