Northern Technologies International Corporation Reports Financial Results for Second Quarter Fiscal 2026
Rhea-AI Summary
Northern Technologies International Corporation (NASDAQ: NTIC) reported Q2 fiscal 2026 consolidated net sales of $21.997M, up 15.3% year-over-year, with record ZERUST oil & gas sales of $2.666M (+72.1%) and Natur-Tec sales of $5.363M (+8.1%). Gross margin rose to 35.7%; operating income improved to $383k from a prior loss. Q2 net loss attributable to NTIC was $35k, while non-GAAP adjusted net income was $70k ($0.01 per diluted share).
Joint venture income increased 19.8% to $2.027M; working capital was $20.202M with $6.47M cash.
Positive
- Consolidated net sales +15.3% to $21.997M
- ZERUST oil & gas net sales +72.1% to $2.666M (quarter record)
- Joint venture operating income +19.8% to $2.027M
- Gross margin improved to 35.7% (up 10 bps)
Negative
- Q2 net loss attributable to NTIC of $35k
- Year-to-date cash down to $6.47M from $7.25M
- Outstanding debt (revolver and term loan) $14.259M
News Market Reaction – NTIC
In the Apr 9 session, NTIC gained 0.12%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 08 | Q1 2026 earnings | Negative | -0.6% | Record sales but lower margins and net income pressured sentiment. |
| Jul 10 | Q3 2025 earnings | Negative | +9.1% | Sales growth but sharp profit drop; shares reacted positively despite weaker earnings. |
| Apr 10 | Q2 2025 earnings | Negative | -20.9% | Broad declines in sales and margins led to sharply negative price reaction. |
| Jan 08 | Q1 2025 earnings | Negative | -2.3% | Record sales and higher margins but higher costs drove lower net income. |
| Nov 19 | FY 2024 results | Positive | +5.8% | Strong full-year sales growth, margin expansion and higher net income supported shares. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have typically produced modest moves, with 4 aligned and 1 divergent reactions; markets often lean cautious when profit metrics weaken even alongside revenue growth.
Over the past several earnings cycles, NTIC has consistently reported revenue growth, with periods of pressure on margins and net income. Q2 FY2025 showed broad sales and margin declines, while FY2024 delivered strong full-year growth and margin expansion. Early FY2026 earnings (Q1) featured record sales but lower profitability. Today’s Q2 FY2026 report, with 15.3% sales growth and a small net loss, fits the broader narrative of top-line expansion alongside ongoing investment and profitability variability.
Key Terms
non-GAAP adjusted net income financial
Employee Retention Credit (ERC) regulatory
revolving line of credit financial
term loan financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MINNEAPOLIS, April 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 second quarter of fiscal 2026.
Second quarter fiscal 2026 financial and operating highlights include (with growth rates on a fiscal quarter year-over-year basis):
- Consolidated net sales increased
15.3% to a record second quarter of$21,997,000 - ZERUST® industrial net sales increased
11.2% to$13,967,000 - ZERUST® oil and gas net sales increased
72.1% to a second quarter record of$2,666,000 - Natur-Tec® product net sales increased
8.1% to$5,363,000 - NTIC China net sales increased
18.5% to$4,425,000 - Gross profit, as a percentage of net sales, increased 10 basis points to
35.7% - Joint venture operating income increased
19.8% to$2,027,000 - Operating income improved to
$383,000 , compared to an operating loss of$(333,000) in the prior-year quarter - Net loss attributable to NTIC was
$35,000 , compared to net income attributable to NTIC$434,000 - Net loss per diluted share attributable to NTIC was
$(0.00) , compared to net income per diluted share attributable to NTIC of$0.04 - For second quarter of fiscal 2025, NTIC recognized
$1,140,000 in other income due to the receipt of an Employee Retention Credit (ERC) payment - Non-GAAP adjusted net income(1) was
$70,000 , or$0.01 per diluted share, compared to a Non-GAAP adjusted net loss of$300,000 , or$(0.03) per share for the same period last year
“Our results were in line with our long-term growth strategy. Second quarter performance was driven by solid top-line growth across our businesses, including record second quarter ZERUST® oil and gas net sales, with year-over-year growth across all geographies, in accordance with the investments we have made in our global sales infrastructure and the increasing adoption of our VCI solutions within the global oil and gas industry. We have also seen consistent strength at NTIC China, despite the seasonal impact of the Lunar New Year and achieved another solid quarter of Natur-Tec® growth. Overall, second quarter and year-to-date results reflect the resilience of our business model and the increasing value customers place on our corrosion prevention and compostable plastics solutions,” said G. Patrick Lynch, President and CEO of NTIC.
