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what it is
DTI rents and sells drilling tools that help oil and gas wells get drilled without wrecking the hole.
how it gets paid
Last year Drilling Tools Intl made $160M in revenue. Downhole tool rentals was the main engine at $72M, or 45% of sales.
why it's growing
Revenue grew 3.4% last year. Q4 2024 EPS was about -$0.04 versus ~$0.13 in Q4 2023.
what just happened
The quarter said one thing clearly: earnings power is weak, with EPS at -$0.04 in Q4 2024.
At a glance
C+ balance sheet — struggling to keep the lights on
2.8% return on capital — nothing to write home about
$0.09 fy2024 eps est
$154M fy2024 rev est
8.4% operating margin
xvary composite: 29/100 — weak
What they do
DTI rents and sells drilling tools that help oil and gas wells get drilled without wrecking the hole.
This is a tools-on-the-rig business, not a software fairy tale. If your well is active, you need the right equipment now, and DTI supports that with 447 employees across North America, Europe, and the Middle East. The edge is availability plus specialized gear like Drill-N-Ream and RotoSteer, but the numbers keep you honest: operating margin was just 8.4% in FY2024, so this moat is real but narrow.
How they make money
$160M
annual revenue · their business grew +3.4% last year
Downhole tool rentals
$72M
BHA components
$32M
Machining and inspection services
$24M
Drill pipe and accessories
$20.8M
Wellbore optimization tools
$11.2M
The products that matter
tool rental and refurbishment
Rental Tools
$155M–$170M 2026 revenue guide
management's 2026 revenue guide is $155M–$170M. that is roughly the size of the whole company, which tells you this segment still carries almost all of the revenue weight.
main engine
acquired casing tool line
Deep Casing Tools
$5M disclosed line
acquired in march 2024, this business is small next to the main rental operation. right now it matters more as proof of the M&A plan than as a major earnings driver.
strategy test
Key numbers
$160M
annual revenue
That is the scale of the whole business. You are not buying a giant. You are buying a niche supplier with real sales but limited cushion.
8.4%
operating margin
Operating margin → profit left after running the business → so what: DTI does not have much room for mistakes.
$68M
long-term debt
Debt → money owed for years → so what: a small company carrying $68M has less flexibility if drilling slows.
2.8%
return on capital
Return on capital → profit earned on the money invested → so what: this business is not squeezing much out of its asset base.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- long-term debt $68M (35% of capital)
C+ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for DTI right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The quarter said one thing clearly: earnings power is weak, with EPS at -$0.04 in Q4 2024.
Q4 2024 EPS about -$0.04 versus ~$0.13 in Q4 2023. Some feeds show ~$121M revenue with -$0.14 EPS for a “latest” line—that revenue level does not foot cleanly to ~$160M FY as one quarter, so treat period labels as messy; directionally, earnings weakened.
~$40M
revenue (Q, approx.)
-$0.14
eps (alt feed)
8.4%
FY operating margin
the number that mattered
The number that mattered was EPS turning negative. When a company expected to earn $0.09 for the full year posts a negative quarter, your valuation case gets a lot less comfortable.
source: company earnings report, 2026
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What could go wrong
the #1 risk is drilling activity falling enough to break the $155M–$170M 2026 revenue guide.
high
oil and gas activity drop
DTI sells and rents drilling tools. That means customer demand tracks drilling budgets, not hope. If oil and gas producers pull back, the $155M–$170M revenue guide is the first thing under pressure.
A weaker activity backdrop would hit the projected $17M–$22M of adjusted free cash flow before it hits anything else.
high
$68M debt load on a $124M equity value
Debt is not fatal here, but it is not background noise either. A company this small does not get many chances to miss and shrug it off.
If free cash flow lands below guide or capital spending rises above the planned $18M–$23M, balance-sheet pressure gets harder to ignore.
med
M&A has to earn its keep
Management is talking about more deals and an international push. The current acquisition, Deep Casing Tools, is still small at $5M of disclosed revenue. That means the strategy is ahead of the proof.
If acquisitions add cost faster than revenue, the 24.3% operating margin stops looking like protection and starts looking temporary.
med
earnings quality is still thin
The page shows a $0.09 EPS estimate and no meaningful trailing P/E because GAAP profitability is not consistent enough to anchor valuation. That makes the stock more dependent on management hitting cash targets.
If cash flow disappoints, investors lose the cleanest piece of the bull case and the stock is left with cyclicality, debt, and limited visibility.
A slowdown that pushes results below the $155M–$170M revenue guide would pressure the projected $17M–$22M of free cash flow, and a company carrying $68M of long-term debt has less room for mistakes than the margin profile suggests.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
adjusted free cash flow versus the $17M–$22M guide
This is the cleanest number on the page. If DTI hits it, debt looks more manageable. If it misses, the balance-sheet debate gets louder fast.
trend
whether revenue lands near $155M or closer to $170M
The spread matters. Low-end performance says the business is treading water. High-end performance gives management more credibility on growth and on any future dealmaking.
calendar
the next update after the march 6, 2026 strategy presentation
Management pitched international expansion and more acquisitions. The next filing or call needs to show what changed in the numbers, not just in the slide deck.
risk
whether Deep Casing Tools becomes material
Right now the disclosed revenue line is $5M. If that stays tiny while acquisition talk grows, you are looking at strategy expansion without much proof of return.
Analyst rankings
coverage depth
thin
There is not much published ranking data on this page. In human-speak, analyst coverage is too light to be a core part of the thesis.
signal quality
mixed
Sparse coverage cuts both ways. It leaves room for mispricing, but it also leaves you with less outside scrutiny when management sets the tone.
source: institutional data
Institutional activity
institutional ownership data for DTI is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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