Tennant Company's Q2 2026 Results Show Mixed Performance Amid ERP Challenges — Tennant Company

Event summary

Tennant Company reported Q2 2026 net sales of $324.0 million, up 1.7% YoY, but net income dropped 62.4% to $7.6 million.
Adjusted EBITDA fell 30.8% YoY to $35.3 million, with margin declining to 10.9% from 16.0%.
Orders increased 6.6% YoY to $339.5 million, with backlog building to $127 million.
Robotics revenue grew 37% YoY, contributing to the company's $250 million AMR revenue target by 2028.
Tennant raised full-year net sales guidance but lowered Adjusted EBITDA guidance due to slower margin recovery.

The big picture

Tennant Company's Q2 2026 results highlight the challenges of integrating new ERP systems while navigating regional market pressures. The company's strong order growth and robotics momentum suggest underlying demand, but operational inefficiencies and margin compression pose near-term risks. Tennant's ability to execute on its strategic initiatives will be key to sustaining long-term profitability.

What we're watching

ERP Stabilization: The pace at which Tennant can stabilize its ERP system and realize expected efficiencies will be critical to margin recovery.
Regional Pressures: Whether Tennant can mitigate pricing and volume pressures in EMEA and APAC regions amid geopolitical uncertainties.
Robotics Growth: How the company's 37% YoY growth in robotics revenue will contribute to its $250 million AMR target by 2028.