Tennant lowers adjusted EBITDA outlook as Q2 sales slightly miss estimates
Tennant lowers adjusted EBITDA outlook as Q2 sales slightly miss estimates
Overview
Cleaning equipment maker's Q2 net sales up 1.7%, a slight miss versus analyst expectations
Adjusted EPS for Q2 fell 44% and missed analyst expectations
Company raised full-year net sales guidance but lowered adjusted EBITDA outlook due to margin recovery pace
Outlook
Tennant raises 2026 net sales guidance to $1.270-$1.310 bln
Company lowers 2026 adjusted EBITDA guidance to $155-$170 mln
Tennant expects 2026 adjusted diluted EPS of $3.80-$4.45
Result Drivers
ERP INEFFICIENCIES - Residual ERP-related inefficiencies in North America weighed on margins and profitability
EMEA PRESSURES - Pricing and volume pressure in EMEA contributed to margin compression and lower profitability
ROBOTICS SALES - Robotics sales grew 37% year over year, contributing to order momentum
Company press release: ID:nBwbpP9mNa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Slight Miss* | $324 mln | $326.1 mln (3 Analysts) |
Q2 Adjusted EPS | Miss | $0.83 | $1.33 (3 Analysts) |
Q2 EPS |
| $0.44 |
|
Q2 Net Income |
| $7.6 mln |
|
Q2 Adjusted EBITDA Margin |
| 10.9% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "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 $94.50, about 8.3% above its August 5 closing price of $87.25
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago
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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.)