Northern Technologies International Corporation (NTIC): Business Model Canvas [Dec-2025 Updated]

You're looking at a company, Northern Technologies International Corporation (NTIC), that masterfully balances two distinct businesses: high-tech corrosion prevention with ZERUST and the push for sustainable packaging through Natur-Tec bioplastics. From my experience analyzing complex structures, their secret sauce is the global joint venture model, which is key to their worldwide footprint. This strategy helped drive consolidated net sales to \$84.2 million in fiscal 2025, anchored by \$55.2 million from ZERUST Industrial products alone. I've mapped out the entire nine-block structure-from their proprietary VCI technology resource to their high-touch customer relationships-so you can see the precise mechanics behind these numbers right below.

Northern Technologies International Corporation (NTIC) - Canvas Business Model: Key Partnerships

You're looking at the backbone of how Northern Technologies International Corporation (NTIC) gets its ZERUST® and Natur-Tec® products to market globally. Partnerships are defintely key here, especially given their reliance on international reach and specialized production.

Global network of joint ventures for local manufacturing and sales

NTIC relies on a network of joint ventures (JVs) for significant international sales, though these are not fully consolidated in the main financial statements. You need to watch these figures closely as they represent a substantial portion of their global activity.

• Net sales from JVs for the three months ended August 31, 2025, were $24,388,000.
• This represented a 4.7% increase compared to the same period in the prior fiscal year.
• Joint venture operating income for the same three-month period reached $2,168,000, up 6.6% year-over-year.
• As of August 31, 2025, NTIC had $28.6 million invested in joint ventures.

Here's a quick look at the financial snapshot of the unconsolidated joint venture segment as of the end of fiscal 2025:

Independent distributors and agents in over 65 countries

NTIC's market penetration is achieved through a broad international channel. The company markets its products and services in over 65 countries. This extensive network is crucial for delivering both ZERUST® and Natur-Tec® offerings across diverse geographies.

Contract manufacturers for production scalability

For production scalability, NTIC utilizes contract manufacturers, a dependency management notes as a risk factor. The Natur-Tec® business unit, specifically, leverages manufacturing partners to support its broad bioplastics portfolio.

• Natur-Tec® finished product manufacturing partners are located in the USA, China, India, Malaysia and Italy.

Major international EPC companies, like the one securing the Brazil contract

Securing major project-based contracts with large Engineering, Procurement, and Construction (EPC) firms is a significant driver, particularly in the ZERUST® Integrity Solutions segment targeting the oil and gas industry. A recent, notable example involves a major international EPC company.

• Zerust Brazil secured a three-year contract with a major international EPC company for FPSO unit corrosion protection.
• The total estimated value of this specific contract is approximately R$70 million (US$13 million).
• This value breaks down into approximately R$40 million (US$7.4 million) for materials and R$30 million (US$5.6 million) for engineering and field services.
• Revenue recognition for this contract is expected to ramp during fiscal 2026 and continue through calendar 2028.

For context on other major oil and gas clients served by ZERUST® Integrity Solutions, the list includes Petrobras (Brazil), Schlumberger (Malaysia), PEMEX (Mexico), and Shell (Malaysia).

Suppliers of raw materials for both ZERUST and Natur-Tec products

The supply chain for both core product lines is subject to volatility. Management specifically cites raw material and shipping cost volatility as a risk. Furthermore, the company acknowledges a dependence on key suppliers. While specific supplier names and contract values aren't public, this dependency is a recognized operational consideration.

Northern Technologies International Corporation (NTIC) - Canvas Business Model: Key Activities

You're looking at the core engine driving Northern Technologies International Corporation (NTIC) for fiscal year 2025, which ended August 31, 2025. Here's the quick math on what they were actively doing to generate revenue.

Research and development of proprietary VCI (Vapor Corrosion Inhibitor) technology

Direct spending on research and development of proprietary VCI technology isn't explicitly broken out in the fiscal 2025 summary data you're looking at. However, the activity is evidenced by the ongoing product development efforts. NTIC applied its engineering capabilities to develop new Natur-Tec technologies. The company is focused on driving sales in higher-margin parts of its business, which implies continuous product refinement.

Manufacturing and compounding of ZERUST and Natur-Tec products

The output from manufacturing and compounding activities translated into the following consolidated net sales for the full fiscal year 2025:

ZERUST corrosion prevention solutions accounted for 74.2% of the total consolidated net sales, while Natur-Tec resins and finished products made up 25.8% of the total. Still, the gross profit margin for the full fiscal year 2025 was 37.6%, a drop of 210 basis points from the prior year.

