Tennant Targets $250M in Robotics Sales as ERP Recovery Gains Traction

Tennant is targeting $250 million in robotic sales by 2028 and plans to launch 10 robotic products over the next two years, supported by rising labor costs and customer interest in fleet deployments. The company is recovering from North America’s ERP rollout, with second-quarter orders up 7% and gross margin improving to 39.5%; however, about $2 million in additional recovery costs are expected in the third quarter. Tennant plans to pursue acquisitions involving equipment makers, distributors and robotics or navigation-software capabilities, while balancing dealmaking with debt management, dividends and share repurchases. Tennant NYSE: TNC CEO Dave Huml said the floor-cleaning equipment manufacturer is pursuing growth through automation, robotics, product innovation and targeted acquisitions, while continuing to recover from a North American enterprise resource planning, or ERP, implementation that disrupted operations late in 2025. Speaking at a Sidoti event, Huml described Tennant as a global manufacturer of mechanized floor-care equipment operating in an estimated $9 billion total addressable market. The company estimates the market at roughly $4 billion in the Americas, $3 billion in Europe, the Middle East and Africa, and the remainder in Asia-Pacific. Tennant holds about 25% share in the Americas, approximately 10% in EMEA and a single-digit share in Asia-Pacific, according to Huml. He said the company has been gaining share in the Americas, holding share in EMEA and losing some share in Asia-Pacific, primarily in China and related markets. Huml identified automation, modernization, electrification and sustainability as long-term trends supporting demand for Tennant’s products. Labor costs, labor availability and high turnover in cleaning roles are pushing customers toward mechanized and robotic cleaning solutions, he said. The company has operated commercially in robotics for seven to eight years and recently established its TNC Robotics venture to accelerate product development, customer deployment and support capabilities. Tennant plans to introduce 10 robotic products over the next two years. Tennant has launched the X16 SWEEP and is in the process of launching the X2 ROVR, a smaller-format product intended for settings served by distributors. Huml said the company has orders for both products, though the X2 ROVR had not yet begun deliveries at the time of the presentation. The company is targeting $250 million in robotic sales by 2028. Huml said robotic sales increased 56% year over year during the first half of 2026, following $85 million in autonomous mobile robot revenue for full-year 2025 and $57 million during the first half of 2026. Huml said customer discussions have shifted from questions about safety and whether robots will work toward return-on-investment considerations and broader fleet deployments. He also said Tennant is reassessing its estimate of the robotic cleaning market, previously pegged at just under $400 million and growing about 15%, and expects to find the market is larger and expanding faster than previously estimated. However, Huml cited supply-chain availability as a potential risk to Tennant’s robotics targets, particularly for sensors, cameras, chips and other components used in autonomous equipment. The company has been using inventory to help mitigate availability risks, he said. Tennant went live with its ERP system in Asia-Pacific during the third quarter of 2025 without significant disruption, but its North American implementation in...