Northern Technologies International Corporation Reports Financial Results for Third Quarter Fiscal 2026

Rhea-AI Summary

Northern Technologies (NASDAQ: NTIC) reported Q3 fiscal 2026 results with consolidated net sales up 12.6% year-over-year to a record $24.2 million. ZERUST® oil and gas sales rose 72.3% and Natur-Tec® 5.0%.

Gross margin declined 477 bps to 33.6%, resulting in a $0.03 diluted net loss per share. Year-to-date sales grew 12.3% to $69.5 million. NTIC plans to sell its Beachwood, Ohio facility for $1.15 million in fiscal 2027 and reported strong joint venture sales and income growth.

Positive

• Consolidated Q3 net sales up 12.6% to $24.2 million
• ZERUST oil and gas Q3 net sales up 72.3% to $2.2 million
• Natur-Tec Q3 net sales up 5.0% to $6.1 million
• Joint venture Q3 net sales up 15.1% to $26.7 million
• Q3 joint venture operating income up 12.2% to $2.6 million
• Operating expenses ratio improved to 42.0% from 44.9% year-over-year

Negative

• Gross margin decreased 477 basis points to 33.6%
• Q3 net result swung to $263,000 loss from $122,000 income
• Year-to-date net loss $61,000 versus $1.1 million income prior year
• Non-GAAP Q3 result fell to $158,000 loss from $228,000 income
• Outstanding credit and current term loan rose to $14.8 million from $12.2 million
• No other income in 2026 versus $1.14 million employee retention credit in 2025

Market reaction after 3Q26 earnings report: NTIC -3.73% in the Jul 9 session

-3.73%

-3.73% Session close to close

In the Jul 9 session, NTIC declined 3.73%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

Record Q3 net sales of $24.2M and 72.3% ZERUST oil & gas growth were offset by margin compression an...

Analysis

Record Q3 net sales of $24.2M and 72.3% ZERUST oil & gas growth were offset by margin compression and a $0.03 loss per share. Investors may weigh this against solid liquidity, planned asset sale proceeds above book, and the recent dividend suspension to prioritize debt reduction.

Key Figures

Consolidated net sales: $24,216,000 Gross margin: 33.6% Net loss per diluted share: $0.03 +5 more

8 metrics

Consolidated net sales $24,216,000 Q3 FY26, up 12.6% year over year to a quarterly record

Gross margin 33.6% Q3 FY26, down 477 basis points year over year

Net loss per diluted share $0.03 Q3 FY26, vs net income per diluted share of $0.01 a year ago

ZERUST oil & gas net sales $2,219,000 Q3 FY26, up 72.3% year over year, third-quarter record

Natur-Tec net sales $6,070,000 Q3 FY26, up 5.0% year over year to a record level

Non-GAAP adjusted net loss $158,000 Q3 FY26, or $0.02 per diluted share vs $0.02 income prior year

Working capital $19,992,000 As of May 31, 2026, including $7,276,000 in cash and cash equivalents

Beachwood facility LOI value $1,150,000 Non-binding cash offer received May 26, 2026 for Beachwood, Ohio property

Previous Earnings Reports

5 past events · Latest: Apr 09 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 09	2Q26 earnings report	Positive	+0.1%	Revenue and joint venture income grew, margins improved and operating income turned positive.
Jan 08	1Q26 earnings report	Neutral	-0.6%	Record sales with solid ZERUST and oil & gas growth offset by lower profitability and margin.
Jul 10	3Q25 earnings report	Negative	+9.1%	Sales grew modestly but net income fell sharply and joint venture income declined notably.
Apr 10	2Q25 earnings report	Negative	-20.9%	Broad-based sales declines, margin compression and sharply lower earnings alongside a dividend cut.
Jan 08	1Q25 earnings report	Neutral	-2.3%	Record sales and stronger Natur-Tec growth but higher expenses and lower net income year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases have produced mixed but generally cautious reactions, with an average same‑day move of about -2.91% and most outcomes aligning with the underlying tone of the results.

