Tennant Company (TNC) Sidoti March Small-Cap Virtual Conference summary

Market position and growth drivers

• Holds a 14% share of a $9 billion global market, with strongest presence in the Americas at 25%.

• Faces three major global competitors, with significant growth opportunities from smaller players and M&A.

• Growth is driven by automation, modernization, electrification, and sustainability mega trends.

• Automation and robotics are key, supported by labor shortages and demand for productivity.

• Electrification and sustainability are increasingly important to customers seeking net zero goals.

Strategic initiatives and innovation

• Committed to 3%-5% organic net sales growth and 50-100 bps annual EBITDA margin expansion.

• Innovation focuses on robotics (AMR), small space cleaning, and product line extensions.

• Recent acquisitions in Europe and China enable mid-tier product offerings and new channel penetration.

• Launched TNC Robotics Group to accelerate robotics growth and product development.

• Entered outdoor sweeping market with new products and plans further expansion.

Robotics business and targets

• Robotics business reached $85 million in revenue in 2025, including recurring software revenue.

• Dedicated team of over 100 people focused on robotics innovation, sales, and customer support.

• Targeting $250 million in robotics sales by 2028, leveraging brand, service, and channel strengths.

• Faces competition from new robotics-only entrants, mainly from Asia, but confident in market leadership.

• Strategy includes rapid product launches, enhanced customer experience, and maximizing channel impact.