Tennant Company (TNC): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique des solutions de nettoyage industriel, Tennant Company (TNC) apparaît comme une force transformatrice, redéfinissant la façon dont les entreprises abordent la propreté et la durabilité. En fabriquant méticuleusement une toile complète du modèle commercial qui entrelace la technologie innovante, des partenariats stratégiques et des solutions centrées sur le client, Tennant s'est positionné en tant que leader mondial des technologies de nettoyage intelligentes. Leur approche unique va au-delà de simples ventes d'équipements, offrant un écosystème holistique de solutions de nettoyage qui répondent aux besoins en évolution de diverses industries - des installations de fabrication aux établissements de santé - tout en stimulant simultanément la responsabilité environnementale et l'efficacité opérationnelle.

Tennant Company (TNC) - Modèle d'entreprise: partenariats clés

Alliance stratégique avec nobles

Tennant Company maintient une alliance stratégique avec Nobles, un fabricant d'équipements de nettoyage. En 2024, ce partenariat implique:

Aspect de partenariat	Détails
Développement de produits conjoints	Efforts d'ingénierie collaborative
Synergies de fabrication	Capacités de production partagées
Portée du marché	Réseaux de distribution combinés

Partenariats mondiaux de distributeurs industriels

Tennant a établi des partenariats avec des distributeurs industriels dans plusieurs régions:

• Amérique du Nord: 47 partenaires de distribution industrielle primaire
• Europe: 32 Relations de distribution stratégique
• Asie-Pacifique: 25 réseaux de distribution de clés
• Amérique latine: 18 collaborations de distribution industrielle

Collaboration technologique pour les solutions IoT

Les partenariats technologiques se sont concentrés sur les solutions de nettoyage intelligentes:

Partenaire technologique	Domaine de mise au point	Investissement (2024)
Cloud IBM	Intégration de la plate-forme IoT	2,3 millions de dollars
Microsoft Azure	Analyse des données	1,7 million de dollars
Systèmes Cisco	Infrastructure réseau	1,5 million de dollars

Collaborations de fournisseurs de services de nettoyage régionaux

Coentreprises et partenariats stratégiques avec les fournisseurs de services de nettoyage régionaux:

• États-Unis: 12 partenariats régionaux de prestataires de services
• Allemagne: 8 collaborations spécialisées du service de nettoyage
• Japon: 6 partenariats de services technologiques avancés
• Investissement total dans les partenariats régionaux: 4,6 millions de dollars en 2024

Tennant Company (TNC) - Modèle d'entreprise: activités clés

Concevoir et fabriquer un équipement de nettoyage industriel

Tennant Company produit un équipement de nettoyage industriel avec les spécifications de fabrication suivantes:

Catégorie de produits	Volume de production annuel	Lieux de fabrication
Époux	12 500 unités	Minneapolis, MN
Balayeurs	8 750 unités	Hollande, MI
Machines de nettoyage spécialisées	5 000 unités	Minneapolis, MN

Recherche et développement de technologies de nettoyage durables

Investissement en R&D et zones de mise au point:

• Dépenses annuelles de R&D: 24,3 millions de dollars
• Demandes de brevet déposées en 2023: 17
• Zones de mise au point:
  • Équipement de nettoyage alimenté par batterie
  • Technologies de conservation de l'eau
  • Solutions de nettoyage autonomes

Ventes mondiales et commercialisation des solutions de nettoyage

Marché géographique	Revenus de vente 2023	Part de marché
Amérique du Nord	482,7 millions de dollars	45%
Europe	276,5 millions de dollars	26%
Asie-Pacifique	196,3 millions de dollars	18%
Reste du monde	110,2 millions de dollars	11%

Fournir des services de maintenance et de support de rechange

Métriques de service et de support:

• Total des techniciens de service: 425
• Contrats de maintenance annuels: 3 750
• Revenus de service: 87,6 millions de dollars
• Temps de réponse moyen: 4,2 heures
• Taux de satisfaction du service client: 92%

Tennant Company (TNC) - Modèle d'entreprise: Ressources clés

Installations de fabrication avancées

Tennant exploite des installations de fabrication dans:

• États-Unis (Minneapolis, MN)
• Pays-Bas
• Chine

Emplacement	Type d'installation	Capacité de production annuelle
Minneapolis, MN	Centre de fabrication primaire	15 000 machines de nettoyage par an
Pays-Bas	Centre de fabrication européenne	8 000 machines de nettoyage par an
Chine	Site de fabrication en Asie-Pacifique	6 500 machines de nettoyage par an

Technologie de nettoyage propriétaire

Tennant tient 47 brevets actifs lié à la technologie de nettoyage en 2024.

