Aaron Reid's questions to Tennant Co (TNC) leadership • Q3 2024
Question
Aaron Reid asked what is required in Q4 to achieve full-year guidance, how AMR is performing against expectations, and whether extended replacement cycles in the rental channel could be offset by higher parts and consumables sales.
Answer
CEO David Huml explained that hitting the guidance midpoint requires strong Q4 order growth, building on recent momentum, in addition to a final $21 million in backlog reduction. He expressed strong optimism for AMR, highlighting its long-term disruptive potential and the success of the X4 ROVR. Huml clarified that the extended replacement cycle issue is confined to the rental channel and is not a broad market trend, while expressing confidence in the company's multiple other growth levers.