Tennant Company Reports Decline in Revenue and Profitability for Q2 and First Half of 2025

Tennant Company reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and profitability compared to the same periods in 2024. For the three months ended June 30, 2025, net sales totaled $318.6 million, a decrease of 3.7% from $331.0 million in the prior year. The decline was attributed to a 4.5% organic sales drop, primarily due to volume declines across all geographies, particularly in North America. The company’s gross profit for the quarter was $134.1 million, down from $142.7 million, resulting in a gross profit margin of 42.1%, which is 100 basis points lower than the previous year.

In the first half of 2025, Tennant's net sales were $608.6 million, down 5.2% from $642.0 million in the same period of 2024. The decrease was similarly driven by a 4.7% organic sales decline, with volume reductions impacting all regions. The company reported a net income of $20.2 million for the second quarter, down from $27.9 million, and a net income of $33.3 million for the first half, compared to $56.3 million in 2024. This resulted in diluted earnings per share of $1.08 for the second quarter, down from $1.45 a year earlier.

Strategically, Tennant Company made significant moves, including the acquisition of M&F Management and Financing GmbH in February 2024, which is expected to enhance its presence in the EMEA region. The acquisition, valued at $34.9 million, is anticipated to provide Tennant with a stronger sales force and direct access to several Central and Eastern European markets. Additionally, the company has been focusing on cost control and operational improvements amid ongoing macroeconomic challenges, including geopolitical tensions and inflationary pressures.

Operationally, Tennant's customer base and engagement metrics showed mixed results. The Americas region saw a 6.3% decline in net sales for the second quarter, while the EMEA region experienced a 3.9% increase, largely due to favorable foreign currency impacts. The Asia Pacific region reported a 6.0% decline in net sales, primarily driven by decreased volumes in China. The company’s total assets increased to $1.241 billion as of June 30, 2025, up from $1.190 billion at the end of 2024, reflecting a strategic focus on maintaining liquidity and managing working capital effectively.

Looking ahead, Tennant Company remains cautious about the economic environment, emphasizing the need for proactive pricing actions and supply chain strategies to mitigate cost pressures. The company is committed to optimizing its financial performance and expanding margins while continuing to invest in innovation to meet evolving customer needs. Despite the challenges, Tennant aims to navigate the current landscape by adapting its product offerings and maintaining disciplined spending across the organization.