Global sales and marketing expansion, especially in China and South America

Sales activity shows clear geographic focus areas. NTIC China net sales reached $16,240,000 for fiscal 2025, representing a strong increase of 14.0% year-over-year. In South America, the company secured a milestone multi-year order from a major international EPC in Brazil. The estimated total value for this contract is approximately R$70 million (US$13 million).

The company's global sales efforts are reflected in the overall performance:

• ZERUST Industrial sales grew to $55,171,000.
• ZERUST Oil and Gas sales were $7,318,000.
• Consolidated net sales were $84,234,000.

Providing on-site technical consulting for corrosion prevention systems

Specific revenue figures for on-site technical consulting services aren't itemized separately from the ZERUST product lines in the reported highlights. However, the Brazil contract includes an estimated R$30 million (part of the US$13 million total) allocated for engineering and field services, which directly relates to providing technical expertise on-site.

Strategic investment in ZERUST oil and gas sales infrastructure

The investment in sales infrastructure is visible in the operating expense structure. Total operating expenses for the fiscal 2025 fourth quarter increased by 2.2%, totaling $9.7 million for that quarter. This increase was primarily due to strategic investments in ZERUST oil and gas sales infrastructure, alongside increased personnel expenses. As a percentage of net sales for the full fiscal year 2025, operating expenses were 44.7%.

For the full fiscal year 2025, cash provided by operating activities was $2,389,000. At the end of the fiscal year, the company had $28.6 million in investment in joint ventures, of which 51.7%, or $14.8 million, was in cash. Finance: draft 13-week cash view by Friday.

Northern Technologies International Corporation (NTIC) - Canvas Business Model: Key Resources

You're looking at the core assets Northern Technologies International Corporation (NTIC) relies on to deliver its value proposition. These aren't just things they own; they are the foundational elements that make the business run, especially as of the end of fiscal year 2025.

The intellectual property is central to Northern Technologies International Corporation (NTIC). This includes the proprietary ZERUST $\text{VCI}$ (Volatile Corrosion Inhibiting) technology, which has been sold for almost 50 years, and the portfolio of Natur-Tec bioplastic intellectual property, which covers bio-based and certified compostable (fully biodegradable) polymer resin compounds.

The company's reach is supported by a global network. Northern Technologies International Corporation (NTIC) markets its products and services in over 65 countries either directly or through its established structure.

• Global network includes subsidiaries and joint venture operations.
• NTIC China net sales for fiscal year 2025 reached \$16,240,000.
• Joint venture operating income for the full fiscal year 2025 was \$8,545,000.

Specialized corrosion management professionals and technical consultants are a key service component. Northern Technologies International Corporation (NTIC) offers worldwide on-site technical consulting, where consultants work directly with end users to analyze needs and develop corrosion prevention systems.

Financially, the company maintained operational cash flow, which is crucial for funding ongoing development and operations. Cash provided by operating activities for the twelve months ended August 31, 2025, was \$2.4 million.

Quality assurance is formally recognized. Northern Technologies International Corporation (NTIC) maintains the ISO 9001:2015 quality management defintely certification.

Here's a quick look at some of the key financial metrics tied to the operational scale of these resources for the full fiscal year 2025 (ended August 31, 2025):

The breakdown of sales across the main product lines for fiscal year 2025 further illustrates the deployment of these resources:

• ZERUST Industrial Net Sales: \$55,171,000
• Natur-Tec Product Net Sales: \$21,746,000
• ZERUST Oil and Gas Net Sales: \$7,318,000

Finance: draft 13-week cash view by Friday.

Northern Technologies International Corporation (NTIC) - Canvas Business Model: Value Propositions

The Value Propositions for Northern Technologies International Corporation (NTIC) center on specialized corrosion mitigation and sustainable material science, evidenced by the fiscal year 2025 financial contributions of its core segments.

ZERUST: Mitigating corrosion, reducing operating costs, and increasing productivity is anchored by its core corrosion-prevention technology. For the full fiscal year ended August 31, 2025, ZERUST® solutions accounted for $62,488,397 of consolidated net sales, representing 74.2% of the total revenue base.

