Tennant Company Faces Scrutiny Over ERP Rollout Issues

Shares tank 23% after company reveals major problems with new North America enterprise resource planning system

Mar. 19, 2026 at 4:40pm by Ben Kaplan

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Tennant Company, a manufacturer of floor cleaning equipment, is facing an investigation by national shareholders rights firm Hagens Berman over the company's disclosures regarding the progress of its efforts to modernize its North America enterprise resource planning (ERP) system. The investigation was prompted by Tennant's surprise announcement on February 24, 2026, that it had experienced significant problems with the new ERP system, which led to a 23% drop in the company's stock price.

Why it matters

The investigation is focused on whether Tennant properly disclosed the challenges it was facing with the ERP system rollout, as the company had previously touted the success of its Asia Pacific ERP modernization and expressed confidence in the North America ERP system modernization. The severe market reaction and financial impact of the ERP issues have raised concerns about Tennant's transparency and potential violations of federal securities laws.

The details

In early November 2025, Tennant's North America ERP go-live 'introduced severe functionality issues that limited our ability to enter orders, ship products, and service our customers.' This resulted in a three- to four-week period where the company was unable to operate its plants at normal capacity, leading to an estimated $30 million impact on net sales. The challenges continued into early 2026, contributing to Tennant's dismal Q4 2025 and full-year 2025 financial results.

  • In early November 2025, Tennant's North America ERP go-live introduced severe functionality issues.
  • On February 24, 2026, Tennant reported the ERP issues and their financial impact, leading to a 23% drop in the company's stock price.

The players

Tennant Company

A manufacturer of floor cleaning equipment and provider of cleaning solutions, services and technologies.

Hagens Berman

A national shareholders rights firm investigating Tennant's disclosures about the progress of its North America ERP system modernization.

Reed Kathrein

The Hagens Berman partner leading the investigation into Tennant.

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What they’re saying

“We're investigating precisely when Tennant knew of serious problems with its North America ERP and whether it may have concealed information crucial to investors' decisions.”

— Reed Kathrein, Partner, Hagens Berman

What’s next

The judge in the case will decide on Tuesday whether or not to allow Tennant to continue using the new ERP system while the investigation is ongoing.

The takeaway

This case highlights the importance of transparent and timely disclosures by public companies, especially when implementing critical enterprise-wide systems. Investors will be closely watching how Tennant handles the fallout from the ERP issues and whether the company faces any legal consequences for its actions.