Tennant Company (TNC) Q3 2026 earnings summary

Executive summary

• Q3 net sales reached a record $322.3M, up 6.2% YoY and 5.7% organically; orders rose 9.5%, led by North America at 18%, and backlog ended near $118M.

• Robotics revenue increased 71% YoY to $37.3M; adjusted EBITDA was $48.8M, or 15.1% of sales, with sequential margin improvement but below the prior-year level.

• ERP recovery and improving production execution supported better sequential performance; FY26 guidance was reaffirmed amid cost and fulfillment pressures.

Financial highlights

• Q3 net sales were $322.3M vs. $303.3M; organic growth was 5.7% (4.1 points volume, 1.6 points price), with acquisitions adding 0.4% and FX 0.1%.

• GAAP operating income was $31.2M vs. $22.3M; net income was $19.5M vs. $14.9M, and diluted EPS was $1.12 vs. $0.80.

• Adjusted diluted EPS was $1.40 vs. $1.46; adjusted EBITDA was $48.8M, down $1.0M YoY, as volume, pricing and tariff refunds were offset by operating costs and investment.

• Equipment sales rose 7.8%; parts and consumables fell 6.3%; service and other grew 17.3%, with autonomy contributing ~60% of category growth.

• 9M sales rose 3.5% to $944.2M, while operating income fell to $52.0M from $72.5M and net income to $27.3M from $48.2M.

Outlook and guidance

• FY26 guidance reaffirmed: net sales $1.270B–$1.310B, reported growth 5.5%–9%, organic growth 3.5%–7%, adjusted EBITDA $155M–$170M and margin 12.2%–13.0%.

• FY26 diluted EPS guidance is $2.15–$2.80 GAAP and $3.80–$4.45 adjusted; adjusted EPS excludes ERP modernization costs and amortization expense.

• FY26 capex is projected at $25M and adjusted effective tax rate at 24%–29%.

• Midpoint Q4 outlook implies ~$346M sales and ~$49M adjusted EBITDA, or ~14% of sales; backlog conversion is expected to drive about half of sequential sales growth.

• FY26 robotics revenue is projected at $130M–$145M; the long-term target is $250M by 2028. Backlog visibility supports the outlook, while parts availability remains a shipment constraint.