Overview

* Drilling Tools ( DTI ) 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 ( DTI ) 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/Mis Actual Consensu

s s

Estimate

Q2 Miss $39.42 $39.80

Revenue mln mln (2

Analysts

)

Q2 EPS -$0.07

Q2 Net -$2.41

Income mln

Q2 Basic -$0.07

EPS

Q2 -$1.66

Pretax mln

Profit

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 ( DTI ) 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:

(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.)