"We continue to believe China will likely become a significant geographic market for us in the future."
— Patrick Lynch
03Detailed Report
NTIC
Company NTIC
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
NTIC delivered a solid start to fiscal 2025 (quarter ended November 30, 2024), posting a quarterly record consolidated net sales of $21.338 million, up 5.7% year over year. The strength was led by Natur Tec, which surged 22.8% to a quarterly record of approximately $5.9 million, while ZERUST oil and gas and Xerast industrial revenues remained flat to modestly higher. NTIC China contributed about $4.0 million in net sales, up 8.6% YoY, signaling stabilization and potential for a meaningful geographic expansion. Margin dynamics improved meaningfully, with gross margin expanding about 200 basis points to 38.3% on the back of inflation-management actions, even as total operating expenses rose 14% year over year due to investments to support anticipated growth in the second half of fiscal 2025. Operating income reached $1.107 million and EBITDA was $1.547 million, yielding an EBITDA margin of ~7.25%. Net income attributable to NTIC was $0.561 million ($0.06 per diluted share); non-GAAP adjusted net income was $0.667 million ($0.07 per diluted share). The balance sheet remains conservatively positioned, with cash and cash equivalents of about $5.6 million, total debt of roughly $4.7 million, and net debt of approximately -$0.83 million. Operating cash flow was $2.40 million for the quarter, supporting ongoing investments in NTIC’s growth initiatives, including the expansion of its oil and gas sales infrastructure and continued growth in Natur Tec and China operations. Management maintains an upbeat outlook for fiscal 2025, emphasizing further sales growth and higher profitability, underpinned by improving demand in key geographies and continued progress in high-potential end-markets. This analysis synthesizes the QQ1 2025 results with management commentary to assess forward trajectories, risk factors, and the strategic postures NTIC is pursuing to capture a larger share of corrosion prevention and sustainable plastics markets.
Key Performance Indicators
Revenue
Increasing
21.34M
QoQ: -8.61% | YoY: 5.73%
Gross Profit
Increasing
8.16M
38.25% margin
QoQ: -20.13% | YoY: 11.30%
Operating Income
Decreasing
1.11M
QoQ: -59.93% | YoY: -19.60%
Net Income
Decreasing
561.09K
QoQ: -69.44% | YoY: -37.34%
EPS
Decreasing
0.06
QoQ: -68.84% | YoY: -37.68%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability overview: NTIC’s QQ1 2025 revenue rose 5.7% YoY to $21.338M; QoQ data indicates a sequential comparison below the prior period by -8.61% (per YoY/QoQ metrics in the earnings metrics). Gross margin improved to 38.3% in the quarter from 36.3% prior year (+200 bps), driven by actions to address inflationary pressures. Operating income was $1.107M, with an operating margin of 5.19%; EBITDA was $1.547M (EBITDA margin 7.25%). Net income attributable to NTIC stood at $0.561M ($0.0592 per share) versus $0.896M ($0.09 per share) in the prior year quarter. Non-GAAP adjusted net income was $0.667M ($0.07 per diluted share) compared with $1.0M ($0.10 per diluted share) a year ago.
Key cash flow and balance sheet metrics: Net cash provided by operating activities was $2.395M; free cash flow was $1.175M. Working capital remained healthy at $22.2M with cash and cash equivalents of $5.6M; total debt stood at $4.736M and net debt was negative by approximately $0.834M, reflecting liquidity flexibility. Cash flow efficiency metrics show operating cash flow to sales around 11.2% and a strong interest coverage of 9.21x.
Business mix and geographies: Natur Tec grew 22.8% YoY to approximately $5.9M; NTIC China net sales rose 8.6% YoY to nearly $4.0M, signaling stabilization and potential for incremental growth. ZERUST oil and gas sales increased modestly, while joint ventures (non-consolidated) rose 1.2% to $23.8M. The company noted that Natur Tec revenue is increasingly recurring as distributors and customers adopt multi-quarter or project-based purchasing patterns.
Strategic investments and guidance signals: Management highlighted investments to expand oil and gas sales infrastructure to accelerate ZERUST oil and gas sales in the second half of fiscal 2025. The CEO stated expectations for fiscal 2025 to deliver “further sales growth and improved profitability.” China was described as a market that will likely become significant over time. The company’s commentary also points to a potential for substantial oil and gas opportunities in the back half of the year and beyond, supported by a growing pipeline of projects and new distributor relationships.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
21.34M
5.73%
-8.61%
Gross Profit
8.16M
11.30%
-20.13%
Operating Income
1.11M
-19.60%
-59.93%
Net Income
561.09K
-37.34%
-69.44%
EPS
0.06
-37.68%
-68.84%
Key Financial Ratios
Gross Profit Margin
Fair
38.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
5.19%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Weak
2.63%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.60%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.76%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.22
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.10
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
58.74x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
1.77x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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