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.
Revenue Beat: Q3 results came in better than anticipated, driven by higher activity levels and successful pricing strategies that offset pricing concessions.
International Growth: Eastern Hemisphere revenue grew 41% year-over-year, contributing 15% of total revenue and showing strong performance in the Middle East.
Cost Cuts Moderated: Due to increased customer activity, only $4 million of the previously planned $6 million in cost reductions will be needed in 2025.
Financial Discipline: The company paid down $5.6 million in debt, increased cash by $3.2 million, and repurchased $550,000 in shares during Q3.
2025 Outlook Reaffirmed: Management maintained full-year 2025 guidance and expects results at or above the midpoint of its revenue, EBITDA, CapEx, and free cash flow ranges.
Optimistic Outlook: The company remains upbeat for the rest of 2025 and into 2026, seeing opportunities in both domestic and international markets.
