Northern Technologies
NTIC
$7.38 -0.27%
Exchange: NASDAQ | Sector: Basic Materials | Industry: Chemicals Specialty
Q2 2024
Published: Apr 11, 2024

Earnings Highlights

  • Revenue of $20.84M down 0.6% year-over-year
  • EPS of $0.18 increased by 12.5% from previous year
  • Gross margin of 40.0%
  • Net income of 1.70M
  • "β€œNTIC set a series of new records in the second quarter driven by robust demand across many parts of our business. Most notable among these were record second quarter ZERUST Oil & Gas sales and record quarterly Natur-Tec sales.”" - Patrick Lynch
NTIC
Company NTIC

Executive Summary

Northern Technologies International Corporation (NTIC) delivered a strong Q2 2024 showing across its diversified portfolio of corrosion-inhibition and bioplastic solutions. Consolidated net sales rose 14.1% year over year to $20.84 million, underpinned by a 47.5% surge in Natur-Tec bioplastics to a quarterly record of $5.6 million and a 20.1% rise in ZERUST Oil & Gas to $2.2 million. ZERUST Industrial grew modestly, up 3.1%. Although joint ventures (JV) outside NTIC declined 7.9% year over year, JV operating income increased 4.2%, reflecting ongoing profitability improvement initiatives in partner networks. The quarter also featured a meaningful margin expansion, with gross margin improving to 40.0% from 34.5% in the prior year, driven by in-sourcing of production and inflationary offsetting actions. Net income attributable to NTIC was $1.70 million ($0.18 per diluted share), while operating income remained negative at about $0.28 million, signaling ongoing near-term profitability headwinds within a scaled, revenue-diversified base. Positive cash flow generation was a highlight: six-month operating cash flow reached $5.66 million, up 156% year over year, supporting a quarterly dividend and debt-reduction efforts. Management signaled confidence in continued top-line growth across ZERUST Industrial, ZERUST Oil & Gas and Natur-Tec, while stressing ongoing focus on joint venture profitability in Europe and Asia. Looking forward, NTIC anticipates sustained operating cash flow generation in H2 2024, continued demand in Natur-Tec and Oil & Gas while China demand shows early signs of improvement, and a constructive backdrop for higher profitability as the company expands manufacturing capabilities and scale. Investors should monitor oil-and-gas project cadence, Natur-Tec adoption in new OEM applications, China/India contributions, JV performance, and the balance of cash deployment between growth investment, dividends, and debt paydown.

Key Performance Indicators

Revenue
Decreasing
20.84M
QoQ: 3.27% | YoY: -0.61%
Gross Profit
Increasing
8.34M
40.01% margin
QoQ: 13.70% | YoY: 8.45%
Operating Income
Decreasing
-274.78K
QoQ: -119.96% | YoY: -111.58%
Net Income
Increasing
1.70M
QoQ: 89.96% | YoY: 11.51%
EPS
Increasing
0.18
QoQ: 89.47% | YoY: 12.50%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 19.07 0.04 -8.5% View
Q1 2025 21.34 0.06 +5.7% View
Q4 2024 23.35 0.19 +12.8% View
Q3 2024 20.69 0.10 +13.2% View
Q2 2024 20.84 0.18 -0.6% View