Tennant Q3 sales rise 6.2% on higher volumes

Overview

• U.S. cleaning equipment maker's Q3 net sales rose 6.2% yr/yr but missed analyst expectations

• Adjusted EPS for Q3 beat analyst expectations, despite yr/yr decline

• Company reaffirmed full-year 2026 guidance amid strong orders and robotics sales momentum

Outlook

• Tennant sees 2026 net sales between $1.27 bln and $1.31 bln

• Company expects 2026 adj diluted EPS of $3.80 to $4.45

• Tennant forecasts 2026 adj EBITDA of $155 mln to $170 mln

Result Drivers

• VOLUME AND PRICING - Co said Q3 sales growth was driven by higher volumes, especially in North America and robotics, and increased pricing

• ROBOTICS SALES - Robotics sales rose 71% yr/yr, supported by equipment and autonomy subscriptions

• COST PRESSURES - Inflationary costs and part shortages offset sales gains, impacting margins

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Tennant Company is $90.50, about 36.2% above its October 30 closing price of $66.44

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Nov 2 - Allison Transmission Q3 sales jump 121%, beat estimates

• Oct 30 - Paul Mueller Co's Q3 net sales rise on industrial equipment demand in US

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)