Northern Technologies International Corporation (NTIC) Announces Financial Earnings Results For Third Quarter Fiscal 2025

Northern Technologies International Corporation (NTIC) today announced its financial results for the most recent quarter, reporting revenue of $21.5 million, which exceeded analysts’ expectations by $808,563. The company also met its earnings per share estimate, posting an EPS of $0.04. This performance highlights NTIC’s continued growth and resilience in the market, showcasing its ability to surpass revenue forecasts while maintaining steady earnings.

Key Highlights:

• Consolidated net sales increased by 4.0% to $21,509,000 in Q3 FY2025.
• ZERUST® industrial net sales rose by 7.1% to $14,441,000.
• ZERUST® oil and gas net sales decreased by 5.3% to $1,288,000.
• Natur-Tec® product net sales fell by 1.2% to $5,780,000.
• NTIC China net sales surged by 27.4% to $4,510,000.
• Gross profit margin improved by 20 basis points to 38.4%.
• Net income attributable to NTIC was $122,000, down from $977,000 year-over-year.
• Cash provided by operating activities for the nine months ended May 31, 2025, was $3,808,000.

In the third quarter of fiscal 2025, Northern Technologies International Corporation (NTIC) reported a consolidated net sales increase of 4.0%, driven primarily by a 7.1% rise in ZERUST® industrial products. Despite a decline in ZERUST® oil and gas sales and Natur-Tec® products, the company experienced significant growth in its China operations, with a 27.4% increase in net sales. President and CEO G. Patrick Lynch highlighted the company’s resilience amid global trade challenges, stating, “This performance reflects the dedication of our team and our focus on supporting existing customers, expanding global customer relationships, and scaling opportunities in higher-growth markets.”

Looking ahead, Lynch expressed optimism about the future, particularly regarding the ZERUST® oil and gas segment, which has shown consistent gross margins. He noted that sales have remained above $1.2 million for 13 consecutive quarters and anticipates sequential growth in the fourth quarter and into fiscal 2026. Lynch also mentioned the potential positive impact of European economic stimulus packages on joint venture operating income, reinforcing the company’s belief that it is well-positioned for growth and profitability across various markets in the upcoming fiscal year.

Northern Technologies International Corporation (NTIC) has experienced a tumultuous year, with its stock price plummeting by nearly 48% over the past twelve months. Despite this significant decline, the company has shown resilience in its fundamentals, boasting a price-to-earnings ratio of 21.12, which suggests that investors are still willing to pay a premium for its earnings potential. The two-year compound annual growth rate (CAGR) for earnings per share stands impressively at 19.52%, indicating strong profitability growth, while revenue has also seen a modest increase of 4.43% over the same period. However, the stock’s recent performance tells a different story, with a sharp 39% drop over the last six months, reflecting broader market challenges or company-specific issues. The return on invested capital at 4.47% and a net profit margin of 4.37% suggest that while NTIC is generating profits, there is room for improvement in efficiency and capital utilization. Interestingly, the stock has shown some signs of recovery with a 10.76% increase over the past month, hinting at potential investor optimism. As NTIC navigates these fluctuations, its ability to leverage its solid earnings growth will be crucial in regaining investor confidence and stabilizing its stock price.

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting products and services in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company also provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. The company sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors and agents, manufacturer’s sales representatives, strategic partners, and joint venture. Northern Technologies International Corporation was founded in 1970 and is headquartered in Circle Pines, Minnesota.