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Dec 31, 2025
Tennant Q4 2025 Earnings Report
Tennant Company reported Q4 2025 results which were significantly impacted by a North American ERP system implementation.
Key Takeaways
Tennant Company's fourth-quarter performance was severely hindered by production and fulfillment disruptions following the go-live of its new ERP system in North America. This led to an estimated $30 million unfavorable impact on net sales and a $22 million impact on Adjusted EBITDA, resulting in a net loss for the quarter despite growth in other regions like EMEA and APAC.
North America ERP implementation caused significant order-management and fulfillment disruptions in November.
Q4 Net sales declined 11.3% to $291.6 million, with organic sales down 13.9%.
Adjusted diluted EPS of $0.48 included an estimated $0.91 negative impact from the ERP transition.
The company expects to return to a normalized operating rhythm by the first half of 2026 as stabilization efforts continue.
Revenue by Geographic Location
Forward Guidance
Tennant issued 2026 guidance reflecting a recovery from ERP disruptions and a return to normalized operations by mid-year.
Positive Outlook
- Full-year 2026 net sales expected between $1.24 billion and $1.28 billion.
- Organic net sales growth projected at 3.0% to 6.5%.
- Adjusted EBITDA expected to rise to between $175 million and $190 million.
- Adjusted diluted net income per share targeted at $4.70 to $5.30.
- Anticipated progressive margin expansion as operational momentum builds.
Challenges Ahead
- ERP-related operational challenges expected to continue early in 2026.
- Two-week manufacturing shutdown in January 2025 for inventory will affect Q1 sales.
- Continued gross margin pressure from tariffs implemented in late 2025.
- Temporary operation below optimal efficiency during system stabilization.
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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