The ZERUST segment performance in fiscal 2025 showed a split in demand:

Natur-Tec: Bio-based and certified compostable polymer resin compounds provides an alternative to petroleum-based plastics. This business unit contributed $21,746,000 to consolidated net sales in fiscal 2025, making up 25.8% of the total, which was a 1.0% decrease compared to the prior fiscal year.

The value proposition of expert support is delivered through:

• Worldwide on-site technical consulting for complex rust and corrosion issues.
• Technical service consultants working directly with end users to analyze specific needs and develop systems.

Environmental benefits are a core component across the portfolio, particularly through the Natur-Tec platform, which engineers and manufactures sustainable materials. NTIC emphasizes ESG commitments in its operations.

Customized solutions for large-scale assets are demonstrated by recent contract wins. For example, Zerust Brazil secured a three-year offshore asset preservation contract with an estimated total value of approximately R$70 million (US$13 million). This contract is expected to ramp in fiscal 2026 and run through calendar 2028.

Key aspects of the value proposition delivery include:

• Proprietary engineered corrosion inhibiting solutions for the petroleum and chemical process industries.
• Development of new Natur-Tec® technologies.
• Global footprint supporting product development in the USA, China, and India.

Northern Technologies International Corporation (NTIC) - Canvas Business Model: Customer Relationships

You're looking at how Northern Technologies International Corporation (NTIC) builds and maintains its connections with the people who buy its corrosion protection and bioplastic products. It's a mix of deep, project-based consulting and broader, more standardized distribution, which is defintely key to weathering market shifts.

The relationship model heavily leans on technical expertise, especially in complex sectors. This is where you see the dedicated technical service consultants working directly with end-users. For high-stakes applications, like protecting critical infrastructure, the relationship isn't just transactional; it's a partnership where NTIC's team is embedded to ensure the ZERUST® solutions perform exactly as needed. This consultative approach is crucial for securing the big, complex jobs.

For the core industrial base, the goal is stability through long-term, recurring orders from large, established industrial customers. These relationships form the backbone of the ZERUST® industrial segment. Looking at the fiscal year ended August 31, 2025, this segment generated $55,171,000 in net sales, showing a modest year-over-year increase of 2.4%, which suggests these established customer relationships held up well despite broader economic softness.

The pursuit of major, multi-year agreements is a clear strategic pillar, exemplified by securing milestone multi-year contracts, such as the Brazil offshore deal. In November 2025, NTIC announced a three-year contract via its Zerust Brazil subsidiary with a global EPC company. The estimated total value is approximately R$70 million (US$13 million), scheduled to ramp in fiscal 2026 and run through calendar 2028. This deal, which includes R$40 million (US$7.4 million) in materials and R$30 million (US$5.6 million) in services, is a testament to building deep trust in emerging, high-value markets.

The high-touch, consultative sales model for oil and gas projects is resource-intensive but necessary for that sector's specialized needs. However, the results for fiscal 2025 show the pressure in this area, with ZERUST® oil and gas net sales decreasing by 20.7% to $7,318,000. This drop, occurring before the major new contract revenue is recognized, highlights the lumpy nature of these large project sales and the need for the consultative support to close deals like the recent milestone win.

To service a wider base, NTIC relies on standardized product sales through distributors for smaller clients. This channel supports the broader reach of the ZERUST® brand across its 65+ operating countries. The performance of NTIC China, with net sales increasing 14.0% to $16,240,000 in fiscal 2025, suggests that the distributor network in that region is effectively managing relationships for more standardized product sales.

Here's a quick look at how the customer segments contributed to the total consolidated net sales of $84,234,000 for the full fiscal year 2025:

The overall customer engagement strategy is clearly bifurcated, which you can see reflected in the order book activity:

• The order backlog as of August 31, 2025, stood at $4,184,415.
• This backlog was down from $5,837,430 reported a year earlier.
• The new Brazil deal, valued at $13 million, is expected to materially positively affect future quarterly sales starting in fiscal 2026.
• The company emphasizes its investment in business development to support anticipated ZERUST® oil and gas growth in the second half of fiscal year 2025, which speaks to proactive relationship nurturing.

If onboarding for these complex, high-touch projects takes longer than the projected ramp in fiscal 2026, revenue recognition risk rises.

Finance: draft 13-week cash view by Friday.

Northern Technologies International Corporation (NTIC) - Canvas Business Model: Channels

You're looking at how Northern Technologies International Corporation (NTIC) gets its products, the ZERUST® corrosion inhibitors and Natur-Tec® bioplastics, to the end-user. It's a multi-pronged approach, relying heavily on partners but also maintaining direct control for key projects and domestic sales.

