Northern Technologies International Corporation Reports Financial Results for First Quarter Fiscal 2026
MINNEAPOLIS, Jan. 08, 2026 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC), a prominent leader in corrosion inhibiting products and bio-based polymer resin compounds, has announced its financial results for the first quarter of fiscal 2026. In this report, NTIC showcases substantial growth across multiple product lines and geographic markets.
Key Financial Highlights
During the first quarter of fiscal 2026, NTIC achieved several remarkable milestones:
- Consolidated net sales: Increased by 9.2% to a record of $23,309,000
- ZERUST® industrial net sales: Grew 6.9% to reach $14,923,000
- ZERUST® oil and gas net sales: Jumped 58.1% to a record $2,394,000
- Natur-Tec® product net sales: Increased 2.2% to $5,993,000
- NTIC China net sales: Up 23.5% to $4,935,000
However, NTIC reported a slight decline in gross profit margin, which fell 230 basis points to 36.0%.
Operational Insights and Management Commentary
NTIC's President and CEO, G. Patrick Lynch, commented on the company's solid performance: "We delivered record consolidated net sales during the first quarter, driven by the strongest year-over-year growth rate we’ve had since fiscal 2024. This performance was supported by higher sales across key sectors..." NTIC also noted that ZERUST® oil and gas achieved record first-quarter sales for the second consecutive quarter.
Lynch emphasized the importance of improving profitability, stating, "Operating expenses as a percentage of sales were 41.8% for the first quarter, reflecting the third consecutive quarterly improvement in holding down operating expenses." NTIC anticipates that sales growth will outpace operating expenses, contributing to higher profitability in the coming quarters.
Segment Performance and Market Growth
NTIC's consolidated net sales for the three months that ended November 30, 2025, reached $23,309,000, a marked increase from $21,338,000 in the same period last year. This growth was primarily attributed to increased demand for both ZERUST® and Natur-Tec® products.
Here is the net sales breakdown by product category for the first quarter:
- ZERUST® industrial net sales: $14,922,518 (64.0% of net sales, up 6.9% year-over-year)
- ZERUST® oil & gas net sales: $2,393,678 (10.3%, up 58.1% year-over-year)
- Total Natur-Tec® net sales: $5,992,685 (25.7%, up 2.2% year-over-year)
NTIC's joint ventures also reported a solid performance, with net sales increasing 2.9% to $24,531,000.
Financial Summary
Despite the sales growth, NTIC experienced a decline in net income, reporting $238,000 for the first quarter, down from $561,000 during the same period last fiscal year. The earnings per diluted share was $0.03, compared to $0.06 last year.
NTIC's non-GAAP adjusted net income was $344,000, or $0.04 per diluted share, contrasting with $667,000, or $0.07 per diluted share, from the previous year.
Looking Ahead
NTIC plans to host a conference call today at 8:00 a.m. Central Time to discuss its financial results and outlook. Interested investors are encouraged to register for the live call via the provided link:
A link to the webcast will also be available on the Investor Relations section of NTIC’s website, where a replay will be archived for approximately one year.
About Northern Technologies International Corporation
Northern Technologies International Corporation (NASDAQ: NTIC) develops and markets proprietary, environmentally beneficial products and services across more than 65 countries. Its primary focus is on corrosion prevention, marketed mainly under the ZERUST® brand.