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olivLaw · US equity research

Drilling Tools International Corp. DTI

Oil & Gas Field Machinery & Equipment · SIC 3533 · Vertical: Oil & Gas Field Machinery & Equipment (SIC 3533)

1.50USD+1.35% · 1 dayClose 04 Nov 2026

Drilling Tools International Corp. (DTI) rents and manufactures downhole tools for horizontal and directional drilling of oil and gas wells, onshore and offshore, from Texas. The company is expanding in the Eastern Hemisphere, and rentals, which made up 81% of revenue in 2025, give it a steadier revenue mix than product sales in a cyclical sector. For 2026 it guided to revenue of 155 to 170 million USD, reaffirmed in August 2026.

At the close of 04 Nov 2026, Drilling Tools International Corp. (DTI) stock was 1.50 USD (+1.35% on the day), with market capitalisation 52.9 m USD, beta 1.25, 52-week range 1.48–4.49 USD. Latest reported quarter (Q2 2026): revenue of 38.1 m USD (−3.4% YoY), net income of -1.8 m USD, diluted EPS -0.05 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
52.9 m USD
shares as of 04 Aug 2026
P/E (TTM)
unavailable
Diluted EPS TTM -0.09 · TTM to 30 Jun 2026
E/P (TTM)
-5.72%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
1.25
Volatility (1y) 77%
52-week range
1.484.49

Price history

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Technical reading

RSI (14)
27.6
oversold (≤ 30)
Bollinger (20, 2)
1.42 – 2.10
in the lower half of the band · %B 0.12 · band width 38.7%
SMA 50 / 200
2.19 / 2.87
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.19 / -0.18
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−36.4%−1.1%−35.3 pp—
3 months−33.9%−0.5%−33.5 pp—
6 months−55.8%+4.4%−60.1 pp—
Year to date−38.8%+12.3%−51.1 pp—
1 year−31.5%+13.5%−45.0 pp+16.2%
3 years−58.9%+76.4%−135.3 pp+36.7%
5 yearsunavailable+63.7%unavailable—
Max drawdown (1y)
−67.0%
06 Apr 2026 → 02 Nov 2026
Max drawdown (5y)
−86.0%
22 May 2023 → 02 Nov 2026
Compound annual growth (5y)
unavailable
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
38.1 m USD
−3.4% YoY
Net income
-1.8 m USD
unavailable YoY
Diluted EPS
-0.05
unavailable YoY
net / operating
-4.7% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue40.1 m39.8 m42.9 m39.4 m38.8 m38.5 m38.0 m38.1 m
SG&A19.9 m21.3 m21.6 m21.0 m20.4 m19.2 m20.2 m19.9 m
Operating income4.3 m1.8 m3.3 m—————
Depreciation & amortisation6.2 m6.6 m6.7 m6.8 m6.8 m6.9 m6.9 m6.9 m
Pre-tax income428.0 k-1.8 m-1.8 m-1.7 m-467.0 k1.1 m-2.1 m-1.9 m
Income tax-439.0 k-445.0 k-159.0 k746.0 k437.0 k-119.0 k-557.0 k-76.0 k
Net income867.0 k-1.3 m-1.7 m-2.4 m-903.0 k1.2 m-1.5 m-1.8 m
Diluted EPS0.03-0.04 ≈-0.05-0.07-0.030.03 ≈-0.04-0.05
Operating cash flow5.3 m ≈-3.7 m2.4 m2.2 m ≈10.0 m ≈5.3 m-3.2 m-2.3 m ≈
Capex3.4 m ≈3.2 m5.0 m7.6 m ≈3.5 m ≈4.0 m7.7 m4.2 m ≈
Share repurchases0 ≈00608.0 k ≈544.0 k ≈113.0 k706.0 k0 ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year2022202320242025
Revenue129.6 m152.0 m154.4 m159.6 m
Revenue YoYunavailable+17.4%+1.6%+3.4%
Net income21.1 m14.7 m3.0 m-3.8 m
Net income YoYunavailable−30.0%−79.6%−224.8%
Diluted EPS1.070.590.09-0.11
Diluted EPS YoYunavailable−44.9%−84.7%−222.2%
net %16.3%9.7%2.0%-2.4%
Free cash flow-10.7 m-20.4 m-16.8 m-224.0 k

