Northern Technologies International Corporation Reports Mixed Financial Results for Third Quarter and Nine Months Ended May 31, 2025

Northern Technologies International Corporation (NTIC) reported its financial results for the three and nine months ended May 31, 2025, revealing a mixed performance compared to the same period in the previous year. The company achieved consolidated net sales of $21.5 million for the third quarter, a 4.0% increase from $20.7 million in the prior year. For the nine-month period, net sales reached $61.9 million, a slight increase of 0.3% from $61.7 million. The growth in the third quarter was primarily driven by increased demand for ZERUST® products, while the nine-month increase was attributed to higher sales of Natur-Tec® products, offset by a decline in ZERUST® sales.

Despite the increase in sales, NTIC's profitability faced challenges. The company reported a net income attributable to NTIC of $121,775, or $0.01 per diluted share, for the third quarter, a significant decrease from $976,604, or $0.10 per diluted share, in the same quarter last year. For the nine months, net income fell to $1.1 million, or $0.12 per diluted share, down from $3.6 million, or $0.36 per diluted share. The decline in profitability was largely due to increased operating expenses and reduced income from joint ventures, which saw a decrease in equity income of 30.5% and 26.0% for the respective periods.

Operationally, NTIC's total operating expenses rose by 7.6% and 7.9% for the three and nine months ended May 31, 2025, respectively, driven by strategic investments in marketing and sales efforts for ZERUST® products, particularly in the oil and gas sector. The company also reported a decrease in equity income from joint ventures, which was impacted by lower sales at these entities. Notably, NTIC's joint ventures reported a 9.3% and 8.0% decline in net sales for the three and nine months, respectively.

In terms of financial position, NTIC's total assets increased to $99.3 million as of May 31, 2025, compared to $94.7 million at the end of the previous fiscal year. The company maintained a strong cash position, with cash and cash equivalents rising to $6.8 million. However, the company also reported an increase in its line of credit borrowings, which stood at $7.4 million, up from $4.3 million a year earlier. NTIC's management expressed confidence in its ability to navigate current market conditions and anticipates continued investment in its core businesses, including ZERUST® and Natur-Tec®, while also exploring opportunities for geographic expansion and product development.