HOUSTON, March 5, 2026 /PRNewswire/ -- Drilling Tools International Corp., (NASDAQ:DTI) ("DTI" or the "Company"), a global oilfield services company that designs, engineers, manufactures and provides a differentiated, rental-focused offering of tools for use in onshore and offshore horizontal and directional drilling operations, as well as other cutting-edge solutions across the well life cycle, today reported its results for the twelve months and fourth quarter ended December 31, 2025.
For the twelve months of 2025, DTI generated total consolidated revenue of $159.6 million. 2025 Tool Rental revenue was $129.6 million and Product Sale revenue totaled approximately $30.1 million. Net Loss attributable to shareholders for 2025 was a loss of approximately $3.8 million or a loss of $0.11 per share. Adjusted Net Income(1) and Adjusted Diluted EPS(1) for 2025 were $3.4 million and $0.10 per diluted share, respectively. Adjusted EBITDA(1) was $39.3 million and Adjusted Free Cash Flow(1)(2) was $19.2 million. As of December 31, 2025, DTI had $3.6 million of cash and cash equivalents, and net debt of $42.2 million.
For the fourth quarter of 2025, DTI generated total consolidated revenue of $38.5 million. Fourth quarter Tool Rental revenue was $30.4 million, and Product Sales revenue totaled approximately $8.1 million. Net Income attributable to common stockholders for the fourth quarter was $1.2 million or $0.03 per share. Adjusted Net Income(1) was $1.5 million and Adjusted Diluted EPS(1) for the fourth quarter was $0.04 per diluted share, respectively. Fourth quarter Adjusted EBITDA(1) was $10.1 million and Adjusted Free Cash Flow(1)(2) was $6.1 million.
Wayne Prejean, President, Chief Executive Officer, and interim Chairman of the Board of Directors of DTI, stated, "Our strong fourth quarter results demonstrate our ability to consistently deliver favorable returns in the face of muted industry-wide activity levels. With the help of more moderate seasonality and budget exhaustion than historical trends would have indicated, we exceeded our internal expectations for the quarter and again generated meaningful free cash flow. Despite global rig count declining nearly 7% in 2025, we are pleased that our consistent operational performance and our team's ability to adapt to the ever-changing market environment enabled us to achieve the high-end of our guidance ranges. In addition, we have now grown annual free cash flow every year since going public, an achievement we take great pride in. This is a testament to the organization that we have built, the efficiency with which we operate and the significant demand for our tools.
"We also demonstrated prudent capital discipline in 2025 by simultaneously reducing debt and returning capital to shareholders through share buybacks. When the market softened mid-year, we were able to shift our focus away from growth capital expenditures and prioritize harvesting our cash flow. Leveraging this flexibility allowed us to pay down over $11 million of debt in the second half of the year and buy back, approximately, an additional $660,000 of common shares over the same period. This strategic decision brought down our net debt to trailing twelve-month Adjusted EBITDA multiple to a conservative 1.1x, even after recently completing four acquisitions," added Prejean.
"Throughout 2025, our Eastern Hemisphere operations experienced immense growth. This segment nearly doubled its revenue contribution to 14% of our total revenue, and we aim to build on this momentum in 2026. We continue to believe that the downhole drilling tool industry remains fragmented, is in need of consolidation, and we intend to continue being part of the solution. The energy landscape is constantly evolving, and we plan to actively pursue deals that improve our standing within the market.
"Looking forward, we expect overall activity, particularly in the first half of 2026, to remain relatively soft. However, we have identified several potential catalysts across multiple geographies that offer upside potential in the back half of the year. We have completed four acquisitions within the last 24 months and have added industry leading tools and technological solutions while penetrating new markets. This positions us well to generate resilient results despite the subdued US Land market conditions, and as anticipated activity levels improve, we expect that the work we have done to strengthen DTI will deliver meaningful financial improvement. As an indication of the solid foundation we have built, we are introducing our 2026 outlook ranges that reflect year-over-year growth at the midpoint," concluded Prejean.
2026 Full Year Outlook
Revenue
$155 million
—
$170 million
Adjusted EBITDA(1)
$35 million
—
$45 million
Adjusted EBITDA Margin(1)
23 %
—
26 %
Adjusted Free Cash Flow(1)(2)
$17 million
—
$22 million
(1)
Adjusted Net Income (Loss), Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt, and Adjusted Free Cash Flow are non-GAAP financial measures. See "Non-GAAP Financial Measures" at the end of this release for a discussion of reconciliations to the most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
(2)
Adjusted Free Cash Flow is defined as Adjusted EBITDA less Gross Capital Expenditures.
2025 Fourth Quarter Conference Call Information
DTI's 2025 fourth quarter conference call can be accessed live via dial-in or webcast on Friday, March 6, 2026 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) by dialing 201-389-0869 and asking for the DTI call at least 10 minutes prior to the start time, or via live webcast by logging onto the webcast at this URL address: https://investors.drillingtools.com/news-events/events. An audio replay will be available through March 13, 2026 by dialing 201-612-7415 and using passcode 13758213#. Also, an archive of the webcast will be available shortly after the call at https://investors.drillingtools.com/news-events/events for 90 days. Please submit any questions for management prior to the call via email to [email protected].
About Drilling Tools International Corp.
DTI is a Houston, Texas based leading oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. With roots dating back to 1984, DTI operates from 15 service and support centers across North America and maintains 11 international service and support centers across the EMEA and APAC regions. To learn more about DTI, please visit: www.drillingtools.com.
