Northern Technologies Q2 revenue rises 15.3% on Zerust oil & gas growth

Overview

• U.S. corrosion prevention firm's fiscal Q2 revenue rose 15.3% to a second quarter record

• Company posted a net loss, compared to net profit a year earlier

• Non-GAAP adjusted net income turned positive from a loss last year

Outlook

• Company expects continued sales growth and improved profitability in second half of fiscal 2026

• Company says stable North America trends and strength in NTIC China, ZERUST oil and gas, Natur-Tec expected

• Northern Technologies says macro uncertainty, supply chain pressures and European challenges may impact outlook

Result Drivers

• ZERUST OIL & GAS GROWTH - Co said record sales in ZERUST oil and gas segment, up 72.1% y/y, were driven by investments in global sales infrastructure and greater adoption in the oil and gas industry

• NTIC CHINA STRENGTH - Co said NTIC China sales rose 18.5% y/y, showing consistent strength despite the seasonal impact of the Lunar New Year

• NATUR-TEC SALES - Natur-Tec product sales increased 8.1% y/y

Company press release: ID:nGNX9gwCcg

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 62.5% above its April 8 closing price of $8.00

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