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X6 TENNANT COMPANY Ⓡ TENNANT Q2 2026 Results Earnings Release Call August 6 , 2026 www.investors.tennantco.com
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Tennant Company Safe Harbor Statement Certain statements contained in this document are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. These include factors that affect all businesses operating in a global market as well as matters specific to us and the markets the Company serves. Particular risks and uncertainties presently facing it include: geopolitical and economic uncertainty throughout the world; our ability to comply with global laws and regulations; changes in foreign currency exchange rates; our ability to adapt to customer pricing sensitivities; the competition in our business; fluctuations in the cost, quality or availability of raw materials and purchased components; our ability to adjust pricing to respond to cost pressures; unforeseen product liability claims or product quality issues; our ability to attract, retain and develop key personnel and create effective succession planning strategies; our ability to effectively develop and manage strategic planning and growth processes and the related operational plans; our ability to successfully upgrade and evolve our information technology systems; our ability to successfully protect our information technology systems from cybersecurity risks; complications with our new ERP system; the occurrence of a significant business interruption; our ability to maintain the health and safety of our workers; our ability to integrate acquisitions; our ability to develop and commercialize new innovative products and services; and risks related to our business transformation and strategic initiatives. We caution that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Information about factors that could materially affect the Company’s results can be found in our 2025 Form 10-K. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Investors are advised to consult any further disclosures by the Company in its filings with the Securities and Exchange Commission and in other written statements on related subjects. It is not possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties.
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TNC Earnings Release Call | Second Quarter 2026 3 Second Quarter Highlights Net Sales $324.0M -0.5% Organic DeclineOrder Momentum Continues ► Orders of $339.5 million grew 6.6% year over year, with growth across most regions ► Backlog grew $18 million during the quarter to $127 million, as order entry outpaced shipments Sequential Margin Improvement Gross margin of 39.5% improved 140 bps sequentially and Adjusted EBITDA margin also improved sequentially, though both declined year over year on residual ERP-related inefficiencies in North America and pricing pressure in EMEA Return Capital to Shareholders Returned $5.3 million through dividends and $71.3 million year to date through dividends and share repurchases, representing ~5% of shares outstanding at the start of the year Adj. EBITDA* $35.3M 10.9% Adj. EBITDA Margin Adj. Diluted EPS* $0.83/share $1.49/share in Q2 2025 Second Quarter 2026 Results *Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
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TNC Earnings Release Call | Second Quarter 2026 4 ► Core workflows (order management, production scheduling, fulfillment) operating reliably at scale by quarter end ► Stabilization achieved in the first quarter has held; serving customers and operating the business at scale on the new platform ► Focus on throughput, labor productivity, and system-enabled performance; these are execution issues, not structural issues with the system ► Pace of improvement slower than planned, with elevated North America costs from manual workarounds and master data and planning gaps Shift to Optimization ► Gross margin improved 140 bps sequentially in the second quarter, with dedicated cross-functional teams driving master data quality, planning accuracy, and the elimination of manual workarounds ► Second-half assumptions include continued ERP-related costs at lower levels than the first half, supporting a measured and achievable recovery trajectory ► EMEA implementation intentionally pushed beyond 2026 to keep focus on North America recovery ► Lessons learned from North America informing approach to future regional rollouts EMEA Phase Deferred Stabilization Complete Path to Margin Recovery Tennant Company ERP North America Recovery Stable Foundation in Place; Focused on Accelerating the Optimization Benefits
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TNC Earnings Release Call | Second Quarter 2026 5 X2 ROVR SCRUB Autonomous Floor Scrubber Tennant Company TNC Robotics: Positioned to Lead the Automation Transition Accelerated Product Innovation Labor Accounts for of commercial cleaning costs +80% Creating strong, durable demand for robotic solutions Differentiated Go- to-Market Model Comprehensive Automation Ecosystem THREE Strategic Priorities 8 yrs. Deployment Experience +13K Robots Deployed +600 Customers Worldwide 10 New Robotics products in the next 2 Years Our differentiated position Exclusive floor-care AI technology
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TNC Earnings Release Call | Second Quarter 2026 6 Tennant Company TNC Robotics: Financial Momentum & Revenue Trajectory $31M Q2 Robotics Revenue 37% YoY $58M 1H Robotics Revenue 56% YoY $130-145M Projected FY Revenue ‘25 Robotics Revenue ~$85M ‘28 Target $250M (~50% CAGR) Growth led by North America and Europe Strongest in building service contractor, retail, and industrial verticals X4 ROVR Autonomous Floor Scrubber X6 ROVR Autonomous Floor Scrubber
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Tennant Company Earnings Release Call FINANCIAL RESULTS Second Quarter 2026 www.investors.tennantco.com
