Northern Technologies International Corporation reported a 4.0% increase in consolidated net sales to $21,509,000 for the third quarter ended May 31, 2025, compared to $20,686,000 in the prior year. Year-to-date consolidated net sales saw a slight increase of 0.3% to $61,919,000. The quarterly sales growth was primarily due to increased demand for ZERUST industrial products, partially offset by lower sales in ZERUST oil and gas and Natur-Tec segments.
Net income attributable to NTIC for the third quarter was $122,000, or $0.01 per diluted share, a significant decrease from $977,000, or $0.10 per diluted share, in the same period last fiscal year. Year-to-date net income also declined to $1,117,000, or $0.12 per diluted share, compared to $3,573,000, or $0.36 per diluted share, in the prior year. This decline was despite the recognition of $1,140,000 in other income from an Employee Retention Credit payment during the nine-month period.
Joint venture operating income decreased 12.9% to $2,273,000 for the third quarter, primarily due to lower sales and a reduction in equity in income from NTIC’s joint ventures. Operating expenses continued to rise due to strategic investments in ZERUST oil and gas sales infrastructure and increased personnel expenses. Management expects ZERUST oil and gas sales and profitability to improve sequentially in the fourth quarter and into fiscal 2026, citing shifted larger orders.
Management also anticipates that economic recovery in Europe, particularly in Germany, driven by government stimulus packages, will positively impact joint venture operating income. The company expressed confidence in its positioning for growth and profitability across many markets in fiscal 2026 and beyond, despite facing macroeconomic challenges in fiscal 2025.
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