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- **Resilient Execution**: 2% YOY order growth, 30bp gross margin expansion, 120bp EBITDA margin improvement despite 5.4% organic sales decline. 
- **Tariff Headwinds**: North American Industrial customers delaying purchases, offsetting by pricing (+280bp margin) and supply chain adjustments. 
- **AMR Growth Engine**: Units +25%, sales +9% YTD, with Z50 sweeper unlocking $400M TAM in outdoor sweeping. 
- **Liquidity Strength**: $99.4M cash, 0.69x net leverage, $28M returned to shareholders Q3. 
- **Q4 Outlook**: Need 2.5% Q4 sales growth vs. adjusted 2024 baseline to meet guidance. 


**【CEO Summary Section】**
- **Revenue and Order Growth**: Q3 net sales of $303 million (-5.4% organic decline) with 2% year-over-year order growth, driven by price realization and new product launches (e.g., T360 scrubber, Z50 Citadel sweeper). 
- **Tariff Impact**: Direct costs offset via pricing and supply chain adjustments, but North American Industrial customers delaying purchases due to tariff uncertainty. 
- **Margin Expansion**: 30bp gross margin improvement to 42.7%, 120bp EBITDA margin expansion to 16.4%. 
- **ERP Progress**: Successful APAC go-live; Americas deployment ongoing with Q1 2026 EMEA go-live. 
- **AMR Growth**: Units +25%, sales +9% YTD, driven by X4/X6 ROVR robots and strategic account wins. 

**【CFO Financial Commentary】**
- **Profitability**: GAAP net income $14.9M (-28% vs. prior year), adjusted EBITDA $49.8M (+4%). 
- **Cash Flow**: Free cash flow $22.3M (183.3% of net income), share buybacks and dividends total $28.1M. 
- **Liquidity**: $99.4M cash, 0.69x net leverage, strong balance sheet for M&A and growth. 
- **Tariff Mitigation**: Expect to offset 2025 tariff impact via pricing and supply chain adjustments. 

**【Q&A Highlights】**
- **Order Momentum**: Q4 needs $318M sales to meet guidance, with 2.5% growth vs. adjusted 2024 baseline. 
- **Customer Behavior**: North American Industrial customers delaying CapEx due to tariff P&L impact. 
- **AMR Strategy**: Clean 360 bundled offering and Gen 3 autonomy driving adoption in retail, healthcare. 
- **ERP Costs**: $14M Q3 spend, tracking to $50M+ full year, with 2026+ benefits from digital transformation. 


Tennant Company (TNC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TNC

TNC fundamentals

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