Revenue growth has shifted to a contraction of 11.3% in 2025Q4, while gross margins have experienced significant volatility, declining from 44.2% in 2024Q1 to 38.1% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.21B | 1.2B | 1.29B | 1.24B | 1.09B | 1.09B | 1B | 1.14B | 1.12B | 1B | 808.57M | 811.8M | 821.98M | 752.01M | 738.98M | 754M | 667.67M | 595.88M | 701.4M | 664.22M | 598.98M | 552.91M | 507.79M | 453.96M | 424.18M | 422.97M | 454.04M | 429.4M | 389.4M | 372.4M | 344.4M |
| Revenue Growth % | -4.29% | -6.47% | 3.47% | 13.86% | 0.13% | 8.97% | -12.01% | 1.25% | 12.01% | 24.05% | -0.4% | -1.24% | 9.3% | 1.76% | -1.99% | 12.93% | 12.05% | -15.05% | 5.6% | 10.89% | 8.33% | 8.89% | 11.86% | 7.02% | 0.29% | -6.84% | 5.74% | 10.27% | 4.57% | 8.13% | 5.84% |
| Cost of Goods Sold | 733.5M | 719.2M | 736.7M | 715.8M | 671.3M | 652.8M | 593.2M | 675.9M | 678.48M | 598.64M | 456.98M | 462.74M | 469.56M | 426.1M | 413.68M | 434.82M | 383.34M | 349.77M | 415.15M | 385.23M | 347.4M | 318.04M | 305.28M | 272.29M | 254.36M | 269.08M | 252.46M | 236.7M | 206M | 197.9M | 185.7M |
| COGS % of Revenue | - | 59.76% | 57.26% | 57.56% | 61.46% | 59.85% | 59.26% | 59.41% | 60.39% | 59.68% | 56.52% | 57% | 57.12% | 56.66% | 55.98% | 57.67% | 57.42% | 58.7% | 59.19% | 58% | 58% | 57.52% | 60.12% | 59.98% | 59.96% | 63.62% | 55.6% | 55.12% | 52.9% | 53.14% | 53.92% |
| Gross Profit | 477.9M | 484.3M | 550M | 527.8M | 420.9M | 438M | 407.8M | 461.7M | 445.03M | 404.42M | 351.6M | 349.06M | 352.43M | 325.91M | 325.3M | 319.18M | 284.33M | 246.11M | 286.25M | 278.98M | 251.58M | 234.86M | 202.51M | 181.68M | 169.82M | 153.89M | 201.58M | 192.7M | 183.4M | 174.5M | 158.7M |
| Gross Margin % | 39.45% | 40.24% | 42.74% | 42.44% | 38.54% | 40.15% | 40.74% | 40.59% | 39.61% | 40.32% | 43.48% | 43% | 42.88% | 43.34% | 44.02% | 42.33% | 42.59% | 41.3% | 40.81% | 42% | 42% | 42.48% | 39.88% | 40.02% | 40.04% | 36.38% | 44.4% | 44.88% | 47.1% | 46.86% | 46.08% |
| Gross Profit Growth % | - | -11.95% | 4.21% | 25.4% | -3.9% | 7.41% | -11.67% | 3.75% | 10.04% | 15.02% | 0.73% | -0.96% | 8.14% | 0.19% | 1.92% | 12.26% | 15.53% | -14.02% | 2.6% | 10.89% | 7.12% | 15.98% | 11.47% | 6.98% | 10.35% | -23.66% | 4.61% | 5.07% | 5.1% | 9.96% | 3.19% |
| Operating Expenses | 419.7M | 403.2M | 435.7M | 389.2M | 333.7M | 344.3M | 344.1M | 389.9M | 387.06M | 377.38M | 282.95M | 284.69M | 280.33M | 263.5M | 263.38M | 269.54M | 247.19M | 225.24M | 267.91M | 231.11M | 211.62M | 200.03M | 181.2M | 159M | 150.25M | 130.51M | 158.06M | 154.8M | 146.1M | 138.4M | 127.1M |
| OpEx % of Revenue | - | 33.5% | 33.86% | 31.3% | 30.55% | 31.56% | 34.38% | 34.27% | 34.45% | 37.62% | 34.99% | 35.07% | 34.1% | 35.04% | 35.64% | 35.75% | 37.02% | 37.8% | 38.2% | 34.79% | 35.33% | 36.18% | 35.68% | 35.03% | 35.42% | 30.86% | 34.81% | 36.05% | 37.52% | 37.16% | 36.9% |
