Drilling Tools shares surge 12.08% premarket after Q4 results beat estimates, with CEO highlighting operational efficiency and 2026 growth guidance.

Drilling Tools International Corp. surged 12.08% in premarket trading following the release of its 2025 full-year and Q4 results, which highlighted strong operational performance and revised 2026 guidance. The company reported $159.6 million in 2025 revenue, with $39.3 million in adjusted EBITDA and $19.2 million in adjusted free cash flow. Management emphasized exceeding internal expectations in Q4 despite a 7% global rig count decline, debt reduction of $11 million, and a conservative net debt-to-EBITDA ratio of 1.1x. The Eastern Hemisphere segment’s revenue nearly doubled to 14%, and the company outlined 2026 guidance with revenue growth of $155–$170 million and adjusted EBITDA of $35–$45 million. These results, coupled with disciplined capital allocation and acquisition-driven expansion, likely drove the sharp premarket rally.