Tennant Co
NYSE:TNC
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Tennant Co
Amidst the quiet hum of the industrial machinery world, Tennant Company stands out as a seasoned pioneer in the maintenance and cleaning equipment sector. Established in 1870 by George H. Tennant, the company originally crafted wood products, but transformed over the decades into a dominant force in developing innovative cleaning solutions. Headquartered in Minneapolis, Minnesota, Tennant has carved its niche by focusing on designing, manufacturing, and marketing sophisticated cleaning equipment designed to tackle the toughest environments. Their flagship products—scrubbers, sweepers, and floor-cleaning machines—are widely utilized across various industries, such as manufacturing plants, warehouses, retail outlets, and airports, underscoring their versatility and essential role in maintaining cleanliness on a grand scale.
The essence of Tennant's profitability lies in its ability to deliver durable and efficient cleaning solutions. By integrating advanced technologies such as chemical-free cleaning solutions and autonomous robotics, the company captures the interest of environmentally conscious and efficiency-seeking clients worldwide. Their business model is amplified by a robust after-sales service network, including maintenance services and parts replacement, which ensures customer loyalty and repeat business. By continually investing in research and development, Tennant secures a competitive edge, allowing them to thrive in an industry where the demand for cleaner and safer public and private spaces is perpetually vital. As businesses globally acknowledge the importance of sustainable and efficient cleaning practices, Tennant Company’s expertise positions it strategically for enduring success.
Amidst the quiet hum of the industrial machinery world, Tennant Company stands out as a seasoned pioneer in the maintenance and cleaning equipment sector. Established in 1870 by George H. Tennant, the company originally crafted wood products, but transformed over the decades into a dominant force in developing innovative cleaning solutions. Headquartered in Minneapolis, Minnesota, Tennant has carved its niche by focusing on designing, manufacturing, and marketing sophisticated cleaning equipment designed to tackle the toughest environments. Their flagship products—scrubbers, sweepers, and floor-cleaning machines—are widely utilized across various industries, such as manufacturing plants, warehouses, retail outlets, and airports, underscoring their versatility and essential role in maintaining cleanliness on a grand scale.
The essence of Tennant's profitability lies in its ability to deliver durable and efficient cleaning solutions. By integrating advanced technologies such as chemical-free cleaning solutions and autonomous robotics, the company captures the interest of environmentally conscious and efficiency-seeking clients worldwide. Their business model is amplified by a robust after-sales service network, including maintenance services and parts replacement, which ensures customer loyalty and repeat business. By continually investing in research and development, Tennant secures a competitive edge, allowing them to thrive in an industry where the demand for cleaner and safer public and private spaces is perpetually vital. As businesses globally acknowledge the importance of sustainable and efficient cleaning practices, Tennant Company’s expertise positions it strategically for enduring success.
ERP Disruption: North America ERP system go-live in November caused severe operational issues, leading to a $30 million net sales impact and $22 million hit to adjusted EBITDA in Q4.
Sales Decline: Full-year 2025 net sales fell 6.5% to $1.2 billion, mainly due to North American challenges and ERP disruption.
Earnings Drop: Full-year net income dropped to $43.8 million (from $83.7 million in 2024); Q4 showed a net loss of $4.4 million.
Guidance: 2026 sales expected between $1.24–$1.28 billion with 3%–6.5% organic growth and adjusted EBITDA guidance of $175–$190 million.
Robotics Focus: Tennant launched a dedicated robotics group and expects AMR revenue to reach $250 million by 2028.
Margin Outlook: Gross margin for Q1 2026 is expected to match Q4 2025, with gradual improvement through the year.
Capital Return: $88.5 million in share repurchases (6% of shares) and 54th consecutive annual dividend increase in 2025.
Customer Impact: Management acknowledged significant customer disruption but believes most lost sales are recoverable and is focused on rebuilding trust.