What Happened?
Shares of industrial cleaning equipment manufacturer Tennant Company fell 25.4% in the afternoon session after the company reported weaker-than-expected results for the fourth quarter of 2025.
Its full-year revenue and EBITDA guidance fell short of Wall Street’s estimates. Overall, this was a softer quarter.
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What Is The Market Telling Us
Tennant’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Tennant and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 6.6% on the news that the company reported third-quarter financial results that missed Wall Street's expectations. The company announced net sales of $303.3 million, a 4% decrease year on year, which fell short of analyst forecasts. Profitability was also a point of weakness as the operating margin declined to 7.4% from 9.7% in the same period last year. On an adjusted basis, earnings came in at $1.46 per share, slightly below the consensus estimate. Despite the quarterly misses, the company's outlook offered some positive signs, as it reiterated its full-year revenue and earnings guidance. Furthermore, Tennant’s full-year EBITDA forecast came in ahead of analysts' expectations, though this was not enough to overcome the negative sentiment from the current quarter's results.
Tennant is down 15.8% since the beginning of the year, and at $62.30 per share, it is trading 28.9% below its 52-week high of $87.61 from February 2025. Investors who bought $1,000 worth of Tennant’s shares 5 years ago would now be looking at an investment worth $787.45.
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