Tennant's Q4 results miss estimates on ERP woes

Tennant

24/02/2026 24:13

Overview

Floor-care equipment leader's Q4 revenue and adjusted EPS missed analyst expectations

ERP system implementation caused disruptions, impacting Q4 performance

Company repurchased ~$88 mln in shares in 2025, about 6% of outstanding shares

Outlook

Tennant expects 2026 net sales between $1.24 bln and $1.28 bln

Company projects 2026 adjusted EPS of $4.70 to $5.30

Tennant anticipates ERP challenges to continue early in 2026

Result Drivers

ERP IMPLEMENTATION - Tennant's Q4 performance was adversely affected by ERP system transition, causing production disruptions and impacting sales and costs

ORDER MANAGEMENT ISSUES - ERP-related constraints led to order-management and fulfillment disruptions

REGIONAL SALES IMPACT - North America saw a 22.3% decline in Q4 organic sales due to ERP transition and demand softness, partially offset by volume increases in EMEA and APAC

Company press release: ID:nBw2XdxCMa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$291.60 mln
$319.93 mln (3 Analysts)
Q4 Adjusted EPS
Miss
$0.48
$1.70 (3 Analysts)
Q4 EPS
-$0.23
Q4 Net Income
-$4.40 mln
Q4 Adjusted EBITDA Margin
8.8%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $111.00, about 34.9% above its February 23 closing price of $82.30

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)