| Selling, General & Admin | 380.9M | 374.8M | 391.9M | 352.6M | 306.3M | 321.9M | 314M | 357.2M | 356.32M | 345.36M | 248.21M | 252.27M | 250.9M | 232.98M | 234.11M | 241.63M | 221.24M | 202.26M | 243.61M | 206.24M | 189.68M | 180.68M | 164M | 142.31M | 133.91M | 136.44M | 139.66M | 136.1M | 128.5M | 120.9M | 110.7M |
| SG&A % of Revenue | - | 31.14% | 30.46% | 28.35% | 28.04% | 29.51% | 31.37% | 31.4% | 31.71% | 34.43% | 30.7% | 31.08% | 30.52% | 30.98% | 31.68% | 32.05% | 33.14% | 33.94% | 34.73% | 31.05% | 31.67% | 32.68% | 32.3% | 31.35% | 31.57% | 32.26% | 30.76% | 31.7% | 33% | 32.47% | 32.14% |
| Research & Development | 42.1M | 41.2M | 43.8M | 36.6M | 31.1M | 32.2M | 30.1M | 32.7M | 30.74M | 32.01M | 34.74M | 32.41M | 29.43M | 30.53M | 29.26M | 27.91M | 25.96M | 22.98M | 24.3M | 23.87M | 21.94M | 19.35M | 17.2M | 16.7M | 16.33M | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 3.42% | 3.4% | 2.94% | 2.85% | 2.95% | 3.01% | 2.87% | 2.74% | 3.19% | 4.3% | 3.99% | 3.58% | 4.06% | 3.96% | 3.7% | 3.89% | 3.86% | 3.46% | 3.59% | 3.66% | 3.5% | 3.39% | 3.68% | 3.85% | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -12.8M | 0 | 0 | -3.7M | -9.8M | 0 | 0 | -729K | -1.96M | -666K | -657K | -449K | -483K | 38K | 0 | 0 | 0 | 0 | 1M | 0 | 0 | 0 | 0 | 0 | -5.93M | 18.39M | 18.7M | 17.6M | 17.5M | 16.4M |
| Operating Income | 58.2M | 81.1M | 114.3M | 138.6M | 87.2M | 93.7M | 63.7M | 71.8M | 57.98M | 27.04M | 68.5M | 53.18M | 72.1M | 62.4M | 62.7M | 49.65M | 37.13M | -22.49M | 18.57M | 54.84M | 39.96M | 34.84M | 21.31M | 22.68M | 15.58M | 13.42M | 43.52M | 37.9M | 37.3M | 36.1M | 31.6M |
| Operating Margin % | 4.8% | 6.74% | 8.88% | 11.15% | 7.98% | 8.59% | 6.36% | 6.31% | 5.16% | 2.7% | 8.47% | 6.55% | 8.77% | 8.3% | 8.49% | 6.58% | 5.56% | -3.77% | 2.65% | 8.26% | 6.67% | 6.3% | 4.2% | 4.99% | 3.67% | 3.17% | 9.59% | 8.83% | 9.58% | 9.69% | 9.18% |
| Operating Income Growth % | - | -29.05% | -17.53% | 58.95% | -6.94% | 47.1% | -11.28% | 23.84% | 114.38% | -60.52% | 28.81% | -26.24% | 15.53% | -0.48% | 26.3% | 33.69% | 265.09% | -221.13% | -66.14% | 37.24% | 14.72% | 63.5% | -6.03% | 45.58% | 16.1% | -69.18% | 14.84% | 1.61% | 3.32% | 14.24% | 4.64% |
| EBITDA | 117.8M | 139.8M | 169.4M | 189.7M | 135.9M | 146.8M | 117.1M | 126.2M | 112.4M | 70.3M | 86.8M | 71.21M | 92.16M | 82.65M | 83.58M | 71.06M | 58.33M | 310K | 41.53M | 72.9M | 54.28M | 47.88M | 34.28M | 36.55M | 32.52M | 31.92M | 61.91M | 56.6M | 54.9M | 53.6M | 48M |
| EBITDA Margin % | 9.72% | 11.62% | 13.17% | 15.25% | 12.44% | 13.46% | 11.7% | 11.09% | 10% | 7.01% | 10.73% | 8.77% | 11.21% | 10.99% | 11.31% | 9.42% | 8.74% | 0.05% | 5.92% | 10.98% | 9.06% | 8.66% | 6.75% | 8.05% | 7.67% | 7.55% | 13.64% | 13.18% | 14.1% | 14.39% | 13.94% |
| EBITDA Growth % | -22.5% | -17.47% | -10.7% | 39.59% | -7.43% | 25.36% | -7.21% | 12.28% | 59.89% | -19.01% | 21.9% | -22.74% | 11.51% | -1.11% | 17.61% | 21.84% | 18714.84% | -99.25% | -43.03% | 34.29% | 13.39% | 39.67% | -6.22% | 12.39% | 1.88% | -48.44% | 9.39% | 3.1% | 2.43% | 11.67% | 8.35% |