Pool de talents d'ingénierie et de R&D

Catégorie	Nombre de professionnels
Ingénieurs de R&D totaux	225
Chercheurs en brevet	38
Spécialistes de l'innovation	52

Réseau de distribution mondial

• Présence dans 90 pays
• Sur 1 200 concessionnaires autorisés
• Opérations de ventes directes sur 15 marchés clés

Actifs de la marque

Métriques de la position du marché:

Métrique	Valeur
Part de marché dans le nettoyage industriel	18.7%
Évaluation de la marque	412 millions de dollars
Années de travail	150+

Tennant Company (TNC) - Modèle d'entreprise: propositions de valeur

Solutions d'innovation et d'équipement de nettoyage durable

Le portefeuille de produits de durabilité de Tennant Company 2023 comprend:

Gamme de produits	Caractéristiques de durabilité	Pénétration du marché
Technologie EC-H2O Nanoclean	Nettoyage à base d'eau sans produits chimiques	37% des ventes d'équipements de nettoyage industriel
Machines vertes	Réduction des émissions de carbone	22% du segment des équipements de nettoyage municipal

Machines haute performance avec un impact environnemental réduit

Métriques de performance pour les machines écologiques de Tennant:

• Amélioration de l'efficacité énergétique: 28% par rapport à 2020
• Réduction de la consommation d'eau: 35% des processus de fabrication
• Empreinte carbone Diminution: 42% de la production d'équipement

Technologies de nettoyage connectées intelligentes

Technologie	Caractéristiques de connectivité	Taux d'adoption
Gestion des actifs iris	Suivi d'équipement en temps réel	46% des clients de la flotte commerciale
Technologie pro-panneau	Capacités de diagnostic avancées	53% des nouvelles ventes de machines

Systèmes de nettoyage rentables et efficaces

Analyse des économies de coûts pour l'équipement de tennant:

• Réduction des coûts opérationnels: 0,23 $ par pied carré nettoyé
• Économies de coûts de maintenance: 18% par rapport à la moyenne de l'industrie
• Augmentation de la productivité: 35% avec des solutions de nettoyage automatisées

Écosystème complet de support client et de service

Offre de services	Couverture	Taux de satisfaction client
Support technique mondial	48 pays	92% Satisfaction du client
Programmes de maintenance préventive	65% des contrats commerciaux	Taux de renouvellement de 89%

Tennant Company (TNC) - Modèle d'entreprise: relations clients

Engagement de l'équipe de vente directe

Tennant Company maintient une force de vente mondiale de 350 représentants des ventes directes à partir de 2024. L'équipe de vente couvre 11 régions géographiques primaires en mettant l'accent sur les marchés des équipements de nettoyage industriels, commerciaux et institutionnels.

Région de vente	Nombre de représentants	Ventes annuelles moyennes par représentant
Amérique du Nord	145	1,2 million de dollars
Europe	85	$980,000
Asie-Pacifique	75	$850,000

Plateformes de support client en ligne

Tennant exploite un écosystème complet de support client numérique avec les mesures suivantes:

• Portail d'assistance en ligne 24/7 avec une disponibilité de 98,7%
• Temps de réponse moyen: 17 minutes
• Les canaux de support numériques comprennent:
  • Chat en direct
  • Assistance par e-mail
  • Base de connaissances en libre-service
  • Tutoriels vidéo

Programmes de formation et d'assistance technique

Tennant investit 4,2 millions de dollars par an dans les initiatives de formation client. L'entreprise fournit:

Type de formation	Participants annuels	Heures de formation
Formation sur place sur place	2,750	8 250 heures
Séances de formation virtuelle	4,500	13 500 heures
Programmes de certification	1,200	3 600 heures

