Core Viewpoint - Freudenberg has received all necessary regulatory approvals for its voluntary takeover offer of Nilfisk Holding A/S, indicating progress towards the acquisition [1][2]. Company Overview - Nilfisk, founded in 1906 by Danish engineer P.A. Fisker, is a leading global provider of professional cleaning equipment and services, with over 90% of sales directed towards professional markets [3]. - The company operates in more than 100 countries and has six manufacturing sites located in the US, Mexico, Hungary, Italy, and China, employing approximately 4,500 people [4]. - In 2024, Nilfisk generated revenue of €1,027.9 million, with the largest market being the US, accounting for 28% of total revenue, followed by Germany (14%), France (10%), Denmark (7%), and the UK (4%) [4]. Acquisition Details - The completion of Freudenberg's offer is contingent upon meeting the remaining conditions outlined in the Offer Document [2]. - The Offer Document, which contains the full terms and conditions of the takeover, is available on Nilfisk's investor website [2].

Group 1 - The article discusses an ongoing securities fraud investigation involving Tennant Company, urging investors who have lost money to take action [1] - The investigation is being conducted by BFA Law, which is encouraging affected investors to contact them for assistance [1]

Core Insights - Tennant Company (NYSE:TNC) has been included in the Dividend Kings List, highlighting its status as a reliable dividend-paying stock [1] Group 1: Downgrade and Financial Performance - Freedom Capital downgraded Tennant Company from Buy to Hold and reduced its price target from $93 to $67, citing a "weak" Q4 report [2] - The company's Q4 and full-year results were significantly impacted by the North America launch of a new ERP system, which caused serious functionality issues affecting order entry, shipping, and customer service [3] - The ERP-related disruptions resulted in a loss of approximately $15 million in orders and an overall impact of about $30 million on net sales, with adjusted EBITDA for Q4 lowered by around $22 million [4] Group 2: Remediation and Future Outlook - The company is actively working to resolve the ERP system issues, with remediation costs now expected to exceed $20 million in 2026, significantly higher than the initial estimate of $5 million [5] - The near-term profitability and cash flow of Tennant Company are under pressure due to shipment constraints, stabilization costs, and tariff inflation, which may persist into 2026 [2]

Core Viewpoint - Freudenberg Home and Cleaning Solutions GmbH has made a voluntary takeover offer for Nilfisk Holding A/S, with significant shareholder acceptance and market acquisitions indicating strong support for the offer [1][2][4]. Group 1: Offer Details - The takeover offer was initially published on January 7, 2026, and the offer period has been extended until April 8, 2026 [1][2]. - Approximately 81.2% of Nilfisk's share capital has accepted the offer, including irrevocable undertakings [2]. - Freudenberg SE has acquired an additional 16.3% of Nilfisk's shares in the market, with 4.9% already tendered into the offer [3]. Group 2: Acceptance and Ownership - The Offeror Group currently holds or has received valid acceptances for approximately 92.6% of Nilfisk's share capital and voting rights, assuming no withdrawals occur [4]. - The offer remains conditional upon the Offeror owning or having received valid acceptances for at least 90% of the share capital and voting rights at the expiry of the offer period [5]. Group 3: Company Overview - Nilfisk, founded in 1906, is a leading global provider of professional cleaning equipment and services, with over 90% of sales directed to professionals [6][7]. - The company generated revenue of €996.3 million in 2025, with the largest market being the US, accounting for 24% of revenue [7].

Core Thesis - Tennant Company (TNC) is positioned as a unique industrial investment at the intersection of traditional manufacturing and high-growth robotics, with a current share price of $83.31 and trailing and forward P/E ratios of 28.44 and 12.05 respectively [1][2] Group 1: Business Overview - Tennant Company designs, manufactures, and markets floor cleaning equipment both in the Americas and internationally, with a current revenue of $1.3 billion [2][3] - The company is expanding into Autonomous Mobile Robots (AMRs) and new markets like industrial outdoor sweeping, which significantly increases its Total Addressable Market [3] Group 2: Strategic Vision - Near-term guidance indicates modest organic declines due to macroeconomic challenges, but TNC's long-term vision involves transforming from a CAPEX-heavy equipment seller to a recurring revenue Equipment-as-a-Service (EaaS) platform [4] - The transition to an EaaS model could redefine TNC as an industrial-tech platform over the next decade, leveraging high-margin subscription, data, and service fees from a connected AMR fleet [4] Group 3: Competitive Advantage - TNC boasts a global field service network of over 900 technicians, providing high uptime for customers and reducing adoption risk for complex robotics solutions, a competitive edge not easily replicated by digital-only competitors [4] - The company has deployed over 6,000 AMRs globally and must continue investing in software and AI to maintain its technological lead amid increasing competition [5] Group 4: Customer Value Proposition - Customers appreciate the AMRs for their ability to reduce labor costs, deliver consistent performance, and provide sustainability benefits [6] - As recurring revenue scales, long-term returns are expected to accelerate, with disciplined capital allocation and low leverage positioning TNC for a potential fivefold valuation increase if it can demonstrate a tech-like growth trajectory [6]

