Tennant (TNC) Stock Forecast & Price Target

Tennant Co has demonstrated strong financial performance with a 13% year-over-year increase in its order book for Q1F25 and a 4% growth in orders for Q2, which indicates consistent demand in a challenging environment. The company has maintained robust underlying business performance, particularly in North America, where total order rates increased by 4% year-over-year, marking the fifth consecutive quarter of order growth and positioning the company for revenue growth above GDP rates. Additionally, improvements in foreign exchange dynamics contributed a positive 5.3%, while the continuing expansion of its autonomous cleaning units is expected to enhance revenue streams in the coming years.

Tennant Company reported Q2 2025 revenues of $318.6 million, falling short of the $327.2 million consensus, and reflecting a 3.7% decrease compared to Q2 2024, primarily driven by a $30 million revenue loss linked to a failed go-live and ongoing demand challenges. Organic net sales experienced a 5.5% decline, largely attributed to reduced capital spending by customers and lingering demand weakness in international markets, particularly Mexico, which could hinder future profitability and cash flows. Additionally, adjusted EPS decreased to $1.49 from $1.83 in the previous year, further indicating potential struggles in maintaining operations and fulfilling financial obligations amidst these adverse conditions.