Tennant Q4 Earnings Call Highlights

ERP system disruption leads to significant sales and profit declines in Q4 2025

Published on Feb. 25, 2026

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Tennant (NYSE:TNC) reported that its fourth quarter and full-year 2025 results were 'materially impacted' by the North America go-live of a new ERP system in early November, which created severe functionality issues that disrupted order entry, production, shipping, and customer service. The disruption reduced Q4 net sales by an estimated $30 million and adjusted EBITDA by $22 million, with a corresponding impact on EPS of approximately $0.91.

Why it matters

The ERP system issues highlight the challenges companies can face when implementing major new technology systems, especially when they impact core business operations. Tennant's experience underscores the importance of thorough testing and contingency planning to minimize disruptions during critical system transitions.

The details

Tennant said the North America ERP go-live introduced 'severe system functionality issues,' particularly affecting order processing for highly configurable machines. The company lost 'three full weeks of machine order entry and parts shipping capability,' leading to added overtime, freight, and other direct operating costs. Customer impacts included limited order fulfillment, unreliable shipment visibility, and a prolonged backlog. By late in the quarter, Tennant said the most critical issues had been resolved, but the company is still working through efficiency and user adoption problems.

  • In early November 2025, Tennant launched its new ERP system in North America.
  • In late 2025, Tennant said the most critical ERP issues had been resolved, but the company is still targeting system stability by the end of Q1 2026 with efficiency improvements continuing into Q2.

The players

Tennant

A global provider of cleaning solutions, including floor scrubbers, sweepers, and autonomous cleaning machines.

David Huml

President and CEO of Tennant.

Fay West

Senior Vice President and CFO of Tennant.

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What they’re saying

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