Key Terms

basis points, non-gaap, assets held for sale, letter of intent, +1 more

5 terms

basis points financial

"Gross profit, as a percentage of net sales, decreased 477 basis points to 33.6%"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

non-gaap financial

"NTIC’s non-GAAP adjusted net loss, as set forth in the GAAP reconciliation at the end of this release"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

assets held for sale financial

"reclassified the carrying value of the property ... to assets held for sale on its consolidated balance sheet"

Assets held for sale are things a company has decided to sell and has reclassified on its balance sheet to show they are being marketed rather than used in daily operations — like putting a house on the market instead of living in it. This matters to investors because these items are measured based on expected sale proceeds (which can reveal likely gains or losses), stop being treated as regular operating assets, and signal upcoming cash inflows or a change in strategy that can affect the company’s financial health and stock value.

letter of intent regulatory

"received a non-binding letter of intent to purchase the property for $1,150,000 in cash"

A letter of intent is a document that shows an agreement in principle between parties to work towards a future deal or transaction. It outlines their intentions and key terms, acting like a roadmap before a formal contract is signed. For investors, it signals serious interest and helps clarify expectations early in the process.

working capital financial

"NTIC had working capital of $19,992,000 as of May 31, 2026"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MINNEAPOLIS, July 09, 2026 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC), a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, today reported its financial results for the third quarter of fiscal 2026.

Third quarter fiscal 2026 financial and operating highlights include (with growth rates on a fiscal quarter year-over-year basis):

• Consolidated net sales increased 12.6% to a record $24,216,000
• ZERUST® industrial net sales increased 10.3% to a record $15,926,000
• ZERUST® oil and gas net sales increased 72.3% to a third quarter record of $2,219,000
• Natur-Tec® product net sales increased 5.0% to a record $6,070,000
• NTIC China net sales were $4,480,000, compared to $4,510,000 in the third quarter fiscal 2025
• Gross profit, as a percentage of net sales, decreased 477 basis points to 33.6%
• Joint venture operating income increased 12.2% to $2,551,000
• Income before income tax expense was $376,000, compared to $743,000
• Net loss attributable to NTIC was $263,000, compared to net income attributable to NTIC of $122,000
• Net loss per diluted share attributable to NTIC was $0.03, compared to net income per diluted share attributable to NTIC of $0.01

“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,” said G. Patrick Lynch, President and CEO of NTIC.

“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,” concluded Mr. Lynch.

NTIC’s consolidated net sales increased 12.6% to $24,216,000 during the three months ended May 31, 2026, compared to $21,509,000 for the three months ended May 31, 2025. The year-over-year increase in third quarter sales was primarily driven by increased sales and demand for ZERUST® and Natur-Tec® products. For the nine months ended May 31, 2026, consolidated net sales increased 12.3% to $69,521,000, compared to $61,919,000 for the same period last fiscal year.

The following tables set forth NTIC’s net sales by product category for the three and nine months ended May 31, 2026 and 2025, by segment:

	Three Months Ended May 31,
	2026			% of Net Sales			2025			% of Net Sales			% Change
ZERUST®industrial net sales	$	15,926,269		65.8	%		$	14,440,591		67.1	%		10.3	%
ZERUST®oil & gas net sales		2,219,342		9.1	%			1,288,046		6.0	%		72.3	%
Total ZERUST®net sales	$	18,145,611		74.9	%		$	15,728,637		73.1	%		15.4	%
Total Natur-Tec®net sales		6,070,051		25.1	%			5,779,926		26.9	%		5.0	%
Total net sales	$	24,215,662		100.0	%		$	21,508,563		100.0	%		12.6	%

	Nine Months Ended May 31,
	2026			% of Net Sales			2025			% of Net Sales			% Change
ZERUST®industrial net sales	$	44,816,138		64.4	%		$	40,965,696		66.2	%		9.4	%
ZERUST®oil & gas net sales		7,279,062		10.5	%			4,350,761		7.0	%		67.3	%
Total ZERUST®net sales	$	52,095,200		74.9	%		$	45,316,457		73.2	%		15.0	%
Total Natur-Tec®net sales		17,426,065		25.1	%			16,602,565		26.8	%		5.0	%
Total net sales	$	69,521,265		100.0	%		$	61,919,022		100.0	%		12.3	%

Net sales at NTIC’s joint ventures, which are not consolidated with NTIC’s financial results, increased 15.1% to $26,708,000 during the three months ended May 31, 2026, compared to $23,212,000 for the three months ended May 31, 2025. NTIC’s total income from joint venture operations increased 12.2% to $2,551,000 during the three months ended May 31, 2026, compared to $2,273,000 during the three months ended May 31, 2025. The $278,000 increase in total income from joint venture operations was primarily due to an increase in sales at NTIC’s joint ventures. Year-to-date, NTIC’s joint venture operating income was $6,869,000, compared to joint venture operating income of $6,378,000 during the nine months ended May 31, 2025. Net sales of NTIC’s joint ventures were $74,723,000 for the nine months ended May 31, 2026, compared to $66,848,000 for the nine months ended May 31, 2025.

