Northern Technologies International Stock Earnings Reports

NTIC reported solid Q2 FY2026 results with consolidated net sales up 15.3% year-over-year to $22.0M. Key drivers were record ZERUST Oil & Gas sales (up 72.1%) — including a three-year, ~$13M offshore contract — stronger China performance (NTIC China sales +18.5%), and Natur‑Tec bioplastics growth (+8.1%). Joint venture sales (not consolidated) rose 18.6% and joint venture operating income increased ~19.8%. Gross margin was stable (35.7%) and non‑GAAP adjusted net income was $70K ($0.01/sh), while GAAP net loss was $35K. Operating expenses rose modestly but decreased as a percentage of sales (43.2% vs 46.2% prior year). Balance sheet highlights: working capital $20.2M, cash $5.6M, and debt $14.3M (including $11.3M on the revolver). Management reiterated expectation for continued sales growth and improved profitability in FY2026 driven by oil & gas, China, and Natur‑Tec, and emphasized focus on operating leverage, working capital efficiencies and debt reduction. Key risks remain: geopolitical uncertainty (Middle East war), supply chain and raw‑material price volatility, European softness impacting certain joint ventures (Germany), and margin variability in Natur‑Tec due to input prices, tariffs and competitive pricing.