Rental Corporation (NYSE: TNC ) is among them Stock Kings List: Top 15 Stocks.
On February 26, Freedom Capital downgraded Renting Inc. (NYSE: TNC ) to hold from buy. The company also lowered its price target on the stock to $67 from $93. The company called the company’s Q4 report “weak.” Analysts said Tenant’s near-term profitability and cash flow were affected by shipping restrictions, stabilization costs and tariff inflation. In a research note to investors, the company added that these pressures could continue until 2026.
During the company’s Q4 2025 earnings call, CEO David Hummel said both the fourth-quarter and full-year results were heavily impacted by North America’s launch of a new ERP system in early November 2025. These problems disrupted order entry, shipping, and customer service operations. Hummel said the system took longer than expected to stabilize. As a result, the company lost about three weeks of machine order entry and the ability to ship parts.
Disruption also brings overtime, shipping, and other direct operating costs. He added that the challenges reduced orders by about $15 million, mostly affecting parts, consumables and equipment. The cumulative impact on net sales was approximately $30 million. ERP-related issues reduced fourth-quarter adjusted EBITDA by about $22 million, according to Hummel.
The company continues to work to fix the system’s problems. Hummel said repair costs are now expected to exceed $20 million by 2026, up from the original estimate of $5 million.
Tennant Corporation (NYSE: TNC) designs, manufactures and markets cleaning solutions. Its products include manual and autonomous mechanical cleaning equipment used in industrial and commercial settings. The company sells its offerings under several brands, including Tennant, Nobles, Alfa Impresa Tennant, IPC, Gaumi, and Rongen, along with private label brands.
While we acknowledge the potential of TNC as an investment, we believe that some AI stocks offer higher potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.
Read more: The 40 most popular stocks among hedge funds heading into 2026 And the 13 best defensive dividend stocks for 2026.
Disclosure: None. Follow the inside port on Google News.
