Drilling Tools International Corp. (DTI) AI Stock Analysis

Drilling Tools International Corp., headquartered in Houston, Texas, specializes in providing oilfield equipment and services to the oil and natural gas sectors across North America, Europe, and the Middle East. Established in 1984, the company supplies specialized drilling equipment, including downhole desanders and filters, non-magnetic and steel drill collars, tubulars, wellbore conditioning technologies, hole openers, roller reamers, extended reach drilling tools, stabilizers, and sub-assemblies. In addition, it provides critical drilling accessories, handling tools, and technical services such as downhole inspection, well fence data automation, and compass services to optimize operational efficiency and safety across drilling sites.

Revenue expanded at a 4-year CAGR of 19.8% from $77.4M in FY2021 to $159.6M in FY2025, though annual revenue growth decelerated to 3.4% in FY2025. Gross margin contracted from 69.5% in FY2021 to 57.0% in FY2025, while operating margin fell from 19.5% in FY2022 to 5.5% in FY2025. Net income peaked at $21.1M in FY2022 before turning to a loss of -$3.8M in FY2025. For the trailing twelve months ending June 30, 2026, revenue was $153.4M with an operating margin of -2.0% and EPS of -$0.09. In the latest quarter, quarterly revenue fell 3.4% year-over-year and quarterly earnings declined 81.3%.

As of June 30, 2026, Drilling Tools International held $2.5M in cash and short-term investments against $79.4M in total debt, resulting in net debt of $76.9M. The company reported total assets of $228.6M, shareholders' equity of $119.7M, a current ratio of 2.18, and a debt-to-equity ratio of 0.66. Operating cash flow was $19.9M in FY2025, but capital expenditures of $21.8M led to free cash flow of -$1.9M. During FY2025, the company also directed $1.3M toward share buybacks, while its share count grew 31.4% over five years.

Drilling Tools International trades at a forward P/E of 8.1x, below the 12.7x forward P/E median of its US-listed Energy peers. Its enterprise value of $162.8M represents an EV to EBITDA multiple of 5.7x, compared to the peer median of 8.0x, and a price-to-sales ratio of 0.4x versus the peer median of 1.8x. Its price-to-book ratio is 0.7x. Over the past year, DTI generated a return of -15.8%, underperforming the S&P 500 (SPY) return of 16.8%, and the stock closed at $1.86 on October 16, 2026, which is 36.4% below its 200-day average.

Wall Street coverage consists of 1 Hold rating, with 0 Strong Buy, Buy, Sell, or Strong Sell ratings. The mean price target is $4.40, representing an upside of 136.6% compared to the last close of $1.86. For the fiscal year ending December 31, 2026, analysts estimate EPS of $0.08 on revenue of $161.0M. For the next fiscal year, 2 analysts project EPS of $0.20 on revenue of $199.4M, representing expected revenue growth of 23.8%. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Drilling Tools International Corp. (DTI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: DTI income statement, DTI balance sheet, DTI key metrics, DTI analyst forecast, DTI chart. See the DTI stock overview for the latest quote and news.