Northern Technologies International Corporation Reports $84.2 Million in Net Sales for Fiscal Year 2025

Northern Technologies International Corporation (NTIC) reported a consolidated net sales figure of $84.2 million for the fiscal year ending August 31, 2025, reflecting a decrease of 1.0% from the previous year’s sales of $85.1 million. The decline was primarily attributed to reduced demand for both its ZERUST® corrosion prevention products and Natur-Tec® bioplastics, which each saw a 1.0% drop in sales. ZERUST® products accounted for 74.2% of total sales, generating $62.5 million, while Natur-Tec® products contributed $21.7 million. The company's net income attributable to NTIC fell significantly to $17,619, or $0.00 per diluted share, compared to $5.4 million, or $0.55 per diluted share, in the prior fiscal year.

In terms of operational changes, NTIC has focused on expanding its presence in the oil and gas sector, which is particularly susceptible to corrosion. The company secured a significant three-year contract with Zerust Brazil, valued at approximately $13 million, to provide corrosion protection solutions for offshore oil and gas production. This contract is expected to ramp up in fiscal 2026 and could positively impact future sales. Additionally, NTIC has made strategic investments in its sales infrastructure for ZERUST® products aimed at the oil and gas industry, which may enhance its market penetration.

NTIC's total operating expenses increased by 6.4% to $37.7 million, driven by investments in marketing and personnel for its oil and gas initiatives. The cost of goods sold as a percentage of net sales rose to 62.4%, up from 60.3% in the previous year, primarily due to higher raw material prices and discounts offered to customers. The company’s equity in income from joint ventures also decreased by 16.2% to $3.5 million, reflecting lower profitability at its joint ventures, particularly in Germany.

As of August 31, 2025, NTIC's working capital stood at $20.4 million, with cash and cash equivalents totaling $7.3 million. The company has a revolving line of credit of up to $10 million, with $9.3 million drawn as of the end of the fiscal year. NTIC anticipates that its existing cash, along with projected cash flows from operations and joint ventures, will be sufficient to fund its operations and investments for at least the next 12 months. However, the company acknowledges potential challenges from inflation and supply chain disruptions, which may continue to affect its financial performance.

Looking ahead, NTIC remains focused on its strategic initiatives in the oil and gas sector and the expansion of its Natur-Tec® product line. The company expects to continue investing in these areas, although it recognizes the inherent risks and volatility associated with market conditions and customer demand. Management is committed to monitoring global trade developments and implementing measures to mitigate the impact of tariffs and inflation on its operations.