Tennant Co. has recently released its latest 10-Q report. Tennant designs, manufactures and markets floor-cleaning equipment and related services across the Americas, Europe, the Middle East, Africa and Asia Pacific. Its lineup includes manual and autonomous cleaning machines, detergent-free cleaning technologies, aftermarket parts and consumables, maintenance and repair services, and financing, rental, leasing and asset-management offerings.
For the quarter ended June 30, 2026, Tennant reported net sales of $324.0 million, up 1.7% from $318.6 million a year earlier. For the first six months of 2026, sales rose 2.2% to $621.9 million from $608.6 million. The quarterly increase came from a 1.6% foreign-currency benefit and 0.6% acquisition-related growth, partly offset by a 0.5% organic decline as price gains were outweighed by lower volume.
By region, second-quarter sales in the Americas increased 2.4% to $218.7 million, EMEA rose 2.1% to $86.5 million, and APAC fell 7.8% to $18.8 million. For the first half, Americas sales edged up 0.5% to $412.7 million, EMEA climbed 7.9% to $173.4 million, and APAC declined 3.5% to $35.8 million.
Profitability weakened. Gross margin fell to 39.5% from 42.1% in the second quarter of 2025, and to 38.8% from 41.8% in the first half. Tennant said the decline reflected ERP-related recovery costs, supply constraints, and higher freight and tariff-related material costs in North America, along with competitive price concessions, volume deleverage and unfavorable mix in EMEA.
Operating income dropped to $15.9 million from $30.6 million in the quarter and to $20.8 million from $50.2 million in the first half. Selling and administrative expense rose to $99.5 million from $93.7 million in the quarter, while research and development expense increased to $12.5 million from $9.8 million. Net income fell to $7.6 million, or $0.44 a diluted share, from $20.2 million, or $1.08 a share, in the prior-year quarter. For the first six months, net income was $7.8 million, or $0.45 a share, versus $33.3 million, or $1.77 a share. As a result of these announcements, the company's shares have moved -14.22% on the market, and are now trading at a price of $74.845. For more information, read the company's full 10-Q submission here.