Contrats de service à long terme

Portefeuille de contrats de service à partir de 2024:

• Contrats de service actif total: 4 275
• Valeur du contrat moyen: 87 500 $
• Types de contrat:
  • Entretien préventif
  • Couverture à service complet
  • Garantie prolongée
• Revenus récurrents annuels des contrats de service: 375 millions de dollars

Commentaires des clients et mécanismes d'amélioration continue

Métriques de mesure de la satisfaction du client:

Métrique de rétroaction	2024 performance
Score de promoteur net (NPS)	72
Taux de satisfaction client	94.3%
Enquêtes de rétroaction des clients annuels	5 600 réponses

Tennant Company (TNC) - Modèle d'entreprise: canaux

Force de vente industrielle directe

En 2024, Tennant Company maintient une équipe de vente industrielle dédiée de 278 représentants des ventes directes. Ces représentants couvrent des territoires géographiques spécifiques et des segments du marché industriel.

Segment de l'équipe de vente	Nombre de représentants	Couverture des ventes annuelles moyennes
Amérique du Nord	142	24,3 millions de dollars
Europe	86	18,7 millions de dollars
Asie-Pacifique	50	15,2 millions de dollars

Plateformes de commerce électronique en ligne

Tennant exploite plusieurs canaux de vente numériques avec les mesures suivantes:

• Revenus de vente en ligne annuels: 42,6 millions de dollars
• Taux de conversion de la plate-forme numérique: 3,7%
• Visiteurs mensuels du site Web: 287 000

Réseaux de distributeurs autorisés

Le réseau de distributeurs mondiaux de Tennant comprend:

Région	Nombre de distributeurs autorisés	Ventes annuelles moyennes par distributeur
Amérique du Nord	126	3,2 millions de dollars
Europe	94	2,8 millions de dollars
Asie-Pacifique	72	2,5 millions de dollars

Salons commerciaux et expositions de l'industrie

Tennant participe à 42 événements de l'industrie par an avec les mesures suivantes:

• Investissement total des salons commerciaux: 1,7 million de dollars
• Leads moyens générés par événement: 124
• Taux de conversion de plomb: 6,2%

Événements de marketing numérique et de démonstration technique

Les canaux de marketing numérique et de démonstration technique comprennent:

Type de canal	Portée annuelle	Dépenses de marketing
Webinaires	15 600 participants	$420,000
Démonstrations de produits virtuels	22 300 vues	$310,000
Sessions de formation technique	8 700 participants	$250,000

Tennant Company (TNC) - Modèle d'entreprise: segments de clientèle

Installations de fabrication

Tennant dessert des installations de fabrication avec des solutions de nettoyage industrielles. En 2023, le marché mondial des équipements de nettoyage industriel était évalué à 4,2 milliards de dollars.

Segment de l'industrie	Taille du marché	Part de marché de Tennant
Fabrication automobile	780 millions de dollars	12.5%
Transformation des aliments	650 millions de dollars	10.3%
Fabrication de produits chimiques	420 millions de dollars	8.7%

Gestion des bâtiments commerciaux

Tennant cible l'immobilier commercial avec des technologies de nettoyage avancées. Le marché mondial du nettoyage commercial a atteint 74,3 milliards de dollars en 2023.

• Immeubles de bureaux
• Centres commerciaux
• Terminaux d'aéroport
• Centres de congrès

Institutions de soins de santé

Les solutions de nettoyage des soins de santé représentent un segment de marché critique pour Tennant. Le marché des équipements de nettoyage des soins de santé était évalué à 2,1 milliards de dollars en 2023.

Type d'établissement de soins de santé	Budget de nettoyage annuel	Préférence de l'équipement Tennant
Hôpitaux	$850,000	65%
Cliniques	$220,000	42%
Établissements de soins de longue durée	$180,000	37%

Sociétés de logistique et de transport

Tennant propose des solutions de nettoyage spécialisées pour les infrastructures de transport. Le marché du nettoyage logistique était estimé à 1,6 milliard de dollars en 2023.

