Tennant lowers adjusted EBITDA outlook as Q2 sales slightly miss estimates

Overview

• Cleaning equipment maker's Q2 net sales up 1.7%, a slight miss versus analyst expectations

• Adjusted EPS for Q2 fell 44% and missed analyst expectations

• Company raised full-year net sales guidance but lowered adjusted EBITDA outlook due to margin recovery pace

Outlook

• Tennant raises 2026 net sales guidance to $1.270-$1.310 bln

• Company lowers 2026 adjusted EBITDA guidance to $155-$170 mln

• Tennant expects 2026 adjusted diluted EPS of $3.80-$4.45

Result Drivers

• ERP INEFFICIENCIES - Residual ERP-related inefficiencies in North America weighed on margins and profitability

• EMEA PRESSURES - Pricing and volume pressure in EMEA contributed to margin compression and lower profitability

• ROBOTICS SALES - Robotics sales grew 37% year over year, contributing to order momentum

Company press release: ID:nBwbpP9mNa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Tennant Co is $94.50, about 8.3% above its August 5 closing price of $87.25

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Aug 4 - Germany's WashTec H1 revenue rises on higher equipment sales

• Aug 5 - Symbotic Q3 revenue rises 22%, slightly beats estimates

• Aug 3 - Alamo Group Q2 sales beat estimates on organic demand growth in industrial equipment

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)