| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 52 | 66.1x | 17.8x | Around median | |
Growth | 21 | -2.9% | 7.1% | Bottom tier | |
Quality | 33 | 3.5% | 4.5% | Bottom tier | |
Safety | 43 | 3.1x | 2.6x | Around median | |
Capital Return | 33 | 1.79% | 2.12% | Bottom tier | |
Momentum | 49 | 4.2% | 2.9% | Around median | |
Sentiment | 86 | 2 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Tennant Company operates in commercial and industrial cleaning equipment, generating revenue from the sale of equipment, parts, and consumables, along with maintenance services and other revenue. Its business model also extends into robotic cleaning through AMR machines and autonomy service subscription fees; AMR sales, including equipment and autonomy service fees, represented approximately $27 million, or 9% of net sales, in Q1 FY2026. The company supports its product base with a network of more than 1,000 field service technicians, while approximately 35% of its revenue flows through distribution partners.
In Q1 FY2026, net sales increased 2.7% year over year to $297.9 million, but organic sales on a constant-currency basis declined 1.9% due to disruption from the ERP system implementation in North America. Gross profit was $113.6 million, and gross margin was 38.1%, down 330 basis points year over year, while net income fell to $0.2 million from $13.1 million and adjusted earnings per share declined to $0.58 from $1.12. By business mix, equipment sales increased 3.1% and service and other revenue rose 10.6%, compared with a 4% decline in parts and consumables.
Q1 FY2026 results showed clear geographic and operational divergence: organic sales declined 3% in the Americas and 2% in Asia-Pacific, while growing 9% in Latin America and 1% in Europe, the Middle East, and Africa. Adjusted EBITDA was $29.1 million, or 9.8% of sales, compared with $41 million and a 14.1% margin a year earlier. Subsequently, the company reported sales of $324 million in Q2 FY2026, but they fell short of analyst estimates and were accompanied by reductions in adjusted earnings per share and EBITDA guidance for FY2026.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $140, which is also both the highest and lowest target, meaning there is no range of variation among the available estimates; this target is approximately 52% above the 52-week range high of $91.93, while the range low is $60.18. No usable price-to-earnings multiple is available in the provided data, and the optimistic target must be weighed against the reduction in adjusted earnings per share and EBITDA guidance for FY2026 following the Q2 FY2026 sales miss, which explains part of the revaluation and the 13.8% decline on the August 6, 2026 announcement date.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Net income was only $0.2 million, compared with $13.1 million in Q1 FY2025, and adjusted earnings per share declined to $0.58 from $1.12. Tennant estimated that the ERP disruption reduced sales by approximately $23 million and gross profit by approximately $17 million. Higher operating and interest expenses and a shift in the customer mix toward strategic accounts also pressured earnings, while the effective tax rate reached 80.5% due to discrete tax costs related to stock-based compensation.
AMR generated approximately $27 million in sales in Q1 FY2026, up 85% year over year, and represented 9% of the company's net sales. Tennant has cumulatively shipped more than 11,500 robots since 2018 and is targeting $250 million in AMR revenue in FY2028. It is supporting this target with a plan to launch ten products within 24 months of the May 5, 2026 call and with BrainOS exclusivity extended through 2029.
X16 SWEEP represents Tennant's first robotic sweeping product and is designed for warehouses, logistics, and manufacturing, with its announced schedule calling for shipments to begin in Q2 FY2026. X2 ROVR is a compact cleaning device for retail stores, grocery stores, schools, and space-constrained shops, and the company scheduled shipments to begin in Q3 FY2026. The two products expand the use of robotics beyond larger cleaning machines, while a network of more than 1,000 service technicians and 35% of revenue flowing through distributors help the company reach customers and support the machines.
Management said on May 5, 2026 that core operations in North America, including order management, production scheduling, and fulfillment, had become stable and capable of operating at scale by the end of Q1 FY2026. Gross margin improved from 34.6% in Q4 FY2025 to 38.1% in Q1 FY2026, and the March exit rate reached approximately 40%. Nevertheless, the company does not expect to recover approximately one-third of the $23 million in lost sales, and the ERP implementation in Europe, the Middle East, and Africa was postponed until after 2026.
Tennant reported sales of $324 million in Q2 FY2026, but they fell short of analyst estimates. The company reduced its full-year adjusted earnings per share and EBITDA guidance after having reaffirmed on May 5, 2026 its FY2026 sales range of $1.24 billion to $1.28 billion. The combination of the revenue miss and lower profitability expectations caused the stock to fall 13.8% immediately following the earnings announcement on August 6, 2026.
The company spent $60 million in Q1 FY2026 to repurchase approximately 950,000 shares at an average of $63 per share and expects a net positive impact of $0.15 on annual earnings per share. Following a new authorization for two million shares, total available repurchase capacity reached approximately 2.56 million shares, or nearly 15% of basic shares outstanding. Tennant ended the quarter with $82.6 million in cash and approximately $289 million in unused borrowing capacity, with net leverage of 1.78 times adjusted EBITDA for the last 12 months.