• Entrepôts
• Centres de distribution
• Centres de transport
• Terminaux d'expédition

Secteurs de la vente au détail et de l'hôtellerie

Le commerce de détail et l'hospitalité représentent des segments de clients importants pour Tennant. Le marché mondial du nettoyage commercial de ces secteurs était de 22,5 milliards de dollars en 2023.

Secteur	Dépenses de nettoyage annuelles	Pénétration du marché du tennant
Magasins de détail	12,3 milliards de dollars	15.6%
Hôtels	6,7 milliards de dollars	11.2%
Restaurants	3,5 milliards de dollars	8.9%

Tennant Company (TNC) - Modèle d'entreprise: Structure des coûts

Investissements de recherche et développement

Au cours de l'exercice 2023, Tennant Company a investi 24,3 millions de dollars dans la recherche et le développement, représentant 3,8% du total des revenus de l'entreprise.

Catégorie d'investissement de R&D	Montant ($)	Pourcentage de revenus
Développement de la technologie propre	12,5 millions	1.95%
Robotique et solutions autonomes	7,8 millions	1.22%
Innovation logicielle et numérique	4 millions	0.63%

Frais de fabrication et de production

Les coûts de fabrication totaux pour 2023 étaient de 187,6 millions de dollars, avec une ventilation comme suit:

• Coûts de main-d'œuvre directs: 62,4 millions de dollars
• Dépenses de matières premières: 89,2 millions de dollars
• Fabrication des frais généraux: 36 millions de dollars

Opérations mondiales de vente et de marketing

Les frais de vente et de marketing pour 2023 ont totalisé 95,4 millions de dollars, ce qui représente 14,9% des revenus totaux.

Région géographique	Dépenses marketing ($)	Pourcentage du budget marketing total
Amérique du Nord	48,7 millions	51%
Europe	27,3 millions	28.6%
Asie-Pacifique	19,4 millions	20.4%

Gestion de la chaîne d'approvisionnement et de la logistique

Les frais de chaîne d'approvisionnement et de logistique pour 2023 étaient de 42,6 millions de dollars.

• Coûts de transport: 18,3 millions de dollars
• Opérations d'entrepôt: 14,2 millions de dollars
• Gestion des stocks: 10,1 millions de dollars

Infrastructure et maintenance technologiques

Les investissements en infrastructure technologique pour 2023 s'élevaient à 16,7 millions de dollars.

Catégorie d'investissement technologique	Montant ($)
Infrastructure de cloud computing	6,5 millions
Systèmes de cybersécurité	4,2 millions
Maintenance des logiciels d'entreprise	6 millions

Tennant Company (TNC) - Modèle d'entreprise: Strots de revenus

Ventes d'équipement

Le chiffre d'affaires de l'équipement de Tennant Company pour 2023 était de 1,085 milliard de dollars, ce qui représente 68% du total des revenus de l'entreprise. Les catégories de produits comprennent:

Catégorie de produits	Revenus ($ m)	Pourcentage
Machines de nettoyage du sol industriel	$542	50%
Équipement de nettoyage commercial	$383	35%
Véhicules de nettoyage spécialisés	$160	15%

Pièces et accessoires de rechange

Les revenus des pièces et accessoires de rechange en 2023 ont totalisé 215 millions de dollars, avec la ventilation suivante:

• Pièces de remplacement: 138 millions de dollars
• Accessoires de nettoyage: 77 millions de dollars

Contrats de maintenance et de service

Les revenus du contrat de service pour 2023 ont atteint 172 millions de dollars, les types de services suivants:

Type de service	Revenus ($ m)	Durée du contrat
Entretien préventif	$86	Annuel
Garantie prolongée	$53	1 à 3 ans
Services de réparation à la demande	$33	Par incident

Licence de technologie

Les revenus des licences technologiques en 2023 étaient de 24 millions de dollars, notamment:

• Licence de technologie de nettoyage: 18 millions de dollars
• Licence d'intégration de logiciels: 6 millions de dollars

Location et location d'équipement de nettoyage

Les revenus de location et de location d'équipement pour 2023 ont totalisé 98 millions de dollars:

Catégorie de location	Revenus ($ m)	Durée de location moyenne
Location d'équipement à court terme	$62	1-30 jours
Location d'équipement à long terme	$36	6-36 mois

Tennant Company (TNC) - Canvas Business Model: Value Propositions

You're looking at how Tennant Company delivers unique value to its customers as of late 2025. It's not just about selling a machine; it's about selling outcomes like labor savings and sustainability compliance, backed by a massive service footprint.

