Tennant Company reported consolidated net sales of $290.0 million for the first quarter of 2025, a 6.8% decrease compared to $311.0 million in Q1 2024. The organic sales decline was 5.0%, primarily driven by volume decreases across all geographies, particularly in North America.
Net income for the quarter was $13.1 million, a 53.9% decrease from $28.4 million in the prior year, with diluted EPS of $0.69. Adjusted diluted EPS was $1.12, down from $1.81 in Q1 2024, and adjusted EBITDA decreased by 25.3% to $41.0 million.
The decline was largely attributed to lapping a significant $50 million backlog-reduction benefit in Q1 2024, which concentrated in higher-margin products. Despite these declines, the company reaffirmed its full-year 2025 guidance for net sales, adjusted diluted EPS, and adjusted EBITDA.
Tennant reported underlying business momentum with its fourth consecutive quarter of strong order growth. The company used $0.4 million in operating activities and had free cash flow of $(7.4) million, including $12.4 million in ERP modernization investments. Liquidity remained strong with $79.5 million in cash and $434.3 million of unused borrowing capacity.
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