Northern Technologies International reported third-quarter fiscal 2026 consolidated net sales of $24.22 million, a 12.6% year-over-year increase, driven by strength in ZERUST and Natur‑Tec product lines. Gross profit was $8.14 million (33.6% of net sales), while income before taxes declined to $0.38 million and net loss attributable to the company was $0.26 million, or $0.03 per diluted share. The company cited raw material cost pressures and competitive pricing in Natur‑Tec as primary drivers of margin compression and expects improvements in the fourth quarter from pricing and procurement actions.

Financial Highlights

  • Revenue: Consolidated net sales of $24,215,662 for the three months ended May 31, 2026, up 12.6% from $21,508,563 a year earlier.
  • Gross profit and margin: Gross profit of $8,143,164, representing 33.6% of net sales (a decline of 477 basis points year-over-year).
  • Operating income: Operating income of $515,330 for the quarter.
  • Pre-tax and net results: Income before income tax expense of $375,547; net loss attributable to Northern Technologies International of $263,291 for the quarter.
  • Non-GAAP adjusted EPS: Non-GAAP adjusted net (loss) income per diluted share of $(0.02) for the quarter (adjusted net (loss) income of $(157,508)).

Business Highlights

  • Segment performance: ZERUST industrial net sales reached a third-quarter record of $15.93 million (65.8% of net sales) and total ZERUST net sales were $18.15 million, up 15.4% year-over-year.
  • Oil & gas growth: ZERUST oil and gas net sales surged 72.3% year-over-year to $2.22 million, a third-quarter record for the channel.
  • Natur‑Tec momentum: Natur‑Tec product net sales increased 5.0% to a third-quarter record of $6.07 million, representing 25.1% of net sales.
  • Joint ventures: Net sales at unconsolidated joint ventures rose 15.1% to $26.71 million for the quarter, and NTIC’s income from joint venture operations increased 12.2% to $2.55 million.
  • Asset sale initiative: Company committed to sell its Beachwood, Ohio facility and reclassified the property ($869,407 carrying value) as assets held for sale; received a non-binding LOI for $1.15 million with expected close in fiscal 2027.

Original SEC Filing:

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