Tennant Company (TNC) investor relations material

Business overview and market positioning

• Operates in a $9 billion global floor care equipment market, with a differentiated product and service portfolio and a strong aftermarket service offering.

• Holds a 25% share in the Americas, 10% in EMEA, and single-digit share in Asia Pacific, with opportunities for growth in all regions.

• Faces competition from two major global players in Europe and a fragmented field elsewhere, with potential for growth via acquisitions.

• Key growth drivers include automation, labor scarcity, modernization, electrification, and sustainability trends.

• Committed to 3%-5% organic top-line growth, 50-100 bps EBITDA margin expansion, and $150 million in acquisitions over three years.

Product innovation and robotics strategy

• Focused on disruptive innovation, especially in robotics, with a dedicated TNC Robotics venture to accelerate growth.

• Plans to launch 10 new robotics products in two years, including the X16 SWEEP (launched) and X2 ROVR (pending launch).

• Targeting $250 million in robotic sales by 2028, with first-half 2026 robotic sales up 56% year-over-year.

• Robotics growth supported by exclusive partnership with Brain Corp for navigation software and new AI-driven features.

• Expanding into small space cleaning and leveraging lower-cost product lines for new geographies and adjacencies.

Operational performance and ERP implementation

• Successfully implemented ERP in Asia Pacific with minimal disruption; North America faced challenges but is recovering.

• Margins improved sequentially, aiming to exit Q4 above 40% to return to normal rates by 2027.

• EMEA ERP deployment halted to focus on North America optimization and growth.

• SG&A costs related to ERP recovery are expected to decline in the second half, supporting EBITDA margin expansion.

• Production ramp and backlog reduction in North America are key to meeting guidance.