NTIC · Northern Technologies International Corporation

Northern Technologies International Corporation delivered strong top-line growth in Q2 fiscal 2026, with consolidated net sales reaching a record $21.997 million, up 15.3% year-over-year, driven by robust demand across segments. ZERUST® oil & gas net sales hit a second-quarter record, surging 72.1% to $2.666 million, reflecting increasing adoption of VCI solutions in the global oil and gas industry amid investments in sales infrastructure. ZERUST® industrial sales grew 11.2% to $13.967 million, while Natur-Tec® increased 8.1% to $5.363 million, and NTIC China sales rose 18.5% to $4.425 million despite Lunar New Year seasonality. Gross margin edged up 10 basis points to 35.7%, supported by sales mix and operational efficiencies. Joint venture operating income climbed 19.8% to $2.027 million on 18.6% higher JV sales of $23.484 million. Operating expenses rose 7.7% to 43.2% of sales due to strategic marketing and sales investments in oil & gas, but improved from 46.2% prior year. Operating income flipped to a profit of $383,000 from a $333,000 loss. The GAAP net loss of $35,000 contrasted with prior-year income of $434,000, impacted by absence of $1.140 million ERC other income recognized last year; non-GAAP adjusted net income was $70,000. Balance sheet remains solid with $20.202 million working capital, $6.470 million cash, and $14.259 million debt as of February 28, 2026. Management highlighted business resilience, geographic diversity, and expects continued sales growth and improved profitability in H2 FY2026, supported by North America stability, NTIC China strength, ZERUST® oil & gas, and Natur-Tec®.