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• Net Sales: $1.287 billion for the full year 2024, a 3.5% increase from 2023.

• Adjusted EBITDA: $208.8 million for 2024, with a margin of 16.2%.

• Organic Growth Rate: 3.2% for the full year 2024.

• Fourth Quarter Net Sales: $328.9 million, a 5.6% increase from Q4 2023.

• GAAP Net Income: $83.7 million for 2024, down from $109.5 million in 2023.

• Adjusted EPS: $6.57 per diluted share for 2024, flat compared to the prior year.

• Free Cash Flow: $68.8 million for 2024.

• AMR Equipment Sales: $75 million in 2024.

• Adjusted Gross Margin: 42.7% for the full year 2024, a 20 basis point improvement.

• Net Cash Provided by Operating Activities: $89.7 million in 2024.

• Capital Expenditures: $20.9 million in 2024.

• 2025 Guidance - Net Sales: $1.210 billion to $1.250 billion.

• 2025 Guidance - Adjusted EPS: $5.70 to $6.20 per diluted share.

• 2025 Guidance - Adjusted EBITDA: $196 to $209 million.

• Warning! GuruFocus has detected 4 Warning Signs with GLDD.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Tennant Co (NYSE:TNC) achieved record highs in net sales, adjusted EBITDA, and EBITDA margins for 2024, with net sales reaching $1.287 billion.

• The company successfully reduced its backlog by $125 million, normalizing levels and aligning incoming orders more closely with revenue.

• Tennant Co (NYSE:TNC) reported strong performance in the Americas, with high single-digit order growth driven by new products like the X4 Rover.

• The company expanded its product line with successful innovations in AMR, small space, and product line extensions, exceeding long-term growth targets.

• Tennant Co (NYSE:TNC) activated its M&A framework with strategic investments, including the acquisition of TCS, contributing to inorganic growth in EMEA.

Negative Points

• Tennant Co (NYSE:TNC) faced lower than anticipated demand for industrial equipment, particularly in the rental channel, due to extended fleet replacement cycles.

• The company experienced significant demand declines in China and Australia, impacting business performance in the APAC region.

• Full year 2024 GAAP net income decreased to $83.7 million from $109.5 million in 2023, impacted by higher R&D costs and other expenses.

• The company faced a legal contingency expense due to an adverse jury verdict related to an intellectual property dispute, resulting in $14.5 million in damages and interest.

• Tennant Co (NYSE:TNC) anticipates a negative 1% to negative 4% organic sales decline in 2025 due to the backlog reduction headwind and foreign currency impacts.