Tennant Slashes EBITDA Outlook as Q2 EPS Misses by 38%
TNC sits 25% above its 52-week low of $60.175.
Summary
Tennant's Q2 adjusted EPS of $0.83 missed consensus by 38%, driven by lingering ERP inefficiencies in North America and pricing pressure in EMEA. While full-year sales guidance was nudged higher to $1.27-$1.31B, the adjusted EBITDA outlook was cut to $155-$170M, signaling margin recovery is slower than expected. This follows a Q1 where net income plunged 98.5% on ERP costs, and the CFO's upcoming retirement adds leadership uncertainty. Robotics sales grew 37%, but not enough to offset the margin hit. The stock closed at $87.25, with a $94.50 median target implying limited upside if execution doesn't improve.
At the time of this announcement, TNC was trading at $75.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $60.18 to $91.93. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.