Northern Technologies International Corporation Reports Financial Results for Third Quarter Fiscal 2025

Core Insights - Northern Technologies International Corporation (NTIC) reported a 4.0% increase in consolidated net sales for Q3 fiscal 2025, reaching $21.51 million compared to $20.69 million in Q3 fiscal 2024, driven by demand for ZERUST® industrial products despite geopolitical tensions [4][6][20] - The company continues to invest in its ZERUST® oil and gas business, expecting sequential growth in sales and profitability in Q4 fiscal 2025 and into fiscal 2026, with cumulative sales of $24 million over the past 13 quarters [2][3] - NTIC is monitoring European economic stimulus packages, particularly in Germany, which may positively impact joint venture operating income [3] Financial Performance - Consolidated net sales for the nine months ended May 31, 2025, increased by 0.3% to $61.92 million from $61.71 million in the same period last year [4][20] - ZERUST® industrial net sales rose by 7.1% to $14.44 million, while ZERUST® oil and gas net sales decreased by 5.3% to $1.29 million [5][6] - Gross profit margin increased by 20 basis points to 38.4%, while operating expenses rose by 7.6% to $9.67 million [6][7] Income and Earnings - Net income attributable to NTIC for Q3 fiscal 2025 was $122,000, or $0.01 per diluted share, down from $977,000, or $0.10 per diluted share, in Q3 fiscal 2024 [9][21] - Year-to-date net income attributable to NTIC was $1.12 million, or $0.12 per diluted share, compared to $3.57 million, or $0.36 per diluted share, for the same period last year [9][21] - Non-GAAP adjusted net income for Q3 fiscal 2025 was $228,000, or $0.02 per diluted share, compared to $1.08 million, or $0.11 per diluted share, for the same quarter last fiscal year [10][25] Joint Ventures and Investments - NTIC's joint venture operating income decreased by 12.9% to $2.27 million in Q3 fiscal 2025, primarily due to lower sales and reduced equity income from joint ventures [7][20] - The company had $27.14 million in investments in joint ventures as of May 31, 2025, with $13.50 million in cash [12][18] Balance Sheet Highlights - As of May 31, 2025, NTIC had working capital of $21.66 million, including $6.77 million in cash and cash equivalents [11][18] - Total assets increased to $99.30 million from $94.68 million as of August 31, 2024 [18][19]