Tennant Company Shares Plunge 26% After Disappointing Q4 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy TNC?
Source: Fool
- Earnings Decline: Tennant Company's Q4 sales reached $292 million with adjusted EBITDA of $45 million, reflecting declines of 11% and 46% respectively, primarily due to operational disruptions from the ERP transition in November affecting order entry, production, and shipping.
- Severe Sales Loss: Management estimates that approximately half of the $30 million in sales lost due to ERP issues will be unrecoverable, as customer relationships were strained during the three-week disruption, exacerbating the performance pressure.
- Stock Price Reaction: As of 1 p.m. ET on Tuesday, Tennant's shares plummeted 24.48% to a current price of $62.15, indicating market concerns over the company's future profitability and stability, leading to a market cap reduction to $1.5 billion.
- Cautious Future Outlook: Management anticipates that ERP issues will stabilize by Q2, with organic sales projected to grow between 3% and 6.5% by 2026, and adjusted EPS expected to range from $4.70 to $5.30, yet the market remains uncertain about the company's future prospects.
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Analyst Views on TNC
Wall Street analysts forecast TNC stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 82.300
Low
107.00
Averages
111.00
High
115.00
Current: 82.300
Low
107.00
Averages
111.00
High
115.00
About TNC
Tennant Company is engaged in designing, manufacturing, and marketing solutions. It offers products and solutions consisting of manual and autonomous mechanized cleaning equipment for both industrial and commercial uses, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and business solutions, such as financing, rental and leasing programs, and machine-to-machine asset management solutions. Its products are used in various environments, including retail establishments, distribution centers, factories and warehouses, public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals, and clinics, and more. It markets its offerings under the brands: Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei and Rongen brands, as well as private-label brands. It has a portfolio of differentiated technology solutions that includes IRIS, ec-H2O NanoClean, and ReadySpace.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tennant Company Q4 2025 Earnings Call Insights
- ERP System Impact: Tennant Company faced significant operational disruptions in Q4 2025 due to severe functionality issues with its new ERP system, resulting in approximately $15 million in lost orders and a net sales impact of around $30 million, which led to a $22 million reduction in adjusted EBITDA, highlighting the challenges of system implementation.
- Decline in Financial Performance: The company reported consolidated net sales of $291.6 million for Q4 2025, an 11.3% decrease from the previous year, with adjusted EBITDA dropping to $25.6 million, reflecting the substantial negative impact of the ERP rollout on financial health.
- Cautious Future Outlook: Tennant expects net sales for 2026 to range between $1.24 billion and $1.28 billion, indicating organic sales growth of 3% to 6.5%, while management remains cautiously optimistic about recovering profitability despite ongoing ERP-related inefficiencies.
- Robotics Business Potential: The company aims to achieve approximately $250 million in AMR revenue by 2028, demonstrating strong confidence in robotics technology and market potential, despite current challenges, indicating a strategic focus on transformation within the industry.
See More
Tennant Company Shares Plunge 26% After Disappointing Q4 Earnings
- Earnings Decline: Tennant Company's Q4 sales reached $292 million with adjusted EBITDA of $45 million, reflecting declines of 11% and 46% respectively, primarily due to operational disruptions from the ERP transition in November affecting order entry, production, and shipping.
- Severe Sales Loss: Management estimates that approximately half of the $30 million in sales lost due to ERP issues will be unrecoverable, as customer relationships were strained during the three-week disruption, exacerbating the performance pressure.
- Stock Price Reaction: As of 1 p.m. ET on Tuesday, Tennant's shares plummeted 24.48% to a current price of $62.15, indicating market concerns over the company's future profitability and stability, leading to a market cap reduction to $1.5 billion.
- Cautious Future Outlook: Management anticipates that ERP issues will stabilize by Q2, with organic sales projected to grow between 3% and 6.5% by 2026, and adjusted EPS expected to range from $4.70 to $5.30, yet the market remains uncertain about the company's future prospects.
See More
Tennant Reports Significant Q4 Earnings Decline
- Sales and Earnings Decline: Tennant reported Q4 sales of $292 million, an 11% year-over-year decline, while adjusted EPS plummeted 68%, primarily due to disruptions in order entry, production, and shipping linked to the ERP transition, severely impacting overall performance.
- Customer Relationship Strain: Management estimates that of the $30 million in lost sales due to the ERP transition, roughly half will be unrecoverable, which poses a significant risk to customer retention, particularly as the company faces challenges in 2026.
