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Drilling Tools International
(NASDAQ:DTI)
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Rating:50Neutral
Price Target:
$2.50
▲(8.23% Upside)
Action:Reiterated
Date:06/26/26
DTI’s score is held back primarily by weakening profitability and negative free cash flow, alongside a clearly bearish technical setup (below key moving averages with negative MACD). The earnings call provides partial support via reaffirmed 2026 guidance and strong rental gross margins, but near-term losses, low liquidity, and investment-driven cash flow risk keep the overall outlook cautious.
Positive Factors
High rental gross margins
Sustained rental gross margins above 70% indicate a structurally profitable core business line with durable unit economics. The rental model creates recurring, high-margin revenue tied to drilling activity and tool utilization, supporting long-term cash generation even when top-line growth is cyclical.
Negative Factors
Negative free cash flow
Persistent negative free cash flow erodes internal funding capacity and increases dependence on external financing or equity actions to fund growth and capex. Even with improving trends, continued FCF deficits hinder balance‑sheet repair and raise the risk that investments may strain liquidity over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High rental gross margins
Sustained rental gross margins above 70% indicate a structurally profitable core business line with durable unit economics. The rental model creates recurring, high-margin revenue tied to drilling activity and tool utilization, supporting long-term cash generation even when top-line growth is cyclical.
Read all positive factors
Drilling Tools International (DTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$82.58M
Dividend YieldN/A
Average Volume (3M)101.20K
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth-3.52%
EPS Growth-117.16%
CountryUS
Employees432
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.10
Shares Outstanding35,139,095
10 Day Avg. Volume122,182
30 Day Avg. Volume101,199
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.71
Price to Sales (P/S)0.55
P/FCF Ratio-45.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.12
Revenue Forecast (FY)$162.54M
Drilling Tools International Business Overview & Revenue Model
Company Description
Drilling Tools International Corp. (DTI) delivers specialized equipment and essential services to the oil and natural gas industry, with operations spanning North America, Europe, and the Middle East. The company offers a wide array of downhole pr...
How the Company Makes Money
DTI makes money primarily by providing downhole drilling tools and associated services to oil and gas operators and drilling contractors. Key revenue streams include: (1) Tool rental/lease revenue from customers that use DTI’s tools during drillin...
Drilling Tools International Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: management reaffirmed full-year guidance and highlighted strong product adoption (ClearPath, Drill-N-Ream, Deep Casing Tools), solid tool rental gross margins (>70%), and a favorable shift in shareholder structure (public float ~90%). Offsetting these positives were a Q1 net loss and a small negative adjusted free cash flow, softer North American rental activity (partly due to an early Canadian spring breakup), pricing/mix pressure on rental revenue, regional operational disruption in the Middle East, and relatively low cash with modestly higher net debt. Management is optimistic about international momentum and a stronger second half, but near-term execution and potential additional investments keep risks that temper the near-term outlook.Positive Updates
Quarterly Revenue and Profitability
Total consolidated revenue of $38.0 million in Q1 2026, with Tool Rental revenue of $28.9 million and Product Sales of $9.0 million. Reported adjusted EBITDA of $7.5 million (approximately a 19.7% adjusted EBITDA margin on Q1 revenue).
Negative Updates
Net Loss and Adjusted Net Loss
Net loss attributable to stockholders of $1.5 million (loss of $0.04 per share) and adjusted net loss of $1.0 million (adjusted loss per share $0.03) in Q1 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue and Profitability
Total consolidated revenue of $38.0 million in Q1 2026, with Tool Rental revenue of $28.9 million and Product Sales of $9.0 million. Reported adjusted EBITDA of $7.5 million (approximately a 19.7% adjusted EBITDA margin on Q1 revenue).
