Tennant (NYSE:TNC) Shares Down 13.5% Following Weak Earnings

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

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

Tennant Dividend Announcement

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

Tennant declared that its board has authorized a share repurchase program on Monday, May 4th that permits the company to buyback 2,000,000,000,000 outstanding shares. This buyback authorization permits the industrial products company to repurchase up to 11.1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its shares are undervalued.

Trending Headlines about Tennant

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

Analyst Ratings Changes

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

Hedge Funds Weigh In On Tennant

A number of hedge funds and other institutional investors have recently modified their holdings of TNC. Comerica Bank grew its stake in Tennant by 106.5% in the 4th quarter. Comerica Bank now owns 25,379 shares of the industrial products company’s stock valued at $1,870,000 after purchasing an additional 13,089 shares during the period. Deprince Race & Zollo Inc. raised its stake in shares of Tennant by 15.9% during the 4th quarter. Deprince Race & Zollo Inc. now owns 156,674 shares of the industrial products company’s stock worth $11,547,000 after purchasing an additional 21,459 shares during the period. Lightrock Netherlands B.V. boosted its holdings in shares of Tennant by 7.2% in the 4th quarter. Lightrock Netherlands B.V. now owns 148,526 shares of the industrial products company’s stock worth $10,946,000 after buying an additional 10,000 shares during the last quarter. Gabelli Funds LLC boosted its holdings in shares of Tennant by 11.6% in the 1st quarter. Gabelli Funds LLC now owns 199,700 shares of the industrial products company’s stock worth $13,260,000 after buying an additional 20,808 shares during the last quarter. Finally, River Road Asset Management LLC boosted its stake in Tennant by 9.9% in the fourth quarter. River Road Asset Management LLC now owns 265,530 shares of the industrial products company’s stock valued at $19,570,000 after acquiring an additional 23,823 shares during the last quarter. Hedge funds and other institutional investors own 93.33% of the company’s stock.

Tennant Stock Down 12.6%

The stock’s 50-day moving average price is $86.83 and its two-hundred day moving average price is $79.57. 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 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.

Tennant Company Profile

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.