Drilling Tools International Corp. (DTI) posted third‑quarter 2025 results on November 6, 2025, reporting consolidated revenue of $38.8 million, a 4% year‑over‑year decline but a 9.4% beat over the $36.28 million consensus estimate. Net income was a $903,000 loss, or –$0.03 per diluted share, while adjusted net income rose to $751,000, or $0.02 per diluted share, and adjusted EBITDA reached $9.1 million.
The revenue beat was driven by a 41% sequential increase in the Eastern Hemisphere segment, which now accounts for roughly 15% of total revenue, and by a 75% rise in tool‑rental sales to $31.9 million. The company’s recent acquisitions have expanded its geographic footprint and customer base, fueling demand in emerging markets and offsetting a decline in U.S. product sales.
The net loss narrowed compared with the $867,000 profit reported in Q3 2024, largely because of higher operating costs associated with the increased volume of tool rentals and a 7% rise in the cost of tool‑rental revenue. However, disciplined cost management and pricing flexibility helped keep the loss per share smaller than the consensus estimate of –$0.04.
Segment analysis shows the Eastern Hemisphere grew 41% sequentially, while the Western Hemisphere and product sales segments remained flat or declined modestly. The company’s focus on flexible pricing and proactive customer engagement has helped sustain activity levels in the face of commodity price swings and seasonal demand cycles.
DTI reaffirmed its full‑year 2025 guidance, projecting revenue of $145 million to $165 million and adjusted EBITDA of $32 million to $42 million, and indicated it is leaning at or slightly above the midpoints of those ranges. Management highlighted typical fourth‑quarter seasonality and pricing pressure as headwinds, but emphasized continued debt reduction, cash build‑up, and share repurchases as evidence of financial discipline.
Investors reacted positively to the revenue beat and the narrower loss per share, but remained cautious about the year‑over‑year revenue decline and the ongoing net loss, reflecting a balanced view of DTI’s short‑term performance and longer‑term growth prospects.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.