Tennant Company Board Authorizes Repurchase of Additional Two Million Shares

Rhea-AI Summary

Tennant Company (NYSE: TNC) has announced a new share repurchase program authorizing the buyback of up to 2 million shares of common stock, effective February 11, 2025. This is in addition to approximately 580,000 shares remaining under the current repurchase program.

The company, which reported sales of $1.24 billion in 2023, will conduct the repurchases through open-market and privately negotiated transactions. The timing and amount of repurchases will be determined by market conditions and other corporate considerations. Tennant currently has approximately 18.8 million shares outstanding.

Tennant Company, founded in 1870 and headquartered in Eden Prairie, Minnesota, is a global leader in surface maintenance equipment, sustainable cleaning technologies, and cleaning supplies. The company employs approximately 4,500 people and operates through direct sales in 21 countries and distributors in over 100 countries.

Positive

• Authorization of 2 million additional share repurchase program
• Strong financial position with $1.24 billion in sales for 2023
• 580,000 shares still available under current repurchase program

Negative

• None.

Insights

Financial Analyst

This substantial share repurchase authorization of 2 million shares, combined with the existing 580,000 shares remaining from the previous program, represents a significant capital return initiative targeting approximately 13.7% of Tennant's outstanding shares. The program's structure, allowing for both open-market and privately negotiated transactions, provides strategic flexibility in execution timing and price optimization.

The authorization's size is particularly noteworthy given Tennant's market capitalization of $1.66 billion and annual revenue of $1.24 billion. This level of share repurchase capacity indicates robust free cash flow generation and a strong balance sheet position. The company's global presence in 21 countries with direct sales and over 100 countries through distributors suggests sustainable cash flow streams to support this capital return initiative while maintaining operational investments.

The flexible implementation approach, without a specified timeline, is strategically advantageous as it allows management to:

• Opportunistically execute purchases during market volatility
• Adjust the pace of repurchases based on business conditions and investment opportunities
• Maintain financial flexibility for potential M&A or organic growth initiatives

For investors, this program signals management's confidence in Tennant's long-term prospects and commitment to shareholder returns. The substantial size of the authorization, representing a meaningful percentage of the company's market cap, could provide significant support for the stock while potentially enhancing key per-share metrics like earnings and book value.

MINNEAPOLIS--(BUSINESS WIRE)-- Directors of Tennant Company (NYSE: TNC) authorized a new share repurchase program of up to 2,000,000 shares of the Company’s common stock, effective February 11, 2025.

“The Board's authorization of a 2,000,000 share repurchase program demonstrates our confidence in Tennant's strategic direction and our commitment to returning capital to shareholders,” said Dave Huml, Tennant President and Chief Executive Officer. “This initiative highlights our strong financial position and dedication to disciplined capital allocation, aiming to enhance shareholder returns while continuing to invest in growth opportunities.”

This authorization is in addition to approximately 580,000 shares remaining under the company’s current repurchase program. Share repurchases under these programs may be made through open-market and privately negotiated transactions from time to time and in amounts that management deems appropriate. The timing of share repurchases will depend upon market conditions and other corporate considerations. Tennant has approximately 18,800,000 shares outstanding.

Company Profile

Founded in 1870, Tennant Company (TNC), headquartered in Eden Prairie, Minnesota, is a world leader in the design, manufacture and marketing of solutions that help create a cleaner, safer and healthier world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; detergent-free and other sustainable cleaning technologies; and cleaning tools and supplies. Tennant's global field service network is the most extensive in the industry. Tennant Company had sales of $1.24 billion in 2023 and has approximately 4,500 employees. Tennant has manufacturing operations throughout the world and sells products direct in 21 countries and through distributors in more than 100 countries. For more information, visit www.tennantco.com and www.ipcworldwide.com. The Tennant Company logo and other trademarks designated with the symbol “®” are trademarks of Tennant Company registered in the United States and/or other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213442955/en/

INVESTOR CONTACT:

Lorenzo Bassi

Vice President, Finance and Investor Relations

investors@tennantco.com

763-540-1242

Source: Tennant Company

FAQ

How many shares is Tennant Company (TNC) authorized to repurchase in its new program?

Tennant Company is authorized to repurchase up to 2 million shares of common stock in its new program, effective February 11, 2025.

What was Tennant Company's (TNC) total sales revenue in 2023?

Tennant Company reported sales of $1.24 billion in 2023.

How many shares remain available under TNC's current repurchase program?

Approximately 580,000 shares remain available under Tennant Company's current repurchase program.

How many total shares does Tennant Company (TNC) have outstanding?

Tennant Company has approximately 18.8 million shares outstanding.

When will TNC's new share repurchase program become effective?

The new share repurchase program will become effective on February 11, 2025.