Overview

* Tennant Q3 net sales fell 4%, missing analyst expectations due to volume declines

* Adjusted EPS for Q3 missed analyst expectations, despite improved operating performance

* Company achieved 120 bps adjusted EBITDA margin expansion, driven by gross margin growth

Outlook

* Company reaffirms 2025 net sales guidance of $1.210 bln to $1.250 bln

* Tennant expects adjusted EBITDA of $196 mln to $209 mln for 2025

* Company projects adjusted EPS of $5.70 to $6.20 for 2025

Result Drivers

* PRICE REALIZATION - Strategic pricing actions helped offset volume declines and expand gross margins

* NEW PRODUCT LAUNCH - Tennant launched the T360 walk-behind scrubber to support its mid-tier growth strategy

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $303.30 $309.33

mln mln (3

Analysts

)

Q3 Miss $1.46 $1.50 (3

Adjusted Analysts

EPS )

Q3 EPS $0.80

Q3 Net $14.9

Income mln

Q3 16.40%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

* Wall Street's median 12-month price target for Tennant Co ( TNC ) is $108.50, about 26.3% above its October 31 closing price of $80.00

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)