DTI · Drilling Tools International Corp.

Drilling Tools International Corp. (DTI) reported first quarter 2026 results that were largely in line with expectations, with total revenue of $38.0 million, down 11% from $42.9 million in the same period last year. The decline was driven by a 16% drop in tool rental revenue to $28.9 million, partially offset by an 8% increase in product sales to $9.0 million. The company attributed the softness to an earlier spring breakup in Canada and a 4% year-over-year decline in global rig count. Net loss attributable to common stockholders narrowed slightly to $1.5 million ($0.04 per share) from $1.7 million ($0.05 per share) in Q1 2025. On an adjusted basis, net loss was $1.0 million ($0.03 per diluted share). Adjusted EBITDA came in at $7.5 million, representing a 19.7% margin. The company generated negative adjusted free cash flow of $160,000, reflecting capital expenditures. Management highlighted that ClearPath and Drill-N-Ream product lines are gaining traction with international offshore operators, improving the mix toward higher-margin technology-enabled solutions. DTI also completed the distribution of its remaining shares by private equity sponsor HHEP, increasing public float and liquidity. The company reaffirmed its full-year 2026 guidance: revenue of $155-$170 million, Adjusted EBITDA of $35-$45 million (23%-26% margin), and Adjusted Free Cash Flow of $17-$22 million. Management expects Q2 2026 results to benefit from an earlier post-breakup rebound in Canada and sees tangible catalysts for improvement in the second half of the year.