What Tennant Co. told the SEC could break it.

Tennant's industrial/commercial cleaning machines are materials- and component-intensive (steel/metal, batteries, motors and electronic components). It flags that disruption in availability, quality, or increases in the cost of raw materials and components it purchases — or labor to manufacture — could negatively impact operating results, and that if commodity prices rise significantly and it cannot offset them with higher selling prices, results may be unfavorably impacted. It manages exposure through supplier negotiations, supply-chain optimization and pricing. A specific raw-material/component commodity dependence.

“Disruption in the availability of, quality, or increases in the cost of, raw materials and components that we purchase or labor required to manufacture our products could negatively impact our operating results or financial condition.”

Tennant's input costs are subject to variability driven by tariff regimes and regulatory requirements across jurisdictions, and it took pricing actions in 2025 to address tariff-related cost increases. Recent trade actions — tariffs on multiple countries and retaliatory measures — and the February 20, 2026 U.S. Supreme Court decision on whether IEEPA authorizes certain tariffs add significant uncertainty to costs, capital availability and long-term planning. With manufacturing across the U.S., Netherlands, Italy, Brazil and China (Hefei) and globally sourced components, tariff escalation could raise landed costs it may not fully pass through. A realized and uncertain trade-policy exposure; mitigated via regional manufacturing/sourcing and diversified suppliers.

“input costs remain subject to variability driven by tariff regimes, competitive market conditions, and regulatory requirements in certain jurisdictions.”

Tennant's sales growth, expanding geographic footprint, and reliance on sole-source vendors heighten its supply-chain risk. Modularization and outsourcing of key component designs further increase reliance on sole suppliers (and risk loss of proprietary control), and dependence on highly customized components raises concentration risk and vulnerability to defects that could cause quality issues, returns, or production delays. A failure, quality miss, or interruption at a sole-source vendor could disrupt manufacturing of its scrubbers/sweepers. Vendors not individually named, so a sole-source/supplier-concentration risk.

“Our sales growth, expanding geographical footprint, and reliance on sole-source vendors heighten supply chain risks”