The beat vs low consensus and reaffirmed guidance support a near-term positive bias, but the underlying volume weakness and margin pressure keep the recovery story unproven. Watch the Q2 trend in organic growth and adjusted EBITDA margin to validate the H2 normalization narrative.
Price Chart
Executive Summary
TNC reported Q1 2026 net sales of $297.9M (+2.7% YoY), with adjusted diluted EPS of $0.58 significantly beating the $0.23 consensus (152% beat) despite a 48% decline from $1.12 a year ago. Organic sales fell 1.9% and adjusted EBITDA dropped 29% to $29.1M, but orders grew 10% and full-year 2026 guidance was reaffirmed, signaling ERP recovery is on track.
Key Financial Metrics
Key Facts
- Net sales $297.9M (+2.7% YoY; organic -1.9%)
- Adjusted diluted EPS $0.58 vs consensus $0.23 (152% beat) but down 48.2% YoY
- GAAP net income $0.2M ($0.01 diluted EPS) vs $13.1M ($0.69) in Q1 2025
- Adjusted EBITDA $29.1M (-29% YoY), margin 9.8% (down 430 bps)
- Orders $327M, +10% YoY
- Full-year 2026 guidance reaffirmed: net sales $1.24B-$1.28B, adjusted EPS $4.70-$5.30
- Net leverage ratio rose to 1.78x from 1.00x at year-end 2025
- Returned $60M to shareholders via buybacks (~5% of shares outstanding)
Financial Impact
Adjusted EPS beat consensus by $0.35 (152%), but absolute earnings and margins remain depressed due to ERP disruption.
Risk Factors
- ERP recovery may take longer than expected, weighing on margins and volumes
- Net leverage increased to 1.78x; further debt could pressure if earnings don't recover
- Tariff costs and pricing pressures could persist
- Negative operating cash flow of -$31.2M in Q1
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000097134-26-000012 |
| Document: tnc-20260504.htm | 0000097134-26-000012 |
| Document: 0000097134-26-000012-index-headers.html | 0000097134-26-000012 |
| Document: 0000097134-26-000012-index.html | 0000097134-26-000012 |
| Document: 0000097134-26-000012.txt | 0000097134-26-000012 |
| 8-K Data (Synthetic) | 0000097134-26-000012 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 23, 2026 4w ago | Insider Buy | $66.21 $66.12 | ▼ −0.14% | ▲ +0.28% | $65.60 (−0.92%) |
Aug 13, 2026 10w ago | Insider Cluster | $68.59 $68.68 | ▲ +0.13% | ▲ +2.12% | $65.60 (−4.36%) |
Jun 17, 2026 18w ago | 8-K | $85.87 $88.33 | ▲ +2.86% | ▲ +1.55% | $65.60 (−23.61%) |
May 4, 2026 25w ago | 8-K | $82.63 $85.83 | ▲ +3.87% | ▼ −1.08% | $65.60 (−20.61%) |
Mar 18, 2026 31w ago | DEFA14A | $64.83 $78.70 | ▲ +21.39% | ▲ +13.77% | $65.60 (+1.19%) |
Feb 27, 2026 34w ago | Insider Cluster | $61.03 $66.50 | ▲ +8.96% | ▲ +16.52% | $65.60 (+7.49%) |
Feb 27, 2026 34w ago | Insider Cluster | $61.03 $66.50 | ▲ +8.96% | ▲ +16.52% | $65.60 (+7.49%) |
US Market Status
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