Operating expenses, as a percentage of net sales, for the third quarter of fiscal 2026 were 42.0%, compared to 44.9% for the same period last fiscal year. Year-to-date, operating expenses, as a percentage of net sales, were 42.3%, compared to 45.1% for the same period last fiscal year. Operating expenses for the three and nine months ended May 31, 2026 increased 5.3% and 5.2%, respectively. These increases were primarily due to strategic investments in ZERUST® oil and gas marketing and sales efforts.

NTIC recognized $1,140,000 in other income during the nine months ended May 31, 2025, due to the receipt of a cash employee retention credit payment. No other income was recognized during the nine months ended May 31, 2026.

Net loss attributable to NTIC for the third quarter of fiscal 2026 was $263,000, or $0.03 per diluted share, compared to net income attributable to NTIC of $122,000, or $0.01 per diluted share, for the same period last fiscal year. Year-to-date, net loss attributable to NTIC was $61,000, or $0.01 per diluted share, compared to net income attributable to NTIC of $1,117,000, or $0.12 per diluted share, for the same period last fiscal year.

NTIC’s non-GAAP adjusted net loss, as set forth in the GAAP reconciliation at the end of this release, was $158,000, or $0.02 per diluted share, for the third quarter of fiscal 2026, compared to non-GAAP adjusted net income of $228,000, or $0.02 per diluted share, for the same quarter last fiscal year. Year-to-date, non-GAAP adjusted net income was $257,000, or $0.02 per diluted share, compared to non-GAAP adjusted net income of $595,000, or $0.07 per diluted share, for the same period last fiscal year.

NTIC had working capital of $19,992,000 as of May 31, 2026, including $7,276,000 in cash and cash equivalents and an outstanding revolving line of credit and current portion of term loan balance of $14,778,000, compared to $20,439,000 of working capital as of August 31, 2025, including $7,251,000 in cash and cash equivalents and an outstanding revolving line of credit and current portion of term loan balance of $12,189,000.

During the third quarter of fiscal 2026, NTIC committed to a plan to sell its Beachwood, Ohio facility, which has historically been used by the Company's ZERUST® segment. NTIC reclassified the carrying value of the property, $869,407, from property, plant and equipment, net, to assets held for sale on its consolidated balance sheet as of May 31, 2026. On May 26, 2026, NTIC received a non-binding letter of intent to purchase the property for $1,150,000 in cash, subject to a customary diligence period and execution of a definitive purchase and sale agreement. The Company expects the sale of the property to close during fiscal 2027.

At May 31, 2026, NTIC had $30,360,000 of investments in joint ventures, of which $16,521,000, or 54.4% was cash, with the remaining balance mostly made up of other working capital. This is compared to $27,139,000 of investments in joint ventures, of which $13,500,000, or 49.7%, is cash, with the remaining balance mostly made up of other working capital at May 31, 2025.

Conference Call and Webcast

NTIC will host a conference call today at 8:00 a.m. Central Time to review its results of operations for the third quarter of fiscal year 2026 and its outlook, followed by a question-and-answer session. The conference call will be available to interested parties through a webcast. To join the live call and ask a question, a participant must register using the URL below.

https://register-conf.media-server.com/register/BIfceca2e927f94054a3cc6ad549cefed7

Once registered, the participant will receive a dial-in number and unique PIN number to access the call.

The audio-only webcast can be accessed at the following link: https://edge.media-server.com/mmc/p/vqvp3kq8

A link to the webcast is also available on the Investor Relations section of NTIC’s webpage. Participants are advised to go to the website at least 15 minutes early to register, download and install any necessary audio software. For those unable to participate in the live webcast, a replay of the webcast will be archived and accessible for approximately one year on the Investor Relations section of NTIC’s webpage.

