Tennant Co AI Stock Analysis
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Tennant Co (TNC) AI Stock Analysis
Tennant Co
(NYSE:TNC)
The score is held back primarily by weakening profitability and, most importantly, deteriorated cash conversion (negative TTM free cash flow) alongside rising leverage trends. Support comes from a constructive earnings-call outlook with reaffirmed guidance and improving operational execution, plus moderately positive near-term technicals, but valuation remains a notable headwind given the high P/E and only modest yield.
Tennant Co Key Performance Indicators (KPIs)
Net Sales by GeographyBreaks 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.
Americas is the clear growth and volatility driver—after peaking in mid‑2024 it slid through 2025 then largely recovered by mid‑2026, suggesting a demand/seasonality cycle rather than structural decline. EMEA is steady with modest upside but a late‑2025 spike that looks like channel or timing noise. APAC remains small and erratic, limiting diversification. The company’s top‑line momentum and margin outlook hinge on sustaining Americas demand and clarifying whether EMEA gains are repeatable or one‑offs.
The FlyTennant Co (TNC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.28B
- Dividend Yield
- 1.64%
- Average Volume (3M)
- 189.51K
- Price to Earnings (P/E)
- 56.3
- Beta (1Y)
- 0.69
- Revenue Growth
- -0.40%
- EPS Growth
- -53.68%
- Country
- US
- 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...
How the Company Makes Money
Tennant primarily makes money by selling cleaning equipment (capital equipment) and by generating recurring aftermarket revenue tied to its installed base of machines. Key revenue streams include: (1) Sales of new equipment: Revenue from the sale of...
Tennant Co Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative Updates
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 Financial Statement Overview
Summary
Revenue growth is strong in the TTM period, but fundamentals have weakened: net and EBIT margins have compressed materially versus prior years, and cash generation is the key issue with slightly negative operating cash flow and negative free cash flow (about -$19.9M). Balance sheet leverage remains moderate but is trending higher (debt-to-equity ~0.72) alongside softer ROE (~4.1%).
Income Statement
52NeutralBalance Sheet
60NeutralCash Flow
25Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.24B | 1.20B | 1.29B | 1.24B | 1.09B | 1.09B |
| Gross Profit | 478.60M | 484.30M | 550.00M | 527.80M | 420.90M | 438.00M |
| EBITDA | 105.70M | 125.60M | 169.00M | 188.40M | 135.30M | 134.50M |
| Net Income | 22.90M | 43.80M | 83.70M | 109.50M | 66.30M | 64.90M |
Balance Sheet | ||||||
| Total Assets | 1.29B | 1.27B | 1.19B | 1.11B | 1.09B | 1.06B |
| Cash, Cash Equivalents and Short-Term Investments | 75.30M | 106.20M | 99.60M | 116.90M | 77.20M | 123.10M |
| Total Debt | 395.10M | 330.80M | 254.30M | 242.40M | 332.40M | 309.40M |
| Total Liabilities | 743.00M | 665.50M | 568.00M | 535.10M | 613.00M | 626.60M |
| Stockholders Equity | 548.50M | 601.60M | 620.80M | 577.00M | 470.80M | 433.80M |
Cash Flow | ||||||
| Free Cash Flow | -19.90M | 43.30M | 68.30M | 164.40M | -54.40M | 46.30M |
| Operating Cash Flow | -100.00K | 65.00M | 89.70M | 188.40M | -25.10M | 69.40M |
| Investing Cash Flow | -26.40M | -22.70M | -78.40M | -23.20M | -24.50M | 1.70M |
| Financing Cash Flow | 3.30M | -38.70M | -25.20M | -122.60M | 8.10M | -84.50M |
Tennant Co Technical Analysis
Price Trends
Market Momentum
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 75.50 is above the 20-day moving average (MA) of 68.11, above the 50-day MA of 68.03, and above the 200-day MA of 75.30, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 72.31 is Negative, neither overbought nor oversold. The STOCH value of 81.80 is Negative, 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.
Latest Risks Added
0 New RisksTennant Co Peers Comparison
Overall Rating
DCI73Outperform
ALH71Outperform
ALG58Neutral
CMCO53Neutral- TNC53Neutral
HY43Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DCI | 73Outperform | $10.12B | 22.28 | 27.71% | 1.42% | 5.28% | 26.51% |
| ALH | 71Outperform | $4.98B | 23.43 | 46.55% | ― | 7.78% | 78.36% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| ALG | 58Neutral | $1.70B | 21.66 | 6.62% | 0.97% | 1.81% | -33.54% |
| CMCO | 53Neutral | $587.79M | -1.70 | -27.30% | 1.38% | 80.70% | -7545.95% |
| TNC | 53Neutral | $1.28B | 56.28 | 4.14% | 1.64% | -0.40% | -53.68% |
| HY | 43Neutral | $501.65M | -3.85 | -31.10% | 5.18% | -14.18% | -4523.43% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TNC | Tennant Company | 75.50 | 3.22 | 4.45% | |
| ALG | Alamo Group Inc. | 139.73 | -24.61 | -14.98% | |
| CMCO | Columbus Mckinnon | 20.32 | 5.16 | 34.01% | |
| DCI | Donaldson | 87.35 | 1.88 | 2.19% | |
| HY | Hyster-Yale Materials Handling | 27.98 | -0.08 | -0.29% | |
| ALH | Alliance Laundry Holdings, Inc. | 25.07 | -0.32 | -1.26% |
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.
Date of analysis: Nov 04, 2026