Drilling Tools International Corp. Reports Solid Q2 2025 Results

Drilling Tools International Corp. Reports Solid Q2 2025 Results

Company maintains full year 2025 outlook

Drilling Tools International Corp. (NASDAQ: DTI), a prominent player in the oilfield services sector, has released its financial results, detailing its progress over the recent quarter.

In the second quarter of 2025, DTI achieved total consolidated revenue of $39.4 million. The breakdown reveals that Tool Rental revenue accounted for $32.8 million while Product Sales brought in $6.7 million. Furthermore, the company reported a Net Loss and Adjusted Net Loss of approximately $2.4 million and $725,000, respectively. The diluted earnings per share reflected a loss of $0.07, with an Adjusted Diluted EPS loss of $0.02. Notably, the Adjusted EBITDA for this quarter reached $9.3 million, alongside Adjusted Free Cash Flow standing at $1.8 million. As of the end of June, DTI had cash and cash equivalents amounting to $1.1 million and a net debt of $55.8 million.

Wayne Prejean, President and CEO of DTI, shared his insights on the company's performance, stating, "This quarter rolled out as anticipated, tempered by lower commodity prices and reductions in activities, especially in the US land segment. Despite these conditions, our Eastern Hemisphere operations demonstrated robust growth with a revenue increase of 46% quarter-over-quarter, contributing significantly to our total revenue. This resilience allowed us to surpass our internal financial forecasts, including our first reported positive Adjusted Free Cash Flow for a second quarter since our public debut. Despite traditional seasonal slowdowns, our organization exhibits excellence in navigating the energy landscape to deliver strong financial outcomes."

Prejean added insights on the current market dynamics, highlighting the stabilization of commodity prices. While rig counts have dipped, the cautious behavior of customers indicates ongoing uncertainty. DTI has strategically implemented a $6 million expense reduction program to align its financial strategies with customer activity levels, showing a commitment to adaptability in these changing times.

Despite facing challenges like pricing pressures and anticipation of operational impacts in the latter half of the year, DTI remains steadfast in projecting its financial guidance. The company expects to maintain its established range for the 2025 fiscal year, focusing on operational efficiency and market responsiveness.

2025 Full Year Outlook

Looking ahead, DTI's financial outlook remains cautiously optimistic. The company estimates annual revenue to range between $145 million and $165 million and anticipates an Adjusted EBITDA in the ballpark of $32 million to $42 million. The team targets an Adjusted Free Cash Flow of $14 million to $19 million along with an Adjusted EBITDA margin projected between 22% to 25%.

Financial Call and Company Information

DTI's Q2 conference call will be accessible live via dial-in or webcast, aimed at providing in-depth views into the company’s financial landscape, strategy, and prospects. The anticipated date falls on Thursday, with specifics regarding dial-in procedures available through their investor relations portal.

About Drilling Tools International Corp.

Drilling Tools International Corp. is recognized for its significant contributions to the oilfield sector, specializing in the manufacture and rental of downhole drilling tools crucial to both horizontal and directional drilling operations. With operations spanning North America and international support centers across EMEA and APAC regions, DTI emphasizes innovation and customer-centric solutions as core directives.

Contact Information

For further inquiries, DTI encourages stakeholders to reach out to its Investor Relations team, ensuring they can provide tailored information and support.

Frequently Asked Questions

What were Drilling Tools International's main financial highlights for Q2 2025?

DTI reported total revenue of $39.4 million, with Tool Rentals and Product Sales contributing significantly, alongside a notable EBITDA of $9.3 million.

How is DTI addressing current market challenges?

The company implemented a $6 million expense reduction program to align financial spending with market activity levels, ensuring resilience amid current challenges.

What is the outlook for the year?

DTI is maintaining its projected revenue range of $145 million to $165 million and has set ambitious targets for Adjusted EBITDA and Free Cash Flow for 2025.

Where can I find more information about DTI's investor relations?

For detailed information, stakeholders can access DTI's investor relations section on their official website, which also includes an archive of financial calls.

Who can I contact for investor relations inquiries?

Investors can reach out to the Investor Relations team, which is dedicated to providing assistance and information tailored to stakeholder needs.

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