Northern Technologies International Corporation
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Range $20 – $20
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About the company
Northern Technologies International Corporation (NTIC) specializes in the development and global distribution of advanced rust and corrosion prevention solutions. Operating across North and South America, Europe, Asia, and the Middle East, the company serves a wide international market. Under its primary ZERUST® brand, NTIC provides a broad spectrum of anti-corrosion products.
- CEO
- G. Patrick Lynch
- IPO
- 1992
- Employees
- 271
- HQ
- Circle Pines, MN, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $77.26M
- P/E
- -63.30
- Fwd P/E
- 81.40
- PEG
- 0.62
- P/S
- 0.84
- P/B
- 1.06
- EV/EBITDA
- 18.87
- Div Yield
- 0.49%
- Gross Margin
- 35.76%
- Op Margin
- -4.06%
- Net Margin
- -1.26%
- ROE
- -1.60%
- ROIC
- 0.17%
Latest fiscal year · YoY change
- Revenue
- $84.23M-1.0%
- Gross Profit
- $31.68M-6.2%
- Op Income
- $-5,974,910
- Net Income
- $17.62K-99.7%
- EPS
- $0.00-99.7%
- OCF Growth
- -58.5%
- FCF Growth
- -161.2%
- 52W High
- $10.03
- 52W Low
- $7.25
- 50D MA
- $8.22
- 200D MA
- $8.24
- Beta
- 0.19
- RSI (14)
- 50
- Avg Volume
- 9.42K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
NTIC reported record quarterly sales growth in fiscal Q3, but higher raw material costs tied to Middle East disruption压 lower gross margin and pushed the company to a small net loss.· July 9, 2026
- Consolidated net sales rose 12.6% year over year to a record $24.2 million.
- Gross margin fell to 33.6% from 38.4% a year ago, hit by higher raw material costs and Strait of Hormuz shipping disruption.
- ZERUST oil and gas sales jumped 72.3% to a record $2.2 million; Natur-Tec sales rose 5% to a quarterly record $6.1 million.
- Joint venture sales increased 15.1% to $26.7 million, and JV operating income rose 12.2%.
- Management expects gross margin to improve sequentially in Q4 and said Q4 should be the strongest quarter of the year.
For the fiscal 26 third quarter ended May 31, 2026, consolidated net sales increased 12.6% year over year to $24.2 million. Gross profit as a percentage of net sales was 33.6% versus 38.4% in the prior-year period, and management said gross profit was negatively affected by about $1 million due to the Middle East shipping disruption and higher raw material costs. NTIC reported a net loss of $263 thousand, or $0.03 per share, versus net income of $122 thousand, or $0.01 per diluted share, last year; adjusted net loss was $158 thousand, or $0.02 per diluted share. For Q4, management expects sequential gross margin improvement, continued sales growth, and stronger profitability, with Q4 described as the strongest quarter of the year. For the full year/future periods, they expect ZERUST oil and gas sales and profitability to improve significantly in fiscal 26, Natur-Tec growth to continue, and operating expenses to stay relatively flat while revenue grows.
Patrick Lynch said the quarter showed strong demand across the company’s corrosion prevention and bioplastics platforms, with sales reaching new record highs. He emphasized that the gross margin hit from Middle East-related cost inflation was temporary and said NTIC is focused on controllable drivers like higher-margin oil and gas growth, broader Natur-Tec applications, pricing actions, and procurement improvements. His tone was constructive but pragmatic, repeatedly pointing to execution and a better fourth quarter ahead.
Matthew Wolsfeld highlighted that consolidated sales rose 12.6% and JV sales rose 15.1%, while operating expenses increased 5.3% to $10.2 million and represented 42% of sales versus 44.9% a year ago. He said gross margin compression came mainly from a 30%+ increase in polyethylene prices tied to Middle East disruption, but noted the company was able to pass through some cost increases and expects gross margin to improve in Q4. On liquidity, he said working capital was $20 million, including $7.3 million of cash and cash equivalents, and debt was $14.8 million, including $11.8 million under the revolver; he also noted the Beachwood, Ohio facility was reclassified as held for sale, with a nonbinding LOI for $1.15 million and expected closure in fiscal 27.
