Northern Technologies International Corporation Reports Financial Results for Third Quarter Fiscal 2026
Northern Technologies International (NASDAQ: NTIC) reported third-quarter fiscal 2026 results. Consolidated net sales rose 12.6% to $24.216M, with ZERUST industrial up 10.3% and ZERUST oil and gas up 72.3%. Gross margin fell to 33.6% (down 477 bps). NTIC posted a $263k net loss ($0.03/share) versus net income a year earlier. The company cited higher raw material costs and pricing pressure.
How this was made

The 30-second read
Why it matters
Q3 shows strong top-line momentum (record sales, especially ZERUST oil and gas) but profitability deterioration (gross margin down 477 bps, GAAP net loss). Management expects improving gross margin and profitability in Q4 as raw-material costs ease and pricing/procurement initiatives take effect.
Market read
Traders will likely reprice NTIC around margin trajectory and the credibility/timing of management’s Q4 gross margin improvement plan.
What to watch
The pending sale of the Beachwood, Ohio facility (expected to close in fiscal 2027) and increased ZERUST oil and gas sales could shift segment mix and profitability beyond what the quarter’s gross margin alone suggests.
Background
NTIC develops corrosion inhibiting products (ZERUST) and Natur-Tec bioplastic resin compounds, and reports both consolidated results and joint-venture activity.
Ticker impact
NTIC reported Q3 FY2026 results with record net sales of $24.216M, but gross margin fell 477 bps and it posted a net loss.
Near-term bias likely mixed, with traders focusing on whether Q4 gross margin can rebound as raw-material costs ease.
The release provides concrete quarterly datapoints (sales, gross margin, net loss) and a specific management expectation for improved profitability in Q4 tied to easing costs and pricing/procurement initiatives.
Market effects
Highlights demand resilience in corrosion prevention and bioplastic solutions, but also shows commodity/raw-material and competitive pricing pressure affecting margins.
No specific regional demand or regulatory driver beyond Middle East-related raw-material cost impacts.
Management cites Middle East conflict and Strait of Hormuz disruptions as a cost driver, linking global geopolitics to input costs and margins.
Counterpoint
The gross margin decline may be temporary if raw-material costs truly ease, making the revenue growth and joint-venture income trend more important than the single-quarter margin miss.
Key entities
- companyNorthern Technologies International Corporation
NASDAQ-listed corrosion prevention and bioplastic resin solutions provider reporting Q3 FY2026 financial results.
- product_lineZERUST
Corrosion prevention product line; industrial and oil and gas net sales grew to record levels in Q3.
- product_lineNatur-Tec
Bioplastic product line; net sales rose but gross margin was pressured by competitive pricing.
- asset_saleBeachwood, Ohio facility
Facility reclassified as held for sale; pending sale LOI for $1.15M expected to close in fiscal 2027.