| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 24.22 | 10.1% | 12.6% |
| Total Income | 24.22 | 10.1% | 12.6% |
| Expenditure | 23.70 | 9.7% | 14.8% |
| PBT | — | ||
| Net Profit | -0.26 | 550.0% | 316.7% |
| OPM | 2.13% | 0.39pp | 1.90pp |
| NPM | -1.09% | 0.93pp | 1.65pp |
| EPS | -0.03 | 400.0% |
Northern Technologies International Corporation Reports Q3 FY26 Financial Results
09 Jul 2026 · 9 Jul, 5:36 pm
Summary
Northern Technologies International Corporation reported record consolidated net sales of $24,216,000 for the third quarter of fiscal 2026, an increase of 12.6% year-over-year, driven by strong demand for ZERUST® and Natur-Tec® products. However, gross profit margin declined by 477 basis points to 33.6% due to rising raw material costs and competitive pricing pressures. The company reported a net loss attributable to NTIC of $263,000 for the quarter. Management expects raw material costs to ease and anticipates improved gross margin and profitability in the fourth quarter through pricing and procurement initiatives.
Key Highlights
- 1
Consolidated net sales increased 12.6% to a record $24,216,000 for the third quarter of fiscal 2026.
- 2
ZERUST® industrial net sales reached a record $15,926,000, up 10.3% year-over-year.
- 3
ZERUST® oil and gas net sales saw a significant increase of 72.3% to a third quarter record of $2,219,000.
- 4
Natur-Tec® product net sales increased 5.0% to a record $6,070,000.
- 5
Gross profit as a percentage of net sales decreased 477 basis points to 33.6% due to increased raw material costs and competitive pricing.
- 6
Joint venture operating income increased 12.2% to $2,551,000.
- 7
Net loss attributable to NTIC was $263,000, or $0.03 per diluted share, compared to a net income of $122,000, or $0.01 per diluted share, in the prior year's third quarter.
Management Comments
G. Patrick Lynch
Strong global demand and increasing adoption of our ZERUST® corrosion prevention and Natur-Tec® bioplastic solutions drove quarterly consolidated net sales to new record highs. Global disruptions stemming from increased conflict levels in the Middle East, including through the Strait of Hormuz, drove a significant increase in the cost of key raw materials during the quarter, and gross margin was further affected by competitive pricing pressure in our Natur-Tec® business. Together, these factors reduced our gross margin by approximately 477 basis points year-over-year. We have begun to see raw material costs ease, and the pricing and procurement initiatives we are pursuing are expected to improve gross margin and profitability in the fourth quarter. Since reaching the profitability levels we planned for is taking longer than expected, we believe NTIC must remain focused on the initiatives within our control to drive more profitable growth, including expanding sales of our higher-margin ZERUST® oil and gas solutions and broadening Natur-Tec® applications globally. Our liquidity and financial flexibility remain solid, supported by significant capital within our joint venture network and anticipated proceeds of more than $1.0 million from the pending sale of our Beachwood, Ohio facility, which is expected to close in fiscal 2027. The resilience of our business model, continued demand for our technologies. and our focus on execution give us confidence in stronger, more profitable fourth-quarter results.
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