Drilling Tools International Corp.
- Open
- 1.94
- Day high
- 1.97
- Day low
- 1.92
- Prev close
- 1.93
- Volume
- 49K
- Mkt cap
- $69M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.6
- P/S
- 0.4
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$18K over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions accumulating (13F)
Drilling Tools International Corp. (DTI) is a Energy company listed on NASDAQ. The stock is down 32% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4).
Drilling Tools International Corp. (DTI) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DTI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 8, 2026 | $0.01 | $-0.03 | -400.0% | $38M | +0.4% |
| Mar 6, 2026 | $0.00 | $0.04 | +852.4% | $39M | +2.5% |
| Nov 6, 2025 | $-0.01 | $0.02 | +300.0% | $39M | +4.9% |
| Aug 13, 2025 | $0.04 | $-0.02 | -150.0% | $39M | +5.6% |
| Mar 13, 2025 | $0.01 | $0.02 | +100.0% | $40M | +2.2% |
| Nov 13, 2024 | $0.06 | $0.14 | +133.3% | $40M | +11.1% |
| May 9, 2024 | $0.15 | $0.13 | -13.3% | $37M | +0.3% |
| Nov 13, 2023 | — | $0.14 | — | $38M | — |
| Aug 14, 2023 | — | $0.05 | — | $41M | — |
| Sep 29, 2022 | — | $0.34 | — | $37M | — |
| May 16, 2022 | — | $-0.01 | — | — | — |
| Mar 24, 2022 | — | $-0.01 | — | — | — |
DTI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 15, 2026 | Domino Michael Wayne Jr.officer: President, DTR Division | Sell | 2,083 | $2.56 |
| May 15, 2026 | Domino Michael Wayne Jr.officer: President, DTR Division | Sell | 2,083 | $3.07 |
| May 13, 2026 | FURST JACK Ddirector | Option | 28,626 | — |
| May 13, 2026 | Neuman Eric Cdirector | Option | 28,626 | — |
| May 13, 2026 | Crofford Curt L.director | Option | 28,626 | — |
| Apr 30, 2026 | Kimes Daniel Jeffreydirector | Grant | 23,438 | — |
| Apr 30, 2026 | THIGPEN JEREMY Ddirector | Grant | 23,438 | — |
| Apr 30, 2026 | Green Ira Harris Jrdirector | Grant | 23,438 | — |
| Apr 30, 2026 | Crofford Curt L.director | Grant | 23,438 | — |
| Apr 30, 2026 | Neuman Eric Cdirector | Grant | 23,438 | — |
| Apr 30, 2026 | FURST JACK Ddirector | Grant | 23,438 | — |
| Apr 15, 2026 | Domino Michael Wayne Jr.officer: President, DTR Division | Sell | 2,083 | $2.89 |
| Mar 31, 2026 | Domino Michael Wayne Jr.officer: President, DTR Division | Sell | 3,169 | $4.00 |
| Mar 30, 2026 | Domino Michael Wayne Jr.officer: President, DTR Division | Sell | 997 | $4.00 |
| Mar 16, 2026 | Domino Michael Wayne Jr.officer: President, DTR Division | Sell | 2,083 | $3.58 |
Source: DTI SEC Form 4 filings, latest Jun 15, 2026. For informational purposes only — not investment advice.
See the full DTI insider & 13F page →Drilling Tools International Corp. company profile
Overview
Drilling Tools International Corp. (NASDAQ:DTI) is a Houston-based oilfield services company founded in 1984 that provides specialized drilling equipment and services to the global oil and natural gas industry. The company went public in December 2021 and has since pursued an aggressive growth strategy through strategic acquisitions, completing four major acquisitions in 2024 alone. DTI operates across North America, Europe, and the Middle East, serving drilling contractors and oil companies with both equipment rental services and product sales. The company has transformed from a primarily North American operation to an increasingly international business, with international revenue expected to grow from 1% in 2023 to approximately 10% in 2024.
