Cleaning equipment maker Tennant's Q3 net sales down 4%, miss estimates

Tennant

03/11/2025 21:09

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/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$303.30 mln
$309.33 mln (3 Analysts)
Q3 Adjusted EPS
Miss
$1.46
$1.50 (3 Analysts)
Q3 EPS
$0.80
Q3 Net Income
$14.9 mln
Q3 Adjusted EBITDA Margin
16.40%


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 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: ID:nBw6thXr1a

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(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.)