Northern Technologies Reports $202,496 Net Income on $45.3M Revenue in H1 FY2026

Northern Technologies International Corporation (NASDAQ: NTIC), a corrosion prevention and specialty packaging company, reported net income of $202,496 for the six months ending February 28, 2026, an 80% decline from net income of $995,410 in the same period a year earlier. Read more earnings reports.

Revenue for the half-year period rose 12% to $45.3 million from $40.4 million in the prior-year period. The company reported gross profit of $16.2 million, up 9% from $15.0 million a year earlier.

For the quarter ending February 28, 2026, the company swung to a net loss of $35,323 from net income of $434,319 in the year-ago quarter. Quarterly revenue increased 15% to $22.0 million from $19.1 million.

Operating Performance

Operating income for the six-month period totaled $1.3 million compared to $773,738 a year earlier. The company recorded operating income of $382,774 in the most recent quarter, reversing an operating loss of $332,933 in the prior-year quarter.

Operating expenses for the half-year period reached $19.2 million, up from $18.3 million a year earlier. Cost of goods sold increased to $29.1 million from $25.5 million in the prior-year period.

Research and development spending declined to $2.4 million for the six-month period from $2.6 million a year earlier.

Cash Flow and Balance Sheet

Cash from operations turned negative at $1.4 million for the six months ending February 28, 2026, compared to positive cash flow of $3.2 million in the prior-year period. The company used $1.0 million for investing activities and generated $1.6 million from financing activities.

Total assets stood at $104.9 million as of February 28, 2026, up from $102.7 million at fiscal year-end August 31, 2025. Stockholders' equity increased to $73.3 million from $72.1 million.

Cash and cash equivalents declined to $6.5 million as of February 28, 2026, from $7.3 million at the end of the prior fiscal year. The company held inventory of $16.5 million, up from $15.5 million.

Per Share Results

Basic earnings per share for the six-month period totaled $0.02, down from $0.11 in the prior-year period. Diluted earnings per share came in at $0.02 compared to $0.10 a year earlier.

The company had 9.5 million common shares outstanding as of February 28, 2026, up slightly from 9.5 million at fiscal year-end.

Financial Summary