Tennant Company Faces Major Investor Backlash After Sudden ERP System Failures

Tennant Company's ERP System Blowback

In a shocking turn of events, Tennant Company (NYSE: TNC) has experienced a 23% plunge in stock prices, amounting to a drop of $19.28, following the revelation of severe functionality issues related to their new Enterprise Resource Planning (ERP) system in North America. The announcement was made on February 24, 2026, leaving investors reeling and the market responding decisively, wiping out approximately $343 million of the company's market capitalization.

The sudden drop in stock price has prompted national shareholder rights law firm Hagens Berman to launch an investigation. They are examining whether Tennant has breached federal securities laws, particularly regarding the transparency of its disclosures about the ERP modernization efforts. Shareholders who suffered losses are strongly encouraged to report their financial impacts, and the firm is also seeking witnesses who have pertinent information.

Tennant, as recent as November 2025, portrayed its ERP initiatives in a positive light, praising the success of its Asia Pacific operations and assuring investors about their ongoing projects in North America. Yet, these assurances turned out to be misleading, as evidenced by the bleak fourth quarter (Q4) and fiscal year 2025 financial results.

The company managed to report a net income of only $43.8 million for 2025, representing a staggering 47% decrease compared to the previous year. Even more alarming was the net loss recorded in Q4 2025, which marked a 166% decline from the same period in the preceding year. The earnings call yielded disheartening revelations as management admitted the newly launched North America ERP system faced significant functionality issues, leading to paralysis in order entry, product shipping, and overall customer service operations.

Management further elaborated that the go-live which occurred in early November had devastating consequences, stating they lost critical weeks during which they could not process machine orders or shipments. They estimated the financial repercussions due to these operational failures at around $30 million in lost net sales. This adverse situation is expected to persist into early 2026, raising alarm bells among the investors and stakeholders.

Reed Kathrein, a partner at Hagens Berman leading the investigation, has said, "We aim to determine when exactly Tennant became aware of the serious ERP issues and whether they may have knowingly withheld crucial information from investors. This could potentially alter their decisions significantly."

For investors who believe they have incurred substantial losses or possess valuable insights regarding the matter, Hagens Berman is asking them to come forward. There is also an avenue for whistleblowers with insider knowledge to engage with the investigation and possibly earn rewards under the SEC Whistleblower program, which provides financial incentives for those who offer original information leading to successful enforcement actions.

Hagens Berman specializes in advocating for investor rights and has been recognized for its robust practice in litigation pertaining to corporate governance and accountability. Throughout its history, the firm has secured over $2.9 billion for clients affected by corporate malpractice. For more details on the Tennant investigation or to learn about how to participate, interested parties are urged to visit the law firm’s website or contact them directly.

With investors now facing uncertainties about their investments in Tennant Company, the consequences of the ERP fiasco may echo throughout corporate America, highlighting the need for transparency and accountability within corporate disclosures.