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Jun 30, 2022
Tennant Q2 2022 Earnings Report
Tennant's second quarter results for 2022 were reported, showing increased sales and stabilized profitability despite challenges.
Key Takeaways
Tennant Company reported a slight increase in net sales and a rise in net income for Q2 2022, driven by higher selling prices and the absence of a prior-year debt extinguishment expense, although gross margin was lower due to inflation and currency impacts.
Net sales increased slightly to $280.2 million, a 0.4% increase compared to Q2 2021.
Organic sales increased by approximately 4.4%, driven by higher selling prices, but were partially offset by volume declines due to supply-chain constraints.
Net income increased to $16.6 million due to the absence of a non-recurring debt expense and a gain on the sale of a building.
Adjusted EBITDA decreased to $30.3 million due to lower margins and unfavorable currency impact.
Forward Guidance
Tennant is confirming its full-year 2022 guidance but expects net sales, net income per share, and Adjusted EBITDA to be near the lower end of the range due to foreign currency headwinds and evolving market conditions.
Positive Outlook
- Targeted actions and investments aimed at improving parts availability and supply-chain stability to enable increased production output.
- Production volumes and gross margins will improve in the second half of the year.
- Focus on supply-chain recovery to ramp production output.
- Focus on selling innovative new products.
- Focus on delivering a superior experience to benefit our customers.
Challenges Ahead
- Continuing macroenvironment challenges in the second half of 2022.
- Foreign currency headwinds.
- Evolving market conditions.
- Net sales expected to be near the lower end of the guidance range.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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