Q4 and Full-Year 2025 Results Full-Year 2026 Guidance
Earnings Release Call
February 24, 2026
https://www.investors.tennantco.com
*Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
Adj. Diluted EPS*
$4.57/share
$6.57/share in 2024
Adj. Diluted EPS*
$0.48/share
$1.52/share in Q4 2024
Adj. EBITDA*
$167.4M
13.9% Adj. EBITDA Margin
Adj. EBITDA*
$25.6M
8.8% Adj. EBITDA Margin
Net Sales
$1,203.5M
-7.3% Organic Decline
Net Sales
$291.6M
-13.9% Organic Decline
Executive Summary
ERP update
ERP go-live in Q425 introduced unexpected challenges (order management, fulfillment, scheduling)
Targeted and decisive actions taken to stabilize critical operations. Improvements anticipated throughout 2026
Near-term impact has been meaningful, and affected both our customers and our financial performance
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
Estimated Q4 impact: $30 million net sales and $22 million Adjusted EBITDA
Net Sales
Fourth quarter organic sales decline of 13.9% driven by volume decline and North America's unanticipated ERP challenges
Full year organic sales decline of 7.3% primarily driven by volume declines due to expected lapping of backlog reduction, and North America's ERP challenges
Adjusted EBITDA
Full year Adjusted EBITDA* decreased 19.8% to $167.4 million
Adjusted EBITDA Margin* decreased 230 bps to 13.9%
Fourth-Quarter Results
Full-Year Results
3
2025 Year in Review
Innovation & Growth Platforms
Four new major products launched
AMR sales of $85 million with strong X4/X6 adoption
TNC Robotics launched to accelerate AMR scaling
Resilience & Demand Durability
Orders resilient across markets; order growth of 4% YoY
Global commercial momentum, with EMEA and APAC returning to growth in Q4
Capital Allocation Discipline
Repurchased ~$88M in shares, or ~6% of outstanding shares, demonstrating continued commitment to shareholder value creation
Paid consistent dividends throughout the year, including the Company's 54th consecutive annual dividend increase
Achievement
Long-Term
Growth Targets
3-5%
Maintained strong liquidity, enabling flexibility for continued investment and M&A
FY2025 Results
Organic Net Sales
Net Sales - Price
0.5-1%
Net Sales - Go-to-Market
~1%
Net Sales - New Products
1.5-2%
Adj. EBITDA Margin Expansion*
50-100bps
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
T360
*Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
Mid-Size Walk Behind Floor Scrubber
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Tennant Company
Launch of Dedicated TNC Robotics GroupPRODUCT COVERAGE
Acceleration and product portfolio optimization
New offerings to reduce customer risk and friction
GO-TO-MARKET
Increase brand awareness and demand generation
Scale robotic business development capability and capacity
Build out the robotic distribution channel
CUSTOMER INTERFACE
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
Scaling of demo, pilot, and deployment capabilities
Establish globally consistent customer success approach
Accelerating Adoption and Scaling of Autonomous Cleaning Solutions
Targeting $250 million in AMR net sales by 2028
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Looking Ahead to 2026
ERP Stabilization
Target North America ERP stability early in 2026, with efficiency improving through the first half
Expect phase out of manual workarounds as system reliability strengthens
Apply lessons from the NA rollout to reduce risk and refine future ERP phases
AMR Momentum
Scale autonomous cleaning solutions through a dedicated cross-functional team accelerating development and commercialization
Drive AMR growth through new product launches, expanding higher-value mix
Strengthen customer onboarding and deployment support to speed adoption and ensure reliable
in-field performance
Demand Resilience & Financial Progress
Capture resilient demand and backlog momentum as operational stability returns
Expand margins through pricing actions, cost efficiencies, and favorable product and customer mix
Expect improving financial performance as ERP-related constraints expected to unwind through the first half of 2026
2026 Guidance
Organic Net Sales Growth
3.0% - 6.5%%
Adj. EBITDA Margin Expansion*
20-90 bps
Adj. EPS*
$4.70-$5.30
*Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
X6 ROVR
Autonomous Floor Scrubber
6
Financial ResultsFourth Quarter and Full Year 2025
Tennant Company Earnings Release Call | Fourth Quarter and Full Year 2025
https://www.investors.tennantco.com
7
Tennant Company
Fourth-Quarter and Full-Year Financial PerformanceFourth-quarter results shifted from net income in the prior year to a net loss
Quarter significantly impacted by the North America ERP transition, which reduced fourth-quarter profitability by roughly $17 million
Year-over-year comparisons also affected by prior-year non-recurring items, including legal contingency accruals, restructuring activities, and M&A-related costs
Net (Loss) Income
In millions of USD
$83.7
$43.8
$6.6
-$4.4
Q4'24 Q4'25 2024 vs 2025
Adjusted EPS*
$6.57
Fourth quarter adjusted EPS* of $0.48 per diluted share
$4.57
$1.52
$0.48
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
ERP-related operational disruptions reduced adjusted EPS by approximately $0.91, driven by lower sales volume and higher labor, freight, and other stabilization costs