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
3.6 m USD
Financial debt
20.8 m USD
Net debt
17.2 m USD
Equity
122.9 m USD
Total assets
222.2 m USD
Debt / equity
0.17x
Current ratio
2.11x
ROE
-3.1%
ROA
-1.7%
FCF margin
-0.1%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
152.0 m
2024
154.4 m
2025
159.6 m

SEC (XBRL)· 06 Mar 2026verified

Cost of revenue
2023
35.5 m
2024
38.5 m
2025
—

SEC (XBRL)· 14 Mar 2025verified

Gross profit
2023
116.5 m ≈
2024
116.0 m ≈
2025
—

SEC (XBRL)· 14 Mar 2025derived

SG&A
2023
68.3 m
2024
78.7 m
2025
82.2 m

SEC (XBRL)· 06 Mar 2026verified

Operating income
2023
27.9 m
2024
13.4 m
2025
—

SEC (XBRL)· 14 Mar 2025verified

Depreciation & amortisation
2023
20.4 m
2024
23.8 m
2025
27.3 m

SEC (XBRL)· 06 Mar 2026verified

EBITDA
2023
48.3 m ≈
2024
37.3 m ≈
2025
—

SEC (XBRL)· 14 Mar 2025derived

Pre-tax income
2023
19.8 m
2024
3.0 m
2025
-2.9 m

SEC (XBRL)· 06 Mar 2026verified

Income tax
2023
5.0 m
2024
-30.0 k
2025
905.0 k

SEC (XBRL)· 06 Mar 2026verified

Net income
2023
14.7 m
2024
3.0 m
2025
-3.8 m

SEC (XBRL)· 06 Mar 2026verified

Diluted EPS
2023
0.59
2024
0.09
2025
-0.11

SEC (XBRL)· 06 Mar 2026verified

Weighted average diluted shares
2023
25.1 m
2024
32.3 m
2025
35.5 m

SEC (XBRL)· 06 Mar 2026verified

Balance sheet · USD

Cash
2023
6.0 m
2024
6.2 m
2025
3.6 m

SEC (XBRL)· 06 Mar 2026verified

Receivables
2023
29.9 m
2024
39.6 m
2025
37.7 m

SEC (XBRL)· 06 Mar 2026verified

Inventories
2023
5.0 m
2024
17.5 m
2025
18.1 m

SEC (XBRL)· 06 Mar 2026verified

Current assets
2023
46.4 m
2024
68.1 m
2025
64.9 m

SEC (XBRL)· 06 Mar 2026verified

Property, plant & equipment, net
2023
65.8 m
2024
75.6 m
2025
72.6 m

SEC (XBRL)· 06 Mar 2026verified

Goodwill
2023
0
2024
12.1 m
2025
14.6 m

SEC (XBRL)· 06 Mar 2026verified

Intangibles (excl. goodwill)
2023
216.0 k
2024
37.2 m
2025
39.7 m

SEC (XBRL)· 06 Mar 2026verified

Total assets
2023
132.5 m
2024
222.4 m
2025
222.2 m

SEC (XBRL)· 06 Mar 2026verified

Accounts payable
2023
7.8 m
2024
12.0 m
2025
9.8 m

SEC (XBRL)· 06 Mar 2026verified

Short-term debt
2023
0
2024
7.0 m
2025
6.0 m

SEC (XBRL)· 06 Mar 2026verified

Long-term debt
2023
0
2024
19.7 m
2025
14.8 m

SEC (XBRL)· 06 Mar 2026verified

Current liabilities
2023
22.3 m
2024
31.0 m
2025
30.8 m

SEC (XBRL)· 06 Mar 2026verified

Total liabilities
2023
43.8 m
2024
102.5 m
2025
99.3 m

SEC (XBRL)· 06 Mar 2026verified

Equity
2023
88.7 m
2024
120.0 m
2025
122.9 m

SEC (XBRL)· 06 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
23.3 m
2024
6.1 m
2025
19.9 m

