#United States #Houston #financial results #Oilfield Services #Drilling Tools

Drilling Tools International Corp. Reports Second Quarter Results for 2025

Drilling Tools International Corp. (NASDAQ: DTI), a prominent oilfield services firm based in Houston, Texas, has released its financial results for the second quarter of 2025. The company specializes in the design, engineering, manufacturing, and rental of innovative tools used in horizontal and directional drilling operations in the oil and gas sector. As the industry contends with fluctuating commodity prices and reduced rig counts, DTI's latest report offers insight into its operational resilience and strategic adaptations.

In the second quarter, DTI reported total consolidated revenues of $39.4 million. This figure includes $32.8 million from tool rental services and $6.7 million from product sales. Despite the revenue growth, the company faced challenges, evidenced by a net loss of approximately $2.4 million, leading to a diluted earnings loss of $0.07 per share for the quarter. Adjusted metrics were also reported, showing an adjusted net loss of $725,000 and an adjusted EBITDA of $9.3 million.

CEO Wayne Prejean remarked on the quarter's performance, pointing to the lower commodity prices that have led to decreased rig counts and diminished customer activity, particularly within the U.S. land sector. DTI's revenue from operations in the Western Hemisphere declined compared to the first quarter of 2025; however, the company still managed to surpass its internal forecasts amidst ongoing market pressures.

A notable aspect of the quarter was DTI's stronger foothold in the Eastern Hemisphere, where revenues grew by 46% year-over-year, contributing 14% to DTI’s total revenue for the quarter. This expansion has been facilitated by recent acquisitions that have diversified the company's geographic reach and customer base.

DTI acknowledged that the typical seasonal slowdown tends to occur in the second quarter, attributed to Canada’s spring breakup and broader market seasonality. Thus, the company’s ability to report its first positive adjusted free cash flow for any second quarter since going public is a positive indicator of operational effectiveness under challenging market conditions.

Looking to the future, DTI expects ongoing uncertainty due to fluctuating oil prices and a continuing downward trend in average rig counts. To align costs with anticipated activities, DTI has proactively implemented measures aimed at reducing expenses by approximately $6 million this year. Prejean emphasized the company’s commitment to maintaining operational flexibility and a focus on identifying additional cost-saving opportunities while navigating the evolving energy landscape.

Despite the challenges, DTI has opted to maintain its 2025 outlook, anticipating full-year revenues between $145 million and $165 million alongside adjusted EBITDA in the range of $32 million to $42 million.

The upcoming earnings conference call scheduled for August 14, 2025, is anticipated to provide further details and ensure transparency as DTI communicates its strategies for weathering the ongoing market shifts.

Overall, while the second quarter’s results reflect certain operational hurdles, DTI’s initiatives to adapt and strategize amidst the prevailing economic conditions illustrate its resilience and commitment to maintaining a competitive position in the oilfield services industry. The results signify the company's strategic foresight and preparedness to tackle the challenges ahead while continuing to serve its customer base effectively.

For more information about DTI and its service offerings, visit Drilling Tools International Corp..