TENNANT CO Q1 FY2026 earnings call

• North America ERP recovery: Top priority was to stabilize operations. By end of quarter, core workflows were stable. Focus shifted to driving efficiency and optimization. Lessons from NA ERP inform EMEA implementation push beyond 2026. - Robotics business: Shipped over 11,500 robots cumulatively. AMR sales growing. Ramping TMC robotics venture, extended exclusivity with BrainCorp until 2029, launched BrainOS Clean 2.0 and SelfPath AI, launched X16 Sweep and X2 Rover, aggressively expanding channels to market. - Capital allocation: Invest in business for growth, maintain strong balance sheet, pursue strategic M&A, return excess capital to shareholders. Repurchased $60 million of shares in Q1, board authorized new $2 million share repurchase program. Evaluate M&A opportunities.

Orders totaled $327 million, an increase of 10% year over year. Net sales increased almost 3% year over year. AMR sales, inclusive of equipment and autonomy service fees, were approximately $27 million in Q1, representing 9% of total net sales in the quarter and 85% year-over-year robotics growth. Equipment sales increased by 3.1%, parts and consumables decreased by 4%, and service and other sales increased by 10.6%.

Reaffirming 2026 guidance. Net sales in range of $1.24 billion to $1.28 billion, reflecting organic sales growth of 3% to 6.5%. Adjusted EBITDA in range of $175 million to $190 million. GAAP diluted EPS of $4.05 to $4.65, and adjusted diluted EPS of $4.70 to $5.30. Capital expenditures of approximately $25 million, and an adjusted effective tax rate between 24 and 29%.

Risks and uncertainties regarding forward-looking statements. Potential impact of ERP implementation, market competition, and geopolitical issues affecting freight and input costs.

Q: Maybe starting with a multi-part question on the order environment...

A: Yeah, I'd be happy to, Tom...

Q: And our next question comes from the line of Steve Ferrazani...

A: Yeah, I think it's going to change within quarters and it's...

Q: Thank you. Hi, Dave. Hi, Faye. Just a couple questions here...

A: Yeah, so really proud of the results we've delivered...