Tennant Co (NYSE:TNC) stock fell 3.43% (As on February 18, 11:20:28 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 24. Organic sales growth in the fourth quarter of 2024 was driven by volume growth in the Americas and EMEA, partially offset by price and volume declines in APAC. The 10% growth in the Americas during the fourth quarter was driven primarily by volume growth in equipment and service. Pricing realization also contributed to the organic growth, but to a lesser extent. The 6.3% growth during the full year was driven by price realization and volume increases in equipment and service, partially offset by volume declines in parts and consumables in North America. The 4.0% increase in EMEA during the fourth quarter was driven by volume growth and price realization across all product categories. The 1.6% decline for the full year was due to volume declines in both equipment and parts and consumables partially offset by price realization in all product categories. During the first three quarters, equipment volumes were affected by weaker-than-expected market conditions and the effects of a stronger backlog reduction in the prior period. However, in the fourth quarter, market conditions improved, leading to a rebound in equipment volumes. The 19.0% decrease in APAC during the fourth quarter and the 9.5% decline during the full year were mainly due to volume declines, partly offset by price realization in China and Australia. In China, market saturation continues to cause pricing pressure and margin compression as demand for the mid-tier products decreases. In Australia, there are signals of slowing demand due to market uncertainty, with some specific instances of customers delaying equipment orders or opting for rental units instead.

TNC in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.52, beating the analysts’ estimates for the adjusted earnings per share of $1.37. The company had reported the adjusted revenue growth of 5.6 percent to $328.9 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $323.27 million. Net sales performance benefited from a reduction of backlog of approximately $125 million in 2024 compared to $140 million in 2023. Adjusted EBITDA was $47.4 million in the fourth quarter of 2024, compared to $41.5 million in 2023. Adjusted EBITDA margin for the fourth quarter 2024 was 14.4%, a 110-basis-point increase from 2023. Adjusted net income was $29.0 million in the fourth quarter of 2024, a $7.2 million decrease compared to the fourth quarter of 2023. Liquidity remained strong with a balance of $99.8 million in cash and cash equivalents as of the end of 2024, and $449.3 million of unused borrowing capacity under its revolving credit facility.