Results further pressured by tariff-driven material cost inflation and specific in-period charges, including inventory reserve adjustments
Full-year net income decreased compared to prior year period
The decline reflects lower volumes, less favorable product and channel mix, tariff-related cost pressures, and the impact of the fourth-quarter incl. ERP transition, which collectively outweighed pricing and cost-reduction initiatives
Full year adjusted EPS* of $4.57 per diluted share
Down from $6.57 in 2024, primarily due to lower volume,
*Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
margin compression, tariff-related inflation, and the operational impact of the ERP disruption late in the year
8
Tennant Company
Fourth-Quarter 2025 ResultsNet Sales
$329 M $4 M
Adjusted EBITDA*
($50 M)
$9 M $292 M
$47 M
$4 M
($20 M)
($5 M)
$26 M
Q4'24 Net Sales Price Volume*** FX Q4'25 Net Sales
Q4'24 Adj. EBITDA
Price Volume*** Margin/Other Q4'25
Adj. EBITDA
By Region**
Product Categories
Gross Margin decreased 670 bps to 34.6%
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
Driven by the North America ERP transition, along with higher material costs and in period charges, partially offset by pricing and
-22.3%
+3.0%
+11.0%
-13.9%
Americas
EMEA APAC
Total
Service
Parts and Consumables
Equipment
Q4'24 Net Sales Q4'25 Net Sales
foreign exchange benefits
Adjusted S&A* as a percent of net sales was relatively flat compared to the prior period
Adjusted EBITDA Margin* decreased 560 bps to 8.8%
Driven by lower volume, operating deleverage and incremental ERP stabilization costs
ERP implementation disruption impact totaling approximately $22M
*Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
**Organic net sales (decline) growth
***Volume includes inorganic impact from M&A activity
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$166 M
$212 M
$69 M
$66 M
$57 M
$51 M
Tennant Company
Full-Year 2025 ResultsNet Sales Adjusted EBITDA*
$1,287 M $19 M
($111 M)
$9 M $1,204 M
$209 M
$19 M
($47 M) $167 M
($14 M)
2024 Net Sales Price Volume*** FX 2025 Net Sales
2024 Adj. EBITDA Price Volume*** Margin/Other 2025
Adj. EBITDA
By Region** Product Categories
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
Gross Margin decreased 250 bps to 40.2%
$809 M
$715 M
$276 M
$274 M
$213 M
$204 M
Driven primarily by lower volume and unfavorable mix, coupled with the
-10.5%
+0.5%
-2.2%
-7.3%
Americas
EMEA APAC
Total
Service
Parts and Consumables
Equipment
2024 Net Sales 2025 Net Sales
late-year North America ERP transition impacts and with higher
tariff-related material and service-related costs and other Q4 charges; partially offset by pricing and FX benefits
Adjusted S&A* as a percent of net sales increased 30 bps to 27.7%
Driven by net sales deleverage
Adjusted EBITDA Margin* decreased 230 bps to 13.9%
Driven by lower volume, operating deleverage, and the cumulative impact
*Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
**Organic net sales (decline) growth
*** Volume includes inorganic impact from M&A activity
of the fourth-quarter ERP operational disruption
10
Tennant Company
Capital DeploymentCash Flow
$100 M
$65 M
($22 M) ($3 M)
$74 M
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
($110 M)
$2 M $106 M
2024 Cash Operating Performance
CapEx M&A Debt, net Dividends / Share Repurchases
Proceeds from stock options / FX / Other
2025 Cash
Capital Allocation Priorities
Invest in the Business
$22M of capital expenditures
$59M of ERP modernization spend
$41M of spend for R&D investments
Shareholder Return
$22M of Dividends
$88M of share repurchases of ~1.1M shares of common stock
YE 2024 YE 2025
Total Debt $199.5M $273.6M Net Leverage 0.48x 1.00x Revolver Availability $374.3M
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Full-Year Guidance
(1) Excludes ERP modernization costs and certain nonoperational items and amortization expense
$1.240B - $1.280B
Net Sales
3.0% - 6.5%
Organic Net Sales Growth
$4.05 - $4.65
Diluted EPS
$4.70 - $5.30
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
Adjusted Diluted EPS(1)
$175M - $190M
Adjusted EBITDA(1)
14.1% - 14.8%
Adjusted EBITDA Margin(1)
~$25M
Capital Expenditures(1)
24% - 29%
Adjusted Effective Tax Rate(1)
12
Z50 Citadel
Outdoor Sweeper
T260
Walk Behind Floor Scrubber
https://www.investors.tennantco.com
13
THANK YOU
https://www.investors.tennantco.com
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TNC Earnings Release Call | Fourth Quarter and Full Year 2025
APPENDIX
Fourth Quarter and Full Year 2025
Tennant Company Earnings Release Call
https://www.investors.tennantco.com
15
Tennant Company
Non-GAAP Financial MeasuresThis 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 selling and administrative ("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, 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.
16
Tennant Company
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
17
Tennant Company
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
18
Tennant Company
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
19
Tennant Company
TNC Earnings Release Call | Fourth Quarter and Full Year 2025
SUPPLEMENTAL NON-GAAP FINANCIAL TABLES
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