$TNC

TENNANT CO

CIK:0000097134|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 324.0	$ 318.6	$ 621.9	$ 608.6
Cost of sales	196.1	184.5	380.4	354.5
Gross profit	127.9	134.1	241.5	254.1
Selling and administrative expense	99.5	93.7	197.6	184.4
Research and development expense	12.5	9.8	23.1	19.5
Operating income	15.9	30.6	20.8	50.2
Interest expense, net	(4.3)	(2.2)	(7.7)	(4.5)
Net foreign currency transaction loss	(0.3)	(0.8)	(0.7)	(1.0)
Other expense, net	(1.0)	(0.3)	(1.2)	(0.2)
Income before income taxes	10.3	27.3	11.2	44.5
Income tax expense	2.7	7.1	3.4	11.2
Net income	$ 7.6	$ 20.2	$ 7.8	$ 33.3
Net income per share
Basic (in dollars per share)	$ 0.44	$ 1.10	$ 0.45	$ 1.79
Diluted (in dollars per share)	$ 0.44	$ 1.08	$ 0.45	$ 1.77
Weighted average shares outstanding
Basic (in shares)	16,898,741	18,508,758	17,226,826	18,605,187
Diluted (in shares)	17,171,367	18,687,918	17,456,349	18,820,298

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES
Net income	$ 7.8	$ 33.3
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation expense	23.1	21.9
Amortization expense	6.8	6.8
Loss from equity method investments	(0.5)	0.0
Deferred income tax expense (benefit)	3.9	(0.2)
Share-based compensation expense	3.6	5.8
Bad debt and returns expense	1.2	3.3
Other, net	0.4	0.3
Changes in operating assets and liabilities:
Receivables	(31.1)	(2.4)
Inventories	(18.3)	(8.3)
Accounts payable	(12.7)	(6.2)
Employee compensation and benefits	1.9	(13.9)
Other assets and liabilities	(13.3)	(18.3)
Net cash (used in) provided by operating activities	(26.2)	22.1
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(8.5)	(10.8)
Payments made in connection with business acquisition, net of cash acquired	(7.2)	0.0
Investment in leased assets	(0.2)	(0.2)
Cash received from leased assets	0.5	0.4
Net cash used in investing activities	(15.4)	(10.6)
FINANCING ACTIVITIES
Proceeds from borrowings	115.0	15.0
Repayments of borrowings	(30.0)	(0.8)
Repurchases from exercise of stock options, net of employee tax withholdings obligations of $3.2 and $2.9, respectively	(2.3)	(2.4)
Repurchases of common stock	(60.5)	(33.6)
Dividends paid	(10.8)	(11.0)
Net cash provided by (used in) financing activities	11.4	(32.8)
Effect of exchange rate changes on cash and cash equivalents	0.7	1.6
Net decrease in cash and cash equivalents	(29.5)	(19.7)
Cash and cash equivalents at beginning of period	106.4	99.8
Cash and cash equivalents at end of period	76.9	80.1
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	2.0	9.0
Cash paid for interest	9.1	6.0
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	13.5	11.9
Financing cash flows from financing leases	0.2	0.1
Lease assets obtained in exchange for new operating lease liabilities	9.4	7.0
Lease assets obtained in exchange for new financing lease liabilities	0.5	0.1
Supplemental non-cash investing and financing activities:
Capital expenditures in accounts payable	$ 1.8	$ 1.9

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and cash equivalents	$ 76.9	$ 106.4
Receivables, less allowances of $10.9 and $10.4, respectively	286.3	256.8
Inventories	201.9	198.5
Prepaid and other current assets	48.7	38.0
Total current assets	613.8	599.7
Property, plant and equipment, less accumulated depreciation of $301.7 and $289.0, respectively	187.7	189.8
Operating lease assets	54.4	56.9
Goodwill	208.3	208.6
Intangible assets, net	48.6	52.6
Other assets	158.0	161.3
Total assets	1,270.8	1,268.9
LIABILITIES AND EQUITY
Current portion of long-term debt	0.5	0.4
Accounts payable	112.9	127.5
Employee compensation and benefits	42.8	40.9
Other current liabilities	144.0	124.3
Total current liabilities	300.2	293.1
Long-term debt	358.4	273.2
Long-term operating lease liabilities	32.4	35.5
Employee benefits	16.0	15.7
Deferred income taxes	3.9	3.3
Other liabilities	24.7	44.7
Total long-term liabilities	435.4	372.4
Total liabilities	735.6	665.5
Commitments and contingencies (Note 13)
Common Stock, $0.375 par value; 60,000,000 shares authorized; 17,049,303 and 17,846,681 shares issued and outstanding, respectively	6.4	6.7
Additional paid-in capital	1.3	0.0
Retained earnings	564.4	628.1
Accumulated other comprehensive loss	(38.7)	(33.2)
Total Tennant Company shareholders' equity	533.4	601.6
Noncontrolling interest	1.8	1.8
Total equity	535.2	603.4
Total liabilities and total equity	$ 1,270.8	$ 1,268.9