Northern Technologies International Corporation Reports Financial Results for Third Quarter Fiscal 2025

Northern Technologies International Corporation, a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, has released its financial results for the third quarter of fiscal 2025.

Financial Highlights

For the third quarter of fiscal 2025, NTIC reported a consolidated net sales increase of 4.0% year-over-year to $21.51 million. The company's gross profit margin improved by 20 basis points to 38.4%. However, net income attributable to NTIC dropped significantly to $122,000, or $0.01 per diluted share, compared to $977,000, or $0.10 per diluted share, in the same period last year. Operating expenses rose by 7.6% to $9.67 million, primarily due to strategic investments and increased personnel expenses.

Business and Operational Highlights

NTIC's ZERUST® industrial net sales saw a 7.1% increase to $14.44 million, while ZERUST® oil and gas net sales decreased by 5.3% to $1.29 million. Natur-Tec® product net sales also saw a slight decline of 1.2% to $5.78 million. Notably, NTIC China net sales surged by 27.4% to $4.51 million.

Strategic Initiatives and Corporate Developments

The company continues to invest in its ZERUST® oil and gas business, adding new salespeople and resources to support future growth. Despite quarterly fluctuations, ZERUST® oil and gas sales have maintained higher gross margins and consistent sales over $1.2 million for 13 consecutive quarters. NTIC is also monitoring European economic stimulus packages, which are expected to positively impact joint venture operating income.

Management's Perspective

G. Patrick Lynch, President and CEO of NTIC, highlighted the company's sequential and year-over-year growth in consolidated net sales despite global trade and geopolitical tensions. Lynch emphasized the company's focus on supporting existing customers, expanding global relationships, and scaling opportunities in higher-growth markets. He also expressed optimism about the potential positive impact of European economic stimulus packages on joint venture operating income.

Future Outlook

Looking ahead, NTIC expects ZERUST® oil and gas sales and profitability to improve sequentially in the fourth quarter and into fiscal 2026. The company believes it is well-positioned for growth and profitability across many of its markets in fiscal 2026 and beyond.

SEC Filing: NORTHERN TECHNOLOGIES INTERNATIONAL CORP [ NTIC ] - 8-K - Jul. 10, 2025