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Drilling Tools International (DTI)
NASDAQ:DTI
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Drilling Tools International
(NASDAQ:DTI)
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Rating:61Neutral
Price Target:
$2.50
▲(6.38% Upside)
Drilling Tools International's overall score reflects strong operational execution and strategic growth initiatives, as highlighted in the earnings call. However, financial performance is hampered by declining profitability and cash flow challenges. Technical indicators show mixed signals, and valuation concerns persist due to negative earnings.
Drilling Tools International (DTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$83.80M
Dividend YieldN/A
Average Volume (3M)104.07K
Price to Earnings (P/E)26.5
Beta (1Y)1.21
Revenue Growth9.74%
EPS Growth-132.61%
CountryUS
Employees447
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding35,661,297
10 Day Avg. Volume206,080
30 Day Avg. Volume104,071
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)0.87
Price to Sales (P/S)0.68
P/FCF Ratio-6.20
Enterprise Value/Market Cap2.15
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit1.56
Enterprise Value/Ebitda6.80
Forecast
1Y Price Target
$2.50Price Target Upside6.38% Upside
Rating ConsensusHold
Number of Analyst Covering1
Drilling Tools International Business Overview & Revenue Model
Company DescriptionDrilling Tools International Corp. provides oilfield equipment and services to oil and natural gas sectors in North America, Europe, and the Middle East. It offers downhole desander and filters; non-mag and steel drill collars; tubulars; flapper plugs; and well bore conditioning and fraction reduction technologies. The company also provides hole openers, roller reamers, and extended reach drilling tools; stabilizers comprising integral blade, sleeve, and welded blade string stabilizers, as well as hard facing tools; stinger valves; and sub-assemblies, which includes heat-treated steel and non-magnetic metal subs. In addition, it offers handling tools, such as elevators, brackets and bail assembly, slips, tongs, stabbing guides, and safety clamps; blowout preventors and pressure control equipment; and drilling accessories including float valve, ring gauge, tool basket, lift bail, and ditch magnet. Further, the company provides downhole inspection, well fence data automation, and compass services. Drilling Tools International Corp. was founded in 1984 and is headquartered in Houston, Texas.
How the Company Makes MoneyDTI makes money by manufacturing and selling a wide array of drilling tools and equipment to oil and gas companies. Their revenue model is primarily based on direct sales of their high-performance products, including drill bits, stabilizers, and other downhole tools. Additionally, DTI generates significant income through rental services, offering their tools to operators who prefer not to purchase equipment outright. Maintenance and repair services provide another revenue stream, ensuring clients' equipment remains operational and efficient. Key partnerships with major oil and gas firms and strategic alliances with other industry players further bolster DTI's market presence and contribute to its earnings.
Drilling Tools International Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue and EBITDA growth, successful cost reductions, and positive cash flow, but was tempered by challenges such as market softness in specific product lines and anticipated pricing pressures in the upcoming quarters. Overall, the company's strategic initiatives and acquisitions are performing well, providing a balanced view of current performance.Q2-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Second quarter year-over-year total revenue grew nearly 5% and adjusted EBITDA grew 4%, ahead of the forecast plan, despite industry headwinds and global rig count declines.
Positive Adjusted Free Cash Flow
Achieved positive adjusted free cash flow in the second quarter for the first time since becoming public, amounting to $1.8 million.
Eastern Hemisphere Revenue Surge
Eastern Hemisphere operations grew revenue by 21% and contributed approximately 14% of total revenue in the first half of the year.
Cost Reduction Success
Implemented a program to cut expenses by an annual $6 million and are on track to exceed this goal.
Successful M&A Integration
Integration of Eastern Hemisphere acquisitions is proceeding as planned, contributing to overall results and validating DTI's growth and M&A strategy.
Negative Updates
Market Challenges
Experiencing significant softness in the deep casing product line due to rig declines in the Middle East and Mexico.
Pricing Pressure Anticipation
Expected pricing pressure in Q3 and Q4, which may impact margins alongside ongoing activity declines.
Western Hemisphere Activity Slowdown
Western Hemisphere activities slowed in the second quarter compared to the first quarter of 2025, impacting overall sales.
