Tennant Company (TNC) is a global leader in designing, manufacturing, and marketing innovative cleaning solutions aimed at creating a cleaner, safer, and healthier world. The company offers a wide range of products, including floor maintenance and cleaning equipment, sustainable cleaning technologies, aftermarket parts and consumables, and equipment maintenance services. Tennant serves diverse environments such as retail spaces, factories, hospitals, and schools, reaching customers through a robust direct sales and service organization as well as authorized distributors worldwide.
- Equipment - Manufactures and sells floor maintenance and cleaning equipment, including mechanized cleaning machines used in various industries.
- Parts and Consumables - Provides batteries, brushes, squeegees, and other consumable items essential for maintaining cleaning equipment.
- Service and Other - Offers equipment maintenance, repair services, and asset management solutions to ensure optimal performance and longevity of cleaning equipment.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
David W. Huml ExecutiveBoard | President and Chief Executive Officer | David W. Huml has been the CEO of Tennant Company since March 1, 2021. He previously served as the Chief Operating Officer from April 2020 to March 2021 at TNC. | View Report → | |
Barb Balinski Executive | Senior Vice President, Chief Transformation Officer | Barb Balinski is the Senior Vice President, Chief Transformation Officer at Tennant Company since May 2024. She has an extensive career at TNC, previously holding roles as Senior Vice President, Innovation and Technology (from March 2021 to May 2024) and Vice President of Engineering (starting in 2018). | ||
Brock R. Christianson Executive | Senior Vice President, Chief Human Resources Officer | Brock R. Christianson is the Senior Vice President, Chief Human Resources Officer at TNC since November 2023. He has extensive experience from previous HR leadership roles at Thrivent, Honeywell International, Medtronic, Emerson Electric, and Ernst & Young. | ||
Fay West Executive | Senior Vice President and Chief Financial Officer | Fay West has been serving as Senior Vice President and Chief Financial Officer at Tennant Company since April 2021. Previously, she held pivotal finance roles at SunCoke Energy, Inc., United Continental Holdings, Inc., PepsiAmericas, Inc., and GATX Rail Company. | ||
Kristin A. Erickson Executive | Senior Vice President, General Counsel, and Corporate Secretary | Kristin A. Erickson has served as Senior Vice President, General Counsel, and Corporate Secretary at TNC since December 2020. She joined TNC in April 2008 and previously held roles such as Vice President, Deputy General Counsel, and Chief Compliance Officer from 2019 to 2020. | ||
Patrick W. Schottler Executive | Senior Vice President, Chief Marketing and Technology Officer | Patrick W. Schottler has been serving as the Senior Vice President, Chief Marketing and Technology Officer at TNC since May 2024. He previously held roles as Vice President and General Manager, Asia-Pacific Business Unit from 2017 to 2022 and began his TNC career as a Senior Program Manager in 2011. | ||
Richard H. Zay Executive | Senior Vice President and Chief Commercial Officer | Richard H. Zay has served as the Senior Vice President and Chief Commercial Officer at Tennant Company since March 2021. He previously held key roles at TNC, including Vice President, Global Marketing (joined June 2010) and Senior Vice President, Global Marketing (promoted October 2013). | ||
Andrew P. Hider Board | Independent Director | Chief Executive Officer at ATS Automation Tooling Systems, Inc.; Board Member at ATS Automation Tooling Systems, Inc. | Andrew P. Hider is an Independent Director at TNC, having joined the Board on August 3, 2022 and serving on the Audit and Executive Committees. He brings over 20 years of leadership experience from roles including Chief Executive Officer and Board Member at ATS Automation Tooling Systems, Inc.. | |
Azita Arvani Board | Independent Director | Azita Arvani has been serving as an Independent Director at Tennant Company (TNC) since 2012, where she is also involved with the Compensation, Executive, and Governance Committees. Previously, she held leadership roles including CEO of Rakuten Symphony, North America from May 2022 to September 2023. | ||
Carol S. Eicher Board | Independent Director | Director at Advanced Emission Solutions since 2019; Director at Pinnacle Northwest Capital Corporation since 2024 | Carol S. Eicher has been an Independent Director at Tennant Company since 2008, serving on the Compensation, Executive, and Governance Committees, and previously served as Governance Chair from April 2015 to April 2023. She brings extensive global manufacturing and operations experience from her roles at Innocor, Inc., Dow Chemical, and Rohm and Haas. | |
