Tennant (NYSE:TNC) Sets New 12-Month High on Earnings Beat

Key Points

• Q1 earnings beat: Tennant reported EPS of $0.58 versus ~$0.40 expected and revenue of $297.9M, sending the stock to a new 52-week high and prompting FY2026 EPS guidance of $4.70–$5.30 (roughly in line with consensus).
• Shareholder returns strengthened: The Board authorized repurchasing an additional 2.0 million shares (bringing total capacity to ~2.56M, about 15% of shares outstanding) and declared a quarterly dividend of $0.31 ($1.24 annualized, ~1.4% yield).
• Risk: ERP issues and probe: Reported ERP/system problems have triggered a securities-law firm investigation, introducing potential execution, disclosure and legal risks despite the positive quarter.

Shares of Tennant Company (NYSE:TNC - Get Free Report) hit a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $87.06 and last traded at $85.8850, with a volume of 67449 shares changing hands. The stock had previously closed at $81.95.

The industrial products company reported $0.58 earnings per share for the quarter, topping analysts' consensus estimates of $0.40 by $0.18. The business had revenue of $297.90 million during the quarter, compared to analysts' expectations of $289.25 million. Tennant had a net margin of 3.64% and a return on equity of 16.05%. Tennant's revenue for the quarter was up 2.7% on a year-over-year basis. During the same period in the previous year, the company earned $1.12 earnings per share. Tennant has set its FY 2026 guidance at 4.700-5.300 EPS.

Tennant Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 29th will be given a dividend of $0.31 per share. The ex-dividend date is Friday, May 29th. This represents a $1.24 annualized dividend and a yield of 1.4%. Tennant's dividend payout ratio is 52.99%.

Tennant announced that its Board of Directors has authorized a share repurchase plan on Monday, May 4th that permits the company to repurchase 2,000,000,000,000 outstanding shares. This repurchase authorization permits the industrial products company to purchase up to 11.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its stock is undervalued.

Key Stories Impacting Tennant

Here are the key news stories impacting Tennant this week:

• Positive Sentiment: Q1 results beat consensus — Tennant reported Q1 EPS of $0.58 (above estimates of roughly $0.40–$0.24) and revenue of $297.9M (+2.7% YoY), signaling resilient demand and margin recovery. Press Release
• Positive Sentiment: Board authorizes expanded buyback — The Board approved repurchasing up to 2.0M additional shares, bringing total repurchase capacity to ~2.56M shares (~15% of basic shares outstanding), which should support EPS and signal confidence from management. Board Authorizes Repurchase
• Neutral Sentiment: FY2026 guidance roughly in line but slightly cautious — Tennant updated FY26 EPS guidance to $4.70–$5.30 (consensus ~4.96) and revenue guidance to $1.2B–$1.3B (vs. consensus near $1.3B). The midpoint is close to expectations but leaves some execution risk to hit consensus exactly. Guidance Details
• Negative Sentiment: ERP system issues and law-firm probe raise risk — Reports that Tennant experienced ERP/system issues triggered a significant drop in the stock and prompted a securities-law firm to announce an investigation; this introduces execution, disclosure and potential legal risks until clarified. ERP Issues & Investigation

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Zacks Research raised Tennant from a "strong sell" rating to a "hold" rating in a report on Monday, April 27th. Roth Mkm restated a "buy" rating and issued a $91.00 price target (down from $107.00) on shares of Tennant in a research report on Wednesday, February 25th. Wall Street Zen cut Tennant from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Freedom Capital cut Tennant from a "strong-buy" rating to a "hold" rating in a research report on Thursday, February 26th. Finally, Weiss Ratings upgraded Tennant from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, April 24th. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $91.00.

Insider Buying and Selling

In related news, CEO David W. Huml acquired 4,000 shares of the business's stock in a transaction that occurred on Thursday, February 26th. The shares were bought at an average cost of $64.39 per share, with a total value of $257,560.00. Following the completion of the purchase, the chief executive officer directly owned 67,958 shares in the company, valued at $4,375,815.62. The trade was a 6.25% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, Director Donal L. Mulligan acquired 5,000 shares of the business's stock in a transaction that occurred on Thursday, February 26th. The stock was bought at an average cost of $63.86 per share, for a total transaction of $319,300.00. Following the completion of the purchase, the director owned 5,000 shares of the company's stock, valued at $319,300. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired 20,163 shares of company stock valued at $1,261,674 over the last 90 days. 3.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Tennant

Institutional investors have recently added to or reduced their stakes in the business. American Century Companies Inc. lifted its stake in Tennant by 26.6% in the third quarter. American Century Companies Inc. now owns 434,996 shares of the industrial products company's stock valued at $35,261,000 after buying an additional 91,382 shares during the period. Deprince Race & Zollo Inc. lifted its stake in Tennant by 15.9% in the fourth quarter. Deprince Race & Zollo Inc. now owns 156,674 shares of the industrial products company's stock valued at $11,547,000 after buying an additional 21,459 shares during the period. Kopion Asset Management LLC lifted its stake in Tennant by 40.6% in the fourth quarter. Kopion Asset Management LLC now owns 123,037 shares of the industrial products company's stock valued at $9,068,000 after buying an additional 35,531 shares during the period. SG Americas Securities LLC increased its holdings in shares of Tennant by 238.0% during the third quarter. SG Americas Securities LLC now owns 16,328 shares of the industrial products company's stock valued at $1,324,000 after acquiring an additional 11,497 shares in the last quarter. Finally, Teton Advisors LLC bought a new stake in shares of Tennant during the third quarter valued at approximately $705,000. 93.33% of the stock is owned by institutional investors and hedge funds.

Tennant Stock Performance

The stock has a market cap of $1.55 billion, a P/E ratio of 36.92, a P/E/G ratio of 2.45 and a beta of 1.12. The company has a fifty day moving average price of $70.64 and a 200 day moving average price of $74.69. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.05 and a quick ratio of 1.37.

About Tennant

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.