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- **Revenue Growth**: Eastern Hemisphere revenue up 41% YoY, contributing 15% of total revenue.
- **Financial Strength**: $5.6M debt reduction, $3.2M cash increase, and $550K share buybacks.
- **Strategic Expansion**: Middle East and North Africa M&A focus to capitalize on unconventional gas opportunities.
- **Operational Efficiency**: OneDTI program integration complete by December 2025, enhancing workflow and accountability.
- **Market Resilience**: U.S. rig count decline offset by quality-driven activity retention and Middle East stabilization.

**【CEO Summary Section】**
- **Revenue Growth and Financial Discipline**: Third-quarter revenue exceeded expectations, with $5.6 million debt reduction, $3.2 million cash increase, and $550,000 share buybacks. The Eastern Hemisphere contributed 15% of revenue, up 41% year-over-year.
- **Strategic Initiatives**: The OneDTI program is on track, with the U.S. Drill-N-Ream facility relocated to Houston ahead of schedule and Eastern Hemisphere operations set to integrate by December 2025. M&A focus remains on the Middle East and North Africa for unconventional gas opportunities.

**【CFO Financial Commentary】**
- **Financial Metrics**: Q3 revenue was $38.8 million, adjusted EBITDA $9.1 million, and free cash flow $5.6 million. Full-year 2025 guidance: revenue ($145M-$165M), EBITDA ($32M-$42M), and free cash flow ($14M-$19M). Capital expenditures are expected to remain flat at $3.5 million for Q4.
- **Leverage and Liquidity**: Net debt reduced by $4.4 million, with $550,000 in share buybacks, reflecting disciplined capital allocation.

**【Q&A Highlights】**
- **Market Performance**: U.S. rig count decline was less severe than anticipated, supported by quality and service leadership. Middle East activity is stabilizing, with Saudi Arabia and UAE unconventional gas projects driving growth.
- **M&A Strategy**: Focus on high-impact acquisitions in the Middle East and North Africa, leveraging DTI's global footprint and technological differentiation.


Drilling Tools International Corporation (DTI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DTI

DTI fundamentals

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