Tennant Company (TNC) AI Stock Analysis

Tennant Company and its subsidiaries design, manufacture, and market floor cleaning equipment globally across regions including the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its catalog includes floor maintenance machines, detergent-free and sustainable cleaning technologies, aftermarket parts, consumables, repair services, specialty surface coatings, and asset management systems. The company also provides financing, rental, and leasing programs. Products are marketed under brands such as Tennant, Nobles, Alfa Uma Empresa Tennant, IRIS, VLX, IPC, Gaomei, and Rongen to retail stores, distribution centers, factories, arenas, healthcare facilities, and contract cleaning operations.

Tennant generated revenue of $1.09B in FY2021, expanding to $1.29B in FY2024 before decreasing 6.5% to $1.20B in FY2025. Across the 5-year period from FY2020 to FY2025, revenue achieved a CAGR of 3.8%. Net income reached a high of $109.5M in FY2023 with an 8.8% net margin, but retreated to $43.8M and a 3.6% net margin in FY2025. Gross margin held at 40.2% in FY2025, while operating margin fell from 11.1% in FY2023 to 5.7% in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue rose 1.7% year-over-year, while quarterly earnings fell 59.3%.

As of June 30, 2026, Tennant held $76.9M in cash and short-term investments against total debt of $391.8M, resulting in net debt of $314.9M. Liquidity is supported by a current ratio of 2.04 and a debt-to-equity ratio of 0.73 based on shareholders' equity of $533.4M. For FY2025, operating cash flow was $65.0M and free cash flow reached $43.3M. The company directed capital toward $21.7M in capital expenditures, $88.5M in share buybacks, and $21.9M in dividends paid.

Tennant trades at a trailing P/E of 62.8x, above the median of 24.8x for US-listed Industrials, though its forward P/E of 11.8x sits below the peer median of 17.2x. Enterprise value stands at $1.45B, representing an EV-to-EBITDA multiple of 14.9x compared to the peer median of 13.9x. The stock trades at a price-to-sales ratio of 0.9x versus the peer median of 1.5x. Over the past year, the shares fell 16.3%, trailing the S&P 500 gain of 16.8%, while its 5-year return of -8.9% lagged the benchmark return of 83.0%.

Tennant pays a quarterly dividend with an annualized forward rate of $1.24 per share, resulting in a 1.90% dividend yield and a payout ratio of 37.0%. The company has paid dividends for 42 consecutive years, generating a 5-year annualized dividend growth rate of 6.1%. Its last ex-dividend date was August 31, 2026.

Wall Street coverage consists of 2 Strong Buy ratings, 1 Hold rating, and zero Buy, Sell, or Strong Sell ratings. The mean price target is $87.75, representing a 34.3% premium over the last close of $65.35. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.29B and EPS of $3.85, an EPS decline of 15.8%. Tennant beat EPS estimates in 1 of the last 4 quarters, with next earnings scheduled for November 2, 2026.

This page is an AI-written research summary of Tennant Company (TNC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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