Core Insights - Nilfisk celebrates 120 years of innovation in cleaning solutions, emphasizing its commitment to creating healthier and safer environments [1][8] - The company has evolved from a small workshop in Denmark to a global leader in cleaning solutions, serving over 100 countries [2][9] Company History and Development - Founded in 1906 by engineer P.A. Fisker, Nilfisk has a long-standing purpose of improving quality of life through effective cleaning [2][9] - The introduction of Europe's first electric vacuum cleaner in 1910 marked a significant innovation in household cleaning [3][4] - Nilfisk has expanded its product range from consumer cleaning equipment to professional solutions across various industries [4][5] Innovation and Technology - The company has developed robotic cleaning solutions to enhance cleaning consistency and address labor constraints [5] - Nilfisk's focus on intelligent automation aims to make cleaning more effective while minimizing resource use [5][6] Sustainability Commitment - Nilfisk has prioritized responsible business practices, including a refurbishment program introduced in the 1930s to reduce waste [6] - The company is committed to reducing energy, water, and chemical use in its products, achieving EcoVadis Gold rating for four consecutive years [7] - Nilfisk has set Science-Based Targets and aims for Net Zero by 2040 [7] Market Position and Financials - In 2025, Nilfisk generated revenue of 996.3 million EUR, with over 90% of sales directed towards professional markets [10] - The largest market for Nilfisk is the US, accounting for 24% of revenue, followed by Germany (15%), France (11%), Denmark (7%), and the UK (5%) [10]

Core Insights - Tennant Company experienced a significant decline in stock price, down 26% following disappointing Q4 earnings, with sales, adjusted EBITDA, and adjusted EPS dropping 11%, 46%, and 68% respectively due to ERP transition issues [1][2] - The company is collaborating with activist investing firm Vision One, which holds a 2% stake, amid a broader context of a 50% stock pullback from its 2024 peak and a slowing revenue growth rate of 3% annually over the past five years [2] Financial Performance - Q4 sales totaled $292 million, with adjusted EBITDA at $45 million, negatively impacted by $30 million in lost sales and $22 million in EBITDA due to operational disruptions [1] - Management estimates that approximately half of the $30 million in lost sales will be unrecoverable due to strained customer relationships from a three-week disruption [1] Future Outlook - Management anticipates stabilization of ERP issues by Q2, with organic sales projected to grow between 3% and 6.5% in 2026, and adjusted EPS expected to be between $4.70 and $5.30 [3] - Tennant is currently trading at around 12 times next year's earnings, indicating that the market is pricing in significant turmoil, but the company remains a leader in its niche and has potential for a turnaround if ERP issues are resolved [3] Dividend Considerations - Tennant is classified as a Dividend King, having increased its dividend for over 50 years, and the current 2% dividend yield appears safe despite recent challenges [2][3]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a GAAP net loss of $4.4 million, compared to a net income of $6.6 million in the prior year period [21] - Full year 2025 GAAP net income was $43.8 million, down from $83.7 million in 2024, primarily impacted by a 6.5% decrease in net sales and a contraction in gross margin [21][22] - Adjusted EBITDA for Q4 2025 was $25.6 million, a decrease of $21.8 million from the prior year, including an estimated $22 million negative impact from ERP implementation [26] - Full year 2025 Adjusted EBITDA was $167.4 million, a decrease of $41.4 million from the prior year, with an Adjusted EBITDA margin of 13.9%, a 230 basis point decrease [29] Business Line Data and Key Metrics Changes - Equipment sales declined 11.6% year-over-year, while service grew 4.7% and parts and consumables were modestly higher [28] - The Americas experienced a 22.3% organic sales decline, primarily due to the ERP implementation impact of $30 million on net sales [25] - EMEA saw a 5.1% increase in organic sales, driven by equipment volume growth in France, the U.K., and Spain [25] - APAC reported an 11% increase in organic sales, fueled by volume growth in Australia, China, South Korea, and India [25] Market Data and Key Metrics Changes - The company noted that the international teams delivered solid execution, with EMEA growing 5.1% year-over-year and APAC returning to improved performance late in the year [13] - The North American market faced significant disruptions due to the ERP transition, leading to a backlog and limited ability to provide reliable shipment dates [9][20] Company Strategy and Development Direction - The company is focusing on restoring full operating capability in North America and driving steady improvement in efficiency as system performance strengthens [17] - A dedicated TNC robotics group was launched to accelerate the adoption and scaling of autonomous robotic cleaning solutions, with a goal of reaching approximately $250 million in AMR revenue by 2028 [15][16] - The company remains committed to disciplined capital allocation, including share repurchases and dividends, while pursuing strategic acquisition opportunities [14][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the significant impact of the ERP transition on operations and customer relationships, emphasizing a commitment to stabilizing the system and improving efficiency [41] - The company expects challenges associated with the ERP transition to ease through the first half of 2026, with a return to a more normalized operating rhythm by mid-year [35][36] - Management expressed confidence in the fundamentals of the business, highlighting strong global execution and a healthy balance sheet [41] Other Important Information - The company invested approximately $98 million in the ERP program since 2023, with expectations for ERP-related spending in 2026 to exceed $20 million [11] - The company recorded an incremental accrued expense of $6 million related to a legal contingency for an intellectual property dispute, which does not impact product sales [24] Q&A Session Summary Question: Is the ERP system stable as of now? - Management indicated that the system is stable in terms of core processes, with improvements in order management and fulfillment capabilities [46][47] Question: What is the outlook for the $30 million sales impact from the ERP disruption? - Management estimated that about $15 million of the impact is in backlog, while the other half is considered unrecoverable due to the nature of the business [48][53] Question: What are the objectives for the robotics group in FY 2026? - The robotics group aims to accelerate product development, improve adoption efficiency, and generate demand, with a target of $250 million in sales by 2028 [58][62] Question: How will gross margins progress through 2026? - Management expects Q1 gross margins to be comparable to Q4 2025, with gradual improvement anticipated throughout the year [63][64]

