Drilling Tools International (DTI)
NASDAQ:DTI
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Drilling Tools International
(NASDAQ:DTI)
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Rating:58Neutral
Price Target:
$4.50
▲(83.67% Upside)
Action:ReiteratedDate:04/01/26
DTI scores in the upper-50s primarily due to weakened TTM financial results (revenue drop and net losses) and limited valuation support (negative P/E). These are partially offset by clearly improving technical momentum and a generally constructive earnings-call outlook emphasizing cash generation, debt reduction, and guidance for modest improvement despite notable market and execution risks.
Positive Factors
Margin Sustainability
Despite recent volume pressure, very strong gross margins and a still-positive EBITDA margin point to durable product economics and an efficient cost structure. That underlying profitability gives the company the ability to sustain margins as utilization normalizes and absorb cycle-driven revenue swings over months.
Negative Factors
Revenue and Profitability Decline
A meaningful TTM revenue drop and the shift to net losses weaken the firm's earnings durability and constrain reinvestment capacity. Continued volume or pricing weakness would prolong recovery, strain returns, and force tougher capital-allocation tradeoffs that could impede multi‑quarter operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Sustainability
Despite recent volume pressure, very strong gross margins and a still-positive EBITDA margin point to durable product economics and an efficient cost structure. That underlying profitability gives the company the ability to sustain margins as utilization normalizes and absorb cycle-driven revenue swings over months.
Read all positive factors
Drilling Tools International (DTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$153.41M
Dividend YieldN/A
Average Volume (3M)101.20K
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth7.46%
EPS Growth-165.76%
CountryUS
Employees447
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.04
Shares Outstanding35,185,760
10 Day Avg. Volume122,182
30 Day Avg. Volume101,199
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.71
Price to Sales (P/S)0.55
P/FCF Ratio-388.65
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue1.39
Enterprise Value/Gross Profit2.05
Enterprise Value/Ebitda7.46
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.16
Revenue Forecast (FY)$160.20M
Drilling Tools International Business Overview & Revenue Model
Company Description
Drilling 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 p...
How the Company Makes Money
DTI makes money primarily by providing drilling tools to customers for use in active drilling operations. Its core revenue stream is the rental and/or provision of drilling tools (including associated downhole tool services such as inspection, mai...
Drilling Tools International Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial picture: record and durable free cash flow, strong adjusted EBITDA, meaningful debt reduction, successful acquisitions and integration progress, and sizable Eastern Hemisphere revenue growth (+78% YoY). However, material risks remain — a 7% decline in global rig count, Western Hemisphere softness, limited cash on hand ($3.6M), geopolitical uncertainty in the Middle East, and an unclear CapEx guidance line increase the uncertainty for near-term performance. On balance, management emphasized capital discipline, diversified geographic exposure, and the ability to harvest cash and deploy capital selectively, which suggests they are well positioned to navigate the current softness while capturing upside if activity rebounds.Positive Updates
Consolidated 2025 Revenue
Total consolidated revenue of $159.6M for 2025, comprised of $129.6M in rental revenue and $30.1M in product sales.
Negative Updates
Industry Softness — Rig Count Decline
Global rig count declined 7% year-over-year, creating a softer market backdrop that pressured North American activity and contributed to only a low single-digit revenue decline in the Western Hemisphere.
Read all updates
Q4-2025 Updates
Positive
Negative
Consolidated 2025 Revenue
Total consolidated revenue of $159.6M for 2025, comprised of $129.6M in rental revenue and $30.1M in product sales.
Read all positive updates
Company Guidance
Management’s 2026 guidance calls for consolidated revenue of $155.0–$170.0 million, adjusted EBITDA of $35.0–$45.0 million, capital expenditures listed as between $818,000,000 and $23,000,000 (the release appears to contain a typo in the CapEx range), and adjusted free cash flow of $17.0–$22.0 million; the company says the ranges imply year‑over‑year growth at the midpoint and are based on an assumption of relatively flat 2026 activity with modest improvement in the second half.Drilling Tools International Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
58
Neutral
Cash Flow
51
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 159.63M | 154.45M | 152.03M | 129.56M | 77.38M |
| Gross Profit | 91.06M | 92.12M | 96.16M | 76.84M | 53.75M |
| EBITDA | 36.11M | 30.18M | 41.25M | 44.96M | 24.84M |
| Net Income | -3.76M | 3.01M | 14.75M | 21.08M | 2.10M |
Balance Sheet | |||||
| Total Assets | 222.18M | 222.43M | 132.50M | 105.22M | 69.51M |
| Cash, Cash Equivalents and Short-Term Investments | 3.65M | 6.18M | 6.89M | 3.50M | 961.00K |
| Total Debt | 56.82M | 76.70M | 18.85M | 38.35M | 27.37M |
| Total Liabilities | 99.31M | 102.47M | 43.81M | 56.12M | 58.35M |
| Stockholders Equity | 122.86M | 119.96M | 88.69M | 49.10M | 11.16M |
Cash Flow | |||||
| Free Cash Flow | -224.00K | -16.83M | -20.42M | -10.69M | -11.88M |
| Operating Cash Flow | 19.92M | 6.06M | 23.33M | 13.99M | -494.00K |
| Investing Cash Flow | -13.27M | -53.59M | -23.86M | -2.53M | 3.34M |
| Financing Cash Flow | -9.30M | 47.88M | 4.29M | -9.34M | -2.87M |
Drilling Tools International Technical Analysis
Positive
2.45
Price Trends
3.76
Positive
3.23
Positive
2.76
Positive
Market Momentum
0.14
Negative
68.00
Neutral
88.03
Negative
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 2.45 is below the 20-day moving average (MA) of 3.77, below the 50-day MA of 3.76, and below the 200-day MA of 2.76, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 68.00 is Neutral, neither overbought nor oversold. The STOCH value of 88.03 is Negative, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $154.39M | 4.31 | 21.30% | ― | 16.61% | -72.29% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $222.04M | 116.13 | 0.57% | ― | 18.98% | ― | |
58 Neutral | $153.41M | -23.15 | -3.08% | ― | 7.46% | -165.76% | |
52 Neutral | $92.85M | -24.93 | -11.82% | ― | -22.31% | 39.11% | |
45 Neutral | $48.63M | -0.46 | 147.42% | ― | -12.57% | -45.75% |
* Energy Sector Average
DTI
Drilling Tools International
4.36
2.78
175.95%
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NINE
Nine Energy Service, Inc.
―
―
―
KLXE
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14.75%
Drilling Tools International Corporate Events
Business Operations and StrategyFinancial Disclosures
Drilling Tools International Highlights Risks in Investor Presentation
Neutral
Mar 5, 2026
Drilling Tools International Corporation has released an investor presentation in spring 2026 in connection with its financial results for the quarter ended December 31, 2025, outlining the assumptions, risks and limitations underlying its project...
Business Operations and StrategyExecutive/Board Changes
Drilling Tools International Announces Board and Leadership Changes
Positive
Jan 27, 2026
On January 26, 2026, Drilling Tools International’s board appointed veteran energy investment banker Ira H. Green Jr. as a director to fill the vacancy created by the passing of Thomas Hicks, adding more than three decades of capital markets...
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.