Tennant’s Q4 net income swings to a USD 4.4 million loss on 166.7% drop

Reuters
02/24
Tennant’s Q4 net income swings to a USD 4.4 million loss on 166.7% drop

Tennant reported Q4 2025 net sales of USD 291.6 million (-11.3%) and a net loss of USD 4.4 million, with diluted EPS of USD -0.23. Adjusted diluted EPS was USD 0.48, including an estimated USD 0.91 impact from the company’s North America ERP implementation; adjusted EBITDA was USD 25.6 million (-46.0%) with an adjusted EBITDA margin of 8.8% (down 560 bps). Tennant said the ERP disruption reduced Q4 net sales by about USD 30 million and adjusted EBITDA by about USD 22 million, driven by order-management and fulfillment disruptions, manufacturing scheduling issues and reduced inventory visibility, and slower transaction processing that led to customer delays; December revenue recovered from November levels but required incremental labor and other costs. For FY 2025, Tennant posted net sales of USD 1.2 billion (-6.5%) and net income of USD 43.8 million, with diluted EPS of USD 2.36; adjusted diluted EPS was USD 4.57 and adjusted EBITDA was USD 167.4 million (-19.8%) with an adjusted EBITDA margin of 13.9% (down 230 bps). Orders increased about 4% and backlog rose by about USD 15 million. Tennant reported FY 2025 operating cash flow of USD 65 million and free cash flow of USD 43.3 million, including USD 59.1 million of ERP modernization investments, and said it returned USD 110.4 million to shareholders through USD 87.7 million of share repurchases and USD 21.9 million of dividends. For 2026, Tennant guided net sales of USD 1.24 billion to USD 1.28 billion and adjusted diluted EPS of USD 4.70 to USD 5.30, and said ERP-related challenges are expected to continue early in the year, including a two-week manufacturing shutdown in early January for a physical inventory.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Tennant Company published the original content used to generate this news brief via Business Wire (Ref. ID: 202602231900BIZWIRE_USPR_____20260223_BW955763) on February 24, 2026, and is solely responsible for the information contained therein.

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