“While the macro environment, including geopolitical tensions in the Middle East, ongoing supply chain pressures, and continued challenges in the European economy, has become more uncertain, we remain confident in the direction of our business and the strategies we are executing to drive long-term value. The diversity of our end markets, geographic footprint, and product portfolio positions us well to navigate near-term volatility. As we move through the second half of fiscal 2026, we expect continued sales growth and improved profitability, supported by stable trends in North America and ongoing strength in NTIC China, ZERUST® oil and gas, and Natur-Tec®,” concluded Mr. Lynch.
NTIC’s consolidated net sales increased
The following tables set forth NTIC’s net sales by product category for the three and six months ended February 28, 2026, and 2025, by segment:
| Three Months Ended February 28, | |||||||||||||||||||
2026 | % of Net Sales | 2025 | % of Net Sales | % Change | |||||||||||||||
| ZERUST®industrial net sales | $ | 13,967,414 | 63.5 | % | $ | 12,562,853 | 65.9 | % | 11.2 | % | |||||||||
| ZERUST®oil & gas net sales | 2,666,042 | 12.1 | % | 1,549,164 | 8.1 | % | 72.1 | % | |||||||||||
| Total ZERUST®net sales | $ | 16,633,456 | 75.6 | % | $ | 14,112,017 | 74.0 | % | 17.9 | % | |||||||||
| Total Natur-Tec®net sales | 5,363,329 | 24.4 | % | 4,960,049 | 26.0 | % | 8.1 | % | |||||||||||
| Total net sales | $ | 21,996,785 | 100.0 | % | $ | 19,072,066 | 100.0 | % | 15.3 | % | |||||||||
| Six Months Ended February 28, | |||||||||||||||||||
2026 | % of Net Sales | 2025 | % of Net Sales | % Change | |||||||||||||||
| ZERUST®industrial net sales | $ | 28,889,932 | 63.7 | % | $ | 26,525,105 | 65.6 | % | 8.9 | % | |||||||||
| ZERUST®oil & gas net sales | 5,059,720 | 11.2 | % | 3,062,715 | 7.6 | % | 65.2 | % | |||||||||||
| Total ZERUST®net sales | $ | 33,949,652 | 74.9 | % | $ | 29,587,820 | 73.2 | % | 14.7 | % | |||||||||
| Total Natur-Tec®net sales | 11,356,014 | 25.1 | % | 10,822,639 | 26.8 | % | 4.9 | % | |||||||||||
| Total net sales | $ | 45,305,666 | 100.0 | % | $ | 40,410,459 | 100.0 | % | 12.1 | % | |||||||||
Net sales at NTIC’s joint ventures, which are not consolidated with NTIC’s financial results, increased
Operating expenses, as a percentage of net sales, for the second quarter of fiscal 2026 were
NTIC recognized
Net loss attributable to NTIC for the second quarter of fiscal 2026 was
NTIC’s non-GAAP adjusted net income(1), as set forth in the GAAP reconciliation at the end of this release, was
NTIC had working capital of
At February 28, 2026, NTIC had
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 second 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/BI189d44aede034eeaa9847116235afb6b
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/3ffaprzx
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 the diversity of its end markets, geographic footprint, and product portfolio positions NTIC well to navigate near-term volatility and that as NTIC moves through the second half of fiscal 2026, it expects continued sales growth and improved profitability, supported by stable trends in North America and ongoing strength in NTIC China, ZERUST® oil and gas, and Natur-Tec®, 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; dependence on 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 report 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.
