Tennant (TNC) Stock Forecast & Price Target

Tennant Co has demonstrated robust growth in its order book, with a 13% year-over-year increase in Q1F25 and a 4% increase in Q2, resulting in a strong incoming order rate averaging 7% for the first half of 2025. The company's performance is particularly noteworthy in North America, where orders increased by 9% year-over-year, showcasing the effectiveness of its strategies in capturing market demand and solidifying a book-to-bill ratio above 1. Tennant's successful introduction of over 10,000 autonomous cleaning units over the past several years further positions the company to capitalize on market trends, enhancing its potential for revenue growth that exceeds GDP rates, bolstered by a positive foreign exchange impact.

Tennant Company reported Q2 2025 revenues of $318.6 million, which fell short of the $327.2 million consensus and represented a 3.7% decline year-over-year, with organic net sales decreasing by 5.5%. Management acknowledged a $30 million negative impact on revenue due to a failed go-live, with approximately half of that revenue considered unlikely to be recouped, compounded by ongoing demand softness in both North America and Mexico. Additionally, the company's adjusted EPS declined to $1.49 from $1.83 the previous year, reflecting challenges such as reduced order activity and limited operational capacity at its plants, further straining its revenue, profitability, and cash flow potential.