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TNC Earnings Release Call | Second Quarter 2026 Second-quarter net income of $7.6M, compared to $20.2M in the prior year ► Lower operating performance driven by gross margin compression associated with ERP- related operational inefficiencies and cost inflation, as well as higher operating and interest expense ► Effective tax rate increased to 26.3% from 26.0% due to unfavorable changes in mix of forecasted earnings by country Second-quarter adjusted EPS* of $0.83 per diluted share ► Reflects lower operating performance and higher interest expense, partially offset by lower average diluted shares outstanding ► Excludes amortization expense, ERP modernization costs, ERP amortization costs, legal contingency costs,legal and financial advisory costs, equity method losses, and restructuring-related charges Tennant Company Second-Quarter 2026 Financial Performance Net Income In millions of USD Adjusted EPS* 8 $20.2 $7.6 Q2'25 Q2'26 $1.49 $0.83 Q2'25 Q2'26 *Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
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TNC Earnings Release Call | Second Quarter 2026 Gross Margin decreased 260 bps to 39.5% ► Driven primarily by ERP-related operational inefficiencies, material and part shortages, and elevated freight costs ► Declines were partially offset by price realization, tariff-related benefits, and favorable LIFO inventory adjustments Adjusted S&A* as a percent of net sales increased 180 bps to 29.1% ► Driven by unfavorable FX, higher software subscription and license fees, higher travel, fuel and vehicles costs, and delayed ERP efficiencies Adjusted EBITDA Margin* decreased 510 bps to 10.9% ► Reflects higher cost of goods sold and gross margin compression, along with S&A and R&D deleverage, partially offset by favorable pricing Tennant Company Second-Quarter 2026 Results Net Sales $319 M $9 M ($9 M) $5 M $324 M Q2'25 Net Sales Price Volume FX Q2'26 Net Sales Adjusted EBITDA* $51 M $9 M ($8 M) $35 M ($4 M) ($13 M) Q2'25 Adj. EBITDA Price Volume Margin S&A / Other Q2'26 Adj. EBITDA *Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation **Organic net sales growth (decline) 9 +1.4% Americas -2.8% EMEA -10.6% APAC -0.5% Total By Region** $197 M $194 M $70 M $68 M $52 M $62 M 2025 Q2 Net Sales 2026 Q2 Net Sales Service Parts and Consumables Equipment Product Categories
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TNC Earnings Release Call | Second Quarter 2026 Tennant Company Capital Deployment Cash Flow 10 YE 2025 Q2 2026 Total Debt $273.6M $358.9M Net Debt $167.2M $282.0M Net Leverage* 1.0x 2.0x Revolver Availability $289.4M Capital Allocation Priorities Invest in the Business ► $5M of capital expenditures ► $2.9M spent on ERP modernization • $2.8M on Income Statement • $0.1M on Balance Sheet ► $12.5M spent on R&D investments Shareholder Return ► $5M of Dividends *Based on trailing twelve months Adjusted EBITDA $83 M $5 M ($5 M) ($5 M) $77 M Q1'26 Cash Operating Perfomance CapEx Dividends Q2'26 Cash
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TNC Earnings Release Call | Second Quarter 2026 11 Full-Year Guidance $1.270B - $1.310B Net Sales 3.5% - 7.0% Organic Net Sales Growth $3.80 - $4.45 Adjusted Diluted EPS(1) $155M - $170M Adjusted EBITDA(1) 12.2% - 13.0% Adjusted EBITDA Margin(1) ~$25M Capital Expenditures 24% - 29% Adjusted Effective Tax Rate(1) (1) Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation $2.15 - $2.80 Diluted EPS
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www.investors.tennantco.com
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TNC Earnings Release Call | Second Quarter 2026 13 THANK YOU www.investors.tennantco.com
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Tennant Company Earnings Release Call APPENDIX Second Quarter 2026 www.investors.tennantco.com
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Tennant Company Non-GAAP Financial Measures This presentation and the related conference call include presentation of Non-GAAP measures that include or exclude special items of a nonrecurring and/or nonoperational nature (hereinafter referred to as “special items”). Management believes that the Non-GAAP measures provide useful information to investors regarding the Company’s results of operations and financial condition because they permit a more meaningful comparison and understanding of Tennant Company’s operating performance for the current, past or future periods. Management uses these Non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of the comparative operating performance of the Company. The Company believes that disclosing S&A expense –as adjusted, S&A expense as a percent of net sales –as adjusted, operating income – as adjusted, operating margin – as adjusted, income before income taxes – as adjusted, income tax expense – as adjusted, net income – as adjusted, net income per diluted share –as adjusted, EBITDA – as adjusted, and EBITDA margin – as adjusted (collectively, the “Non-GAAP measures”), excluding the impacts from special items, is useful to investors as a measure of operating performance. The Company uses these measures to monitor and evaluate operating performance. The Non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). The Company calculates the Non-GAAP measures by adjusting for legal contingency costs, ERP modernization costs, ERP amortization costs, legal and financial advisory costs, restructuring-related costs, transaction and integration-related costs, equity method losses and amortization expense. The Company calculates income tax expense – as adjusted by adjusting for the tax effect of these Non-GAAP measures. The Company calculates net income per diluted share –as adjusted by adjusting for the after-tax effect of these Non-GAAP measures and dividing the result by the diluted weighted average shares outstanding. The Company calculates EBITDA margin – as adjusted by dividing EBITDA – as adjusted by net sales.
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TNC Earnings Release Call | Second Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 16
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TNC Earnings Release Call | Second Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 17
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TNC Earnings Release Call | Second Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 18
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TNC Earnings Release Call | Second Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 19
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TNC Earnings Release Call | Second Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 20