SEC (XBRL)· 06 Mar 2026verified

Capex
2023
43.8 m
2024
22.9 m
2025
20.1 m

SEC (XBRL)· 06 Mar 2026verified

Free cash flow
2023
-20.4 m ≈
2024
-16.8 m ≈
2025
-224.0 k ≈

SEC (XBRL)· 06 Mar 2026derived

Investing cash flow
2023
-23.9 m
2024
-53.6 m
2025
-13.3 m

SEC (XBRL)· 06 Mar 2026verified

Financing cash flow
2023
4.3 m
2024
47.9 m
2025
-9.3 m

SEC (XBRL)· 06 Mar 2026verified

Share repurchases
2023
—
2024
0
2025
1.3 m

SEC (XBRL)· 06 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
3.4%
computed by olivLawFY 2025
Revenue CAGR 3Y
7.2%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
-224.8%
computed by olivLawFY 2025
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
-222.2%
computed by olivLawFY 2025
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
-2.0%
computed by olivLawTTM to 30 Jun 2026
FCF margin
-6.3%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
-2.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
-1.3%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
12.4 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.1x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
2.2x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
1.6x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
9.8 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
19.5 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
-9.6 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
101 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
52.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
65.3 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-5.7%
computed by olivLawTTM to 30 Jun 2026
P/B
0.4x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
0.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
0.4x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-18.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
2.6%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Risk

Altman Z
unavailable
input data missing

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 5 of at least 6
  • score weight coverage: 33.3% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

1.50 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 52.9 m USD

Key indicators

Market capitalisation
52.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
0.4x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
-2.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
-2.0%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
3.4%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 04 Aug 2026
Source: SEC (XBRL)published 07 Aug 2026
verified 636derived 48

Score by group

33% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Oil & Gas Field Machinery & Equipment (SIC 3533)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-2.0%20 (vs peers)19%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth7.2%60 (on a fixed band)25%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet2.2x100 (on a fixed band)13%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation-18.2%0 (on a fixed band)25%
Shareholder yield (distributions) · Returns2.6%37 (on a fixed band)19%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/3 factors with a value
  • Growth· partial60/100 · 1/2 factors with a value
  • Quality· partial20/100 · 1/3 factors with a value
  • Returns· partial37/100 · 1/2 factors with a value
  • Valuation· partial0/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

DRILLING TOOLS INTERNATIONAL CORPORATION (DTI). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 159.6 m USD in 2025; YoY growth 3.4%; net margin -2.0%; ROE -2.5%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 2.2x

What contradicts it

  • Net margin: -2.0%
  • FCF yield: -18.2%

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Oil & Gas Field Machinery & Equipment (SIC 3533) · same industry (4-digit SIC) · compared with 15 companies

Multiples and returns vs the median

P/E
—
vertical median 23.6x
EV/EBITDA
—
vertical median 9.7x
P/S
0.3x
vertical median 1.0x
below median (−64.6%)
P/B
0.4x
vertical median 1.7x
below median (−73.4%)
ROE
-2.5%
vertical median 8.4%
below median (−129.5%)
Net margin
-2.0%
vertical median 4.8%
below median (−141.4%)
EBIT margin
—
vertical median 7.1%
Revenue YoY
3.4%
vertical median -0.9%
above median
Net debt/EBITDA
—
vertical median 0.2x
Dividend yield
—
vertical median 1.2%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
BKRBaker Hughes Company49.5 bn17.115.1%10.1%−0.3%−1% / +48%
FTITechnipFMC plc25.1 bn20.338.6%12.0%+9.4%+43% / +211%
NOVNov Inc.6.4 bn45.22.3%1.6%−1.4%+17% / −4%
WFRDWeatherford International plc6.2 bn15.323.0%8.6%−10.8%+15% / −5%
WHDCactus, Inc.4.3 bn23.614.7%12.0%−4.5%+35% / +37%
DNOWDnow Inc.2.8 bn—-12.4%-4.9%+18.8%+10% / +54%
INVXInnovex International, Inc.1.8 bn37.14.5%4.8%+48.0%+16% / +15%
FETForum Energy Technologies, Inc.845.3 m28.89.8%3.5%−3.1%+135% / +238%
OISOil States International, Inc510.2 m—-16.8%-16.5%−3.4%+35% / +24%
OMSEOMS Energy Technologies Inc.167.2 m3.343.5%22.0%unavailable−16% / unavailable
LSELeishen Energy Holding Co., Ltd.75.4 m55.42.9%2.6%−30.0%−14% / unavailable
DTIDrilling Tools International Corporation52.9 m—-2.5%-2.0%+3.4%−32% / −59%
STAKSTAK Inc.27.5 m71.52.9%1.5%+13.2%+202% / unavailable
GPUSHyperscale Data, Inc.247.1 k—-159.8%-71.0%−4.3%−89% / −100%
SEISolaris Energy Infrastructure, Inc.——8.4%7.2%+98.7%+20% / +573%
FLOCFlowco Holdings Inc.—17.712.5%6.4%+41.9%+15% / unavailable

