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Sep 30, 2023
Tennant Q3 2023 Earnings Report
Tennant reported strong net sales and net income growth, and increased full-year 2023 guidance.
Key Takeaways
Tennant Company reported a strong third quarter with net sales of $304.7 million, a 15.9% increase compared to the third quarter of 2022. Net income increased by 46.8% to $22.9 million. The company also increased its full-year 2023 guidance.
Net sales reached $304.7 million, up 15.9% from Q3 2022, with 13.9% organic growth driven by strong pricing and volume.
Adjusted EBITDA increased to $45.9 million, compared to $33.8 million in the prior-year period, with Adjusted EBITDA margin improving by 220 basis points to 15.1%.
Operating cash flow was $54.4 million, converting over 100% of net income to free cash flow for the third consecutive quarter.
Full-year 2023 guidance was increased, with expected net sales between $1.23 billion and $1.25 billion and Adjusted EBITDA between $190 million and $200 million.
Revenue by Geographic Location
Forward Guidance
The company is updating its full-year 2023 guidance ranges, including a narrowing of net sales and an increase of net income per share.
Positive Outlook
- Net sales between $1,230 million and $1,250 million
- Organic net sales growth of 12.5% - 14.5%
- Diluted net income per share of $5.00 - $5.40
- Adjusted diluted net income per share of $5.70 - $6.10
- Adjusted EBITDA of $190 - $200 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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