| D&A (Non-Cash Add-back) | 59.6M | 58.7M | 55.1M | 51.1M | 48.7M | 53.1M | 53.4M | 54.4M | 54.42M | 43.25M | 18.3M | 18.03M | 20.06M | 20.25M | 20.87M | 21.42M | 21.19M | 22.8M | 22.96M | 18.05M | 14.32M | 13.04M | 12.97M | 13.88M | 16.95M | 18.51M | 18.39M | 18.7M | 17.6M | 17.5M | 16.4M |
| EBIT | 56M | 66.9M | 113.9M | 137.3M | 86.6M | 81.4M | 58.5M | 71.8M | 59.18M | 24.1M | 68.5M | 68.12M | 72.1M | 65.42M | 62.41M | 50.97M | 36.35M | -21.49M | 21.52M | 47.87M | 44.04M | 34.84M | 21.31M | 22.68M | 19.58M | 23.41M | 42.85M | 37.91M | 37.29M | 36M | 31.6M |
| Net Interest Income | -10.1M | -9M | -9.1M | -13.5M | -7.1M | -7.3M | -20.1M | -17.8M | -20.3M | -23M | -949K | -1.14M | -1.42M | -1.37M | -1.45M | -1.49M | -1.49M | -2.44M | -2.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 600K | 3.3M | 3.04M | 2.4M | 330K | 172K | 302K | 390K | 1.07M | 752K | 133K | 393K | 1.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 10.1M | 9M | 9.1M | 13.5M | 7.1M | 7.3M | 20.7M | 21.1M | 23.34M | 25.39M | 1.28M | 1.31M | 1.72M | 1.76M | 2.52M | 2.24M | 1.62M | 2.83M | 3.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -16.6M | -23.2M | -9.5M | -14.8M | -7.7M | -19.6M | -22.6M | -17.8M | -22.2M | -28.34M | -1.77M | -2.75M | -2.56M | -2.52M | -2.81M | -915K | -2.41M | -46.52M | -994K | -11.51M | 3.34M | 157K | 72K | -192K | -678K | -5K | -312K | -7.31M | 1.8M | 1.5M | 700K |
| Pretax Income | 41.6M | 57.9M | 104.8M | 123.8M | 79.5M | 74.1M | 41.1M | 54M | 35.84M | -1.29M | 66.49M | 50.42M | 69.54M | 59.88M | 59.89M | 48.73M | 34.73M | -24.32M | 17.57M | 57.71M | 43.3M | 34.99M | 21.38M | 22.48M | 14.9M | 13.75M | 44.04M | 30.6M | 39.1M | 37.6M | 32.3M |
| Pretax Margin % | 3.43% | 4.81% | 8.14% | 9.96% | 7.28% | 6.79% | 4.11% | 4.75% | 3.19% | -0.13% | 8.22% | 6.21% | 8.46% | 7.96% | 8.1% | 6.46% | 5.2% | -4.08% | 2.51% | 8.69% | 7.23% | 6.33% | 4.21% | 4.95% | 3.51% | 3.25% | 9.7% | 7.13% | 10.04% | 10.1% | 9.38% |
| Income Tax | 10.7M | 14.1M | 21.1M | 14.3M | 13.2M | 9.2M | 7.4M | 8.1M | 2.3M | 4.91M | 19.88M | 18.34M | 18.89M | 19.65M | 18.31M | 16.02M | -76K | 1.92M | 6.95M | 17.84M | 13.49M | 12.06M | 8M | 8.33M | 6.63M | 8.95M | 15.79M | 10.9M | 13.8M | 13.4M | 11.3M |
| Effective Tax Rate % | 25.72% | 24.35% | 20.13% | 11.55% | 16.6% | 12.42% | 18% | 15% | 6.43% | -380.26% | 29.89% | 36.36% | 27.16% | 32.81% | 30.57% | 32.87% | -0.22% | -7.9% | 39.55% | 30.92% | 31.16% | 34.46% | 37.42% | 37.04% | 44.52% | 65.06% | 35.86% | 35.62% | 35.29% | 35.64% | 34.98% |
| Net Income | 30.9M | 43.8M | 83.7M | 109.5M | 66.3M | 64.9M | 33.7M | 45.8M | 33.41M | -6.2M | 46.61M | 32.09M | 50.65M | 40.23M | 41.58M | 32.71M | 34.8M | -26.24M | 10.62M | 39.87M | 29.81M | 22.94M | 13.38M | 14.15M | 8.27M | 4.8M | 28.25M | 19.7M | 25.3M | 24.2M | 21M |