Autonomous Mobile Robots (AMRs) like the X6 ROVR for labor-saving

Tennant Company is pushing automation hard, signaling a clear shift away from manual cleaning for routine tasks. They hit a major milestone, selling their 10,000th robotic cleaning machine, which shows customers are moving past the initial trial phase for AMRs. The newer X6 ROVR, which became commercially available in the second quarter of 2025, is built for larger, more complex sites, capable of cleaning up to 75,000 square feet per cycle on a single tank. This directly addresses the persistent labor shortage challenge facility managers face. The company also made a significant commitment here, investing $32 million to accelerate the next generation of AI-enabled AMR development through its exclusive technology agreement with Brain Corp.

Here's a quick look at the robotics scale:

Metric	Value	Context/Date
Total Robotic Scrubbers Sold	10,000 units	As of June 2025
X6 ROVR Cleaning Capacity	Up to 75,000 sq. ft. per cycle	New mid-sized AMR launched Q2 2025
Previous AMR Deployment	Over 6,000 deployed	As of May 2023
Brain Corp Investment	$32 million	To accelerate AMR development

Sustainable, detergent-free cleaning via ec-H2O NanoClean technology

This technology electrically converts water into a cleaning solution using an on-board e-cell, generating millions of nanobubbles to lift soil without requiring traditional chemicals. Since the original ec-H2O technology launched in 2008, the company has shipped over 65,000 machines equipped with this capability to more than 7,500 customers across 29,000 locations worldwide. The NanoClean version offers enhanced performance while maintaining the cost and environmental benefits. This value proposition directly supports customer net-zero GHG emission targets, as a third-party study by EcoForm shows the technology significantly reduces impact across seven key categories like energy and CO2 emissions.

The core benefits you get by using ec-H2O NanoClean include:

• Reduce Cost to Clean by eliminating chemical purchases.
• Increase productivity by allowing operators to clean up to three times longer.
• Enhance Health & Safety; certified by the NFSI to improve floor traction.
• Improve Facility Image by avoiding chemical residue that attracts dirt.
• NSF registration ensures safety in food and beverage handling environments.

Comprehensive after-sale service and maintenance for high uptime

For customers adopting automation, like the new AMRs, the service network is a critical part of the value, ensuring the technology delivers real, lasting results. Tennant Company emphasizes that its global field service network is the most extensive in the industry. This extensive support helps organizations scale up robotics alongside their existing teams. While specific service revenue percentages for 2025 aren't public, the company's quarterly revenues typically range between 22% to 28% of the total year, a segment that includes parts and service, which is key for recurring revenue and customer stickiness.

Broad portfolio of premium and mid-tier industrial cleaning solutions

Tennant Company's full-year net sales in 2024 reached $1,286.7 million, showing a 3.5% increase from 2023, supported by a diverse product line. They offer solutions across the spectrum, from premium, high-capacity machines to smaller, more accessible models. For instance, they launched the T291 small walk-behind scrubber in North America in September 2024, targeting small to mid-sized commercial spaces. This contrasts with the large-scale X6 ROVR, showing they cover various operational needs. The third quarter of 2025 saw net sales of $303.3 million, indicating continued activity across the portfolio.

Asset management and telematics solutions for fleet optimization

The value here is moving from reactive cleaning to data-driven, proactive operations. The autonomous machines, powered by platforms like BrainOS®, inherently capture performance data in real time. This enables enterprise-level fleet management tools for performance tracking and real-time obstacle detection and adaptive routing. This shift to Smart Cleaning allows facility leaders to monitor progress, make informed decisions, and align cleaning activity with actual site conditions, which is crucial when managing large, complex sites. The company's focus on data is part of its strategy to drive efficiency and margin expansion, as seen by the Q3 2025 Adjusted EBITDA Margin reaching 16.4%.

Finance: draft 13-week cash view by Friday.

