Tennant Company

Tennant Company reported second-quarter results on August 5 that showed orders climbing 6.6% year over year to $339.5 million while net income fell 62.4% to $7.6 million. Robotics sales jumped 37% to roughly $31 million, part of the company's push toward a target of $250 million in autonomous mobile robot revenue by 2028, and backlog reached $127 million. Gross margin fell to 39.5%, a 260 basis point decline, and Adjusted EBITDA dropped 30.8% to $35.3 million as ERP rollout costs, supply constraints, and higher freight and tariff-driven material costs weighed on North America, while EMEA absorbed competitive price concessions. Management raised full-year net sales guidance to a range of $1.270 billion to $1.310 billion but lowered full-year Adjusted EBITDA guidance to a range of $155 million to $170 million. The Americas posted organic sales growth of 1.4%, while EMEA organic sales declined 2.8% and APAC organic sales fell 10.6%.

In the Q2 earnings season for water infrastructure stocks, Mueller Water Products reported revenues of $395.9 million, up 4.1% year on year, exceeding analysts' expectations by 1.2%, and delivered a very strong quarter with beats on EPS and EBITDA estimates, though it gave the weakest full-year guidance update in the group. Among the five tracked companies, Watts Water Technologies was the best performer, with revenues of $763.2 million, up 18.6% year on year, beating expectations by 4.9%, while Tennant was the weakest, with revenues of $324 million, up 1.7%, missing estimates by 1.7% and providing disappointing EBITDA guidance. Energy Recovery saw revenues plummet 57.2% to $12 million, missing estimates by 36.3%, and Xylem reported revenues of $2.34 billion, up 1.5%, meeting expectations. As a group, the companies' revenues missed consensus estimates by 6.4%, and their shares have declined on average 9.4% since the latest earnings results.

Tennant reported quarterly earnings of $0.83 per share, missing the Zacks Consensus Estimate of $1.23 per share and marking an earnings surprise of negative 32.52%. This compares to earnings of $1.49 per share a year ago. Revenues for the quarter ended June 2026 came in at $324 million, surpassing the consensus estimate by 0.89% and up from $318.6 million in the prior-year period. The company has topped consensus revenue estimates twice over the last four quarters but has beaten EPS estimates only once in that span. Tennant shares have gained about 21.1% year-to-date, outperforming the S&P 500's 13% rise.

Bleichmar Fonti & Auld LLP is investigating Tennant Company for potential securities fraud related to its enterprise resource planning system rollout. The investigation follows a 23.4% stock drop on February 24, 2026, after Tennant disclosed severe operational disruptions from its North American ERP launch, including an inability to process and ship customer orders. The company reported losing roughly $30 million in sales and expects to spend more than $20 million on remediation in 2026, compared to a planned $5 million. The stock fell $19.28 per share, from $82.30 to $63.02. Investors who lost money are encouraged to contact the firm.

Lowey Dannenberg P.C. is investigating Tennant Company for potential violations of federal securities laws. The investigation follows Tennant's February 24, 2026 disclosure that its new ERP system rollout in North America caused severe operational disruptions, including an inability to process and ship customer orders, resulting in roughly $30 million in lost sales and requiring more than $20 million in remediation spending in 2026, compared to a planned $5 million. This came after the company had repeatedly assured investors the project was on time and on budget and that the Asia-Pacific launch had been successful. The news caused Tennant's stock to drop $19.28 per share, or more than 23%, from $82.30 to $63.02 in one day. The law firm is urging investors who suffered losses to contact them or check eligibility on its case management platform.

Tennant shares have beaten the S&P 500 by 9.9% over the past six months, now trading at $87.58 after an 18.4% gain, but analysts urge caution due to weak long-term fundamentals. The company's revenue grew at a sluggish 3.7% compounded annual rate over the last five years, while earnings per share expanded just 2.7% annually over the same period. Return on invested capital has declined by an average of 4.5 percentage points per year, signaling fewer profitable growth opportunities. With the stock at 15.2 times forward earnings, the valuation appears reasonable but the shaky fundamentals present too much downside risk.

Lowey Dannenberg P.C. is investigating Tennant Company for potential violations of federal securities laws. The investigation follows Tennant's February 24, 2026 disclosure that its new ERP system rollout in North America caused severe operational disruptions, preventing the company from processing and shipping customer orders. Tennant reported losing roughly $30 million in sales and needing to spend more than $20 million in 2026 on remediation, compared to a planned $5 million. The news caused Tennant's stock to drop $19.28 per share, or more than 23%, from $82.30 on February 23, 2026 to $63.02 on February 24, 2026. The firm is seeking to represent investors who suffered losses in Tennant securities.

Wall Street has issued rare downbeat forecasts for Tennant, Hub Group, and Lumen Technologies, with consensus price targets implying limited or negative returns. Tennant carries a target of $91.50, just 1.4% above its $90.20 price, while Hub Group's $42.20 target suggests a 3.9% decline from $43.92, and Lumen's $8.29 target implies a 2.7% gain from $8.07. The cautious outlooks reflect weakening fundamentals: Tennant and Hub Group have seen annual sales declines and eroding returns on capital, while Lumen has experienced revenue drops, falling earnings per share, and shrinking free cash flow margins. Financial institutions typically avoid such negative calls to protect other business lines, making these forecasts particularly notable.

Bleichmar Fonti & Auld LLP is investigating Tennant Company for potential securities fraud related to its enterprise resource planning system implementation. The investigation focuses on whether Tennant made false and misleading statements about the ERP rollout, including assurances that the project was on time and on budget and that the Asia-Pacific launch was successful. On February 24, 2026, Tennant disclosed severe operational disruptions from the North American ERP launch, causing an inability to process and ship orders, resulting in roughly $30 million in lost sales and over $20 million in remediation costs for 2026, compared to a planned $5 million. The stock fell $19.28 per share, or more than 23%, from $82.30 to $63.02. Investors are encouraged to contact the firm to discuss their rights.