Northern Technologies International (US:NTIC)2025-11-18 13:01Financial Performance - Consolidated net sales for fiscal year 2025 decreased 1.0% to $84,234,000 compared to $85,060,000 in fiscal year 2024[4] - ZERUST® oil and gas net sales decreased 20.7% to $7,318,000, while ZERUST® industrial net sales increased 2.4% to $55,171,000[6] - Operating income for fiscal year 2025 decreased 67.3% to $2,570,000 compared to the previous year[6] - Net income attributable to NTIC was $18,000, or $0.00 per diluted share, down from $5,409,000, or $0.55 per diluted share, in fiscal year 2024[12] - Net sales for the three months ended August 31, 2025, were $22.32 million, a decrease of 4.4% compared to $23.35 million in the same period of 2024[25] - Gross profit for the twelve months ended August 31, 2025, was $31.68 million, down 6.6% from $33.79 million in 2024[25] - Operating income for the three months ended August 31, 2025, was $929,372, a decline of 66.5% compared to $2.76 million in the same period of 2024[26] - Net loss attributable to NTIC for the three months ended August 31, 2025, was $1.10 million, compared to net income of $1.84 million in the same period of 2024[26] - Adjusted net loss income attributable to NTIC for the three months ended August 31, 2025, was $(606,998), compared to adjusted net income of $1.94 million in the same period of 2024[30] Profitability and Margins - NTIC's gross profit margin decreased by 210 basis points to 37.6% for the fiscal year 2025[6] - NTIC's effective income tax rate increased to 67.5% for fiscal year 2025 from 17.3% in the prior fiscal year[11] Cash Flow and Liquidity - Cash provided by operating activities was $2,389,000 for the twelve months ended August 31, 2025[6] - Cash and cash equivalents increased to $7.25 million in 2025 from $4.95 million in 2024, an increase of 46.2%[23] Assets and Liabilities - NTIC's working capital decreased to $20,439,000 as of August 31, 2025, from $23,682,000 a year earlier[14] - Total assets increased to $102.75 million in 2025 from $94.68 million in 2024, representing an increase of 8.5%[24] - Total current liabilities rose to $23.90 million in 2025 from $17.90 million in 2024, an increase of 33.4%[24] Research and Development - Research and development expenses for the twelve months ended August 31, 2025, were $5.04 million, up 4.9% from $4.80 million in 2024[26] Dividends - The company declared cash dividends of $0.01 per common share for the three months ended August 31, 2025, down from $0.07 in the same period of 2024[26] Future Outlook - NTIC expects to benefit from strategic investments made over the past three years to support future growth in fiscal 2026[3] - The company aims to flatten operating expenses while expanding gross margins and driving sales in higher-margin parts of its business[3]