Tennant Company reported third quarter 2026 revenue of $322.3 million, missing the $330.75 million analyst estimate as parts shortages and fulfillment constraints in North America limited shipments. Despite the revenue miss, diluted EPS of $1.12 significantly exceeded the $0.93 forecast, supported by strong order momentum and a one-time tariff refund benefit.
Key Highlights
- Robotics revenue accelerated 71% year-over-year to $37.3 million, with year-to-date sales in this category already exceeding full-year 2025 totals.
- Organic sales grew 5.7%, comprising 4.1 percentage points of volume growth and 1.6 percentage points of price realization.
- Gross margin of 42.3% included a one-time $6.1 million tariff refund; excluding this, margins declined 230 basis points to 40.4% due to inflationary pressures and production inefficiencies.
- Backlog remains elevated at $118 million following a 9.5% increase in orders, providing high visibility for the fourth quarter despite ongoing supply chain bottlenecks.