| Net Margin % | 2.55% | 3.64% | 6.5% | 8.81% | 6.07% | 5.95% | 3.37% | 4.03% | 2.97% | -0.62% | 5.76% | 3.95% | 6.16% | 5.35% | 5.63% | 4.34% | 5.21% | -4.4% | 1.51% | 6% | 4.98% | 4.15% | 2.63% | 3.12% | 1.95% | 1.14% | 6.22% | 4.59% | 6.5% | 6.5% | 6.1% |
| Net Income Growth % | -54.82% | -47.67% | -23.56% | 65.16% | 2.16% | 92.58% | -26.42% | 37.08% | 639.34% | -113.29% | 45.27% | -36.65% | 25.9% | -3.25% | 27.12% | -6.01% | 232.63% | -347% | -73.35% | 33.74% | 29.97% | 71.42% | -5.48% | 71.26% | 72.04% | -82.99% | 43.4% | -22.13% | 4.55% | 15.24% | 6.6% |
| Net Income (Continuing) | 30.9M | 43.8M | 83.7M | 109.5M | 66.3M | 64.9M | 33.7M | 45.9M | 33.54M | -6.2M | 46.61M | 32.09M | 50.65M | 40.23M | 41.58M | 32.71M | 34.8M | -26.24M | 10.62M | 39.87M | 29.81M | 22.94M | 13.38M | 14.15M | 8.27M | 4.61M | 27.74M | 19.7M | 25.3M | 24.2M | 21M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.8M | 1.8M | 1.3M | 1.3M | 1.3M | 1.3M | 1.3M | 1.4M | 1.93M | 1.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.74 | 2.36 | 4.38 | 5.83 | 3.55 | 3.44 | 1.81 | 2.48 | 1.82 | -0.35 | 2.59 | 1.74 | 2.70 | 2.14 | 2.18 | 1.69 | 1.80 | -1.42 | 0.57 | 2.08 | 1.57 | 1.23 | 0.73 | 0.78 | 0.46 | 0.25 | 1.52 | 1.08 | 1.25 | 1.23 | 1.07 |
| EPS Growth % | -54.16% | -46.12% | -24.87% | 64.23% | 3.2% | 90.06% | -27.02% | 36.26% | 620% | -113.51% | 48.85% | -35.56% | 26.17% | -1.83% | 28.99% | -6.11% | 226.76% | -349.12% | -72.6% | 32.48% | 27.64% | 68.49% | -6.41% | 69.57% | 84% | -83.55% | 40.74% | -13.6% | 1.63% | 14.95% | 114% |
| EPS (Basic) | - | 2.38 | 4.46 | 5.92 | 3.58 | 3.51 | 1.84 | 2.53 | 1.86 | -0.35 | 2.66 | 1.78 | 2.78 | 2.20 | 2.24 | 1.74 | 1.85 | -1.42 | 0.58 | 2.14 | 1.61 | 1.25 | 0.75 | 0.79 | 0.46 | 0.26 | 1.53 | 1.09 | 1.25 | 1.23 | 1.07 |
| Diluted Shares Outstanding | 17.8M | 18.58M | 19.1M | 18.78M | 18.7M | 18.85M | 18.64M | 18.45M | 18.34M | 17.7M | 17.98M | 18.49M | 18.74M | 18.83M | 19.1M | 19.36M | 19.33M | 18.51M | 18.58M | 19.15M | 18.99M | 18.62M | 18.33M | 18.15M | 18.16M | 18.43M | 18.25M | 18.24M | 20.32M | 19.64M | 19.64M |
| Basic Shares Outstanding | 17.56M | 18.37M | 18.79M | 18.51M | 18.49M | 18.5M | 18.35M | 18.12M | 17.94M | 17.7M | 17.52M | 18.02M | 18.22M | 18.3M | 18.54M | 18.83M | 18.81M | 18.51M | 18.3M | 18.64M | 18.56M | 18.3M | 17.96M | 17.92M | 17.97M | 18.07M | 18.19M | 18.16M | 20.32M | 19.64M | 19.64M |
| Dividend Payout Ratio | - | 50% | 25.57% | 18.36% | 28.51% | 26.96% | 48.37% | 34.93% | 45.92% | - | 30.66% | 45.18% | 28.6% | 32.89% | 30.82% | 39.29% | 32.13% | - | 89.9% | 22.52% | 28.76% | 34.53% | 57.81% | 53.18% | 89.21% | 150.79% | 24.94% | 35.03% | 27.27% | 29.34% | 32.86% |
Operating margin compression
As reported in recent financial filings, Tennant Company has experienced a noticeable deceleration in top-line performance, with revenue growth shifting from positive territory in 2024 to a contraction of 11.3% in 2025Q4, suggesting that the company is struggling to maintain momentum in its core industrial markets.
