Northern Technologies Q2 Sales Up 15.3% to $22M with 72% Oil & Gas Surge
Northern Technologies International reported fiscal Q2 net sales of $21.997 million, up 15.3% year-over-year, driven by 72.1% growth in ZERUST® oil and gas and 8.1% rise in Natur-Tec® sales. Operating income improved to $383,000 from a prior-year loss, while net loss narrowed to $35,000.
1. Q2 Financial Highlights
Consolidated net sales reached $21.997 million, a 15.3% increase from $19.072 million a year earlier. ZERUST® industrial sales grew 11.2% to $13.967 million, ZERUST® oil and gas sales jumped 72.1% to $2.666 million, Natur-Tec® sales rose 8.1% to $5.363 million, and NTIC China sales climbed 18.5% to $4.425 million.
2. Profitability Trends
Gross profit margin improved by 10 basis points to 35.7%, while operating income turned positive at $383,000 versus a $333,000 loss in the prior year quarter. Non-GAAP adjusted net income was $70,000 ( $0.01 per diluted share) compared to a $300,000 loss, and GAAP net loss narrowed to $35,000 from prior net income of $434,000.
3. Joint Venture Performance
Joint venture net sales rose 18.6% to $23.484 million, driving operating income up 19.8% to $2.027 million for the quarter. Year-to-date joint venture net sales reached $48.015 million with operating income of $4.318 million, versus $43.637 million and $4.105 million respectively in the prior year period.
4. Management Outlook
Leadership highlighted resilience of the diversified business model and investments in global sales infrastructure as key drivers of growth. The company expects continued sales expansion and improved profitability in H2 fiscal 2026, supported by stable North America trends and strength in NTIC China, ZERUST® oil and gas, and Natur-Tec® segments.