Tennant Company (NYSE:TNC) Conference September 18, 2025 11:30 AM ET Company ParticipantsDavid Huml - CEO, President & DirectorConference Call ParticipantsSteve Ferazani - Senior Equity Analyst - Diversified Industrials & EnergySteve FerazaniGood afternoon, everybody. Welcome back to Sidoti's Virtual Investor Conference. I see some people still coming into the room. I'm Steve Furizati, an analyst at Sidoti. As we let people still stream in, I'll take this time to remind you we should have some time left for ...

Investor Presentation September 2025 www.investors.tennantco.com 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 subject to a variety of factors. These include factors that ...

Core Insights - CleanCore Solutions, Inc. reported record fourth quarter revenue exceeding $1.1 million, marking the first quarter to surpass $1 million in U.S. sales [3][8] - The company achieved a full year revenue increase of 29%, reaching approximately $2.07 million for the fiscal year ended June 30, 2025, compared to approximately $1.61 million for the previous fiscal year [4] - The CEO highlighted strong customer confidence demonstrated by large purchase orders and a strengthened balance sheet through debt-to-equity conversions and cash from warrant exercises [3][8] Financial Performance - For the fiscal year ended June 30, 2025, general and administrative expenses rose to approximately $7.08 million, up from approximately $2.47 million in the prior year, primarily due to non-cash stock-based compensation and increased professional fees [4] - The net loss for the fiscal year was approximately $6.74 million, compared to approximately $2.28 million for the fiscal year ended June 30, 2024, with non-cash stock compensation accounting for approximately $3.20 million of the loss [4][6] - In Q4, approximately $230,000 of revenue was reversed and reclassified as intercompany sales following the Sanzonate acquisition [4] Business Developments - The company received a significant purchase order of $1.37 million from a major U.S. customer, with $876,000 shipped and invoiced in Q4, and an additional $261,000 order scheduled for Q1 2026 [8] - Following the acquisition of Sanzonate Europe Ltd., CleanCore is experiencing positive outcomes, including new contract opportunities in Europe and an expanded international sales pipeline [8] - The company enhanced its capital structure by converting over $600,000 of debt into equity and receiving over $400,000 from warrant conversions [8]

Tennant Company (TNC) Conference Summary Company Overview - Tennant Company is a global leader in the mechanized cleaning equipment industry, with a total addressable market (TAM) of approximately $9 billion and a market share of about 14% globally [4][8]. - The company has a strong presence in various regions: 25% market share in the Americas (approximately $3.5 billion market), 10% in EMEA, and 5% in the Asia Pacific region (approximately $1 billion market) [9][10]. Growth Strategy - Tennant Company aims for long-term organic revenue growth of 3% to 5% CAGR, supported by global megatrends such as automation, labor challenges, and modernization of cleaning practices [5][14]. - The company is committed to expanding its service aftermarket, which is a growing and profitable segment [6]. - Tennant is focusing on innovation, particularly in robotics and automation, to enhance productivity and address labor shortages in the cleaning industry [7][11]. Market Trends and Challenges - Labor availability and cost have become significant challenges post-pandemic, with turnover rates in cleaning services reaching up to 70% [11][12]. - There is a shift towards mechanized cleaning solutions in emerging markets as living standards rise, increasing demand for efficient cleaning technologies [13]. - The need for electrified products is growing, with advancements in battery technology allowing for the replacement of internal combustion engines in cleaning equipment [14]. Financial Performance and Projections - The company has a solid balance sheet and is focused on maintaining margins while expanding EBITDA by 50 to 100 basis points annually [15][19]. - Tennant has a target of adding $150 million in revenue through M&A over the next three years [18]. - The AMR (Autonomous Mobile Robots) segment has generated over $250 million in cumulative revenue, with a goal to exceed $100 million by 2027 [36][37]. Product Innovation - Tennant is investing heavily in robotics, with recent launches including the X4 and X6 Rover models, designed for high maneuverability and efficiency [21][25]. - The company has developed a "Clean 360" program, offering a subscription model for robotics that includes maintenance and software, making it easier for customers to adopt [41][43]. - The AMR products are positioned to provide significant cost savings for customers by reducing labor needs, with a payback period of less than three years [25]. Capital Allocation Strategy - Tennant prioritizes funding its business, paying dividends, and pursuing M&A opportunities, with a disciplined approach to capital allocation [56][59]. - The company has authorized a share buyback program of 2 million shares, representing over 10% of its float, to enhance shareholder value [55][60]. Conclusion - Tennant Company is well-positioned for future growth, leveraging its strong market position, innovative product offerings, and disciplined financial management to capitalize on emerging trends in the cleaning industry [63][64].