The transition from consistent growth to periodic contraction indicates that the company's reliance on North American industrial utilization may be hitting a cyclical ceiling. Investors should monitor whether this trend reflects a broader softening in capital expenditure budgets among large-scale logistics and retail clients.
Based on the provided income statement data, Tennant's gross margin has exhibited significant volatility, dropping from a peak of 44.2% in 2024Q1 to a low of 34.6% in 2025Q4, which highlights the company's vulnerability to input cost fluctuations and potential pricing power limitations.
The inability to sustain gross margins above the 40% threshold suggests that inflationary pressures on raw materials and labor are not being fully offset by pricing actions. This margin compression warrants further investigation into whether the company's premium positioning is being challenged by lower-cost competitive alternatives.
According to the company's quarterly income statements, operating margins have contracted sharply from 12.1% in 2024Q1 to a marginal 0.1% by 2025Q4, demonstrating that SG&A expenses are not scaling efficiently in response to the recent revenue downturn and persistent operational cost burdens.
The lack of operating leverage implies that the company's high fixed-cost structure, particularly regarding its direct service organization, is acting as a drag on profitability during periods of lower volume. This suggests that management may need to re-evaluate its cost base to protect bottom-line results if revenue remains stagnant.
Based on the reported figures, the sharp decline in net income from $31.0 million in 2023Q4 to a net loss of $4.4 million in 2025Q4 raises significant questions regarding the underlying quality of earnings and the company's ability to navigate a more challenging macroeconomic environment.
Short-sellers would likely focus on the rapid deterioration of net margins as evidence that the business model is overly sensitive to cyclical downturns. The reliance on a direct service network, while a competitive moat, appears to be a double-edged sword that exacerbates earnings volatility when top-line growth falters.
Quick answers to the most common questions about buying TNC stock.
For fiscal year 2025, Tennant Company (TNC) reported total revenue of $1.20B. This represents a 249.4% increase compared to $344.4M in 1996.
Tennant Company (TNC) is profitable, generating $43.8M in net income for the fiscal year ending 2025 with a net profit margin of 3.6%.
Tennant Company (TNC) reported an operating income of $81.1M, resulting in an operating profit margin of 6.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Tennant Company (TNC) generated $484.3M in gross profit for the year, representing a gross profit margin of 40.2%. This demonstrates the company's core pricing power and production efficiency.