Tennant Company Shares Plunge 23% After ERP Failures Cost $30M in Sales
Tennant Company reported severe North America ERP failures that halted order entry and parts shipping for four weeks, causing a $30 million net sales loss. Disclosure coincided with a 47% net income drop in 2025 and a 23% share plunge erasing $343 million in market value.
1. ERP System Failures
In early November 2025, Tennant Company activated its North America ERP system, triggering severe functionality failures that lasted four weeks and prevented order entry, parts shipping and customer service tasks.
2. Financial Impact
These disruptions coincided with a 23% share plunge that erased $343 million in market value; Tennant’s GAAP net income fell to $43.8 million in 2025, a 47% decrease, while Q4 swung to a net loss from prior-year profit, and sales suffered an estimated $30 million shortfall.
3. Shareholder Rights Investigation
A shareholder rights firm launched an investigation into the timing and completeness of Tennant’s disclosures about the ERP challenges and the extent of any concealed information that may have influenced investor decisions.
4. Outlook and Remediation
Management warned that ERP-related constraints will persist into early 2026, potentially hindering production capacity and order processing until system stabilization and remediation efforts are completed.