1- and 3-year price returns: for DTI from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    Drilling Tools International Corp. (DTI) rents and manufactures downhole tools for horizontal and directional drilling of oil and gas wells, onshore and offshore, from Texas. The company is expanding in the Eastern Hemisphere, and rentals, which made up 81% of revenue in 2025, give it a steadier revenue mix than product sales in a cyclical sector. For 2026 it guided to revenue of 155 to 170 million USD, reaffirmed in August 2026.

    SWOT

    Strengths

    • The company has a large tool fleet and a rental model that produces recurring revenue, especially from oil and gas operators.
    • Long contract relationships with many large customers and safety certifications form a barrier for smaller competitors.
    • Its proprietary fleet management system supports high tool utilization and fast delivery.

    Weaknesses

    • The company relies on a relatively small number of large customers, and losing one could significantly affect revenue.
    • The net result was negative in 2025 and in the first half of 2026, and net debt remains high.
    • Personnel costs have risen and are hard to fully recover through prices.

    Opportunities

    • A recovery in Canadian and US drilling activity could lift demand for rented tools if rig counts keep rising.
    • Expansion in Europe and the Gulf of America through new ClearPath contracts could accelerate growth in the Eastern segment.
    • Acquisitions of tool rental assets could add capacity and geographic reach.

    Threats

    • Lower oil and gas prices could reduce customer capital budgets and tool demand.
    • Political instability in some countries where the company operates could disrupt activity and revenue.
    • Larger competitors with integrated offerings could press prices or win important customers.

    Risks

    • Customer concentrationhigh

      A small number of customers generates a significant share of revenue, and losing one could seriously affect results.

    • Cyclicality of the oil sectorhigh

      Drops in activity can reduce demand and rental prices, and the effect could be fast and material.

    • High leveragemedium

      Net debt and interest costs could limit the company's ability to fund growth if results stay weak.

    • Skilled labor shortagemedium

      Difficulty hiring and keeping specialized staff could slow operations and expansion.

    • Liability for tool failureslow

      Faulty tools or tools lost in the well can lead to claims and harm the company's reputation.

    Investment thesis

    What would need to be true (bull case)

    • If drilling activity in the US and Canada keeps recovering, rental volumes could grow faster than costs.
    • New ClearPath contracts in Europe could mark a significant step up in Eastern Hemisphere contribution in the second half of the year.
    • The rental model gives steadier revenue than product sales, which could support operating cash flow.

    What would break the thesis

    • If oil prices fall again, customers could cut investment and the company's revenue could decline.
    • High net debt and recent net losses could limit the company's financial flexibility.
    • Rising personnel and goods costs could reduce margins if they cannot be passed on to customers.

    What to watch

    • Delivery against the 2026 revenue guidance of 155 to 170 million USD2026
    • Timing and size of new ClearPath contracts in Europe and the Gulf of AmericaQ3 2026
    • Trend in drilling rig counts in the US and CanadaQ3 2026
    • Net debt and adjusted free cash flow compared with guidancenext 10-K

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    The company describes its business as a rental-focused offering of downhole tools for horizontal and directional drilling, onshore and offshore 1. It runs a fleet of over 65000 tools from multiple locations 1. Revenue in 2025 was 159.6 million USD, with rentals accounting for 81% of the total and product sales for the rest 1.

