Why Tennant (TNC) Crashed -25%: When an ERP Rollout Goes Off the Rails
TNC (Tennant Company) is down more than 25% today because it reported a very large earnings and revenue miss for Q4 2025, blamed on serious ERP rollout problems and weaker demand, and guided to a slower‑than‑hoped recovery in 2026.
Why TNC fell so much
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Tennant reported Q4 adjusted EPS of about 0.48 per share versus analyst expectations of roughly 1.68, a negative surprise of over 70%, and a sharp drop from about 1.52 a year earlier.
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Revenue was about 291.6 million, down around 11–14% year over year and well below forecasts in the low 320 million range, with adjusted EBITDA down roughly 46% as lower volumes and ERP‑related costs crushed margins.
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Management disclosed that the Q4 ERP go‑live in North America caused major order‑management and fulfillment disruptions, cutting an estimated 30 million from sales and about 22 million from adjusted EBITDA, and said much of 2026 will still be about stabilizing operations rather than immediately bouncing back.
How the market is reading it
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The combination of a huge earnings miss, operational execution issues around the ERP system, and guidance that implies only gradual improvement in 2026 led investors to question both near‑term profitability and management’s execution quality, driving a 20–25%+ single‑day selloff.
Tickeron AI Perspective
TNC's RSI Oscillator recovers from overbought zone
The 10-day RSI Indicator for TNC moved out of overbought territory on May 12, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 instances where the indicator moved out of the overbought zone. In of the 37 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where TNC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TNC turned negative on June 02, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TNC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TNC broke above its upper Bollinger Band on May 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 26, 2026. You may want to consider a long position or call options on TNC as a result. In of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for TNC moved above the 200-day moving average on May 26, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TNC advanced for three days, in of 320 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 208 cases where TNC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.689) is normal, around the industry mean (4.871). P/E Ratio (49.893) is within average values for comparable stocks, (47.149). Projected Growth (PEG Ratio) (2.505) is also within normal values, averaging (2.010). Dividend Yield (0.015) settles around the average of (0.020) among similar stocks. P/S Ratio (1.266) is also within normal values, averaging (144.187).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TNC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TNC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock worse than average.
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General Information
a manufacturer of indoor and outdoor cleaning solutions
Industry IndustrialMachinery
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