NYSE$TNC

Tennant Company · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Tennant's second quarter results for 2022 were reported, showing increased sales and stabilized profitability despite challenges.

Tennant Company reported a slight increase in net sales and a rise in net income for Q2 2022, driven by higher selling prices and the absence of a prior-year debt extinguishment expense, although gross margin was lower due to inflation and currency impacts.

  • Net sales increased slightly to $280.2 million, a 0.4% increase compared to Q2 2021.
  • Organic sales increased by approximately 4.4%, driven by higher selling prices, but were partially offset by volume declines due to supply-chain constraints.
  • Net income increased to $16.6 million due to the absence of a non-recurring debt expense and a gain on the sale of a building.
  • Adjusted EBITDA decreased to $30.3 million due to lower margins and unfavorable currency impact.

Headline financials

Total Revenue

$280M

Previous: $279M+0.4%
EPS (adj)

$0.92

Previous: $1.18-22.0%
Adjusted EBITDA

$30.3M

Previous: $35.1M-13.7%
Gross Margin

37.9%

No prior period
Capital Expenditures

-$10.5M

Previous: -$8M-31.3%
Free Cash Flow

$6.1M

Previous: $1.8M+238.9%
Net Income

$16.6M

Previous: $9.8M+69.4%
Operating Income

$22.8M

Previous: $20.4M+11.8%
Gross Profit

$106M

Previous: $115M-7.7%
Cash & Equivalents

$73.8M

Previous: $135M-45.4%
Total Assets

$1.03B

Previous: $1.08B-5.2%
Stock-Based Comp

$900K

Previous: $3.9M-76.9%

Revenue & EPS history

Tennant · Revenue · Quarterly

$280M

Q2 2022+0.4%vs Q2 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Tennant is confirming its full-year 2022 guidance but expects net sales, net income per share, and Adjusted EBITDA to be near the lower end of the range due to foreign currency headwinds and evolving market conditions.

Tailwinds

  • Targeted actions and investments aimed at improving parts availability and supply-chain stability to enable increased production output.
  • Production volumes and gross margins will improve in the second half of the year.
  • Focus on supply-chain recovery to ramp production output.
  • Focus on selling innovative new products.
  • Focus on delivering a superior experience to benefit our customers.

Headwinds

  • Continuing macroenvironment challenges in the second half of 2022.
  • Foreign currency headwinds.
  • Evolving market conditions.
  • Net sales expected to be near the lower end of the guidance range.
  • Net income per share expected to be near the lower end of the guidance range.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+0.1%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+20.3%

Q1 2023

Best reaction

-23.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+6.5%+3.3%
Q4 2025-23.0%-25.8%-17.7%
Q3 2025-5.5%-6.3%-6.7%
Q1 2025+2.7%+1.9%+7.1%
Q4 2024-1.7%-0.7%-3.4%
Q3 2024-7.7%-5.0%-2.0%
Q2 2024-2.5%-3.0%-4.7%
Q1 2024-7.5%-6.6%-11.3%
Q4 2023+4.3%+12.5%+19.5%
Q3 2023+5.3%+9.2%+13.5%
Q2 2023+7.1%+6.3%+2.7%
Q1 2023+20.3%+18.1%+13.0%
Q4 2022+4.9%+3.4%-5.6%
Q3 2022-0.5%-1.8%+5.9%
Q2 2022+3.5%+7.3%-7.8%
Q1 2022-8.3%-11.4%-10.1%
Q4 2021+3.5%+1.2%+5.1%
Q3 2021-1.5%+2.5%-1.2%
Q2 2021-4.1%-4.9%-3.6%
Q1 2021+3.6%+6.6%+3.9%
Q4 2020-3.7%-2.2%+2.4%
Q3 2020-0.4%+2.2%+14.8%
Q2 2020-4.3%-5.1%-1.9%
Q1 2020-4.7%-4.2%+22.7%
Q4 2019-0.3%-2.6%-38.0%
Q3 2019+8.2%+9.5%+4.0%
Q2 2019+8.5%+3.1%+1.8%
Q1 2019-6.1%-4.3%-15.7%
Q4 2018+4.8%+1.1%-0.8%
Q3 2018-3.9%-7.7%-8.5%
Q2 2018+5.4%+1.8%-4.4%
Q1 2018+6.7%+5.9%+12.8%
Q4 2017+1.6%+8.7%+6.4%
Q3 2017-5.6%-2.2%-5.5%
Q2 2017-13.4%-12.7%-19.1%
Q1 2017-1.6%-0.5%-4.3%
Q4 2016+6.9%+0.2%+0.9%
Q3 2016-0.3%+3.5%+24.0%
Q2 2016+9.5%+11.3%+11.4%
Q1 2016-1.4%
Q4 2015+0.4%
Q3 2015-0.2%
Q2 2015-5.1%
Q1 2015-0.2%
Q4 2014-3.2%
Q3 2014+0.6%
Q2 2014+2.8%
Q1 2014+0.1%
Q4 2013-9.0%
Q3 2013-6.9%
Q2 2013-0.1%
Q1 2013-0.5%
Q4 2012+0.3%
Q3 2012-3.0%
Q2 2012+1.7%
Q1 2011+1.8%
Q1 2012+3.6%
Q4 2011-2.1%
Q4 2009-2.1%
Q1 2010-2.1%
Q3 2011+7.2%
Q3 2010+7.2%
Q2 2010-6.5%
Q2 2011-6.5%
Q4 2010-6.5%

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