David Windley Board | Independent Director | Member of the Board of Directors at DHI Group, Inc. | David Windley has served as an Independent Director at Tennant Company since 2016 and acts as the Chair of the Compensation Committee, while also serving on the Executive and Governance Committees. He brings extensive experience from previous key roles at companies such as Yahoo!, Microsoft, and others, enhancing his expertise in human resources and corporate governance. | |
Donal L. Mulligan Board | Chair of the Board | Board Member of Herbalife Nutrition Ltd. ; Board Member of Energizer Holdings, Inc. | Chair of Tennant Company since 2023. He has served as an Independent Director at TNC since 2009 and previously held senior financial roles, including CFO at General Mills from 2007 to February 2020. | |
Maria C. Green Board | Independent Director | Fathom Digital Manufacturing Corporation; Littelfuse, Inc.; Wisconsin Energy Group | Maria C. Green has been an Independent Director at Tennant Company since 2019, bringing extensive experience from her roles as Senior Vice President and General Counsel at Ingersoll Rand plc (October 2015 to June 2019) and other leadership positions at Illinois Tool Works Inc. and several organizations. | |
Mark W. Sheahan Board | Class II Director | Fernweh Group; Manufacturers Alliance for Productivity and Innovation; Minnesota Business Partnership | Mark W. Sheahan is the Class II Director at Tennant Company since May 15, 2024. He brings extensive leadership experience from his role as President and Chief Executive Officer of Graco Inc. since June 2021. | |
Timothy R. Morse Board | Independent Director | Board Member and Advisor to early- to mid-stage start-up companies | Timothy R. Morse has been serving as an Independent Director at TNC since 2021 and currently chairs the Audit Committee. He has extensive experience from previously serving as CFO and Interim CEO at Yahoo! Inc. and as CEO at Ten-X among other senior roles. |
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Despite forecasting a 5% to 6% increase in order rates for 2025, your revenue guidance reflects an organic sales decline of negative 1% to negative 4% due to backlog normalization; how do you plan to achieve margin expansion and maintain adjusted EBITDA margins of 16.2% to 16.7% in a declining revenue environment?
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With the challenges in the Asia Pacific region, particularly demand declines in China and Australia and your expectation of no recovery in these markets for 2025, what specific strategies are you implementing to mitigate these impacts and drive growth in the region?
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You anticipate $50 million in ERP modernization costs in 2025, with a shift towards more expenses rather than capitalized costs; how will this increased expenditure affect your operating margins and earnings, and how do you plan to manage this impact?
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Considering the adverse legal judgment of $14.5 million related to an intellectual property dispute over your ec-H2O technology, what is the potential impact on your financials and operations if your appeal is unsuccessful, and how are you preparing for this outcome?
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While you expect $10 million in annual cost savings from the recent restructuring, you've mentioned that you will experience slight deleveraging due to top-line performance; how will you balance these cost savings against declining revenues, and are additional cost reductions anticipated if market conditions remain challenging?
Research analysts who have asked questions during TENNANT earnings calls.
Steve Ferazani
Sidoti & Company
4 questions for TNC
Aaron Reed
Northcoast Research
3 questions for TNC
Thomas Hayes
CL King & Associates
2 questions for TNC
Aaron Reid
Northcoast Research
1 question for TNC
Edith Priscilla
Northcoast Research
1 question for TNC
Iva Prcela
Northcoast Research
1 question for TNC
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
M&F Management and Financing GmbH | 2024 | Completed acquisition on February 29, 2024, by Tennant Company for a total of $34.9 million (comprising $30.8M cash, $3.9M for settling transactions, and an additional $0.2M payment) to expand its EMEA reach, especially into Central and Eastern Europe. The deal brought key assets—including $5.3M in cash, $13.2M in customer lists, and $0.6M in backlog—along with assumed liabilities and generated $9.5M in goodwill, aligning with Tennant's strategic growth in the region. |
Recent press releases and 8-K filings for TNC.
