Tennant Q2 Misses by 38%, Lifts Sales View but Cuts Profit Outlook on ERP Woes
TNC sits 31% above its 52-week low of $60.175.
Summary
Tennant Company reported Q2 2026 adjusted EPS of $0.83, missing consensus by 38%, while raising full-year sales guidance but lowering adjusted EBITDA guidance due to persistent ERP-related inefficiencies and EMEA margin pressure.
Key Events · Earnings and Guidance · TNC
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Q2 Earnings Miss
Adjusted EPS of $0.83 missed consensus by 38%, with net income falling 62.4% year over year to $7.6 million.
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Guidance Revision
Full-year net sales guidance raised to $1.270-$1.310 billion, but adjusted EBITDA guidance lowered to $155-$170 million, reflecting slower margin recovery.
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Margin Compression
Adjusted EBITDA margin contracted 510 basis points to 10.9%, driven by ERP inefficiencies in North America and pricing/cost pressure in EMEA.
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Robotics Momentum
AMR sales grew 37% year over year to approximately $31 million, supporting the company's $250 million revenue target by 2028.
Analysis · TNC · Technology
Tennant's Q2 adjusted EPS of $0.83 missed consensus by 38%, driven by lingering ERP inefficiencies in North America and margin pressure in EMEA. While the company raised its full-year sales guidance to $1.270-$1.310 billion on strong order growth and robotics momentum, it slashed its adjusted EBITDA forecast to $155-$170 million, signaling that margin recovery will be slower than expected. The dual guidance revision—higher top line, lower bottom line—reflects a company still grappling with operational disruptions even as demand holds up. With the CFO's recent retirement announcement and a net leverage ratio of 2.0x, the earnings miss and lowered profit outlook add to near-term uncertainty.
At the time of this filing, TNC was trading at $79.00 on NYSE in the Technology sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $60.18 to $91.93. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.