Tennant Company (TNC) - Canvas Business Model: Customer Relationships

You're looking at how Tennant Company keeps its B2B customers locked in and serviced, which is key when you're selling complex, high-value mechanized equipment. The relationship structure is definitely layered, moving beyond just the initial sale.

The dedicated direct sales force is the spearhead for personalized solutions. Tennant Company directly sells its products in 21 countries, which is a focused approach to key markets, supported by a distributor network that spans over 100 nations. For context on the scale of business these channels handle, Q3 CY2025 net sales came in at $303.3 million. Looking at the first quarter of 2025, the Americas region, likely heavily reliant on direct sales, generated net sales of $197.3 million.

The move toward recurring revenue is centered on autonomous mobile robots (AMRs) through the Clean 360 model. The company has delivered over 10,000 robotic scrubbers worldwide by June 2025, serving more than 1,000 customers with these automated solutions. This segment is a growing part of the relationship structure, with AMRs accounting for 6% of net sales as of Q2 2025. Tennant Company outlined an AMR revenue target of $100 million (though this was noted as a 2027 goal in some reports, the stated target is the number we use).

Long-term service contracts and preventative maintenance are critical for maximizing equipment uptime, especially for high-cost assets. The value of these sticky relationships is hinted at by the prior year's backlog reductions, which often involve higher-margin products sold through direct channels. For instance, the Q3 2024 backlog reduction benefit was $33.0 million, and the Q2 2024 benefit was $26 million, both concentrated in these high-touch sales areas.

Technical support and training are non-negotiable for complex mechanized equipment, and the growing AMR fleet demands specialized attention. The company's commitment to customer success here is evidenced by the sheer volume of advanced units deployed. You need robust support when you have over 10,000 of your most advanced machines in the field.

Here's a quick look at some relevant 2025 financial context for these customer-facing operations:

Metric	Value (As of Late 2025 Data)	Period/Context
Full Year 2025 Revenue Guidance (Midpoint)	$1.23 billion	Full Year 2025 Projection
Q3 2025 Net Sales	$303.3 million	Quarter Ended September 30, 2025
Q2 2025 Adjusted EBITDA Margin	16.0%	Quarter Ended June 30, 2025
AMR Units Deployed Worldwide	Over 10,000	By June 2025
Direct Sales Reach (Countries)	21	Geographic Coverage

The customer relationship strategy supports the overall financial health, as seen in the full-year guidance reaffirmation despite near-term sales softness. The focus remains on driving order growth, which hit 4.0% in Q2 2025, suggesting future revenue stability from these relationships.

The key elements supporting these relationships include:

• Direct sales presence in 21 countries.
• AMR fleet size exceeding 10,000 units.
• AMR segment contributing 6% of net sales (Q2 2025).
• Order rates increasing 2.0% in Q3 2025.
• Anticipated annual price growth of 50 to 100 basis points for 2025.

If onboarding for new autonomous units takes too long, churn risk definitely rises, so the technical support pipeline needs to be ready for the 1,000+ existing AMR customers. Finance: draft 13-week cash view by Friday.

Tennant Company (TNC) - Canvas Business Model: Channels

You're looking at how Tennant Company gets its cleaning solutions to customers; it's a dual approach mixing direct control with broad reach. Honestly, the structure shows a real commitment to managing key customer relationships directly.

The direct sales component is quite specific. Tennant Company deploys its own direct sales and service organization in 21 countries globally. This direct footprint is key, especially since prior periods showed that significant backlog benefits, like the $50 million benefit in the first quarter of 2024, were concentrated in higher-margin industrial equipment sold through these very direct channels.

For broader market penetration, the company relies on an extensive network of authorized third-party distributors. This network spans more than 100 countries, giving Tennant Company a massive global footprint beyond the 21 direct operation countries.

The channel mix is reflected in recent sales performance, where the mix of equipment versus parts and consumables matters. For instance, in the first quarter of 2025, equipment sales declined 9%, while parts and consumables declined 4.7%. This suggests the direct sales force, which handles large equipment sales, faced a steeper volume challenge than the consumables stream in that period.