The global reach is substantial, with NTIC developing and marketing its proprietary solutions in over 65 countries through a mix of direct sales, subsidiaries, joint ventures, independent distributors, and agents. This network is essential for covering diverse international markets.

Here's a look at the structure and the associated financial scale from the latest available data:

The wholly-owned subsidiary structure is clearly a significant driver, especially in key regions. For instance, NTIC China, a wholly-owned subsidiary, was responsible for $16.2 million in net sales for the full fiscal year 2025, showing a 14.0% increase in that geography for the year. That's a solid performance given the global headwinds reported.

The joint venture network represents a massive portion of the overall activity, even though those sales aren't fully consolidated onto NTIC's main balance sheet. For the nine months ended May 31, 2025, the net sales generated by these joint ventures totaled $66,848,000. While this was a decrease from the prior year period, it still represents a substantial channel.

For specialized, large-scale opportunities, NTIC deploys its direct sales capabilities. This team is particularly focused on the ZERUST oil and gas projects, a segment that generated $7.3 million in net sales for fiscal 2025. The company also offers worldwide on-site technical consulting, which is a direct service delivery mechanism.

The overall channel strategy includes several key components:

• Wholly-owned subsidiaries like NTIC China driving direct revenue.
• A global network of joint ventures for market penetration.
• Independent distributors and agents covering more than 65 countries.
• A direct sales team targeting large ZERUST oil and gas contracts.
• Corporate headquarters located at 4201 Woodland Road.
• A branch office located at 23900 Mercantile Road for direct support functions.

The reliance on partners is clear; you see the scale of the non-consolidated joint venture sales at $66.8 million over nine months, which dwarfs the direct subsidiary sales like NTIC China's $16.2 million for the full year. Finance: draft 13-week cash view by Friday.

Northern Technologies International Corporation (NTIC) - Canvas Business Model: Customer Segments

You're looking at how Northern Technologies International Corporation (NTIC) segments its buyers for its two main product lines, ZERUST corrosion prevention and Natur-Tec bioplastics, based on the fiscal year 2025 results. Honestly, the customer base is quite diverse, spanning heavy industry to sustainable packaging needs.

The ZERUST corrosion inhibiting products and services are the core revenue driver, making up 74.2% of consolidated net sales, totaling $62,488,397 for fiscal year 2025. This segment serves a wide array of industrial users.

For industrial manufacturers across the automotive, electronics, electrical, and mechanical sectors, the ZERUST Industrial line showed resilience. In fiscal 2025, ZERUST Industrial net sales grew by 2.4% to reach $55.2 million. To be fair, the fourth quarter was even stronger, with industrial net sales rising 5.8% year-over-year to $14.205 million, showing solid demand in this core area.

The oil and gas industry is a key, though volatile, customer group for specialized ZERUST solutions. Sales to this sector were significantly impacted in FY25, decreasing by 20.7% to $7.3 million. Still, the segment validated its long-term potential by securing a milestone multi-year order from a major international EPC in Brazil, valued at approximately USD 13 million, which is expected to ramp through fiscal years 2026 to 2028.

Multinational brands focused on sustainability are the target for the Natur-Tec division, which provides bio-based and certified compostable polymer resin compounds and finished products. Natur-Tec product net sales accounted for 25.8% of consolidated net sales, amounting to $21,746,077 in fiscal 2025, a slight decrease of 1.0% for the year.

The customer base for corrosion prevention also includes military and retail consumer markets, although specific revenue figures for these sub-segments aren't broken out separately from the overall ZERUST industrial number. NTIC offers worldwide on-site technical consulting, working directly with end users in these markets to develop corrosion prevention systems.

Geographic expansion is a clear focus, with high-growth regions showing strong customer adoption. China, in particular, stands out as a bright spot:

• NTIC China net sales increased by 14.0% in fiscal 2025, reaching $16.2 million.
• This represented the second strongest year of sales in that market for NTIC.
• Fourth quarter sales in China grew by 12% to approximately $4 million.

Here's a quick look at how the product segments map to the customer base for the full fiscal year 2025:

Also, remember that a significant portion of NTIC's business flows through joint ventures, which serve customers globally, including a notable presence in Germany. Total net sales from these un-consolidated joint ventures for FY2025 were $91,236,272.

