Northern Technologies International Q3 Earnings Call Highlights

NTIC posted record quarterly sales of $24.2 million, up 12.6% year over year, driven by strong demand for ZERUST corrosion prevention products and Natur-Tec bioplastics. ZERUST oil and gas revenue jumped 72.3%, while Natur-Tec sales rose 5%. Profitability was pressured by higher raw material costs tied to Middle East shipping disruptions, which cut gross margin to 33.6% from 38.4% a year earlier. The company swung to a net loss of $263,000 as polyethylene prices spiked and costs rose faster than sales. Management expects improvement in Q4 as lower input costs begin to flow through inventory and pricing actions take hold. NTIC also highlighted record oil and gas sales, growing Natur-Tec opportunities, and a planned sale of its Beachwood facility as it looks to strengthen margins and reduce debt. Northern Technologies International NASDAQ: NTIC reported record consolidated sales for its fiscal 2026 third quarter, but higher raw material costs tied to Middle East shipping disruptions pressured margins and pushed the company to a quarterly loss, executives said on the company’s earnings call. Chief Executive Officer Patrick Lynch said consolidated net sales rose 12.6% year over year to $24.2 million for the quarter ended May 31, 2026, driven by demand for the company’s ZERUST corrosion prevention products and Natur-Tec bioplastics. Sales growth included a 72.3% increase in ZERUST oil and gas revenue, a 10.3% increase in ZERUST industrial sales and a 5% increase in Natur-Tec sales. “Strong global demand and increasing adoptions of our ZERUST corrosion prevention and Natur-Tec bioplastic solutions drove quarterly consolidated sales to new record highs,” Lynch said.