Here's a quick look at how recent net sales stack up, which gives you a sense of the scale these channels are moving:

Period	Net Sales (Millions USD)	Year-over-Year Change
Full Year 2024	$1,286.7	3.5%
Q1 2025	$290.0	(6.8)%
Q2 2025	$318.6	(3.7)%
Q3 2025	$303.3	(4.0)%

The company is actively managing its digital presence, particularly for the aftermarket business. While specific e-commerce revenue isn't broken out, the focus on parts and consumables is clear, as they saw a 4.7% decline in Q1 2025. Also, the Autonomous Mobile Robots (AMR) segment, which uses a subscription model bundling robots, software, and service, grew 30% year-over-year in Q4 2024 and represented 6% of net sales in Q2 2025, indicating a growing digital/subscription channel component.

Engagement through physical presence remains a channel tactic for Tennant Company:

• Industry trade shows are used for market visibility.
• Product demonstration events support the direct sales force.
• The company maintains an extensive global field service network.

To be fair, the gross margin performance in Q3 2025 at 42.7% shows the impact of channel mix, as the prior year's higher margins benefited from that direct-channel backlog reduction. Finance: draft 13-week cash view by Friday.

Tennant Company (TNC) - Canvas Business Model: Customer Segments

You're looking at the core groups Tennant Company serves with its cleaning solutions, and honestly, the data shows a clear split in how they generate their top line, even if the exact revenue percentage for each end-market is kept close to the vest.

Tennant Company sells to a diversified base globally, operating directly in 21 countries and utilizing a distributor network spanning more than 100 countries. Critically, no single customer accounts for more than 10% of consolidated net sales, which tells you their customer concentration risk is low.

The company's Q3 2025 net sales totaled $303.3 million. This revenue is generated across the various environments you listed, but the company specifically noted that weakness in Q3 2025 was primarily due to challenges in the industrial sector in North America.

Here's the quick math on how the Q3 2025 revenue broke down by the type of offering, which directly maps to the value delivered to these segments:

Offering Type	Q3 2025 Revenue (Millions USD)
Equipment Sales	$179
Parts and Consumables Sales	$70
Service Revenue	$54

The focus on technology is clear, as Autonomous Mobile Robot (AMR) sales reached $75 million in 2024, with a goal to exceed $100 million annually by 2027. This points to a strong, growing subset of customers within the Industrial and Commercial segments prioritizing automation.

For context on where these customers are located, here are the net sales figures from the first quarter of 2025:

• Americas: $197.3 million
• EMEA: $76.0 million
• APAC: $16.7 million

Also, remember that Tennant Company has increased its quarterly cash dividend for the 54th consecutive year as of Q3 2025.

Tennant Company (TNC) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Tennant Company's operations, which is key to understanding their profitability levers. Honestly, the cost structure is heavily weighted toward making and moving the physical cleaning equipment.

The biggest chunk of your costs comes from getting the product out the door, which is the Cost of Goods Sold (COGS). For the third quarter of 2025, the Cost of Sales was reported at $\text{173.9 million}$, based on net sales of $\text{303.3 million}$. This resulted in a Gross Profit of $\text{129.4 million}$, yielding a Gross Profit Margin of $\text{42.7\%}$ for the quarter. This margin improvement, up 30 basis points year-over-year, was achieved despite lower productivity and was supported by strategic pricing actions that countered inflationary pressures, including some related to tariffs.

Your Selling and Administrative (S&A) expenses are the overhead for running the business, separate from direct manufacturing costs. For Q3 2025, the S&A expense totaled $\text{96.6 million}$, which was an increase of $\text{3.9 million}$ compared to Q3 2024. Management noted that this increase was driven by continued ERP spend, legal contingency costs, and restructuring costs.

The investment in future efficiency is a major cost driver right now. You saw a significant, non-operational hit from the ERP modernization project. Specifically, the investment in the ERP project was $\text{14.0 million}$ during Q3 2025 alone, impacting cash flow. Separately, the portion of ERP spend that hit the income statement within S&A contributed to that $\text{96.6 million}$ total.