Financial Data and Key Metrics Changes - In Q4 2025, Tennant reported a GAAP net loss of $4.4 million, compared to a net income of $6.6 million in the prior year period [23] - Full year 2025 GAAP net income was $43.8 million, down from $83.7 million in 2024, primarily impacted by a 6.5% decrease in net sales and a contraction in gross margin [23] - Adjusted EBITDA for Q4 2025 was $25.6 million, a decrease of $21.8 million from the prior year period, including an estimated $22 million negative impact from ERP implementation [28][29] - Full year adjusted EBITDA was $167.4 million, a decrease of $41.4 million from the prior year, with an adjusted EBITDA margin of 13.9%, a 230 basis point decrease from the prior year [32] Business Line Data and Key Metrics Changes - Orders were reduced by approximately $15 million due to challenges in parts, consumables, and equipment, resulting in an estimated $30 million impact on net sales [10][22] - Equipment sales declined 11.6% year-over-year, while service grew 4.7% and parts and consumables were modestly higher [31] - The robotics portfolio delivered approximately $85 million in sales, inclusive of recurring autonomy fees, indicating strong customer adoption [15] Market Data and Key Metrics Changes - EMEA grew 5.1% year-over-year, supported by price realization and steady commercial execution across multiple markets [14] - APAC returned to improved performance late in the year, with growth in Australia and India offsetting softer demands in parts of East Asia [14] - Organic sales in the Americas declined 22.3%, primarily due to the ERP implementation impact and volume declines in Latin America [27] Company Strategy and Development Direction - The company has paused the EMEA ERP go-live timeline to focus on North America recovery as a priority, reinforcing the long-term value of ERP transformation [13] - A dedicated TNC Robotics group was launched to accelerate the adoption and scaling of autonomous robotic cleaning solutions, aiming for $250 million in AMR revenue by 2028 [17][19] - The company remains committed to disciplined capital allocation, including share repurchases and dividends, while pursuing strategic acquisition opportunities [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the ERP transition challenges are expected to ease through the first half of 2026, with a focus on restoring full operating capability in North America [19][36] - The company anticipates mid-single-digit growth across geographies in 2026, driven by pricing actions and volume increases [39] - Management expressed confidence in the fundamentals of the business, highlighting a healthy backlog and stable commercial activity across global regions [20][42] Other Important Information - The company invested approximately $98 million in the ERP program since 2023, with expected spending in 2026 likely to exceed $20 million due to additional stabilization and support resources [12] - The effective tax rate for the full year was 24.3%, up from 20.1% in 2024, primarily due to the non-recurrence of certain non-cash discrete items [24] Q&A Session Summary Question: Is the ERP system stable as of late February? - Management indicated that the system is stable in terms of core processes, with improvements in efficiency and stability compared to the initial disruptions in November [48][49] Question: What portion of the $30 million sales impact is considered unrecoverable? - Management stated that approximately half of the $30 million impact is viewed as unrecoverable, with about $15 million in backlog [50][52] Question: What are the objectives for the TNC Robotics group in FY 2026? - The TNC Robotics group aims to accelerate product development, improve adoption efficiency, and enhance demand generation to achieve $250 million in sales by 2028 [59][60][63] Question: How does the company expect gross margins to progress in 2026? - Management expects gross margins in Q1 2026 to be comparable to Q4 2025, with year-over-year gross margin expansion anticipated as operational efficiency improves [64]

February 24, 2026 www.investors.tennantco.com Q4 and Full-Year 2025 Results Full-Year 2026 Guidance Earnings Release Call Tennant Company Safe Harbor Statement Certain statements contained in this document are considered "forward -looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events. Any such expectations or forecasts of future events are su ...