Northern Technologies Q3 sales rise 4%, expects profitability in fiscal 2026 

Overview

• Northern Technologies International Corp (NTIC) Q3 net sales grow 4%, driven by ZERUST industrial demand

• Adjusted EPS for fiscal Q3 missed analyst expectations, per LSEG data

• Net income drops due to strategic investments and macro challenges

Outlook

• Company expects ZERUST oil and gas sales to improve sequentially in Q4 and fiscal 2026

• NTIC anticipates positive impact from European stimulus on joint venture income

• Company is positioned for growth and expects profitability in fiscal 2026 and beyond

• NTIC monitors Europe for economic recovery, especially in Germany

Result Drivers

• ZERUST INDUSTRIAL DEMAND - Increased demand for ZERUST industrial products drove a 7.1% rise in sales

• CHINA SALES GROWTH - NTIC China net sales surged 27.4%, contributing positively to overall performance

• INVESTMENT IMPACT - Strategic investments in sales infrastructure led to higher operating expenses, affecting net income

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Northern Technologies International Corp is $13.00, about 37.5% above its July 9 closing price of $8.13

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: