Northern Technologies International Q1 net sales rises, helped by ZERUST oil and gas segment

Northern Technologies International

08/01/2026 13:09

Overview

Corrosion inhibitor developer's fiscal Q1 net sales rose 9.2% yr/yr to a record $23.3 mln

Net income for fiscal Q1 fell to $238,000, down from $561,000 last year

Gross profit margin decreased to 36% due to supplier lead-time issue

Outlook

Northern Technologies International Corporation (NTIC) expects quarterly sales to grow faster than operating expenses in fiscal 2026

Company anticipates sequential gross margin improvement during fiscal 2026

NTIC sees higher year-over-year profitability from increased sales and controlled expenses

Result Drivers

ZERUST® OIL AND GAS - Record sales in this segment, with a 58.1% increase, driven by demand from new and existing customers

NTIC CHINA - Sales increased 23.5% to a quarterly record, contributing significantly to overall sales growth

GROSS MARGIN DECLINE - Decline attributed to a supplier lead-time issue, expected to have a near-term impact only

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
Miss
$0.04
$0.05 (1 Analyst)
Q1 EPS
$0.03


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Northern Technologies International Corp is $13.00, about 48.7% above its January 7 closing price of $8.74

Press Release: ID:nGNXRZZPz

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)