Company Guidance
During the Drilling Tools International 2025 Second Quarter Earnings Conference Call, management provided an overview of the company's performance and reaffirmed the annual outlook. Despite global rig count declines by 7%, DTI reported a 4.8% increase in total revenue to $39.4 million and a 4.1% rise in adjusted EBITDA to $9.3 million, indicating strong operational execution. The Eastern Hemisphere operations showed substantial growth, with a 21% sequential revenue increase, contributing 14% to total revenue, driven by successful integration of recent acquisitions and increased DNR tool utilization. Adjusted free cash flow turned positive at $1.8 million for the first time since going public, supported by a cost-reduction program targeting $6 million in annual savings. The company maintained its full-year guidance, projecting revenue between $145 million to $165 million, adjusted EBITDA from $32 million to $42 million, and adjusted free cash flow ranging from $14 million to $19 million, while acknowledging potential pricing pressures and market uncertainties in the second half of the year.Drilling Tools International Financial Statement Overview
Summary
Drilling Tools International shows strong revenue growth and a high gross profit margin, but faces challenges with declining profitability and negative net income. Improved leverage is a positive, but negative free cash flow and liquidity risks are concerning.Income Statement
Drilling Tools International shows a mixed performance in its income statement. The company has experienced strong revenue growth, particularly in the TTM period, with a 17.7% increase. However, profitability metrics such as the net profit margin have declined, turning negative in the TTM period. The gross profit margin remains robust at 76.8%, indicating efficient cost management. Despite these strengths, the negative net income and declining EBIT margin highlight challenges in maintaining profitability.65
Positive
Balance Sheet
The balance sheet of Drilling Tools International reflects a moderate financial position. The debt-to-equity ratio has improved over time, decreasing to 0.51 in the TTM period, suggesting better leverage management. However, the return on equity has turned negative, indicating inefficiencies in generating returns for shareholders. The equity ratio remains stable, showing a solid capital structure. Overall, the balance sheet shows stability but highlights concerns regarding shareholder returns.70
Positive
Cash Flow
Cash flow analysis reveals challenges for Drilling Tools International. The company has struggled with negative free cash flow, which worsened in the TTM period. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. The free cash flow to net income ratio is negative, reflecting cash flow constraints. While operating cash flow has shown some growth, the overall cash flow position indicates potential liquidity risks.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 162.24M | 154.45M | 152.03M | 129.56M | 77.38M |
| Gross Profit | 115.29M | 92.12M | 96.16M | 76.84M | 53.75M |
| EBITDA | 26.51M | 30.18M | 41.25M | 44.96M | 24.84M |
| Net Income | -4.55M | 3.01M | 14.75M | 21.08M | 2.10M |
Balance Sheet | |||||
| Total Assets | 230.28M | 222.43M | 132.50M | 105.22M | 69.51M |
| Cash, Cash Equivalents and Short-Term Investments | 1.15M | 6.18M | 6.89M | 3.50M | 961.00K |
| Total Debt | 80.13M | 76.70M | 18.85M | 38.35M | 27.37M |
| Total Liabilities | 107.76M | 102.47M | 43.81M | 73.99M | 58.35M |
| Stockholders Equity | 122.52M | 119.96M | 88.69M | 49.10M | 11.16M |
Cash Flow | |||||
| Free Cash Flow | -12.89M | -16.83M | -20.42M | -9.90M | -11.88M |
| Operating Cash Flow | 6.29M | 6.06M | 23.33M | 13.86M | -494.00K |
| Investing Cash Flow | -39.00M | -53.59M | -23.86M | -2.53M | 3.34M |
| Financing Cash Flow | 26.84M | 47.88M | 4.29M | -9.34M | -2.87M |
Drilling Tools International Technical Analysis
Positive
2.35
Price Trends
2.10
Positive
2.43
Negative
2.64
Negative
Market Momentum
0.05
Negative
56.69
Neutral
54.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTI, the sentiment is Positive. The current price of 2.35 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 2.10, and below the 200-day MA of 2.64, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 54.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $134.87M | 11.13 | 11.84% | ― | 19.15% | -71.62% | |
61 Neutral | $83.80M | 26.47 | -4.23% | ― | 9.74% | -132.61% | |
55 Neutral | $61.87M | -3.54 | ― | ― | -2.48% | 83.11% | |
49 Neutral | $93.22M | 117.58 | 0.33% | ― | 3.43% | -36.73% | |
46 Neutral | $36.13M | -0.50 | 149.58% | ― | -13.29% | -106.14% | |
45 Neutral | $30.04M | -0.76 | 44.58% | ― | 3.23% | 31.76% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
DTI
Drilling Tools International
2.35
-1.38
-37.00%
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Drilling Tools International Corporate Events
Business Operations and StrategyFinancial Disclosures
Drilling Tools International Q2 2025 Financial Results Released
Neutral
Aug 14, 2025
Drilling Tools International Corporation released its financial results for the three months ended June 30, 2025, highlighting various forward-looking statements regarding its operations and market positioning. The presentation emphasizes DTI’s strategic focus on customer retention, skilled workforce management, and navigating industry-specific risks, which are crucial for sustaining its competitive position and operational efficiency.
The most recent analyst rating on (DTI) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Drilling Tools International stock, see the DTI Stock Forecast page.
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.