Northern Technologies International Corporation (NTIC) - Canvas Business Model: Cost Structure

You're looking at the core expenses Northern Technologies International Corporation (NTIC) managed during its fiscal year 2025. Honestly, the cost side of the ledger tells a story of investment amidst market pressure.

Cost of Goods Sold (COGS) reflects the direct costs tied to producing the ZERUST® and Natur-Tec® products sold. For the full fiscal year 2025, the gross profit margin was reported at 37.6% of net sales. This means the Cost of Goods Sold represented 62.4% of the consolidated net sales of $84,234,000 for the year ended August 31, 2025.

The overall cost structure was heavily influenced by overhead and growth spending, as operating expenses consumed a significant portion of revenue. For fiscal 2025, operating expenses reached 44.7% of net sales. Based on the reported consolidated net sales of $84,234,000, this translates to total operating expenses of approximately $37,652,698.

Here's a quick look at the key financial anchors for the Cost Structure in FY 2025:

The increase in operating expenses compared to the prior year's 41.6% was driven by deliberate spending choices. You can see the primary drivers below:

• Strategic investments in ZERUST® oil and gas sales infrastructure.
• Increased personnel expenses, including new hires.
• Higher costs for benefits and travel.
• Elevated professional fees.

The focus on expanding the ZERUST® oil and gas segment, despite its sales decreasing by 20.7% to $7,318,000 in FY 2025, required upfront capital deployment. For example, in the first quarter of fiscal 2025, operating expenses were $9,470,000, reflecting a 14.0% increase primarily associated with investments to support anticipated ZERUST® oil and gas growth in the second half of the year.

Personnel expenses are a key part of that operating spend. While the exact dollar amount for total personnel expenses isn't broken out for the full year, the increase in operating expenses was explicitly linked to new hires, benefits, and higher travel across the organization. If onboarding takes 14+ days, churn risk rises, which impacts training costs, so you want to track that efficiency.

Costs related to raw material and shipping volatility were certainly a factor influencing the gross margin compression of 210 basis points for the year. While specific dollar amounts for raw material inflation aren't itemized, the challenging market conditions and the resulting lower gross profit margin suggest these external pressures were absorbed within the COGS calculation. The company noted pricing dynamics affecting Natur-Tec® sales, which often correlates with underlying input cost fluctuations.

Northern Technologies International Corporation (NTIC) - Canvas Business Model: Revenue Streams

You're looking at how Northern Technologies International Corporation (NTIC) actually brought in the money in fiscal year 2025. Honestly, it's all about the corrosion inhibitors and the bioplastics, with a heavy lean toward the former.

The total revenue picture for the full fiscal year 2025 shows consolidated net sales totaled \$84.2 million. That figure represents a slight dip, down 1.0% year-over-year, which management attributed to challenging market conditions and order timing shifts. Still, the core business remains strong enough to generate significant top-line revenue.

Here's a breakdown of the key revenue components that make up that total:

• ZERUST Industrial product net sales were \$55.2 million in fiscal 2025.
• Natur-Tec product net sales were \$21.7 million in fiscal 2025.
• ZERUST Oil and Gas net sales were \$7.3 million in fiscal 2025.
• Equity in income from unconsolidated joint ventures (operating income was \$6.3 million for nine months ended May 31, 2025).

To give you a clearer view of the product mix, look at how the ZERUST brand anchors the revenue. ZERUST corrosion prevention solutions generated \$62,488,397 of the consolidated net sales, which is 74.2% of the total for fiscal 2025. That segment saw its own internal shifts, though.

Here's the quick math on the consolidated net sales components for the full fiscal year 2025:

It's important to note that the Oil and Gas segment, while the smallest of the three main product lines, experienced the sharpest decline at 20.7%. That volatility is definitely something to watch, even with the recent multi-year contract win in Brazil expected to ramp up sales in fiscal 2026.

Also, don't forget the contribution from the international network, which Northern Technologies International Corporation does not fully consolidate. The equity in income from these joint ventures is a separate, but important, stream. The operating income from these ventures for the nine months ended May 31, 2025, was reported at \$6.3 million. This is a key indicator of performance in markets like Europe, where management is watching for stabilization from economic stimulus packages.

Plus, the wholly-owned subsidiary in China showed strength, which is a positive data point amidst the broader softness. NTIC China net sales increased by 14.0% to \$16.2 million for fiscal 2025, marking its second-strongest year of sales in that market. That growth helps offset some of the headwinds elsewhere.

Finance: draft 13-week cash view by Friday.