Tennant Company (NYSE:TNC) reported fourth-quarter results that were significantly constrained by the implementation of a new enterprise resource planning (ERP) system, leading to missed shipments and operational inefficiencies in its primary North American market.
The Minneapolis-based manufacturer of industrial floor-care equipment posted fourth-quarter adjusted earnings of $0.48 per share.
The result included a staggering $0.91 per share negative impact directly attributed to the ERP transition, which disrupted the company’s ability to process orders and manage inventory at a normal rhythm.
Without the implementation headwinds, adjusted earnings would have been substantially higher, reflecting a deeper impact than initial internal projections had suggested.
For the full year 2025, Tennant reported adjusted earnings of $4.57 per share.
Despite the late-year turbulence, the company remained aggressive in its capital allocation strategy, repurchasing approximately $88 million in common stock throughout the year.
The buybacks represented roughly 6% of the company's outstanding shares, signaling management’s confidence in the long-term value of the business despite the short-term technical setbacks.