Business
Drilling Tools International operates in the oilfield equipment and services sector, providing specialized tools and equipment essential for oil and natural gas drilling operations. The company's business is built around two primary revenue streams that serve the complex needs of drilling contractors and oil companies. The Tool Rental segment represents approximately 76% of total revenue and provides drilling contractors with specialized downhole equipment on a rental basis. This includes critical drilling components such as drill collars (heavy steel tubes that provide weight and rigidity to the drill string), stabilizers (tools that keep the drill bit centered in the wellbore), hole openers and reamers (tools that enlarge the wellbore diameter), and blowout preventers (critical safety equipment that prevents uncontrolled release of oil or gas). The rental model allows drilling contractors to access expensive, specialized equipment without the capital investment required for outright purchase, while providing DTI with recurring revenue streams. The Product Sales segment accounts for approximately 24% of revenue and involves the outright sale of drilling tools and equipment. This includes tubulars (various types of pipe used in drilling operations), handling tools like elevators and slips (equipment used to handle drill pipe during operations), drilling accessories, and specialized downhole tools. The company also provides inspection services and data automation solutions to help optimize drilling operations. DTI's operations are geographically organized into two segments: the Western Hemisphere (primarily North America) and the Eastern Hemisphere (Europe, Middle East, and Africa). The company has significantly expanded its international presence through recent acquisitions, positioning itself to serve the global energy market's diverse drilling requirements across different geological conditions and regulatory environments.
Revenue model
DTI generates revenue through two distinct business models that complement each other and provide diversified income streams. The tool rental business operates on a day-rate or project-based rental model, where drilling contractors pay for the use of specialized equipment during drilling operations. This model provides relatively predictable cash flows and higher margins, as the same equipment can be rented multiple times over its useful life. Rental rates vary based on equipment type, market conditions, and geographic location, with premium pricing available for specialized or technologically advanced tools. The product sales business follows a traditional manufacturing and distribution model, where DTI sells drilling tools and equipment outright to customers. This includes both manufactured products and sourced equipment, with margins depending on the complexity of the product and competitive dynamics. The company has vertically integrated certain manufacturing capabilities through acquisitions, such as Superior Drilling Products, which allows for better margin capture and quality control. Several factors significantly impact DTI's profitability and margins. Rig count activity is the primary driver, as higher drilling activity increases demand for both rental equipment and product sales. Oil and gas prices indirectly affect demand, as higher commodity prices encourage more drilling activity. Geographic mix also matters, with international markets often commanding higher margins due to specialized requirements and less competition. The company's recent international expansion is partly motivated by these margin opportunities. Competitive pressures can compress margins, particularly in mature North American markets where multiple service providers compete for contracts. DTI addresses this through differentiated technology offerings and flexible commercial terms. Utilization rates for rental equipment directly impact profitability, as fixed costs are spread across active rental days. The company's diverse geographic footprint helps optimize utilization by moving equipment between markets based on activity levels. Raw material costs and manufacturing expenses affect product sales margins, while the company's vertical integration strategy helps mitigate some of these pressures. Currency fluctuations impact international operations, though this becomes more relevant as the company expands its Eastern Hemisphere presence. Finally, the company's acquisition strategy can enhance margins through operational synergies, cost reductions, and expanded technology offerings, though integration costs may temporarily pressure profitability.
