The severe EPS miss and margin compression overshadow the record revenue. Watch Q4 guidance on margin recovery and raw material cost trends. The pending Beachwood facility sale provides modest liquidity but does not address the core profitability issue.
Price Chart
Executive Summary
NTIC reported record Q3 FY2026 revenue of $24.2M (+12.6% YoY), beating consensus of $23.4M, but GAAP EPS of -$0.03 missed the $0.04 estimate by 175% as gross margin contracted 477 bps to 33.6% due to raw material cost inflation and competitive pricing. The net loss attributable to NTIC was $263,000 versus net income of $122,000 a year ago, making this a clear earnings miss despite top-line growth.
Key Financial Metrics
Key Facts
- Record consolidated net sales of $24.2M, up 12.6% YoY, driven by ZERUST industrial (+10.3%), ZERUST oil & gas (+72.3%), and Natur-Tec (+5.0%)
- GAAP diluted EPS of -$0.03 vs consensus $0.04 (175% miss); non-GAAP adjusted EPS was -$0.02
- Gross profit margin fell 477 bps to 33.6% from 38.4% a year ago, attributed to raw material cost increases and competitive pricing in Natur-Tec
- Net loss attributable to NTIC of $263,000 vs net income of $122,000 in Q3 FY2025
- Joint venture operating income rose 12.2% to $2.55M, and JV net sales increased 15.1% to $26.7M
- Company expects margin improvement in Q4 as raw material costs ease and pricing/procurement initiatives take effect
- Beachwood, Ohio facility held for sale with expected proceeds >$1.0M, closing anticipated in fiscal 2027
Financial Impact
EPS miss of 175% on consensus $0.04; revenue beat of 3.5% on $23.4M consensus; gross margin compression of 477 bps
Risk Factors
- Continued gross margin pressure from raw material inflation and competitive pricing in Natur-Tec
- Geopolitical disruptions (Middle East conflict) could further raise input costs
- Net loss trajectory may persist if pricing/procurement initiatives fail to restore margins
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3324761 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 8, 2026 6w ago | 8-K | $7.59 $7.96 | ▲ +4.87% | ▲ +5.21% | $7.65 (+0.79%) |
Jul 9, 2026 15w ago | 8-K | $8.26 $8.13 | ▲ +1.57% | ▲ +1.44% | $7.65 (+7.38%) |
Jul 9, 2026 15w ago | Press Release | $8.26 $8.13 | ▲ +1.57% | ▲ +1.44% | $7.65 (+7.38%) |
Jul 2, 2026 16w ago | Press Release | $8.63 | awaiting T+5 | — | $7.65 (−11.36%) |
Apr 24, 2026 26w ago | 8-K | $8.03 $7.90 | ▲ +1.62% | ▲ +2.02% | $7.65 (+4.73%) |
Apr 9, 2026 28w ago | 8-K | $8.01 $8.21 | ▲ +2.50% | ▼ −0.69% | $7.65 (−4.49%) |
Apr 9, 2026 28w ago | Press Release | $8.01 $8.21 | ▲ +2.50% | ▼ −0.69% | $7.65 (−4.49%) |
US Market Status
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