Tennant Company (NYSE: TNC) reported first‑quarter 2026 revenue of $297.9 million, a 2.7% year‑over‑year increase from $290.0 million in Q1 2025. Diluted earnings per share rose to $0.58, beating the consensus estimate of $0.40 by $0.18 (a 45% beat). The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $29.1 million, giving a margin of 9.8%, down from 14.1% in the prior year. The earnings beat can be attributed to disciplined cost management and a favorable mix shift toward higher‑margin robotics and automation solutions, which offset the decline in legacy cleaning‑equipment sales.
The company’s order book grew 10% during the quarter, and backlog increased by $32 million, reflecting strong demand for its robotics platform. Segment analysis shows that Americas organic sales declined 1.9% year‑over‑year, while EMEA sales grew modestly and APAC performance was mixed. Despite the regional mix shift, the overall revenue gain was driven by pricing strength in the robotics segment and favorable foreign‑currency effects.
Margin compression was driven by elevated labor and freight costs associated with the North America ERP implementation, as well as ongoing ERP‑related inefficiencies. The adjusted EBITDA margin fell from 14.1% in Q1 2025 to 9.8% in Q1 2026, a 4.3‑percentage‑point decline. Management noted that the cost impact of the ERP rollout has been decreasing each month, and the company expects margin recovery as the system stabilizes.
Tennant reaffirmed its full‑year guidance, projecting net sales of $1.240 billion to $1.280 billion and adjusted earnings per share of $4.70 to $5.30 for 2026. The company also announced a $5.5 million dividend and $60 million in share repurchases, underscoring its commitment to returning capital to shareholders while investing in future growth.
Dave Huml, Tennant’s president and chief executive officer, said the quarter “reflects strong net sales growth and solid order demand as we advanced key strategic priorities across the business. We saw robust order momentum throughout the quarter, along with strong robotics growth and other exciting developments that underscore the advancement of our key growth initiatives. During the quarter, we achieved meaningful ERP stabilization, with margin impacts decreasing each month as recovery efforts progressed, and we are now turning our focus toward optimization and efficiency.”
Dave Huml also noted that the board’s authorization of a new two‑million‑share repurchase program reflects strong confidence in Tennant’s strategic direction and reinforces the company’s commitment to disciplined, balanced capital allocation. The program provides greater flexibility to manage capital priorities while preserving the financial capacity to invest in the growth agenda.
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