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

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

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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