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Dec 31, 2024
Tennant Q4 2024 Earnings Report
Tennant Company reported its fourth-quarter and full-year financial results for 2024, achieving record full-year net sales and expanded adjusted EBITDA margin.
Key Takeaways
Tennant Company concluded 2024 with strong fourth-quarter results, driven by a 5.6% increase in net sales to $328.9 million and a 14.2% rise in adjusted EBITDA to $47.4 million. Despite a decrease in net income and diluted EPS for the quarter, the company achieved record full-year net sales of $1,286.7 million and an adjusted EBITDA margin of 16.2%, reflecting strong operational leverage.
Fourth-quarter net sales increased by 5.6% to $328.9 million, primarily due to 6.3% organic growth driven by volume in the Americas and EMEA.
Full-year adjusted EBITDA reached $208.8 million, an 8.2% increase from 2023, with the adjusted EBITDA margin expanding by 70 basis points to 16.2%.
The company generated $89.7 million in full-year operating cash flow and returned $41.0 million to shareholders through dividends and share repurchases.
Tennant announced the new X6 ROVR, a purpose-built AMR scrubber with an integrated autonomous charging station, expected to be commercially available in Q2 2025.
Revenue by Geographic Location
Forward Guidance
For 2025, Tennant Company anticipates a stable demand environment outside of APAC, expecting mid-single-digit order growth, but a decrease in organic sales due to backlog reduction. The company aims for year-over-year margin expansion through cost management and operating efficiencies.
Positive Outlook
- Anticipates mid-single-digit order growth.
- Expects year-over-year margin expansion.
- Projected adjusted EBITDA margin between 16.2% and 16.7%.
- Forecasted adjusted diluted EPS between $5.70 and $6.20.
- Targeted adjusted effective tax rate between 23% and 27%.
Challenges Ahead
- Anticipates an organic net sales decline between 1.0% and 4.0%.
- The year-over-year impact of backlog reduction will result in a decrease in organic sales.
- Diluted net income per share is projected to be lower than the full-year 2024 adjusted diluted EPS.
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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