Drilling Tools Q2 revenue rises  misses estimates

Drilling Tools International

13/08/2025 21:24

Overview

Drilling Tools Q2 revenue rises 5% yr/yr but missed analyst expectations, per LSEG data

Company reports Q2 net loss of $2.4 mln, adjusted net loss $725,000

Eastern Hemisphere revenue grows 46% qtr/qtr, contributing 14% of total revenue

Outlook

Drilling Tools International maintains 2025 revenue guidance at $145 mln-$165 mln

Company expects 2025 full-year Adjusted EBITDA of $32 mln to $42 mln

Company anticipates 2025 Adjusted Free Cash Flow of $14 mln to $19 mln

Company expects pricing pressures to compress margins in the back half of 2025

Result Drivers

LOWER COMMODITY PRICES - DTI attributes lower Q2 revenue to reduced rig count and customer activity, particularly on US land, due to lower commodity prices

EASTERN HEMISPHERE GROWTH - Revenue in Eastern Hemisphere segment increased by 46% qtr/qtr, contributing 14% to total revenue

COST CUTTING MEASURES - DTI implemented a $6 mln expense reduction program to align spending with customer activity levels, aiming to mitigate market disruptions and pricing pressures

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$39.42 mln
$39.80 mln (2 Analysts)
Q2 EPS
-$0.07
Q2 Net Income
-$2.41 mln
Q2 Basic EPS
-$0.07
Q2 Pretax Profit
-$1.66 mln


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 $3.78, about 47% above its August 12 closing price of $2.00

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 776 three months ago

Press Release: ID:nPn5tLqPCa

(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.)