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Earnings analysis · 10-Q

TNC earnings analysis

Filed May 5, 2026 · Our reading of the company's report

The latest report

Tennant Company reported a solid performance in Q1 2026, achieving revenues of $297.9 million and an EPS of $0.58, both exceeding analyst estimates. While net sales increased by 2.7% year-over-year, operational…

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Tennant Company reported a solid performance in Q1 2026, achieving revenues of $297.9 million and an EPS of $0.58, both exceeding analyst estimates. While net sales increased by 2.7% year-over-year, operational challenges persisted, notably in margins and cash flow. Management remains optimistic about growth despite ongoing macroeconomic uncertainties.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $61 Operating expenses $37 Left as operating profit $2

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Reported figures

Earnings per share
$0.58
Segment
Americas
Segment
EMEA
Segment
APAC

What stood out

  • Strong EPS Beat

    Reported EPS for Q1 2026 was $0.58, significantly above the estimate of $0.37.

  • Revenue Exceeds Expectations

    Total revenue for Q1 2026 reached $297.9 million, outpacing the estimated $287.4 million.

  • Positive Topline Growth

    Net sales increased by 2.7% compared to $290.0 million in Q1 2025.

  • Segment Growth in EMEA

    EMEA segment net sales grew by 14.3% to $86.9 million, benefiting from foreign exchange impacts.

  • Cost Management Efforts

    Focused initiatives to manage operational costs amid inflationary pressures are ongoing.

  • Reaffirmed Full-Year Guidance

    Management reaffirmed the full-year guidance, projecting net sales of $1,240 - $1,280 million.

What to watch

  • Declining Gross Margins

    Gross profit margin fell to 38.1%, down 330 basis points from 41.4% in Q1 2025 due to higher costs.

  • Cash Flow Strain

    Net cash used in operating activities was $31.2 million compared to just $0.4 million a year earlier.

  • Increased Debt Levels

    Debt-to-capital ratio increased to 40.2% from 31.2% as of December 31, 2025.

Management's outlook

Management reaffirmed full-year guidance for 2026, projecting net sales of $1,240 - $1,280 million and adjusted EPS of $4.05 - $4.65.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.