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Sep 30, 2025
Tennant Q3 2025 Earnings Report
Tennant reported a revenue decline with improved adjusted profitability in Q3 2025.
Key Takeaways
Tennant Company delivered Q3 2025 net sales of $303.3 million, down 4% year-over-year, primarily due to volume declines across regions. However, the company achieved margin expansion, posting a 120 basis point increase in adjusted EBITDA margin, and maintained strong liquidity and operational efficiency.
Net sales declined 4.0% year-over-year to $303.3 million due to lower volume, particularly in North America.
Adjusted EBITDA grew to $49.8 million, with margin expansion to 16.4%, up 120 basis points.
Free cash flow reached $22.3 million, converting 183.3% of net income.
Cash and cash equivalents remained strong at $99.4 million with ample borrowing capacity.
Revenue by Geographic Location
Forward Guidance
Tennant reaffirmed its 2025 full-year guidance despite macroeconomic headwinds, projecting net sales between $1.210 billion and $1.250 billion, and adjusted EBITDA toward the lower end of the $196 million to $209 million range.
Positive Outlook
- Strong fourth-quarter momentum expected to support full-year targets.
- Product innovation including Z50 Citadel™ and X6 ROVR bolstering growth.
- Favorable foreign currency movements offsetting organic pressure.
- Cost controls in gross margin and S&A supporting profit margins.
- Strategic account expansion contributing to pipeline strength.
Challenges Ahead
- Tariff-related inflation expected to rise modestly.
- Organic sales projected slightly below previous (1)% to (4)% guidance.
- Demand softness particularly in Americas industrial segment.
- ERP investments impacting cash flow and profitability.
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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