NTIC Reports Record Sales but Profits Squeezed by Rising Costs — Northern Technologies International Corporation

Event summary

NTIC reported a 12.6% increase in consolidated net sales to $24.2 million for Q3 fiscal 2026, driven by strong demand for ZERUST® and Natur-Tec® products.
Gross profit margin decreased by 477 basis points to 33.6% due to rising raw material costs and competitive pricing pressure.
Net loss attributable to NTIC was $263,000, compared to a net income of $122,000 in the same period last year.
ZERUST® oil and gas net sales surged 72.3% to a record $2.2 million, while Natur-Tec® product net sales increased 5.0% to $6.07 million.

The big picture

NTIC's record sales highlight strong global demand for its corrosion prevention and bioplastic solutions, but rising raw material costs and competitive pressures are squeezing profits. The company's focus on expanding higher-margin segments like ZERUST® oil and gas, along with strategic cost management initiatives, will be critical in navigating current market challenges.

What we're watching

Cost Management: Whether NTIC's pricing and procurement initiatives can improve gross margin and profitability in the fourth quarter.
Market Expansion: The pace at which NTIC can expand sales of higher-margin ZERUST® oil and gas solutions and broaden Natur-Tec® applications globally.
Strategic Moves: How the pending sale of the Beachwood, Ohio facility for over $1.0 million in anticipated proceeds will impact NTIC's liquidity and financial flexibility.