- Tennant Company, a global leader in the $9 billion cleaning equipment market, is driving growth through innovation, particularly in robotic cleaning equipment, which now represents 6% of sales with 10,000 units deployed and over $300 million in sales in the last 4.5-5 years.
- The company is committed to achieving 3% to 5% top-line growth, 50 to 100 basis points of bottom-line EBITDA expansion, and 100% free cash flow conversion from net income.
- Tennant reported strong incoming order rates for the first half of 2025, with Q1 up 13% and Q2 up 4%, resulting in a 7% overall order rate.
- Management plans to add $150 million in net sales through acquisitions from 2024-2026, targeting core market expansion, robotics, and adjacent categories.
- The company is navigating market uncertainty, particularly concerning tariffs, which are seen as a significant challenge and risk , while also managing the optics of revenue decline due to the unwind of $125 million in backlog in 2024 and an additional $50 million in 2025.
- Tennant Company reported Q2 2025 net sales of $319 million, a decrease from $331 million in Q2 2024, primarily driven by volume declines across all geographies.
- Net income for Q2 2025 was $20.2 million and adjusted diluted EPS was $1.49, compared to $27.9 million and $1.83 respectively in Q2 2024.
- The company reaffirmed its full-year 2025 guidance, projecting net sales between $1.210 billion and $1.250 billion and adjusted diluted EPS between $5.70 and $6.20.
- Long-term growth targets include 3% - 5% organic net sales growth and 50-100bps adjusted EBITDA margin expansion.
- Tennant Co reported Q2 2025 net sales of $318.6 million, an organic decline of 4.5%, and Adjusted Diluted EPS of $1.49/share, down from $1.83/share in Q2 2024.
- The company reaffirmed its full-year 2025 guidance, expecting organic net sales decline of (1.0)% – (4.0)% and Adjusted Diluted EPS between $5.70 and $6.20.
- Orders grew 4% during Q2 2025 and 8% year-to-date, with a book-to-bill ratio above 1.0. AMR sales accelerated to 6% of net sales in Q2 2025.
- In Q2 2025, Tennant Co returned $13 million to shareholders through share repurchases and paid $5 million in dividends.
- Tennant Co is a global leader with a 14% share of the $9 billion mechanized cleaning equipment market, holding 25% in the Americas, 10% in EMEA, and 5% in APAC.
- The company targets 3–5% organic revenue CAGR and 50–100 bps of annual EBITDA expansion, driven by automation, electric products, aftermarket service growth, and disciplined cost management.
- Its autonomous mobile robot (AMR) segment has generated $250 million in cumulative revenue, sold 10 000 units to over 900 customers across 25 countries, achieved $75 million in 2024 sales, and aims for a $100 million+ run rate by 2027.
- With 0.6× leverage, a $150 million M&A pipeline (2024–2026), and a 2 million-share buyback authorization, Tennant maintains a strong balance sheet to fund R&D, acquisitions, dividends, and opportunistic share repurchases.
- Tennant Co reported Q1 2025 net sales of $290M with an organic decline of 5% and adjusted EBITDA of $41M (14.1% margin) .
- Order rates increased by 13% for a fourth consecutive quarter, with full-year order growth expected between 3.5% and 7% .
- Full year guidance was reaffirmed with net sales of $1.210B–$1.250B, GAAP EPS of $3.80–$4.30, adjusted EPS of $5.70–$6.20, and adjusted EBITDA of $196M–$209M .
- Mitigation strategies for a $40M tariff impact include pricing increases of 7%–10% and sourcing adjustments, alongside the launch of the Clean 360 program to accelerate AMR adoption .
- Q1 adjusted diluted EPS was $1.12 per share, down from $1.81 per share in Q1 2024 .
- Ongoing product innovation is highlighted by the upcoming launch of the X6 ROVR in Q2 2025 .
- Global leadership in mechanized cleaning: Tennant Co emphasizes its differentiated product portfolio and service model, targeting an addressable market of ~$8.6B and strong positions across major geographies.
- Robust financial performance and strategic investments: The company highlights strong free cash flow generation, margin expansion initiatives, and significant investments in ERP modernization and product innovation, as evidenced by improved Q4 and full-year 2024 results.