Drilling Tools International Q1 revenue falls on early spring breakup in Canada

Drilling Tools International

07/05/2026 21:34

Overview

U.S. oilfield services firm's Q1 revenue declined yr/yr

Company posted Q1 net loss of $1.5 mln, or $0.04 per share

Revenue decline attributed to early spring breakup in Canada and lower global rig count

Outlook

Company reaffirms 2026 revenue guidance of $155 mln to $170 mln

Company expects 2026 adjusted EBITDA of $35 mln to $45 mln, margin of 23%-26%

DTI anticipates first-half 2026 activity to remain flat, with improvement expected later in year

Result Drivers

CANADA SPRING BREAKUP - Co said earlier-than-expected spring breakup in Canada led to revenue softness in Q1

LOWER GLOBAL RIG COUNT - Co said 4% yr/yr decline in global rig count weighed on results

PRODUCT TRACTION - ClearPath and Drill-N-Ream product lines gained traction with international offshore operators and customers managing complex well configurations, improving mix toward higher-margin solutions

Company press release: ID:nPnb9mPv0a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$37.96 mln
$38.21 mln (1 Analyst)
Q1 EPS
-$0.04
Q1 Net Income
-$1.5 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the oil related services and equipment peer group is "buy."

Wall Street's median 12-month price target for Drilling Tools International Corp is $4.13, about 21.7% above its May 6 closing price of $3.39

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 48 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)