MINNEAPOLIS, July 09, 2026 (GLOBE NEWSWIRE) -- Northern Technologies International Corporation (NASDAQ: NTIC), a leading developer of corrosion inhibiting products and services, as well as bio-based and biodegradable polymer resin compounds, today reported its financial results for the third quarter of fiscal 2026.
Third quarter fiscal 2026 financial and operating highlights include (with growth rates on a fiscal quarter year-over-year basis):
Consolidated net sales increased 12.6% to a record $24,216,000
ZERUST® industrial net sales increased 10.3% to a record $15,926,000
ZERUST® oil and gas net sales increased 72.3% to a third quarter record of $2,219,000
Natur-Tec® product net sales increased 5.0% to a record $6,070,000
NTIC China net sales were $4,480,000, compared to $4,510,000 in the third quarter fiscal 2025
Gross profit, as a percentage of net sales, decreased 477 basis points to 33.6%
Joint venture operating income increased 12.2% to $2,551,000
Income before income tax expense was $376,000, compared to $743,000
Net loss attributable to NTIC was $263,000, compared to net income attributable to NTIC of $122,000
Net loss per diluted share attributable to NTIC was $0.03, compared to net income per diluted share attributable to NTIC of $0.01
"Strong global demand and increasing adoption of our ZERUST® corrosion prevention and Natur-Tec® bioplastic solutions drove quarterly consolidated net sales to new record highs. Global disruptions stemming from increased conflict levels in the Middle East, including through the Strait of Hormuz, drove a significant increase in the cost of key raw materials during the quarter, and gross margin was further affected by competitive pricing pressure in our Natur-Tec® business. Together, these factors reduced our gross margin by approximately 477 basis points year-over-year. We have begun to see raw material costs ease, and the pricing and procurement initiatives we are pursuing are expected to improve gross margin and profitability in the fourth quarter," said G. Patrick Lynch, President and CEO of NTIC.
"Since reaching the profitability levels we planned for is taking longer than expected, we believe NTIC must remain focused on the initiatives within our control to drive more profitable growth, including expanding sales of our higher-margin ZERUST® oil and gas solutions and broadening Natur-Tec® applications globally. Our liquidity and financial flexibility remain solid, supported by significant capital within our joint venture network and anticipated proceeds of more than $1.0 million from the pending sale of our Beachwood, Ohio facility, which is expected to close in fiscal 2027. The resilience of our business model, continued demand for our technologies. and our focus on execution give us confidence in stronger, more profitable fourth-quarter results," concluded Mr. Lynch.