    Its main customers are diversified oilfield services companies, about 48% of 2025 revenue, and E&P operators, a similar share 1. The company holds master service agreements with over 340 major customers, which act as a barrier to smaller competitors 1.

    Operations are split into Western and Eastern Hemisphere segments, and the Eastern segment has grown through recent acquisitions in Europe, the Middle East and Asia-Pacific 1. The company operates from 15 North American locations and 11 international service and support centers 1.

    Segments

    Western Hemisphere

    This segment rents tools for onshore and offshore operations in North and Latin America, and its revenue dipped slightly in 2025 as customer activity fell 1. It is the larger contributor to segment profit 1.

    Eastern Hemisphere

    The segment expanded through acquisitions in Europe, the Middle East and Asia-Pacific, and its revenue rose in 2025 because of these deals, although profit was held back by staffing costs and softer Middle East activity 1.

    Market context

    Demand for the company's services depends on oil and gas activity, measured by rig counts, wells drilled and operator capital spending 1. In 2025 the average monthly Western Hemisphere rig count fell 8% and the WTI oil price fell 14% 1. In the first half of 2026 WTI was higher than a year earlier, while rig counts stayed below 2025 levels 2.

    The market is cyclical, and personnel and operating goods costs rise with inflation, which can squeeze profitability 1. The company says it competes in a market with a limited number of rental tool competitors 1.

    Trends

    • Oil price and operator demandtailwind

      Higher oil prices in 2026 could support customer capital spending if the trend holds, although investment decisions also depend on medium and long term prices 2.

    • Low rig countsheadwind

      Drilling activity remains below historical levels in some markets, which limits rental volumes even though longer laterals and efficiency gains partly offset this 2.

    • Cost inflationheadwind

      Rising personnel and operating goods costs could reduce margins if they cannot be passed on to customers through higher prices 1.

    • New technology for longer wellsmixed

      Exclusive distribution of newer systems such as ClearPath could open new contracts in Europe and the Gulf of America, if field adoption continues 13.

    Competitive position

    The company says its main advantages are fleet size, experienced management and strong customer relationships, and that the number of direct competitors is limited 1. Competition plays out on price and on the ability to deliver tools quickly across many locations 1.

    Competitors include larger oilfield services companies with their own tool divisions, which can offer integrated packages across the full well life cycle 1. The sources do not give a precise market share for these rivals.

    • Baker Hughes CompanyBKR

      Oilfield services company named as a major DTI customer, and also a provider of competing drilling services 1.

    • Halliburton CompanyHAL

      Diversified oilfield services company named as a DTI customer and a possible competitor in tools 1.

    • SLBSLB

      Formerly Schlumberger, named as a DTI customer with competing drilling tool offerings 1.

    • Phoenix Energy

      Services company named as a DTI customer, active in the same market segment.

    News & filings

    In the press

    No news in our archive over the last 180 days.

    SEC filings

    • Current report13 Oct 2026
      Other events
    • Current report08 Oct 2026
      Regulation FD disclosure · Financial statements and exhibits
    • Current report08 Oct 2026
      Material agreement · Regulation FD disclosure · Other events · Financial statements and exhibits
    • Quarterly report07 Aug 2026
    • Current report06 Aug 2026
      Results of operations · Financial statements and exhibits
    • Current report06 Aug 2026
      Regulation FD disclosure · Financial statements and exhibits
    • Quarterly report08 May 2026
    • Current report07 May 2026
      Results of operations · Financial statements and exhibits
    • Current report07 May 2026
      Regulation FD disclosure · Financial statements and exhibits
    • Current report01 May 2026
      Departure or appointment of officers · Shareholder vote · Financial statements and exhibits

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Drilling Tools International Corp. · 06 Mar 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Drilling Tools International Corp. · 07 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Drilling Tools International Corp. · 06 Aug 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.