Tennant Company reported consolidated net sales of $318.6 million for the second quarter of 2025, a 3.7% decrease compared to $331.0 million in Q2 2024. The organic sales decline was 4.5%, driven by volume decreases across all geographies, partly offset by price realization.
Net income for the quarter was $20.2 million, a 27.6% decrease from $27.9 million in the prior year, with diluted EPS of $1.08. Adjusted diluted EPS was $1.49, down from $1.83 in Q2 2024, and adjusted EBITDA decreased by 13.0% to $51.0 million.
The decline was primarily attributed to lapping a $26 million backlog-reduction benefit in Q2 2024, particularly in North America. Despite these results, the company reaffirmed its full-year 2025 guidance for net sales, adjusted diluted EPS, and adjusted EBITDA.
Tennant reported underlying order demand growth of 4%, marking its fifth consecutive quarter of order growth at or above long-term targets. The company generated $22.5 million in cash flow from operating activities and had free cash flow of $18.7 million, including $16.0 million in ERP project investments. Liquidity remained strong with $80.1 million in cash and $434.3 million of unused borrowing capacity.
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