Drilling Tools International (DTI) outlined its financial performance, acquisition strategy and operational expansion during a presentation at the EnerCom Denver conference. The company, which provides drilling tools and services to oil and gas operators, reported $153.36 million in revenue for the last 12 months, supported by a gross profit margin of 72.51%.
The Houston-based firm has shifted its revenue mix toward international markets, with the Eastern Hemisphere now accounting for 18% of total sales, up from just 1% three years ago. Its Western Hemisphere operations, primarily in the U.S. and Canada, contribute approximately 82% of revenue. DTI maintains an inventory of more than 65,000 tools across its global network.
Cash flow remains a key focus, with the company targeting a net debt-to-EBITDA ratio of one turn or less. Adjusted free cash flow yield stands at about 25%, while maintenance capital expenditures currently represent roughly 12% of revenue, within a historical range of 8% to 13%. The company has increased its public float to over 90% following an equity distribution in April 2024.
DTI has completed four acquisitions since going public in mid-2023, including Titan Tools in January 2025, Deep Casing Tools, Superior Drilling Products and European Drilling Projects. Manufacturing is concentrated in three primary facilities in Broussard, Louisiana; Vernal, Utah; and Canada. The customer base is evenly split between direct exploration and production operators and oilfield service companies, particularly directional drilling providers.
The company highlighted its rental-focused business model, which it argues provides customers with cost efficiency and flexibility. Jameson Parker, Vice President of Corporate Development, noted that operators require diverse tooling configurations that make ownership impractical. DTI’s software platform, COMPASS, supports asset tracking, quality control and inventory optimization.
Product innovation includes the ClearPath Stabilization Suite, gaining traction in deepwater environments such as the Gulf of America and Norwegian North Sea, and the TurboCaser and TurboRunner turbine-powered reamer shoes used in extended-reach drilling projects for ADNOC. Parker also emphasized DTI’s valuation relative to peers, stating the company ranks first or second in adjusted free cash flow margins and remains significantly undervalued compared with its peer group.
