Tim Clarkson's questions to NORTHERN TECHNOLOGIES INTERNATIONAL (NTIC) leadership • Q3 2025
Question
Inquired about the sequential improvement in operational profits, the cost-effectiveness and sales investment in the oil and gas segment, the profitability of the China business, the application of their products in EVs, and new developments in the compostable plastics business.
Answer
The company confirmed sequential profit improvement and the cost benefits of their oil and gas technology. They detailed the increased investment in the oil and gas sales team, which is about $1.3M annually. They affirmed that the China subsidiary is profitable and growing, driven by domestic demand. They also noted that while EVs use less of their product per vehicle, the high production volume is a positive. Finally, they are developing a less permeable compostable plastic for food packaging, with potential revenues in the next two years.