Tennant’s Q3 Earnings Call: Our Top 5 Analyst Questions

3 weeks ago 10

Petr Huřťák

Sun, November 9, 2025 astatine 11:33 PM CST 4 min read

Tennant Company's 3rd 4th results were met with disappointment by the market, arsenic gross and non-GAAP nett some fell abbreviated of Wall Street expectations. Management cited the challenging examination to the anterior year’s backlog simplification and highlighted a abrupt softening successful North American concern demand, wherever customers paused instrumentality purchases successful effect to tariff volatility. CEO Dave Huml explained, “We are intelligibly operating successful a much analyzable commercialized situation with the continuing tariff volatility creating outgo challenges and heightened uncertainty.” Despite these headwinds, the institution saw bid maturation and noted that pricing actions and proviso concatenation adjustments helped to partially offset accrued costs.

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Revenue: $303.3 cardinal vs expert estimates of $306 cardinal (4% year-on-year decline, 0.9% miss)
Adjusted EPS: $1.46 vs expert expectations of $1.50 (2.9% miss)
Adjusted EBITDA: $49.8 cardinal vs expert estimates of $50.35 cardinal (16.4% margin, 1.1% miss)
The institution reconfirmed its gross guidance for the afloat year of $1.23 cardinal astatine the midpoint
Management reiterated its full-year Adjusted EPS guidance of $5.95 astatine the midpoint
EBITDA guidance for the afloat year is $202.5 cardinal astatine the midpoint, supra expert estimates of $199.5 million
Operating Margin: 7.8%, down from 9.7% successful the aforesaid 4th past year
Market Capitalization: $1.35 billion

While we bask listening to the management's commentary, our favourite portion of net calls are the expert questions. Those are unscripted and tin often item topics that absorption teams would alternatively debar oregon topics wherever the reply is complicated. Here is what has caught our attention.

Steve Ferazani (Sidoti) inquired astir the slowing year-over-year bid maturation and whether tariff uncertainty would proceed to unit the bid book. CEO Dave Huml explained that the inclination was chiefly owed to pugnacious comparisons, but said, “We deliberation it’s wrong reach” to execute bid maturation successful the adjacent quarter.
Steve Ferazani (Sidoti) asked for management’s position connected lawsuit sentiment and however tariff uncertainty is affecting aboriginal demand. Huml noted accrued uncertainty, peculiarly successful North American concern sectors, with customers pausing superior spending.
Steve Ferazani (Sidoti) questioned further imaginable for outgo reductions. CFO Fay West indicated immoderate sequential borderline betterment is expected, but full-year gross borderline gains volition beryllium constricted owed to a weaker premix and ongoing inflation.
Steve Ferazani (Sidoti) asked astir superior deployment and the aggressiveness of stock buybacks. West confirmed the institution volition apt repurchase astir 4.5% of shares this year, taking vantage of the beardown equilibrium sheet.
Thomas Hayes (ROTH Capital) sought item connected the ERP rollout timeline and archetypal results. Huml confirmed APAC’s go-live was successful, with North America’s rollout underway and EMEA scheduled for the adjacent quarter.