Competitive moat
DTI operates in a fragmented oilfield services industry where sustainable competitive advantages are challenging to establish and maintain. The company's moat is relatively narrow and primarily built around specialized technical expertise and established customer relationships rather than structural barriers to entry. The company's strongest defensive position comes from its specialized product portfolio and technical knowledge accumulated over nearly four decades in the industry. Certain drilling tools require precise engineering and manufacturing capabilities, and DTI's experience in designing tools for specific geological conditions and drilling challenges provides some differentiation. The recent acquisitions have expanded this technical moat by adding proprietary technologies like the MechLOK Swivel and Rubblizer tools, though these advantages are not insurmountable. Customer relationships and service quality provide another layer of competitive protection. Drilling operations are high-stakes environments where equipment failure can result in significant costs and safety risks. DTI's track record of reliable equipment and responsive service creates switching costs for customers who value proven performance. The company's geographic diversification also allows it to serve customers across multiple markets, strengthening these relationships. However, the moat faces several significant challenges. The cyclical nature of the oil and gas industry creates periods of intense price competition when activity levels decline, eroding pricing power and margins. The industry is highly fragmented with numerous competitors, from large multinational service companies to smaller regional players, limiting DTI's ability to achieve dominant market positions. Technological disruption poses a long-term threat, as advances in drilling techniques, automation, and alternative energy sources could reduce demand for traditional drilling services. The company's relatively small size compared to industry giants like Halliburton or Schlumberger limits its ability to invest heavily in research and development or achieve significant economies of scale. The capital-intensive nature of the business means that well-funded competitors can relatively easily enter markets by purchasing or manufacturing similar equipment. While DTI's acquisition strategy aims to consolidate the fragmented market, this same fragmentation means that new competitors can emerge or existing ones can expand their offerings. Overall, DTI's moat is modest and requires continuous investment in technology, customer service, and operational efficiency to maintain its competitive position.
Risks & safety
DTI presents a moderate margin of safety with mixed financial health indicators that require careful monitoring. **Liquidity and Solvency:** • Current ratio of 1.94 indicates adequate short-term liquidity coverage • Cash position of $2.8 million is relatively low for operations, creating potential cash flow timing risks • Total debt-to-equity ratio of 0.49 represents manageable leverage levels • Negative free cash flow of -$2.6 million in Q1 2025 raises concerns about cash generation **Operational Cash Flow:** • Positive operating cash flow of $2.4 million in Q1 2025 shows core operations generate cash • Significant gap between operating cash flow and free cash flow indicates high capital expenditure requirements • Company guidance suggests improvement with projected adjusted free cash flow of $14-19 million for 2025 **Valuation Metrics:** • EV/EBITDA of 9.1x appears reasonable for a cyclical industrial company • Price-to-book ratio of 0.69 suggests potential undervaluation relative to asset base • Market cap of approximately $108 million for a company generating $154 million in annual revenue **Other Considerations:** • $10 million share buyback authorization provides management flexibility and confidence signal • Cyclical industry exposure creates earnings volatility risk • Recent acquisition activity increases integration execution risk but also growth potential • Cost reduction program targeting $6 million in annual savings should improve cash generation
Recent development
Over the past few years, DTI has executed a transformational growth strategy centered on strategic acquisitions and international expansion. The company completed four major acquisitions in 2024: Deep Casing Tools, Superior Drilling Products, European Drilling Projects, and Titan Tool Services. These acquisitions were specifically designed to expand DTI's geographic footprint beyond its traditional North American base and add proprietary technologies to its product portfolio. The Superior Drilling Products acquisition was particularly strategic, providing vertical integration capabilities that allow DTI to manufacture drill-and-ream tools in-house, capturing higher margins and reducing capital expenditure requirements by an estimated 60% for new tools. The company established a PDC bit and drill-and-ream repair facility in Dubai, UAE, supporting its Middle Eastern expansion. DTI has reorganized its operations into two geographic segments: Western Hemisphere and Eastern Hemisphere, reflecting its evolution from a primarily North American company to a global operation. International revenue is expected to grow from just 1% in 2023 to approximately 18% by the end of 2025, representing a fundamental shift in the company's business mix. The company has also focused on technology development and differentiation, particularly with products like the MechLOK Swivel, Rubblizer tools, and RotoSteer directional drilling technology. These specialized tools command premium pricing and help differentiate DTI from commodity-focused competitors. In response to market headwinds, DTI implemented a comprehensive cost reduction program targeting $6 million in annual savings, while maintaining flexibility to adjust capital expenditures based on market conditions. The company has also adopted a "One DTI" integration strategy to maximize synergies across its acquired operations and eliminate redundancies. Management has maintained an active M&A pipeline while being selective about opportunities, focusing on deals that provide either geographic expansion or technological capabilities that complement existing operations.
DTI company profile · for informational purposes only — not investment advice.
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