Northern Tech (NTIC) Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 9, 2026 astatine 12:41 PM CDT 28 min read

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Thursday, April 9, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Patrick Lynch

• Chief Financial Officer — Matt Wolsfeld

Patrick Lynch: Good morning. I americium Patrick Lynch, Northern Technologies International Corporation’s CEO. I americium present with Matt Wolsfeld, Northern Technologies International Corporation’s CFO. Please enactment that a property merchandise regarding our 2nd 4th fiscal 2026 fiscal results was issued earlier this greeting and is disposable astatine ntic.com. During today’s call, we volition reappraisal cardinal aspects of our fiscal 2026 2nd 4th fiscal results, supply a little concern update, and past reason with a question-and-answer session. Please enactment that erstwhile we sermon year-over-year performance, we are referring to the 2nd 4th of our fiscal 2026 successful examination to the 2nd 4th of past fiscal year. Our results were successful enactment with expectations. We continued to execute against our semipermanent maturation strategy.

Second 4th show was driven by coagulated top-line maturation crossed our businesses, including grounds 2nd 4th ZERUST lipid and state nett sales, with year-over-year maturation crossed each geographies, reflecting the investments we person made successful our planetary income infrastructure and the expanding adoption of our VCI solutions wrong the planetary lipid and state industry. We person besides seen continued spot astatine Northern Technologies International Corporation China, contempt the seasonal interaction of the Lunar New Year, and achieved different coagulated 4th of Natur-Tec growth. Overall, 2nd 4th and year-to-date results bespeak the resilience of our concern exemplary and the expanding worth customers spot connected our corrosion prevention and compostable integrative solutions.

While the macro environment, including geopolitical tensions successful the Middle East, ongoing proviso concatenation pressures, and continued challenges successful the European economy, has go much uncertain, we stay assured successful the absorption of our concern and the strategies we are executing to thrust semipermanent value. The diverseness of our extremity markets, geographic footprint, and merchandise portfolio positions america good to navigate near-term volatility. As we determination done 2026, we expect continued income maturation and improved profitability, supported by unchangeable trends successful North America and ongoing spot successful Northern Technologies International Corporation China, ZERUST Oil and Gas, and Natur-Tec. So with this overview, I volition analyse the drivers for the 2nd 4th successful much detail.

For the 2nd 4th ended 02/28/2026, our full consolidated nett income accrued 15.3% to $22.0 cardinal arsenic compared to the 2nd 4th ended 02/28/2025. Broken down by concern unit, this included a 72.1% summation successful ZERUST lipid and state nett sales, an 11.2% summation successful ZERUST concern nett sales, and an 8.1% summation successful Natur-Tec’s nett sales. Turning to our associated task sales, which we bash not consolidate successful our fiscal statements, full nett income for the fiscal 2026 2nd 4th by our associated ventures accrued twelvemonth implicit twelvemonth by 18.6% to $23.5 million, reflecting improved year-over-year request crossed galore of our associated ventures.