Drilling Tools International Corp
NASDAQ:DTI
Drilling Tools International Corp
Drilling Tools International Corp. specializes in rentals of directional drilling tools, wellbore optimization tools and other drilling products. The company is headquartered in Houston, Texas. The company went IPO on 2021-12-02. The firm manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. The company operates from approximately 22 locations across North America, Europe, and the Middle East and maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe and tubing. The firm also rents surface control equipment, such as blowout preventers and handling tools, and provides downhole products for producing wells. Its operating activities are divided into four divisions: directional tool rentals, premium tools, wellbore optimization tools, and other products and services, including downhole solutions inspection services and downhole machining solutions. Its manufacturing facility offers multiple hollow spindle lathes, mills, racking systems, lathes, and drill collar spiral machines.
Drilling Tools International Corp. specializes in rentals of directional drilling tools, wellbore optimization tools and other drilling products. The company is headquartered in Houston, Texas. The company went IPO on 2021-12-02. The firm manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. The company operates from approximately 22 locations across North America, Europe, and the Middle East and maintains a fleet of rental equipment consisting of drill collars, stabilizers, crossover subs, wellbore conditioning tools, drill pipe, hevi-wate drill pipe and tubing. The firm also rents surface control equipment, such as blowout preventers and handling tools, and provides downhole products for producing wells. Its operating activities are divided into four divisions: directional tool rentals, premium tools, wellbore optimization tools, and other products and services, including downhole solutions inspection services and downhole machining solutions. Its manufacturing facility offers multiple hollow spindle lathes, mills, racking systems, lathes, and drill collar spiral machines.
Results: 2025 consolidated revenue $159.6 million (rental $129.6M; product $30.1M); full-year adjusted free cash flow a record $19.2 million.
Q4 strength: Q4 revenue $38.5 million, GAAP net income $1.2 million ($0.03/sh), adjusted EBITDA $10.1 million and adjusted free cash flow $6.1 million — margins healthier than recent quarters.
Balance sheet: Cash $3.6 million, net debt $42.2 million, net leverage 1.1x (down from 1.2x a year ago) after ~$11 million of H2 2025 debt paydown.
Guidance: 2026 ranges: revenue $155M–$170M; adjusted EBITDA $35M–$45M; CapEx $18M–$23M; adjusted free cash flow $17M–$22M (assumes flat H1, slight H2 improvement).
Geographic growth: Eastern Hemisphere revenue up 78% YoY and now ~14% of total revenue; management expects further upside if Middle East rig activity stabilizes.
Capital allocation: Priority remains debt reduction and disciplined CapEx; modest buybacks executed (~$660k in H2 2025) and M&A pipeline remains active.
Middle East: Minimal operational disruption so far; all personnel accounted for and crisis plan activated — guidance was prepared pre-conflict and does not assume escalation.
