Tennant (NYSE:TNC) Trading Down 13.5% on Disappointing Earnings

Tennant Company (NYSE:TNC)’s stock price was down 13.5% on Thursday following a weaker than expected earnings announcement. The company traded as low as $73.06 and last traded at $75.5010. Approximately 21,354 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 214,281 shares. The stock had previously closed at $87.25.

The industrial products company reported $0.83 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.33 by ($0.50). Tennant had a net margin of 2.55% and a return on equity of 14.87%. The firm had revenue of $324.00 million during the quarter, compared to the consensus estimate of $329.55 million. During the same quarter in the previous year, the firm earned $1.49 earnings per share. The business’s quarterly revenue was up 1.7% compared to the same quarter last year. Tennant has set its FY 2026 guidance at 3.800-4.450 EPS.

Tennant Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be paid a $0.31 dividend. The ex-dividend date is Monday, August 31st. This represents a $1.24 annualized dividend and a dividend yield of 1.6%. Tennant’s dividend payout ratio (DPR) is presently 74.70%.

Tennant declared that its board has authorized a stock repurchase program on Monday, May 4th that allows the company to repurchase 2,000,000,000,000 shares. This repurchase authorization allows the industrial products company to buy up to 11.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

Tennant News Summary

Here are the key news stories impacting Tennant this week:

• Positive Sentiment: Second-quarter net sales rose 1.7% year over year to $324.0 million, while orders increased 6.6% to $339.5 million and backlog reached $127 million. Autonomous mobile-robot sales also climbed 37% to approximately $31 million, indicating solid demand in strategic growth areas. Tennant Q2 net sales rise to $324 million as profit declines
• Positive Sentiment: Tennant raised its full-year revenue guidance to $1.270 billion-$1.310 billion, reflecting confidence in demand and order momentum. The company also declared a quarterly dividend of $0.31 per share, equal to an annualized yield of approximately 1.4%. Tennant Company Reports Second Quarter 2026 Results
• Neutral Sentiment: Several company insiders have purchased shares during the past six months, including CEO David Huml. However, institutional trading was mixed, with 93 investors adding shares and 135 reducing positions in the latest reported quarter. Tennant Q2 net sales rise to $324 million as profit declines
• Negative Sentiment: Adjusted earnings of $0.83 per share missed the $1.23-$1.33 analyst consensus, while GAAP diluted EPS fell to $0.44 from $1.08 a year earlier. Net income dropped 62.4% to $7.6 million, despite the modest revenue growth. Tennant lags Q2 earnings estimates
• Negative Sentiment: Tennant lowered full-year adjusted EBITDA guidance to $155 million-$170 million and set EPS guidance at $3.80-$4.45, well below the roughly $5.12 analyst expectation. Management cited lingering enterprise-resource-planning inefficiencies in North America plus pricing and volume pressure in Europe, the Middle East and Africa. Tennant second-quarter results

Wall Street Analysts Forecast Growth

TNC has been the topic of a number of recent analyst reports. Weiss Ratings raised shares of Tennant from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, June 5th. Wall Street Zen raised shares of Tennant from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Finally, Zacks Research raised shares of Tennant from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $91.00.

Hedge Funds Weigh In On Tennant

Large investors have recently bought and sold shares of the stock. Hantz Financial Services Inc. raised its stake in shares of Tennant by 85.1% during the fourth quarter. Hantz Financial Services Inc. now owns 385 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 177 shares during the last quarter. UMB Bank n.a. boosted its holdings in shares of Tennant by 1,778.6% during the 4th quarter. UMB Bank n.a. now owns 526 shares of the industrial products company’s stock valued at $39,000 after acquiring an additional 498 shares during the last quarter. State of Wyoming bought a new position in shares of Tennant during the 2nd quarter valued at $73,000. BNP Paribas Financial Markets increased its position in Tennant by 25.1% during the second quarter. BNP Paribas Financial Markets now owns 1,936 shares of the industrial products company’s stock valued at $150,000 after acquiring an additional 389 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised its position in Tennant by 40.8% in the second quarter. Tower Research Capital LLC TRC now owns 2,492 shares of the industrial products company’s stock worth $193,000 after acquiring an additional 722 shares during the period. 93.33% of the stock is owned by hedge funds and other institutional investors.

Tennant Trading Down 12.6%

The company has a market capitalization of $1.30 billion, a P/E ratio of 45.76, a P/E/G ratio of 2.49 and a beta of 1.13. The company has a current ratio of 2.12, a quick ratio of 1.41 and a debt-to-equity ratio of 0.67. The stock has a 50 day moving average of $86.83 and a 200-day moving average of $79.57.

About Tennant

Tennant Company is a global provider of solutions that help keep facilities clean, safe and sustainable. The company designs, manufactures and markets a broad range of cleaning machines, chemicals and service programs that address the cleaning needs of customers in diverse industries, including manufacturing, warehousing, food and beverage, healthcare and education. Tennant’s product portfolio encompasses both ride-on and walk-behind floor scrubbers and sweepers, carpet extractors, power brushes, pressure washers and autonomous cleaning machines.

Founded in 1870 and headquartered in Minneapolis, Minnesota, Tennant has grown from a regional manufacturer into a multinational organization with operations in more than 70 countries and sales representation in over 100 markets worldwide.