About Northern Technologies International Corporation

Northern Technologies International Corporation develops and markets proprietary, environmentally beneficial products and services in over 65 countries either directly or via a network of subsidiaries, joint ventures, independent distributors and agents. NTIC’s primary business is corrosion prevention marketed mainly under the ZERUST® brand. NTIC has been selling its proprietary ZERUST® rust and corrosion inhibiting products and services to the automotive, general industrial, mechanical, mining, agricultural, and retail consumer markets for over 50 years and, more recently, has also expanded into the oil and gas industry. NTIC offers worldwide on-site technical consulting for rust and corrosion prevention issues. NTIC’s technical service consultants work directly with the end users of NTIC’s products to analyze their specific needs and develop systems to meet their technical requirements. NTIC also markets and sells a portfolio of bio-based and biodegradable polymer resin compounds and finished products marketed under the Natur-Tec® brand.

Forward-Looking Statements

Statements contained in this release that are not historical information are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include NTIC’s beliefs that its pricing and procurement initiatives will improve gross margin and profitability in the fourth quarter and its expectation that it will execute a definitive agreement for the sale of its Beachwood facility and that the sale would close in fiscal 2027 and result in more than $1.0 million in anticipated proceeds, and other statements that can be identified by words such as “believes,” “continues,” “expects,” “anticipates,” “intends,” “potential,” “outlook,” “will,” “may,” “would,” “should,” “guidance” or words of similar meaning, and the use of future dates. Such forward-looking statements are based upon the current beliefs and expectations of NTIC’s management and are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Such potential risks and uncertainties include, but are not limited to, in no particular order: the effect of the U.S.-Israel-Iran conflict, which has had immediate and substantial effects on global trade, energy markets and financial markets; risks associated with international operations, including NTIC China, exposure to exchange rate fluctuations, tariffs, trade disputes and changes to trade regulation; the health of the U.S. and worldwide economies, including in particular the U.S. automotive industry, decreased exports of automotive products resulting from tariffs between the U.S. and both Mexico and Canada and the evolution towards electric vehicles; the effect of economic uncertainty, recessionary indicators, inflation, increased interest rates and turmoil in the global credit, financial and banking markets or perception thereof; effect of supply chain disruptions; the effect of initiatives to improve gross margin and profitability, including expanding sales of ZERUST® oil and gas solutions and broadening Natur-Tec® applications globally; the risk that the Beachwood facility sale will not be completed or will result in different than anticipated proceeds to NTIC; NTIC’s dependence on its joint ventures, relationships with joint venture partners and their success, including fees and dividend distributions; effect of economic slowdown and political unrest, including the war between Russia and Ukraine and the conflicts in the Middle East; the level of growth in NTIC’s markets; NTIC’s investments in research and development efforts; acceptance of existing and new products; timing of purchase orders under supply contracts; variability in sales to oil and gas customers and effect on quarterly financial results; increased competition; costs and effects of complying with changes in tax, fiscal, government and other regulatory policies, and rules relating to environmental, health and safety matters; and NTIC’s reliance on its intellectual property rights and the absence of infringement of the intellectual property rights of others. More detailed information on these and additional factors which could affect NTIC’s operating and financial results is described in NTIC’s filings with the Securities and Exchange Commission (SEC), including its annual report on Form 10-K for the fiscal year ended August 31, 2025 and subsequent quarterly reports on Form 10-Q. NTIC urges all interested parties to read these reports to gain a better understanding of the many business and other risks that it faces. Additionally, NTIC undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this release contains non-GAAP financial measures, including adjusted net income (loss) attributable to NTIC and adjusted net income (loss) attributable to NTIC per diluted share. NTIC’s reasons for use of these measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and other information are included at the end of this release. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for NTIC’s financial results prepared in accordance with GAAP.

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES 
CONSOLIDATED BALANCE SHEETS AS OF MAY 31, 2026 (UNAUDITED) AND
AUGUST 31, 2025 (AUDITED)