(1) 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 attributable to NTIC and adjusted net income 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 FEBRUARY 28, 2026 (UNAUDITED) AND AUGUST 31, 2025 (AUDITED) | ||||||||
| February 28, 2026 | August 31, 2025 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 6,469,750 | $ | 7,250,523 | ||||
| Receivables: | ||||||||
| Trade, less allowance for credit losses of | ||||||||
| as of February 28, 2026 and | 18,033,990 | 18,443,230 | ||||||
| Fees for services provided to joint ventures | 897,177 | 1,077,552 | ||||||
| Income taxes | 704,897 | 340,002 | ||||||
| Inventories, net | 16,506,777 | 15,525,230 | ||||||
| Prepaid expenses | 2,607,340 | 1,706,279 | ||||||
| Total current assets | $ | 45,219,931 | $ | 44,342,816 | ||||
PROPERTY AND EQUIPMENT, NET | 15,918,752 | 15,183,918 | ||||||
OTHER ASSETS: | ||||||||
| Investments in joint ventures | 29,748,064 | 28,611,777 | ||||||
| Deferred income tax, net | 430,745 | 503,575 | ||||||
| Intangible assets, net | 8,399,365 | 8,827,768 | ||||||
| Goodwill | 4,782,376 | 4,782,376 | ||||||
| Operating lease right of use assets | 398,688 | 493,050 | ||||||
| Total other assets | 43,759,238 | 43,218,546 | ||||||
| Total assets | $ | 104,897,921 | $ | 102,745,280 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Line of credit | $ | 11,282,291 | $ | 9,329,021 | ||||
| Term loan, current portion | 2,976,455 | 2,860,256 | ||||||
| Accounts payable | 8,269,041 | 8,044,196 | ||||||
| Income taxes payable | 193,164 | 414,304 | ||||||
| Accrued liabilities: | ||||||||
| Payroll and related benefits | 1,568,219 | 1,844,817 | ||||||
| Other | 551,066 | 1,066,761 | ||||||
| Current portion of operating leases | 177,939 | 344,739 | ||||||
| Total current liabilities | $ | 25,018,175 | $ | 23,904,094 | ||||
| LONG-TERM LIABILITIES: | ||||||||
| Deferred income tax, net | 1,513,166 | 1,513,166 | ||||||
| Term loans, noncurrent portion | 421,839 | 466,984 | ||||||
| Operating leases, less current portion | 220,749 | 148,311 | ||||||
| Total long-term liabilities | $ | 2,155,754 | $ | 2,128,461 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY: | ||||||||
| Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding | — | — | ||||||
| Common stock, | 189,840 | 189,510 | ||||||
| Additional paid-in capital | 25,706,091 | 25,056,976 | ||||||
| Retained earnings | 52,286,237 | 52,273,469 | ||||||
| Accumulated other comprehensive loss | (4,896,833 | ) | (5,371,201 | ) | ||||
| Stockholders’ equity | 73,285,335 | 72,148,754 | ||||||
| Non-controlling interests | 4,438,657 | 4,563,971 | ||||||
| Total equity | 77,723,992 | 76,712,725 | ||||||
| Total liabilities and equity | $ | 104,897,921 | $ | 102,745,280 | ||||
| NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED FEBRUARY 28, 2026 AND 2025 | |||||||||||||||
| Three Months Ended February 28, | Six Months Ended February 28, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| NET SALES: | |||||||||||||||
| Net sales | $ | 21,996,785 | $ | 19,072,066 | $ | 45,305,666 | $ | 40,410,459 | |||||||
| Cost of goods sold | 14,138,899 | 12,276,482 | 29,064,154 | 25,451,922 | |||||||||||
| Gross profit | 7,857,886 | 6,795,584 | 16,241,512 | 14,958,537 | |||||||||||
| JOINT VENTURE OPERATIONS: | |||||||||||||||
| Equity in income from joint ventures | 1,100,670 | 620,730 | 2,322,786 | 1,750,323 | |||||||||||
| Fees for services provided to joint ventures | 925,899 | 1,070,263 | 1,995,156 | 2,354,382 | |||||||||||
| Total income from joint venture operations | 2,026,569 | 1,690,993 | 4,317,942 | 4,104,705 | |||||||||||