Read all positive updates
Company Guidance
Management reaffirmed 2026 guidance of $155–170M in revenue, $35–45M of adjusted EBITDA and $17–22M of adjusted free cash flow, while noting Q1 results of $38.0M total revenue (Tool Rental $28.9M; Product Sales $9.0M), Q1 adjusted EBITDA of $7.5M, GAAP net loss of $1.5M ($0.04/share) and adjusted net loss of $1.0M ($0.03/share). Q1 adjusted free cash flow was a loss of ~ $0.16M, capital expenditures were ~$7.7M (maintenance CapEx ≈13% of revenue), cash was $2.8M and net debt $48.9M as of March 31; the company repurchased ~ $0.7M of stock in the quarter and noted ~90% of shares are now in the public float. Management reiterated a relatively soft first half with improvement expected in the second half of 2026 and cautioned that targeted, customer‑sponsored investments to scale ClearPath and other international technologies could push results toward the lower end of the adjusted free cash flow range.Drilling Tools International Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
63
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 154.71M | 159.63M | 154.45M | 152.03M | 129.56M | 77.38M |
| Gross Profit | 99.82M | 91.06M | 92.12M | 96.16M | 76.84M | 53.75M |
| EBITDA | 29.13M | 29.49M | 30.18M | 41.25M | 44.96M | 24.84M |
| Net Income | -3.63M | -3.76M | 3.01M | 14.75M | 21.08M | 2.10M |
Balance Sheet | ||||||
| Total Assets | 224.70M | 222.18M | 222.43M | 132.50M | 105.22M | 69.51M |
| Cash, Cash Equivalents and Short-Term Investments | 2.84M | 3.65M | 6.18M | 6.89M | 3.50M | 961.00K |
| Total Debt | 76.72M | 71.64M | 76.70M | 18.85M | 38.35M | 27.37M |
| Total Liabilities | 104.27M | 99.31M | 102.47M | 43.81M | 56.12M | 58.35M |
| Stockholders Equity | 120.42M | 122.86M | 119.96M | 88.69M | 49.10M | 11.16M |
Cash Flow | ||||||
| Free Cash Flow | -9.47M | -1.92M | -16.83M | -20.42M | -10.69M | -11.88M |
| Operating Cash Flow | 14.33M | 19.92M | 6.06M | 23.33M | 13.99M | -494.00K |
| Investing Cash Flow | -8.96M | -13.27M | -53.59M | -23.86M | -2.53M | 3.34M |
| Financing Cash Flow | -5.41M | -9.30M | 47.88M | 4.29M | -9.34M | -2.87M |
Drilling Tools International Technical Analysis
Neutral
2.31
Price Trends
2.40
Positive
2.92
Negative
2.94
Negative
Market Momentum
>-0.01
Negative
59.11
Neutral
78.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTI, the sentiment is Neutral. The current price of 2.31 is above the 20-day moving average (MA) of 2.26, below the 50-day MA of 2.40, and below the 200-day MA of 2.94, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 78.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DTI.
Drilling Tools International Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $123.35M | 8.77 | 16.53% | ― | 3.44% | 9.13% | |
66 Neutral | $185.27M | 7.69 | 9.10% | ― | 21.72% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
52 Neutral | $144.71M | 29.81 | 26.73% | ― | 64.11% | ― | |
52 Neutral | $455.29K | 7.99 | ― | ― | -3.74% | ― | |
50 Neutral | $82.58M | -23.83 | -2.98% | ― | -3.52% | -117.16% | |
44 Neutral | $43.61M | -0.58 | 105.06% | ― | -8.92% | -7.64% |
* Energy Sector Average
DTI
Drilling Tools International
2.40
0.23
10.60%
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138.28%
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NINE
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11.10
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KLXE
KLX Energy Services Holdings
2.16
0.39
22.03%
Drilling Tools International Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Drilling Tools International Issues Summer 2026 Investor Update
Neutral
May 7, 2026
Drilling Tools International Corporation released an investor presentation in summer 2026 in connection with its financial results for the quarter ended March 31, 2026, outlining how its business is influenced by oil and gas industry activity and ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.