Tennant Company Reports 2026 First-Quarter Results (05/05/2026 00: 00: 00)

Earnings Release Call

May 5, 2026

https://www.investors.tennantco.com

First Quarter 2026 Results

First Quarter

Highlights

Order Momentum Continues

• Orders grew 10% during the first quarter, demonstrating strong and broad-based demand momentum

• Backlog grew $32 million in the first quarter, as robust order entry outpaced shipments during the quarter

  TNC Earnings Release Call | First Quarter 2026

  Profitability Improvements

• Gross margin and Adjusted EBITDA strengthened sequentially from the fourth quarter of 2025, as ERP stabilization drove improved throughput and operational execution

  Return Capital to Shareholders

• Returned capital to shareholders through dividends totaling $5.5 million and share repurchases for $60 million during the first quarter, representing ~5% of outstanding shares at the start of the year

*Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation

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Tennant Company

ERP North America Recovery

North America ERP Recovery on Track; Shifting from Stabilization to Optimization

Stabilization Complete Shift to Optimization

• Core workflows (order management, production scheduling, fulfillment) operating reliably at scale by quarter end

• Operational performance improved sequentially each month through Q1

• Focus moved from fixing functionality to driving throughput, labor productivity, and system-enabled performance

  TNC Earnings Release Call | First Quarter 2026

• Active work to phase out remaining manual workarounds and address friction points identified during stabilization

  Path to Margin Recovery

  EMEA Phase Deferred

• Enterprise-level gross margin exit rate of approximately 40% in March supports confidence in continued recovery

• Steady Q1 improvement reinforces trajectory of progressive gross margin expansion through the year

• EMEA implementation intentionally pushed beyond 2026 to keep focus on North America recovery

• Lessons learned from North America informing approach to future regional rollouts

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Tennant Company

TNC Robotics Momentum

Acting Decisively to Capture the Robotic Cleaning Inflection Point

Brain Corp Partnership Extended

• Exclusivity arrangement extended three additional years, securing exclusive BrainOS® access in our category

• BrainOS® Clean 2.0 and SelfPath AI delivering 22% better floor coverage, 55% more autonomous operation, and 3x faster fleet deployment in early real-world use

New Products, New Channels

• Launched X16 SWEEP (industrial robotic sweeper) and X2 ROVR (small-format scrubber); plan to bring 10 new AMR products to market over the next 24 months

  TNC Earnings Release Call | First Quarter 2026

• Expanding channel reach via BSCs and distribution partners; on track to deliver $250M in AMR revenue by 2028

  Proven Scale

  and Leadership

  • Profitable, U.S.-based robotics business; 11,500+ robots shipped

    cumulatively since 2018

  • Q1 AMR sales (equipment and autonomy service fees) of approximately

  $27M, or 9% of total net sales

  X16 SWEEP

  industrial robotic sweeper

  
  
  

  TNC Robotics Venture Activated

  • Dedicated venture operating with the speed and urgency of an entrepreneurial startup

  • Accelerated by the full power of the core business: proven portfolio, preferred brands, channel reach, and 1,000+ field service technicians

  
  
  

  X2 ROVR

  small-format

  scrubber

  5

  Tennant Company

  Capital Allocation Framework

  Disciplined Capital Allocation Driving Long-Term Shareholder Value

  Invest in the Business

  • Prioritize organic growth, R&D, and operational improvements

  • Target ~3.0% to 3.5% of sales in R&D; $20M to $25M annual capex

    Maintain Balance Sheet Strength

  • Targeted net leverage of 1x to 2x adjusted EBITDA

  • Expect leverage to trend toward lower end of range by year-end 2026

    TNC Earnings Release Call | First Quarter 2026

    Pursue Strategic M&A

  • Evaluate opportunities that meet strategic and financial criteria

  • Recent EMEA distributor acquisitions strengthened portfolio and capabilities

    Return Capital to Shareholders

  • Share repurchases

    $60M Deployed ~950K Shares $63 Avg Price ~5% of Shares Outstanding

    Q1 2026 share repurchases: high-conviction response to event-driven dislocation

  • Continued disciplined dividend growth

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First Quarter 2026

Tennant Company Earnings Release Call | First Quarter 2026

https://www.investors.tennantco.com

Tennant Company

First-Quarter 2026 Financial Performance

Net Income In millions of USD Adjusted EPS*

$13.1

$0.2

$1.12

First-quarter net income of $0.2M, compared to $13.1M in the prior year

• Gross margin compression associated with ERP recovery efforts and shifting customer mix, coupled with higher operating and interest expense

• Effective tax rate increased to 80.5% from 23.8% due to an increase of discrete tax costs associated with share-based compensation

  Q1'25 Q1'26

  Q1'25 Q1'26

  First-quarter adjusted EPS* of $0.58 per diluted share

  $0.58

  TNC Earnings Release Call | First Quarter 2026

  • Reflects lower operating performance from ERP recovery activities and ongoing operational stabilization efforts in the quarter

  • Excludes amortization expense, ERP modernization costs, ERP amortization costs, legal contingency costs, legal and financial advisory costs, and restructuring-related charges

    *Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation

    8

    Tennant Company

    First-Quarter 2026 Results

    Net Sales Adjusted EBITDA*

    $290 M

    $12 M

    ($16 M)