Analysts focused on the profitability of the oil and gas business, the impact of Middle East conflict on costs and operations, Natur-Tec margin pressure, and the rationale for selling the Beachwood facility. Management said oil and gas carries higher gross margins than the company average and that recent projects and invoicing timing should support a strong Q4, while also citing a pipeline of opportunities in Brazil, the Middle East, North America, India, and China. On raw materials, they said NTIC does not source from the Middle East directly, but global price ripple effects raised costs; on Natur-Tec, they said volume growth was closer to 10% to 12% than revenue growth due to pricing concessions, and some food-packaging opportunities could take 12 to 24 months to commercialize. They also said Beachwood is being sold because operations are being consolidated in Minnesota.
The bull case from this call is that demand remains healthy across core businesses, with record consolidated sales, record oil and gas sales, and record Natur-Tec sales all in the quarter. Management also sounded confident that cost pressure was temporary, Q4 should improve sequentially, and the company is seeing longer-term growth opportunities in Brazil, the Middle East, India, China, and food packaging.
The main bear case is that profitability remains fragile: NTIC still posted a net loss, and gross margin fell sharply because of external raw material inflation and geopolitical disruption. Analysts also highlighted that some Natur-Tec revenue growth may be coming from pricing concessions rather than pure volume, and management acknowledged that some new opportunities, including food packaging and seedling cups, may take a year or more to become meaningful.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 82.5%
- Shares Outstanding
- 9.49M
- Float Shares
- 7.83M
of shares held by institutions
49 13F filers
Buy/sell ratio 0.43. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Vanguard Group Inc | 426.75K | ▲ 1.90K |
| Perritt Capital Management Inc | 169.83K | ▼ 2.22K |
| Cwm, LLC | 50 | ▼ 17 |
Held by 36 ETFs
Biggest fund positions in NTIC by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jul 29, 26 | LYNCH G PATRICK | other | 16,072 |
| Jul 29, 26 | LYNCH G PATRICK | sell | 2 |
| Jul 30, 26 | LYNCH G PATRICK | sell | 16,070 |
| Jul 29, 26 | LYNCH G PATRICK | other | 16,072 |
| Jul 20, 26 | NIGON RICHARD | other | 12,000 |
| Jul 20, 26 | NIGON RICHARD | sell | 12,000 |
| Jul 20, 26 | NIGON RICHARD | other | 12,000 |
| Jul 1, 26 | WOLSFELD MATTHEW C | other | 11,879 |
| Jul 1, 26 | WOLSFELD MATTHEW C | other | 9,169 |
| Jul 1, 26 | WOLSFELD MATTHEW C | other | 11,879 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our NTIC coverage
Recent articles, reports, and earnings notes.
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Generate NTIC report →Northern Technologies International Q3 Earnings Call Highlights
marketbeat.com · Jul 9
Northern Technologies International Corporation (NTIC) Q3 2026 Earnings Call Transcript
seekingalpha.com · Jul 9
Northern Technologies (NTIC) Reports Q3 Loss, Tops Revenue Estimates
zacks.com · Jul 9
Northern Technologies International Corporation Reports Financial Results for Third Quarter Fiscal 2026
globenewswire.com · Jul 9
Northern Technologies International Corporation to Announce Fiscal 2026 Third-Quarter Financial Results and Host Conference Call
globenewswire.com · Jul 2
Natur Tec India and Bayer to Develop Compostable Seedling Cups
globenewswire.com · Jun 16
Natur-Tec Selected for the 2026 International Fresh Produce Association's Packaging Innovation Program
globenewswire.com · Apr 28
Northern Technologies International Corporation (NTIC) Q2 2026 Earnings Call Transcript
seekingalpha.com · Apr 9
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