Northern Technologies reports 15.3% revenue growth for Q2

Northern Technologies International (NASDAQ:NTIC), a developer of corrosion inhibiting solutions and bio-based polymer resins, reported on April 9, 2026, that consolidated net sales for its fiscal second quarter rose 15.3% to $22 million.

The growth was spearheaded by record performance in its energy-focused segments and a successful return to operating profit.

For the three-month period ended February 28, 2026, NTIC achieved consolidated net sales of $21.997 million, up from $19.08 million in the same quarter last year.

The standout performer was the ZERUST oil & gas segment, which saw sales skyrocket 72.1% to a second-quarter record of $2.666 million.

The ZERUST industrial division also contributed solid results, with net sales increasing 11.2% to $13.97 million.

The company’s focus on sustainable materials continued to yield results, as Natur-Tec bio-based and biodegradable product sales grew 8.1% to $5.363 million.

Geographically, NTIC China remained a key growth engine, with net sales rising 18.5% to $4.43 million despite the seasonal impact of the Lunar New Year.

Meanwhile, operating income for the quarter improved to $383,000, a significant reversal from the operating loss of $333,000 recorded in the prior-year period.

Gross margins expanded slightly to 35.7%, up 10 basis points year-over-year, as the company benefited from a more favorable product mix.

On a GAAP basis, the company reported a narrow net loss attributable to NTIC of $35,000 ($0.00 per diluted share).

However, excluding one-time items—including the impact of a prior-year Employee Retention Credit (ERC) payment—the company posted a non-GAAP adjusted net income of $70,000, or $0.01 per diluted share.

This compares favorably to a non-GAAP adjusted net loss of $300,000 in the fiscal second quarter of 2025.

Joint venture income remained a critical pillar of the business model, increasing 19.8% to $2.027 million.

These global partnerships allow NTIC to scale its technology with limited capital expenditure while maintaining a presence in diverse international markets.

Elsewhere, the company maintained a stable balance sheet with working capital of $20.202 million and a cash position of $6.47 million as of the end of the quarter.