Northern Technologies International (NTIC) Lytham Partners Fall 2026 Investor Conference summary

Business overview and growth platforms

• Operates a profitable core corrosion business with two major growth platforms: Oil & Gas and compostable plastics.

• Achieved record growth across industrial, Oil & Gas, and Natur-Tec businesses in recent quarters.

• Investments made over recent years are expected to drive faster growth, better margins, and higher profitability.

• Global operations span over 65 countries with 15 joint ventures and 11 subsidiaries, leveraging a capital-efficient model.

• Joint ventures generate significant cash through royalties and dividends, supporting global expansion.

Strategic objectives and market outlook

• Aims for high top-line growth, with the industrial business growing at 8–9% annually and overall historical growth at 10–15% year-over-year.

• Focused on expanding in the Oil & Gas and Natur-Tec markets, which offer larger market opportunities and higher margins.

• Significant investments in Oil & Gas and Natur-Tec are expected to yield improved free cash flow, reduced debt, and EPS growth.

• Revenue diversification is increasing, with industrial revenue share declining as Oil & Gas and Natur-Tec grow.

• Asset-light production model enables efficient scaling and cost management.

Segment performance and financial highlights

• Industrial business saw record sales of about $16 million in Q3 2026 and targets a $600 million global market.

• Oil & Gas segment opened a new Dubai subsidiary, with Q3 revenue up 72% year-over-year and trailing 12-month revenue above $10 million.

• Oil & Gas margins are significantly higher than industrial, expected to drive substantial cash and earnings.

• Natur-Tec segment is growing rapidly, especially in proprietary compostable resin formulations for large customers.

• Gross margin improvements are expected to continue, with joint ventures remaining a key contributor to profitability.