Northern Technologies
NTIC
$7.38 -0.27%
Exchange: NASDAQ | Sector: Basic Materials | Industry: Chemicals Specialty
Q4 2024
Published: Nov 19, 2024

Earnings Highlights

  • Revenue of $23.35M up 12.8% year-over-year
  • EPS of $0.19 increased by 90% from previous year
  • Gross margin of 43.8%
  • Net income of 1.84M
  • "β€œAs anticipated, ZERUST Oil & Gas had a record-breaking fourth quarter with revenues reaching $4.2 million.”" - Patrick Lynch, CEO
NTIC
Company NTIC

Executive Summary

NTIC reported a solid fourth quarter 2024, highlighted by a record quarterly ZERUST Oil & Gas revenue of approximately $4.2 million and a quarterly Natur-Tec result of about $5.7 million, contributing to a fourth-quarter net sales level of $23.3 million, up 12.7% year over year. Full-year 2024 net sales rose 6.5% to a new annual record, driven by higher volumes and a favorable mix toward higher-margin ZERUST Oil & Gas and Natur-Tec products, even as joint-venture (JV) sales declined about 3.6% in the quarter and 4.7% for the full year. NTIC delivered a substantial gross-margin expansion, with Q4 gross margin at 43.8% (up from 36.5% prior year, a 730-basis-point improvement) and full-year gross margin rising to 39.7% from 34.8%. Net income for the quarter was $1.84 million ($0.19 per diluted share), and full-year net income reached $5.4 million ($0.55 per diluted share), with non-GAAP adjusted net income of $5.8 million ($0.59 per diluted share) for the year. The company also signaled a cautious but constructive outlook for fiscal 2025, expecting continued sales growth and higher profitability, supported by ongoing margin initiatives and strategic investments in capacity and geographic expansion. Management emphasized resilience amid ongoing macro challenges and highlighted opportunities in North American ZERUST industrial demand, Europe stabilization efforts, and growth in Natur-Tec and oil & gas markets. Key near-term catalysts include anticipated 2025 growth in ZERUST Oil & Gas, expansion in Natur-Tec across North America and India, and the potential acceleration from API-driven UCI/Vapor Corrosion Inhibitors (VCIs) adoption in the U.S. late in fiscal 2025.

Key Performance Indicators

Revenue
Increasing
23.35M
QoQ: 12.87% | YoY: 12.75%
Gross Profit
Increasing
10.22M
43.77% margin
QoQ: 29.48% | YoY: 35.04%
Operating Income
Increasing
2.76M
QoQ: 81.23% | YoY: 11.77%
Net Income
Increasing
1.84M
QoQ: 87.98% | YoY: 95.52%
EPS
Increasing
0.19
QoQ: 90.00% | YoY: 90.00%

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