Northern Technologies International Corporation Reports Financial Results for First Quarter Fiscal 2026
01/08/2026 08:00 AM • Northern Technologies International Corporation (NTIC) reported Q1 FY2026 results with consolidated net sales reaching a quarterly record of $23.3 million, up 9.2% year-over-year. While ZERUST® oil and gas sales surged 58.1% and NTIC China grew 23.5%, gross profit margin declined 230 basis points to 36.0% due to supplier lead-time issues. Net income fell to $238,000 from $561,000 despite record sales, primarily due to higher operating expenses and an unusually high effective tax rate of 34.4%. Management expects profitability to improve in subsequent quarters as sales growth outpaces operating expense growth.
NTIC - Mixed results with positive revenue growth (9.2% increase to record sales) and strong performance in key segments (oil & gas +58.1%, China +23.5%), but offset by declining profitability (net income down 58% YoY), compressed gross margins (down 230 bps), and elevated tax rates. Management's optimistic forward guidance and expectations for margin recovery provide some positive outlook, but current quarter performance shows profitability challenges despite top-line strength.
Investing.com • Fawad Razaqzada