	May 31, 2026				August 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	7,275,981			$	7,250,523
Receivables:
Trade, less allowance for credit losses        of $310,000 as of May 31, 2026 and $235,000 as of August 31, 2025		18,684,535				18,443,230
Fees for services provided to joint ventures		1,092,660				1,077,552
Income taxes		999,127				340,002
Inventories, net		15,838,761				15,525,230
Prepaid expenses		3,013,947				1,706,279
Assets held for sale		869,407				—
Total current assets	$	47,774,418			$	44,342,816
PROPERTY AND EQUIPMENT, NET	$	14,863,936			$	15,183,918
OTHER ASSETS:
Investments in joint ventures		30,360,084				28,611,777
Deferred income tax, net		448,023				503,575
Intangible assets, net		8,310,410				8,827,768
Goodwill		4,782,376				4,782,376
Operating lease right of use assets		585,756				493,050
Total other assets		44,486,649				43,218,546
Total assets	$	107,125,003			$	102,745,280
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Line of credit	$	11,763,555			$	9,329,021
Term loan, current portion		3,014,086				2,860,256
Accounts payable		9,350,119				8,044,196
Income taxes payable		447,177				414,304
Accrued liabilities:
Payroll and related benefits		1,897,674				1,844,817
Other		882,578				1,066,761
Current portion of operating leases		427,639				344,739
Total current liabilities	$	27,782,828			$	23,904,094
LONG-TERM LIABILITIES:
Deferred income tax, net		1,513,166				1,513,166
Term loans, noncurrent portion		389,236				466,984
Operating leases, less current portion		158,117				148,311
Total long-term liabilities	$	2,060,519			$	2,128,461
COMMITMENTS AND CONTINGENCIES
EQUITY:
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding		—				—
Common stock, $0.02 par value per share; authorized 15,000,000 shares;     issued and outstanding 9,496,440 and 9,475,490 as of May 31, 2026 and August     31, 2025, respectively		189,929				189,510
Additional paid-in capital		26,046,779				25,056,976
Retained earnings		52,022,946				52,273,469
Accumulated other comprehensive loss		(5,434,794	)			(5,371,201	)
Stockholders’ equity		72,824,860				72,148,754
Non-controlling interests		4,456,796				4,563,971
Total equity		77,281,656				76,712,725
Total liabilities and equity	$	107,125,003			$	102,745,280

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2026 AND 2025

	Three Months Ended May 31,								Nine Months Ended May 31,
	2026				2025				2026				2025
NET SALES:
Net sales	$	24,215,662			$	21,508,563			$	69,521,265			$	61,919,022
Cost of goods sold		16,072,498				13,249,123				45,136,589				38,701,045
Gross profit		8,143,164				8,259,440				24,384,676				23,217,977
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures		1,517,174				970,314				3,839,960				2,720,637
Fees for services provided to joint ventures		1,033,786				1,302,598				3,028,942				3,656,980
Total income from joint venture operations		2,550,960				2,272,912				6,868,902				6,377,617
OPERATING EXPENSES:
Selling expenses		4,647,548				4,593,226				13,732,822				13,071,122
General and administrative expenses		4,324,275				3,933,696				12,085,935				11,113,008
Research and development expenses		1,206,971				1,138,243				3,603,085				3,770,539
Total operating expenses		10,178,794				9,665,165				29,421,842				27,954,669
OPERATING INCOME		515,330				867,187				1,831,736				1,640,925
INTEREST INCOME		64,089				37,821				166,899				273,544
INTEREST EXPENSE		(203,872	)			(162,096	)			(600,489	)			(421,471	)
OTHER INCOME		—				—				—				1,139,756
INCOME BEFORE INCOME TAX EXPENSE		375,547				742,912				1,398,146				2,632,754
INCOME TAX EXPENSE		392,802				410,461				733,321				903,529
NET (LOSS) INCOME		(17,255	)			332,451				664,825				1,729,225
NET INCOME ATTRIBUTABLE TO       NON-CONTROLLING INTERESTS		246,036				210,676				725,620				612,040
NET (LOSS) INCOME ATTRIBUTABLE TO NTIC	$	(263,291	)		$	121,775			$	(60,795	)		$	1,117,185
NET (LOSS) INCOME ATTRIBUTABLE TO NTIC       PER COMMON SHARE:
Basic	$	(0.03	)		$	0.01			$	(0.01	)		$	0.12
Diluted	$	(0.03	)		$	0.01			$	(0.01	)		$	0.12
WEIGHTED AVERAGE COMMON SHARES
ASSUMED OUTSTANDING:
Basic		9,496,439				9,474,363				9,490,751				9,475,967
Diluted		9,496,439				9,539,766				9,490,751				9,686,646
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	0.00			$	0.01			$	0.02			$	0.15

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(UNAUDITED, EXCEPT SHARE AND PER SHARE AMOUNTS)

The accompanying press release contains certain non-GAAP financial measures, including adjusted net (loss) income attributable to NTIC and adjusted net (loss) income attributable to NTIC per diluted share, which are not calculated or presented in accordance with accounting principles generally accepted in the United States (GAAP). These non-GAAP financial measures are supplemental information and in addition to the financial measures presented in the accompanying release that are calculated and presented in accordance with GAAP. NTIC uses non-GAAP financial measures as supplemental measures of performance and believes these measures facilitate operating performance comparisons from period to period and company to company by factoring out potential differences caused by non-recurring, unusual or infrequent charges not related to NTIC’s regular, ongoing business and other non-cash charges. NTIC also believes that the presentation of certain non-GAAP financial measures provides useful information to investors in evaluating the company’s operations, period over period. Such non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the release. The non-GAAP financial measures in the accompanying release may differ from similar measures used by other companies.

