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Q3 2026 Results Earnings Release Call November 3, 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 | Third Quarter 2026 3 Third Quarter Highlights Net Sales $322.3M +5.7% Organic Growth Adj. EBITDA* $48.8M 15.1% Adj. EBITDA Margin Adj. Diluted EPS* $1.40/share $1.46/share in Q3 2025 Third Quarter 2026 Results *Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation Order Momentum Continues ► Orders grew 9.5% year over year, led by North America (+18%) on strength in robotics and industrial products ► Backlog of ~$118 million exiting the quarter provides good visibility into the fourth quarter Robotics Momentum Accelerates ► Robotics revenue of $37.3 million grew 71% year over year; year-to- date revenue of $95.3 million already exceeds full-year 2025 Margins Improved Sequentially ► Gross margin of 42.3% improved 280bps sequentially, including ~190 bps from tariff refunds. ► Excluding refunds, Adjusted EBITDA margin improved ~235bps sequentially, though margins remain below prior year on inflationary costs and part availability constraints
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TNC Earnings Release Call | Third Quarter 2026 4 ► Core processes operating as intended; customer experience insulated ► System deployments paused since May, providing a stable operating platform ► Support tickets declining as focus shifts to optimization and enhancement ► Fewer manual workarounds as cross-functional teams address master data and planning gaps ► Stronger governance, with IT support better integrated into business functions ► Some inefficiencies will take more time to fully eliminate, mainly in parts planning and fabrication scheduling ERP Inefficiencies Sharply Reduced ► Remaining project work concludes in Q4, in well-defined areas: warehouse management, invoicing and collections, master data, support model ► Priorities: productivity, operating efficiencies and working capital ► Future issues expected to be isolated, not systemic ► Not moving forward with the planned EMEA ERP deployment: greater value with less risk ► Resources concentrated on optimizing North America ► EMEA to pursue targeted automation, data quality and process improvements on existing systems EMEA ERP Rollout Stopped Optimization Under Way Focus Shifts to Value Realization Tennant Company ERP: From Recovery to Optimization
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TNC Earnings Release Call | Third Quarter 2026 5 Tennant Company TNC Robotics: Growth Accelerating, Portfolio Expanding $37.3M Q3 Robotics Revenue 71% YoY $95.3M YTD Robotics Revenue 61% YoY $130-145M Projected FY Revenue ‘25 Robotics Revenue ~$85M ‘28 Target $250M (~50% CAGR) Launched first autonomous vacuum, reaching new segments X4 ROVR Autonomous Floor Scrubber X6 ROVR Autonomous Floor Scrubber X4 & X6 ROVR led Q3 growth
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Tennant Company Earnings Release Call FINANCIAL RESULTS Third Quarter 2026 www.investors.tennantco.com
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TNC Earnings Release Call | Third Quarter 2026 Third-quarter net income of $19.5M, compared to $14.9M in the prior year ► Diluted EPS of $1.12 vs. $0.80, benefiting from lower ERP modernization costs and the absence of prior-year legal contingency costs ► Reported effective tax rate of 24.7% and adjusted rate of 25.4%, both within our full-year guidance range of 24% to 29% Third-quarter adjusted EPS* of $1.40 per diluted share ► Higher sales and tariff refunds partially offset higher operating costs and interest expense ► Cost pressures included material and logistics inflation, production inefficiencies from parts availability and residual ERP issues, and higher S&A and R&D, including robotics investment Tennant Company Third-Quarter 2026 Financial Performance Net Income In millions of USD Adjusted EPS* 7 $14.9 $19.5 Q3'25 Q3'26 $1.46 $1.40 Q3'25 Q3'26 *Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation
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TNC Earnings Release Call | Third Quarter 2026 Gross Margin decreased 40 bps to 42.3% ► Included approximately $6 million in tariff refunds, which contributed about 190 bps to gross margin ► Excluding tariff refunds, gross margin was pressured by inflation, macroeconomic headwinds, parts constraints, and residual ERP inefficiencies, partially offset by favorable pricing Adjusted S&A* as a percent of net sales increased 30 bps to 27.8% ► Driven by increased employee-related costs, ERP licensing fees, robotics investments, and inflationary pressures Adjusted EBITDA* decreased $1.0M to $48.8M ► Higher volume, pricing and tariff refunds were more than offset by higher COGS and increased S&A and R&D investment; margin of 15.1% Tennant Company Third-Quarter 2026 Results *Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation **Organic net sales growth (decline) 8 +8.1% Americas +2.3% EMEA -4.8% APAC +5.7% Total By Region** $179 M $193 M $70 M $65 M $54 M $64 M 2025 Q3 Net Sales 2026 Q3 Net Sales Service and Other Parts and Consumables Equipment Product Categories Net Sales $303 M $5 M $12 M $322 M $1.2 M $0.4 M Q3'25 Net Sales Price Volume Acquisitions FX Q3'26 Net Sales Adjusted EBITDA* $50 M $5 M $6 M ($10 M) ($8 M) $6 M $49 M Q3'25 Adj. EBITDA Price Volume COGS S&A / Other Tariff Refund Q3'26 Adj. EBITDA
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TNC Earnings Release Call | Third Quarter 2026 Tennant Company Capital Deployment Cash Flow 9 YE 2025 Q3 2026 Total Debt $273.6M $358.7M Net Debt $167.2M $283.4M Net Leverage* 1.0x 2.0x Revolver Availability $289.4M Capital Allocation Priorities Invest in the Business ► $7M of capital expenditures ► $12.4M spent on R&D investments Shareholder Return ► $5M of Dividends ► $76.6M returned year to date through dividends and share repurchases *Based on trailing twelve months Adjusted EBITDA $77 M $12 M ($7 M) ($5 M) ($2 M) $75 M Q2'26 Cash Operating Cash Flow CapEx Dividends Other Q3'26 Cash Cash Flow & Leverage ► Operating cash flow of $11.9M, up for the second consecutive quarter ► Net leverage of 2.0x, within our target range of 1.0x to 2.0x
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TNC Earnings Release Call | Third Quarter 2026 10 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 | Third Quarter 2026 12 THANK YOU www.investors.tennantco.com
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Tennant Company Earnings Release Call APPENDIX Third 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 | Third Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 15
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TNC Earnings Release Call | Third Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 16
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TNC Earnings Release Call | Third Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 17
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TNC Earnings Release Call | Third Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 18
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TNC Earnings Release Call | Third Quarter 2026 Tennant Company SUPPLEMENTAL NON-GAAP FINANCIAL TABLES 19