- Stock Price Drop: As of 1 p.m. ET on Tuesday, Tennant's shares fell by 26%, reflecting strong market reactions to its disappointing earnings, and the company has experienced a 50% pullback from its 2024 all-time high, indicating sluggish revenue growth at just 3% annually over the past five years.
- Cautious Future Outlook: Although management anticipates stabilization of ERP issues by Q2 and projects organic sales growth between 3% and 6.5% in 2026, the market remains wary of its future profitability, as Tennant's stock price continues to reflect considerable uncertainty.
See More
Tennant Co. Stock Enters Oversold Territory
- Oversold Indicator Analysis: Tennant Co.'s Relative Strength Index (RSI) has dropped to 22.2, significantly below the oversold threshold of 30, indicating a strong downward trend in stock price that may present buying opportunities for investors.
- Price Volatility Impact: On Tuesday, TNC shares traded as low as $61.96, contrasting sharply with its recent annualized dividend yield of 1.51% based on a share price of $82.30, attracting attention from dividend-seeking investors.
- Dividend History Significance: While dividends are not always predictable, analyzing Tennant Co.'s dividend history can assist investors in assessing the likelihood of the recent dividend's sustainability, thereby influencing their investment decisions.
- Market Sentiment Shift: With TNC's RSI indicating an oversold condition, some bullish investors may perceive that the recent heavy selling is nearing exhaustion, prompting them to seek suitable entry points for potential gains.
See More
Tennant Company Under Investigation for Securities Violations
- Stock Price Plunge: Tennant Company's shares fell over 20% on February 24, 2026, after the company reported Q4 results that missed analyst expectations, indicating strong market concerns about its future performance.
- Declining Performance: The company disclosed a year-over-year decline in net sales and a sharp drop in adjusted earnings, primarily due to operational disruptions related to its Enterprise Resource Planning system transition, which negatively impacted production, margins, and volumes.
- Bleak Outlook: Tennant projected continued pressure into 2026, signaling a slower recovery than investors anticipated, further exacerbating concerns about its financial health in the market.
- Legal Investigation: Block & Leviton is investigating potential securities law violations by Tennant Company and may file actions on behalf of investors seeking to recover losses, reflecting heightened scrutiny over corporate governance and accountability.
See More
Tennant Reports Q4 Adjusted Earnings Decline
- Earnings Decline: Tennant reported Q4 adjusted earnings of $0.48 per diluted share, a significant drop from $1.52 in the same quarter last year, indicating challenges in market conditions and a weakening profitability.
- Market Reaction: The substantial earnings miss raises investor concerns about the company's future profitability, potentially putting downward pressure on the stock price and affecting market confidence in the short term.
- Need for Strategic Adjustment: The company must reassess its market strategies and cost control measures to navigate the current economic landscape and competitive pressures, aiming to restore growth in profitability.
- Uncertain Future Outlook: Given the increasing economic uncertainty, Tennant's future performance may face further challenges, prompting investors to closely monitor the company's upcoming financial guidance and market developments.
See More
Tennant Company Q4 2025 Earnings Call Insights
- ERP System Impact: Tennant Company faced significant operational disruptions in Q4 2025 due to severe functionality issues with its new ERP system, resulting in approximately $15 million in lost orders and a net sales impact of around $30 million, which led to a $22 million reduction in adjusted EBITDA, highlighting the challenges of system implementation.
- Decline in Financial Performance: The company reported consolidated net sales of $291.6 million for Q4 2025, an 11.3% decrease from the previous year, with adjusted EBITDA dropping to $25.6 million, reflecting the substantial negative impact of the ERP rollout on financial health.
- Cautious Future Outlook: Tennant expects net sales for 2026 to range between $1.24 billion and $1.28 billion, indicating organic sales growth of 3% to 6.5%, while management remains cautiously optimistic about recovering profitability despite ongoing ERP-related inefficiencies.
- Robotics Business Potential: The company aims to achieve approximately $250 million in AMR revenue by 2028, demonstrating strong confidence in robotics technology and market potential, despite current challenges, indicating a strategic focus on transformation within the industry.
See More
Tennant Company Shares Plunge 26% After Disappointing Q4 Earnings
- Earnings Decline: Tennant Company's Q4 sales reached $292 million with adjusted EBITDA of $45 million, reflecting declines of 11% and 46% respectively, primarily due to operational disruptions from the ERP transition in November affecting order entry, production, and shipping.
