Tennant Company · NYSE:TNC
Tennant — Q4 2024 Earnings Presentation
22 slides from Tennant's earnings presentation, Feb 18, 2025
Slide 1: Q4 and Full-Year 2024 Results, Full-Year 2025 Guidance
Q4 and Full-Year 2024 Results Full-Year 2025 Guidance Earnings Release Call February 18, 2025 www.investors.tennantco.com
Slide 2: Safe Harbor Statement
Tennant Company Safe Harbor Statement Certain statements contained in this document are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations
Slide 3: Executive Summary
Fourth-Quarter Results Full-Year Results Executive Net Sales Net Sales Summary $328.9M $1,286.7M +6.3% Organic Growth +3.2% Organic Growth Net Sales Growth ► Fourth quarter organic sales growth of 6.3% led by volume growth ► Full year organic sales growth of 3.2% primarily Adj. EBITDA* Adj. EBITDA*
Slide 4: 2024 Accomplishments
2024 Accomplishments Reduced Backlog Activated M&A Framework ► $125 million backlog reduction during 2024 ► Minority investment in Brain Corp to fuel the next gen of AI-enabled robotic cleaning ► Exited the year with normalized backlog levels ► Acquisition of TCS, Tennant’s long-standing distributor
Slide 5: Acceleration of AMR in 2024
Tennant Company Acceleration of AMR in 2024 2024 AMR sales Strong demand for Strong interest in of $75 million legacy AMR products X4 ROVR ► Driven by strong ► Significant repeat orders ► Increased TNC Earnings Release Call | Fourth Quarter and Full Year 2024 demand for X4 from existing key retail m
Slide 6: Introducing the X6 ROVR in 2025
Tennant Company Introducing the X6 ROVR in 2025 Performance Boost Product Innovation ► Highly maneuverable, purpose- ► Powered by Brain Corp’s market- built AMR delivering superior leading Gen 3, AI-enabled TNC Earnings Release Call | Fourth Quarter and Full Year 2024 cleaning performance and naviga
Slide 7: 2025 Guidance
2025 Guidance Significant momentum Margin expansion initiatives ► Stable market environment outside of APAC ► Continue to prioritize investments aligned with long-term growth drivers while maintaining ► Order demand growing above long-range targets spending discipline ► Execution on enterprise growt
Slide 8: Financial Results: Fourth Quarter and Full Year 2024
Financial Results Fourth Quarter and Full Year 2024 Tennant Company Earnings Release Call | Fourth Quarter and Full Year 2024 www.investors.tennantco.com
Slide 9: Fourth-Quarter and Full-Year Financial Performance
Tennant Company Fourth-Quarter and Full-Year Financial Performance Fourth-quarter and full-year net income decreased compared to prior year periods Net Income In millions of USD Adjusted EPS ► Higher operating costs associated with ERP modernization costs, legal contingency $109.5 accruals, restruct
Slide 10: Fourth-Quarter 2024 Results
Tennant Company Fourth-Quarter 2024 Results Net Sales Adjusted EBITDA TNC Earnings Release Call | Fourth Quarter and Full Year 2024 By Region** Product Categories Adjusted Gross Margin* decreased 90 bps to 41.3% ► Attributed to inflationary pressure on materials and elevated freight costs +10.0% Ame
Slide 11: Full-Year 2024 Results
Tennant Company Full-Year 2024 Results Net Sales Adjusted EBITDA TNC Earnings Release Call | Fourth Quarter and Full Year 2024 By Region** Product Categories Adjusted Gross Margin* increased 20 bps to 42.7% ► Pricing and cost-out initiative efforts more than offset the impact of +6.3% Americas Servi
Slide 12: Capital Deployment
Tennant Company Capital Deployment Cash Flow Includes ~$37M of ERP modernization spend YE 2023 YE 2024 Total Debt $201M $200M Net Leverage 0.43x 0.48x TNC Earnings Release Call | Fourth Quarter and Full Year 2024 Revolver Availability $449.3M Capital Allocation Priorities Invest in the Business Targ
Slide 13: Full-Year Guidance
$1.210B - $1.250B Net Sales (1.0)% – (4.0)% Organic Net Sales Decline $3.80 - $4.30 Diluted EPS Full-Year $5.70 - $6.20 TNC Earnings Release Call | Fourth Quarter and Full Year 2024 Adjusted Diluted EPS(1) Guidance $196M - $209M Adjusted EBITDA(1) 16.2% - 16.7% Adjusted EBITDA Margin(1) ~$20M Capita
Slide 14: www.investors.tennantco.com
www.investors.tennantco.com
Slide 15: Thank You
www.investors.tennantco.com THANK YOU TNC Earnings Release Call | Fourth Quarter and Full Year 2024 15
Slide 16: Appendix
APPENDIX Fourth Quarter and Full Year 2024 Tennant Company Earnings Release Call | Fourth Quarter and Full Year 2024 www.investors.tennantco.com
Slide 17: Non-GAAP Financial Measures
Tennant Company Non-GAAP Financial Measures This presentation and the related conference call include presentation of Non-GAAP measures that include or exclude special items of a nonrecurring and/or nonoperational nature (hereinafter referred to as “special items”). Management believes that the Non-
Slide 18: Supplemental Non-GAAP Financial Tables
Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES TNC Earnings Release Call | Fourth Quarter and Full Year 2024 18
Slide 19: Supplemental Non-GAAP Financial Tables
Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES TNC Earnings Release Call | Fourth Quarter and Full Year 2024 19
Slide 20: Supplemental Non-GAAP Financial Tables
Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES TNC Earnings Release Call | Fourth Quarter and Full Year 2024 20
Slide 21: Supplemental Non-GAAP Financial Tables
Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES TNC Earnings Release Call | Fourth Quarter and Full Year 2024 21
Slide 22: Supplemental Non-GAAP Financial Tables
Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES TNC Earnings Release Call | Fourth Quarter and Full Year 2024 22