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.
The transition to the new ERP system—a critical move intended to modernize Tennant’s global digital infrastructure—encountered traditional "go-live" hurdles that limited manufacturing output and delayed revenue recognition for several key product lines.
The company indicated that while the system is now operational, the fourth quarter bore the brunt of the learning curve and technical stabilization.
Looking ahead to 2026, Tennant issued a fresh financial outlook that anticipates a return to normalized operational levels.
The company expects to recover the volume lost during the fourth-quarter disruption as it works through a healthy backlog of orders.