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1. Company Snapshot

1.a. Company Description

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting products and services in North America, South America, Europe, Asia, the Middle East and internationally.It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand.The company also provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand.


In addition, it offers on-site and technical consulting for rust and corrosion prevention issues.The company sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors and agents, manufacturer's sales representatives, strategic partners, and joint venture.Northern Technologies International Corporation was founded in 1970 and is headquartered in Circle Pines, Minnesota.

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1.b. Last Insights on NTIC

Northern Technologies International Corporation's recent performance was positively driven by its Q1 2026 earnings release, which showcased the company's financial results. The company secured a significant three-year contract with a leading global EPC company to provide corrosion protection solutions for FPSO units in Brazil. Additionally, NTIC's development of corrosion inhibiting products and bio-based polymer resin compounds has positioned it well in the market. According to recent head-to-head analyses, NTIC's valuation and earnings compare favorably with peers such as Air Products and Chemicals and DuPont de Nemours.

1.c. Company Highlights

2. NTIC's Q1 2026 Earnings: A Mixed Bag

NTIC reported a quarterly record consolidated net sales of $23.3 million, a 9.2% increase year-over-year, driven by strong growth in its ZERUST Oil & Gas and ZERUST Industrial segments, as well as Natur-Tec product sales. However, the company's gross profit margin declined to 36% from 38.3% in Q1 2025. NTIC's net income was $238,000 or $0.03 per diluted share, compared to $561,000 or $0.06 per diluted share in Q1 2025. Non-GAAP adjusted net income was $344,000 or $0.04 per diluted share. The actual EPS was $0.05329, slightly higher than the estimated $0.05.

Publication Date: Jan -09

📋 Highlights
  • Consolidated Net Sales Growth: Rose 9.2% to $23.3 million in Q1 2026, with ZERUST Oil & Gas contributing 58.1% growth.
  • ZERUST Oil & Gas Segment: Set a record $2.4 million in Q1 2026, driving significant sales expansion.
  • NTIC China Sales Surge: Increased 23.5% YoY to $4.9 million, reflecting regional market strength.
  • Gross Margin Decline: Dropped to 36% from 38.3% in Q1 2025, impacting profitability.
  • Net Income Reduction: Fell to $238,000 ($0.03/share) in Q1 2026, compared to $561,000 ($0.06/share) in Q1 2025.

Segment Performance

The ZERUST Oil & Gas segment achieved a record first-quarter sales of $2.4 million, a 58.1% increase year-over-year. ZERUST Industrial net sales rose 6.9%, and Natur-Tec product net sales increased 2.2%. NTIC China's sales grew 23.5% year-over-year to $4.9 million, contributing to the overall revenue growth.

Outlook and Guidance

NTIC expects higher year-over-year sales, improving gross margins, and controlled operating expense growth in fiscal 2026, which is expected to benefit profitability. The company will focus on driving sales growth, improving gross margins, and keeping operating expenses flat to improve profitability. Analysts estimate next year's revenue growth at 7.0%.

Valuation and Financial Health

NTIC had $6.4 million in cash and cash equivalents and $12 million in outstanding debt as of November 30, 2025. The company's current P/S Ratio is 0.96, and EV/EBITDA is 14.39. The Net Debt/EBITDA ratio is 0.97, indicating a manageable debt level. The company's ROE and ROIC are negative, indicating room for improvement in profitability.

3. NewsRoom

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Northern Technologies International (NASDAQ:NTIC) and Air Products and Chemicals (NYSE:APD) Head to Head Analysis

Jan -12

Source: defenseworld.net

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Northern Technologies International Corporation (NTIC) Q1 2026 Earnings Call Transcript

Jan -08

Source: seekingalpha.com

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Northern Technologies International Corporation Reports Financial Results for First Quarter Fiscal 2026

Jan -08

Source: globenewswire.com

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DuPont de Nemours (NYSE:DD) vs. Northern Technologies International (NASDAQ:NTIC) Head-To-Head Review

Dec -18

Source: defenseworld.net

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Northern Technologies International (NASDAQ:NTIC) & Gulf Resources (NASDAQ:GURE) Head-To-Head Contrast

Dec -05

Source: defenseworld.net

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Northern Technologies International Corporation (NTIC) Q4 2025 Earnings Call Transcript

Nov -18

Source: seekingalpha.com

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Northern Technologies (NTIC) Reports Q4 Loss, Misses Revenue Estimates

Nov -18

Source: zacks.com

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Northern Technologies International Corporation Secures Multi-Year Offshore Oil & Gas Production Asset Preservation Contract in Brazil

Nov -04

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.90%)

6. Segments

ZERUST

Expected Growth: 9.0%

ZERUST's 9.0% growth driven by increasing demand for corrosion prevention solutions in the oil and gas industry, expansion into new markets, and growing adoption of sustainable packaging solutions. Additionally, NTIC's strategic partnerships and investments in research and development have enhanced product offerings, contributing to revenue growth.

Natur-Tec

Expected Growth: 13.0%

Natur-Tec's 13.0% growth driven by increasing demand for sustainable packaging, expansion into new markets, and strategic partnerships. Strong brand recognition, innovative product offerings, and certifications such as compostable and biodegradable also contribute to growth. Additionally, rising consumer awareness of environmental issues and government regulations favoring eco-friendly products support Natur-Tec's upward trend.

7. Detailed Products

Zerust

A line of corrosion inhibiting products that prevent rust and corrosion on metal surfaces.

Zerust ICT510

A corrosion inhibiting packaging material used to protect metal parts during shipping and storage.

Zerust ActivPak

A line of corrosion inhibiting packaging products that provide long-term protection for metal parts.

Zerust Tab

A corrosion inhibiting tablet that provides long-term protection for metal parts in enclosed spaces.

Zerust Vapor Capsule

A corrosion inhibiting product that releases a vapor that protects metal surfaces from corrosion.

Natur-Tec

A line of bioplastics and biodegradable materials used in packaging, disposable cutlery, and other applications.

8. Northern Technologies International Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Northern Technologies International Corporation is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Northern Technologies International Corporation is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Northern Technologies International Corporation is moderate, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants for Northern Technologies International Corporation is high, as the industry has low barriers to entry and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry for Northern Technologies International Corporation is high, as the industry is highly competitive and companies are constantly competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.28%
Debt Cost 7.11%
Equity Weight 90.72%
Equity Cost 7.11%
WACC 7.11%
Leverage 10.23%

11. Quality Control: Northern Technologies International Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Oil-Dri

A-Score: 6.8/10

Value: 6.2

Growth: 8.1

Quality: 7.0

Yield: 4.0

Momentum: 10.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Hudson Technologies

A-Score: 5.6/10

Value: 6.9

Growth: 7.6

Quality: 6.9

Yield: 0.0

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
NTIC

A-Score: 5.3/10

Value: 9.8

Growth: 10.0

Quality: 3.4

Yield: 3.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Core Molding Technologies

A-Score: 4.9/10

Value: 5.5

Growth: 5.9

Quality: 4.8

Yield: 0.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Kronos Worldwide

A-Score: 4.7/10

Value: 8.8

Growth: 2.8

Quality: 3.3

Yield: 9.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Hawkins

A-Score: 4.7/10

Value: 1.8

Growth: 7.8

Quality: 6.6

Yield: 1.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.09$

Current Price

9.09$

Potential

-0.00%

Expected Cash-Flows