Contact:
DTI Investor RelationsKen Dennard / Natalie Hairston[email protected]
Forward-Looking Statements
This press release may include, and oral statements made from time to time by representatives of the Company may include, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact included in this press release are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, statements regarding DTI and its management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements in this press release may include, for example, statements about: (1) the demand for DTI's products and services, which is influenced by the general level activity in the oil and gas industry; (2) DTI's ability to retain its customers, particularly those that contribute to a large portion of its revenue; (3) DTI's ability to employ and retain a sufficient number of skilled and qualified workers, including its key personnel; (4) DTI's ability to source tools and raw materials at a reasonable cost; (5) DTI's ability to market its services in a competitive industry; (6) DTI's ability to execute, integrate and realize the benefits of acquisitions, and manage the resulting growth of its business; (7) potential liability for claims arising from damage or harm caused by the operation of DTI's tools, or otherwise arising from the dangerous activities that are inherent in the oil and gas industry; (8) DTI's ability to obtain additional capital; (9) potential political, regulatory, economic and social disruptions in the countries in which DTI conducts business, including changes in tax laws or tax rates; (10) DTI's dependence on its information technology systems, in particular Customer Order Management Portal and Support System, for the efficient operation of DTI's business; (11) DTI's ability to comply with applicable laws, regulations and rules, including those related to the environment, greenhouse gases and climate change; (12) DTI's ability to maintain an effective system of disclosure controls and internal control over financial reporting; (13) the potential for volatility in the market price of DTI's common stock; (14) the impact of increased legal, accounting, administrative and other costs incurred as a public company, including the impact of possible shareholder litigation; (15) the potential for issuance of additional shares of DTI's common stock or other equity securities; (16) DTI's ability to maintain the listing of its common stock on Nasdaq; and (17) other risks and uncertainties separately provided to you and indicated from time to time described in DTI's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the Securities and Exchange Commission (the "SEC"). You should carefully consider the risks and uncertainties including those described in Part I, Item 1A, "Risk Factors" of our Annual Report on Form 10-K filed on March 14, 2025 and in comparable "Risk Factor" sections of our Quarterly Reports on Form 10-Q filed after such Form 10-K. Such forward-looking statements are based on the beliefs of management of DTI, as well as assumptions made by, and information currently available to DTI's management and are subject to numerous conditions, many of which are beyond the control of DTI. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in DTI's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC. All subsequent written or oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by this paragraph. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Drilling Tools International Corp
Consolidated Statements of Comprehensive Income (Loss)
(In thousands of U.S. dollars and rounded)
Year Ended December 31,
2025
2024
Revenue, net:
Tool rental
$ 129,562
$ 117,926
Product sale
30,064
36,520
Total revenue, net
159,626
154,446
Costs and other deductions:
Cost of tool rental revenue, exclusive of depreciation and amortization
28,911
24,110
Cost of product sale revenue, exclusive of depreciation and amortization
12,369
14,381
Selling, general, and administrative expense
82,239
78,695
Depreciation and amortization expense
27,290
23,832
Interest expense, net
5,053
3,369
Loss (gain) on asset disposal
65
(60)
Loss (gain) on remeasurement of previously held equity interest
—
(368)
Goodwill impairment
1,901
—
Other operating and non-operating expense, net
4,654
7,503
Total costs and other deductions
162,482
151,462
Income (loss) before income tax expense
(2,856)
2,984
Income tax benefit (expense)
(905)
30
Net income (loss)
$ (3,761)
$ 3,014
Less: Net income (loss) attributable to non-controlling interest
—
—
Net income (loss) attributable to Drilling Tools International stockholders
$ (3,761)
$ 3,014
Basic earnings (loss) per share
$ (0.11)
$ 0.09
Diluted earnings (loss) per share
$ (0.11)
$ 0.09
Basic weighted-average common shares outstanding
35,533,268
31,938,847
Diluted weighted-average common shares outstanding
35,533,268
32,308,179
Comprehensive income (loss):
0
Net income (loss)
$ (3,761)
$ 3,014
Foreign currency translation adjustment, net of tax
2,541
(1,652)
Net income (loss) attributable to non-controlling interest
—
—
Net comprehensive income (loss)
$ (1,220)
$ 1,362
Drilling Tools International Corp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(In thousands of U.S. dollars and rounded)
Three Months Ended December 31,
2025
2024
Revenue, net:
Tool rental
$ 30,414
$ 31,516
Product sale
8,094
8,330
Total revenue, net
38,508
39,846
Costs and other deductions:
Cost of tool rental revenue, exclusive of depreciation and amortization
6,735
6,552
Cost of product sale revenue, exclusive of depreciation and amortization
3,291
3,602
Selling, general, and administrative expense
19,193
21,280
Depreciation and amortization expense
6,904
6,600
Interest expense, net
1,072
1,339
Loss (gain) on asset disposal
(5)
1
Loss (gain) on remeasurement of previously held equity interest
—
—
Goodwill impairment
—
—
Other operating and non-operating expense, net
220
2,262
Total costs and other deductions
37,410
41,636
Income (loss) before income tax expense
1,098
(1,790)
Income tax benefit (expense)
119
445
Net income (loss)
$ 1,217
$ (1,345)
Less: Net income (loss) attributable to non-controlling interest
1
—
Net income (loss) attributable to Drilling Tools Internationalstockholders
$ 1,216
$ (1,345)
Basic earnings (loss) per share
$ 0.03
$ (0.04)
Diluted earnings (loss) per share
$ 0.03
$ (0.04)
Basic weighted-average common shares outstanding
35,196,495
34,704,696
Diluted weighted-average common shares outstanding
35,257,536
34,704,696