- Severe Sales Loss: Management estimates that approximately half of the $30 million in sales lost due to ERP issues will be unrecoverable, as customer relationships were strained during the three-week disruption, exacerbating the performance pressure.
- Stock Price Reaction: As of 1 p.m. ET on Tuesday, Tennant's shares plummeted 24.48% to a current price of $62.15, indicating market concerns over the company's future profitability and stability, leading to a market cap reduction to $1.5 billion.
- Cautious Future Outlook: Management anticipates that ERP issues will stabilize by Q2, with organic sales projected to grow between 3% and 6.5% by 2026, and adjusted EPS expected to range from $4.70 to $5.30, yet the market remains uncertain about the company's future prospects.
See More
Tennant Reports Significant Q4 Earnings Decline
- Sales and Earnings Decline: Tennant reported Q4 sales of $292 million, an 11% year-over-year decline, while adjusted EPS plummeted 68%, primarily due to disruptions in order entry, production, and shipping linked to the ERP transition, severely impacting overall performance.
- Customer Relationship Strain: Management estimates that of the $30 million in lost sales due to the ERP transition, roughly half will be unrecoverable, which poses a significant risk to customer retention, particularly as the company faces challenges in 2026.
- Stock Price Drop: As of 1 p.m. ET on Tuesday, Tennant's shares fell by 26%, reflecting strong market reactions to its disappointing earnings, and the company has experienced a 50% pullback from its 2024 all-time high, indicating sluggish revenue growth at just 3% annually over the past five years.
- Cautious Future Outlook: Although management anticipates stabilization of ERP issues by Q2 and projects organic sales growth between 3% and 6.5% in 2026, the market remains wary of its future profitability, as Tennant's stock price continues to reflect considerable uncertainty.
See More
Tennant Co. Stock Enters Oversold Territory
- Oversold Indicator Analysis: Tennant Co.'s Relative Strength Index (RSI) has dropped to 22.2, significantly below the oversold threshold of 30, indicating a strong downward trend in stock price that may present buying opportunities for investors.
- Price Volatility Impact: On Tuesday, TNC shares traded as low as $61.96, contrasting sharply with its recent annualized dividend yield of 1.51% based on a share price of $82.30, attracting attention from dividend-seeking investors.
- Dividend History Significance: While dividends are not always predictable, analyzing Tennant Co.'s dividend history can assist investors in assessing the likelihood of the recent dividend's sustainability, thereby influencing their investment decisions.
- Market Sentiment Shift: With TNC's RSI indicating an oversold condition, some bullish investors may perceive that the recent heavy selling is nearing exhaustion, prompting them to seek suitable entry points for potential gains.
See More
Tennant Company Under Investigation for Securities Violations
- Stock Price Plunge: Tennant Company's shares fell over 20% on February 24, 2026, after the company reported Q4 results that missed analyst expectations, indicating strong market concerns about its future performance.
- Declining Performance: The company disclosed a year-over-year decline in net sales and a sharp drop in adjusted earnings, primarily due to operational disruptions related to its Enterprise Resource Planning system transition, which negatively impacted production, margins, and volumes.
- Bleak Outlook: Tennant projected continued pressure into 2026, signaling a slower recovery than investors anticipated, further exacerbating concerns about its financial health in the market.
- Legal Investigation: Block & Leviton is investigating potential securities law violations by Tennant Company and may file actions on behalf of investors seeking to recover losses, reflecting heightened scrutiny over corporate governance and accountability.
See More
Tennant Reports Q4 Adjusted Earnings Decline
- Earnings Decline: Tennant reported Q4 adjusted earnings of $0.48 per diluted share, a significant drop from $1.52 in the same quarter last year, indicating challenges in market conditions and a weakening profitability.
- Market Reaction: The substantial earnings miss raises investor concerns about the company's future profitability, potentially putting downward pressure on the stock price and affecting market confidence in the short term.
- Need for Strategic Adjustment: The company must reassess its market strategies and cost control measures to navigate the current economic landscape and competitive pressures, aiming to restore growth in profitability.
- Uncertain Future Outlook: Given the increasing economic uncertainty, Tennant's future performance may face further challenges, prompting investors to closely monitor the company's upcoming financial guidance and market developments.
See More
