Tennant Company (TNC) saw its stock price plummet by 5.39% in Tuesday's pre-market trading session following the release of its third-quarter 2025 earnings report. The company, known for its cleaning equipment and solutions, reported disappointing results that fell short of investor expectations.
According to the earnings report, Tennant's net sales for Q3 2025 came in at $303.0 million, down from $316.0 million in the same period last year. The company attributed this decline to volume decreases across all geographical regions, with North America experiencing the most significant drop. Net income also took a hit, falling to $14.9 million from $20.8 million in the previous year.
Despite the overall negative results, there were some bright spots in the report. Tennant's gross margin saw a slight increase of 0.3 percentage points to 42.7%, which the company credited to strong price realization from strategic pricing actions and tariff-related adjustments. Additionally, adjusted earnings per diluted share rose to $1.46 from $1.39 year-over-year. However, these positive factors were not enough to offset investor concerns about the company's declining sales and profitability, leading to the sharp drop in stock price.
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