The following is a reconciliation of NTIC’s reported net (loss) income attributable to NTIC and reported net (loss) income attributable to NTIC per diluted common share to adjusted net (loss) income attributable to NTIC and adjusted net (loss) income attributable to NTIC per diluted common share, in each case, as adjusted to exclude the contribution from the receipt of an employee retention credit (ERC) payment and amortization expense.

	Three Months Ended May 31,							Nine Months Ended May 31,
	2026				2025			2026				2025
Net (loss) income, as reported	$	(263,291	)		$	121,775		$	(60,795	)		$	1,117,185
Adjustments for adjusted net (loss) income:
Other income from ERC		-				-			-				(1,139,756	)
Bonus expense impact from ERC		-				-			-				300,000
Amortization expense		105,783				105,783			317,349				317,349
Non-GAAP adjusted net (loss) income	$	(157,508	)		$	227,558		$	256,554			$	594,778
Weighted average shares outstanding (diluted)		9,496,439				9,539,766			9,490,751				9,686,646
Diluted net (loss) income per share, as reported		(0.03	)			0.01			(0.01	)			0.12
Adjustments for adjusted net (loss) income, net of tax impact, per diluted share		0.01				0.01			0.03				(0.05	)
Non-GAAP adjusted net (loss) income per diluted share	$	(0.02	)		$	0.02		$	0.02			$	0.07

Investor and Media Contact:
Matthew Wolsfeld, CFO
NTIC
(763) 225-6600

FAQ

How did Northern Technologies (NTIC) perform in Q3 fiscal 2026?

NTIC reported Q3 fiscal 2026 net sales of $24.2 million, up 12.6% year-over-year. According to NTIC, higher ZERUST and Natur-Tec demand drove the increase, while gross margin fell and the quarter ended with a $263,000 net loss attributable to the company.

What were NTIC’s ZERUST and Natur-Tec sales in Q3 fiscal 2026?

In Q3 fiscal 2026, ZERUST net sales reached $18.1 million and Natur-Tec sales were $6.1 million. According to NTIC, ZERUST oil and gas sales jumped 72.3% to $2.2 million, while Natur-Tec sales increased 5.0% year-over-year.

Why did Northern Technologies’ gross margin decline in Q3 2026?

NTIC’s Q3 2026 gross margin fell 477 basis points to 33.6%. According to NTIC, higher raw material costs linked to Middle East conflicts and competitive pricing pressure in the Natur-Tec business were key drivers, though raw material costs have begun to ease.

What was Northern Technologies’ earnings and EPS in Q3 fiscal 2026?

NTIC reported a Q3 fiscal 2026 net loss attributable to the company of $263,000, or $0.03 per diluted share. According to NTIC, this compares with $122,000 in net income and $0.01 diluted EPS in the same quarter of fiscal 2025.

How did NTIC’s joint ventures perform for Q3 fiscal 2026?

NTIC’s joint venture net sales were $26.7 million in Q3 2026, up 15.1% year-over-year. According to NTIC, total income from joint venture operations increased 12.2% to $2.6 million, supported by higher sales, with year-to-date joint venture income reaching $6.9 million.

What is Northern Technologies’ liquidity position as of May 31, 2026?

As of May 31, 2026, NTIC had working capital of $20.0 million, including $7.3 million in cash and cash equivalents. According to NTIC, the company also had $14.8 million outstanding under its revolving line of credit and current portion of term loan.

What are the details of NTIC’s planned sale of the Beachwood, Ohio facility?

NTIC plans to sell its Beachwood, Ohio facility, reclassifying $869,407 as assets held for sale. According to NTIC, a non-binding letter of intent proposes a $1.15 million cash purchase, with the transaction expected to close during fiscal 2027, pending due diligence and a definitive agreement.