    $12 M $298 M

    $41 M

    $12 M

    ($7 M)

    ($14 M)

    ($3 M)

    $29 M

    Q1'25 Net Sales Price Volume FX Q1'26 Net Sales

    Q1'25 Adj. EBITDA

    Price Volume Margin S&A / Other Q1'26

    Adj. EBITDA

    By Region**

    Product Categories

    Gross Margin decreased 330 bps to 38.1%

    TNC Earnings Release Call | First Quarter 2026

  • Driven primarily by incremental labor, freight and expedited costs associated with our ERP recovery efforts earlier in the quarter

    -3.0%

    +1.0%

    -2.0%

    -1.9%

    Americas

    EMEA APAC

    Total

    Service

    Parts and Consumables

    Equipment

    $50 M

    $55 M

    $67 M

    $65 M

    $173 M

    $178 M

    2025 Q1 Net Sales 2026 Q1 Net Sales

• Decline was further impacted by mix, while pricing and cost fully offset tariffs and other inflationary pressures

  Adjusted S&A* as a percent of net sales increased 90 bps to 29.6%

• Driven by higher compensation and benefits, and higher software fees, compounded by lower North America volumes

Adjusted EBITDA Margin* decreased 430 bps to 9.8%

*Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation

**Organic net sales (decline) growth

• Driven by gross margin compression related to ERP recovery costs and

  tariff-related inflation, coupled with deleverage in S&A expense

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  Tennant Company

  Capital Deployment

  Cash Flow

  $106 M

  ($31 M) ($3 M)

  $85 M

  ($60 M) ($6 M)

  ($8 M)

  $83 M

  YE 2025 Q1 2026

  Total Debt $273.6M $358.7M

  Net Debt $167.2M $276.1M

  Net Leverage* 1.00x 1.78x

  2025 Cash Operating

  Perfomance

  CapEx Debt, net Share Repurchases Dividends Other Q1'26 Cash

  Revolver Availability $289.3M

  Capital Allocation Priorities

  Invest in the Business

  • $3M of capital expenditures

  • $8M spent on ERP modernization

    • $6M on Income Statement

    • $2M on Balance Sheet

  • $11M spent on R&D investments

Shareholder Return

TNC Earnings Release Call | First Quarter 2026

• $6M of Dividends

• $60M on repurchases of ~950k shares of common stock

*Based on trailing twelve months Adjusted EBITDA 10

TNC Earnings Release Call | First Quarter 2026

Full-Year Guidance

(1) Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation

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$1.240B - $1.280B

Net Sales

3.0% - 6.5%

Organic Net Sales Growth

$4.05 - $4.65

Diluted EPS

$4.70 - $5.30

Adjusted Diluted EPS(1)

$175M - $190M

Adjusted EBITDA(1)

14.1% - 14.8%

Adjusted EBITDA Margin(1)

~$25M

Capital Expenditures

24% - 29%

Adjusted Effective Tax Rate(1)

https://www.investors.tennantco.com

https://www.investors.tennantco.com

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TNC Earnings Release Call | First Quarter 2026

First Quarter 2026

Tennant Company Earnings Release Call | First Quarter 2026

https://www.investors.tennantco.com

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-GAAP measures provide useful information to investors regarding the Company's results of operations and financial condition because they permit a more meaningful comparison and understanding of Tennant Company's operating performance for the current, past or future periods.

Management uses these Non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of the comparative operating performance of the Company.

The Company believes that disclosing S&A expense - as adjusted, S&A expense as a percent of net sales - as adjusted, operating income - as adjusted, operating margin - as adjusted, income before income taxes - as adjusted, income tax expense - as adjusted, net income - as adjusted, net income per diluted share - as adjusted, EBITDA - as adjusted, and EBITDA margin - as adjusted (collectively, the "Non-GAAP measures"), excluding the impacts from special items, is useful to investors as a measure of operating performance. The Company uses these measures to monitor and evaluate operating performance. The Non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). The Company calculates the Non-GAAP measures by adjusting for legal contingency costs, ERP modernization costs, ERP amortization costs, legal and financial advisory costs, restructuring-related costs, transaction-related costs and amortization expense. The Company calculates income tax expense - as adjusted by adjusting for the tax effect of these Non-GAAP measures. The Company calculates net income per diluted share - as adjusted by adjusting for the after-tax effect of these Non-GAAP measures and dividing the result by the diluted weighted average shares outstanding. The Company calculates EBITDA margin - as adjusted by dividing EBITDA - as adjusted by net sales.

Tennant Company

TNC Earnings Release Call | First Quarter 2026

SUPPLEMENTAL NON-GAAP FINANCIAL TABLES

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Tennant Company

TNC Earnings Release Call | First Quarter 2026

SUPPLEMENTAL NON-GAAP FINANCIAL TABLES

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Tennant Company

TNC Earnings Release Call | First Quarter 2026

SUPPLEMENTAL NON-GAAP FINANCIAL TABLES

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Tennant Company

TNC Earnings Release Call | First Quarter 2026

SUPPLEMENTAL NON-GAAP FINANCIAL TABLES

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Tennant Company

TNC Earnings Release Call | First Quarter 2026

SUPPLEMENTAL NON-GAAP FINANCIAL TABLES

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