Tennant Reports Strong Order Growth but Declining Margins
Tennant Company (NYSE:TNC) reported mixed second-quarter results on August 5, with a significant increase in orders and robotics sales offset by declining profitability. Orders rose 6.6% year-over-year to $339.5 million, while backlog reached $127 million. Robotics revenue surged 37% to approximately $31 million as the company invests heavily in autonomous solutions. Despite strong demand, Tennant's gross margin dropped by 260 basis points to 39.5%, and Adjusted EBITDA fell 30.8% year-over-year to $35.3 million due to ERP rollout costs, supply constraints, higher freight expenses, and competitive pricing in the EMEA region. The company raised its full-year sales guidance but lowered its Adjusted EBITDA forecast. The Americas showed resilience with organic growth of 1.4%, while EMEA and APAC saw declines driven by weaker demand and geopolitical factors. Operating cash flow also declined significantly, reflecting tighter working capital.
Tickers: $TNC
Topics: guidance update margins orders robotics growth