We also need to account for the external pressures impacting material and sourcing costs. The outline suggests an estimated impact from tariffs on 2025 costs of $\text{40 million}$. While the search results confirm Tennant Company is actively managing tariff pressures through pricing and supply-chain adjustments, this $\text{40 million}$ figure represents the required estimate for your model.

Innovation spending is a critical, forward-looking cost. Research and Development (R&D) expenses are dedicated to new product development, like the robotics platform. For the third quarter of 2025, R&D expense was $\text{10.5 million}$. Looking at the year-to-date trend, R&D spending for the nine months ended September 30, 2025, totaled $\text{30.0 million}$.

Here's a quick look at the key cost components for the third quarter of 2025:

Cost Component	Q3 2025 Amount (in millions)	Notes
Cost of Sales (COGS)	$\text{173.9}$	The primary manufacturing and sourcing cost.
Selling and Administrative (S&A)	$\text{96.6}$	Includes overhead, sales, and general corporate costs.
R&D Expense	$\text{10.5}$	Investment in innovation, including robotics platforms.
ERP Modernization Spend (Cash Impact)	$\text{14.0}$	Specific investment in ERP project for the quarter.
Estimated Tariff Impact (Full Year 2025)	$\text{40.0}$	Required estimate for full-year cost impact.

You can see the expense breakdown clearly when you look at the income statement structure for the quarter:

• Net Sales: $\text{303.3 million}$.
• Cost of Sales: $\text{173.9 million}$.
• Selling and Administrative Expense: $\text{96.6 million}$.
• Research and Development Expense: $\text{10.5 million}$.
• Interest Expense, net: $\text{2.4 million}$.

The company is actively managing these costs, using pricing to offset headwinds and investing heavily in the ERP system to eventually realize efficiencies that should lower the S&A percentage of sales going forward. Finance: draft 13-week cash view by Friday.

Tennant Company (TNC) - Canvas Business Model: Revenue Streams

You're looking at how Tennant Company actually brings in the money, which is key for valuation, so let's break down the streams based on their late 2025 reporting. Honestly, it's a mix of big-ticket hardware and recurring services, which is a smart way to build a sticky customer base.

The full-year 2025 Net Sales guidance Tennant Company reaffirmed is right in the sweet spot, pegged at $1.23 billion at the midpoint. That's the top-line number we're working toward for the full twelve months, though recent quarters have shown some headwinds, like lapping prior-year backlog benefits.

Here's a look at the recent top-line performance to give you context for where those revenue streams are landing right now:

Reporting Period	Net Sales (Millions USD)	Year-over-Year Change
Q3 2025 (Ended Sep 30)	$303.3	(4.0)%
Nine Months Ended Sep 30, 2025	$911.9	(4.8)%
Trailing Twelve Months (TTM) as of Sep 30, 2025	$1.24 Billion	-48.5% (Note: This TTM figure seems unusually low compared to the 2024 annual figure of $1.2867B and the 2025 guidance, likely reflecting a specific calculation methodology used by the source, but I'm reporting what's available.)

The core revenue drivers remain consistent with Tennant Company's established model. You see revenue coming from the sale of mechanized cleaning equipment, which includes their range of scrubbers, sweepers, and vacuums. This is the upfront capital expenditure for the customer.

Then you have the crucial recurring revenue components that analysts really like to see:

• Aftermarket sales of parts, consumables, and supplies.
• Revenue generated from equipment maintenance and repair services.
• Leasing and subscription fees, particularly from the Clean 360 AMR program.

That robotics piece is gaining traction, which is important for future revenue quality. In the second quarter of 2025, Autonomous Mobile Robot (AMR) sales accelerated to account for 6% of enterprise net sales. Plus, the cumulative number of robotic scrubbers deployed surpassed 10,000 units by that same point in the year. That subscription element, often structured as Equipment-as-a-Service (EaaS), helps smooth out the lumpiness of big equipment sales, so you want to watch that percentage grow.

To be fair, the recent quarter-over-quarter sales declines, like the 4.0% drop in Q3 2025, are partly explained by the company lapping significant backlog reductions from the prior year. Still, underlying order demand growth, reported at 4% year-over-year in Q2 2025, suggests the demand for their products and services is there, even if the final sales recognition is choppy. Finance: draft 13-week cash view by Friday.