| OPERATING EXPENSES: | |||||||||||||||
| Selling expenses | 4,713,772 | 4,210,242 | 9,085,274 | 8,477,896 | |||||||||||
| General and administrative expenses | 3,612,707 | 3,320,369 | 7,761,660 | 7,179,312 | |||||||||||
| Research and development expenses | 1,175,202 | 1,288,899 | 2,396,114 | 2,632,296 | |||||||||||
| Total operating expenses | 9,501,681 | 8,819,510 | 19,243,048 | 18,289,504 | |||||||||||
| OPERATING INCOME (LOSS) | 382,774 | (332,933 | ) | 1,316,406 | 773,738 | ||||||||||
| INTEREST INCOME | 65,568 | 210,156 | 102,810 | 235,723 | |||||||||||
| INTEREST EXPENSE | (196,651 | ) | (139,155 | ) | (396,617 | ) | (259,375 | ) | |||||||
| OTHER INCOME | — | 1,139,756 | — | 1,139,756 | |||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 251,691 | 877,824 | 1,022,599 | 1,889,842 | |||||||||||
| INCOME TAX EXPENSE | 75,490 | 275,197 | 340,519 | 493,068 | |||||||||||
| NET INCOME | 176,201 | 602,627 | 682,080 | 1,396,774 | |||||||||||
| NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 211,524 | 168,308 | 479,584 | 401,364 | |||||||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO NTIC | $ | (35,323 | ) | $ | 434,319 | $ | 202,496 | $ | 995,410 | ||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | |||||||||||||||
| Basic | $ | (0.00 | ) | $ | 0.05 | $ | 0.02 | $ | 0.11 | ||||||
| Diluted | $ | (0.00 | ) | $ | 0.04 | $ | 0.02 | $ | 0.10 | ||||||
| WEIGHTED AVERAGE COMMON SHARES | |||||||||||||||
| ASSUMED OUTSTANDING: | |||||||||||||||
| Basic | 9,489,332 | 9,470,507 | 9,488,520 | 9,474,034 | |||||||||||
| Diluted | 9,489,332 | 9,753,437 | 9,509,125 | 9,757,350 | |||||||||||
CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.01 | $ | 0.07 | $ | 0.02 | $ | 0.14 | |||||||
NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
The accompanying press release contains certain non-GAAP financial measures, including adjusted net income (loss) attributable to NTIC and adjusted net income (loss) 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. 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 income (loss) attributable to NTIC and reported net income (loss) attributable to NTIC per diluted common share to adjusted net income (loss) attributable to NTIC and adjusted net income (loss) attributable to NTIC per diluted common share, in each case, as adjusted to exclude the contribution from the receipt of an ERC payment and amortization expense.
| Three Months Ended February 28, | Six Months Ended February 28, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income (loss), as reported | $ | (35,323 | ) | $ | 434,319 | $ | 202,496 | $ | 995,410 | ||||||
| Adjustments for adjusted net income (loss): | |||||||||||||||
| Other income from ERC | - | (1,139,756 | ) | - | (1,139,756 | ) | |||||||||
| Bonus expense impact from ERC | - | 300,000 | - | 300,000 | |||||||||||
| Amortization expense | 105,783 | 105,783 | 211,566 | 211,566 | |||||||||||
| Non-GAAP adjusted net income (loss) | $ | 70,460 | $ | (299,654 | ) | $ | 414,062 | $ | 367,220 | ||||||
| Weighted average shares outstanding (diluted) | 9,489,332 | 9,753,437 | 9,509,125 | 9,757,350 | |||||||||||
| Diluted net income (loss) per share, as reported | (0.00 | ) | 0.04 | 0.02 | 0.10 | ||||||||||
| Adjustments for adjusted net income (loss), net of tax impact, per diluted share1 | 0.01 | (0.09 | ) | 0.02 | (0.06 | ) | |||||||||
| Non-GAAP adjusted net income (loss) per diluted share | $ | 0.01 | (0.03 | ) | $ | 0.04 | 0.04 | ||||||||
Investor and Media Contact:
Matthew Wolsfeld, CFO
NTIC
(763) 225-6600
