Drilling Tools International Corp (DTI)
NASDAQEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-09
$2.61+0.77%
Close 2026-09-09 · 1-day change
NASDAQEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-09
Broken: Primary pillar broken — Achieve adjusted EBITDA margin of 23%-26% in FY 2026: EBITDA margin not reported vs 23%-26% target.
Drilling Tools International aims for $155M-$170M revenue in 2026. It targets a 23%-26% adjusted EBITDA margin. The company plans to keep capital spending between $18M and $23M. Recent earnings beats show some operational improvement.
The company is loss-making with a very high PE of 212. Recent earnings misses and CEO transitions raise concerns. Revenue and margin targets may be too optimistic given the weak sector and recent selloff.
The price is about 22% below our fair value near $2.65. Analysts expect 7% revenue growth, but the market reflects elevated risk and weak profitability.
Breaks if: Adjusted EBITDA margin falls below 23% in FY26
Breaks if: CAPEX exceeds $23M or falls below $18M in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround opportunity in the energy sector. DTI is currently experiencing mixed performance, with stable management but high risk factors affecting its near-term outlook.
The market appears to have priced in a low level of fragility, reflecting a justified valuation that is cheap compared to peers. However, there is an expectations gap, indicating that investors are cautious about future performance.
Management has reaffirmed revenue and margin targets for 2026, but recent financial performance has been mixed. There is a high probability of an earnings miss in the near term, which could impact investor sentiment.
The long-term thesis hinges on external factors such as inflation trends and the performance of sector leaders. If inflation rises or if major energy companies continue to report strong earnings, DTI could benefit significantly.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company reported a positive earnings beat, reinforcing cash flow goals. However, it missed the profit view, which may hinder revenue growth targets for FY 2026.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Continue disciplined capital expenditures within the range of $18 million to $23 million for fiscal year 2026.
Stated as a priority in 3 of last 3 quarters. Capital expenditures guidance for 2026 is maintained at $18 million to $23 million. Actual capital expenditures for the six months ended June 30, 2026, were approximately $11.9 million, consistent with the annual guidance pace. Management is delivering disciplined capital allocation consistent with stated targets.
“Capital Expenditures $18,000 - $23,000 reaffirmed for FY 2026”
“Capital Expenditures $18,000 - $23,000”
“Capital Expenditures $18,000 - $23,000”
Breaks if: Revenue falls below $155M in FY26
Reaffirm full-year 2026 revenue guidance range of $155 million to $170 million, representing growth at the midpoint compared to 2025 results.
Stated as a priority in 3 of last 3 quarters. Revenue was $38.1 million in 2026-Q2, stable compared to $37.9 million in 2026-Q1 and down from $39.4 million in 2025-Q2. Management reaffirmed 2026 full-year revenue guidance of $155 million to $170 million, representing growth at the midpoint compared to 2025. The trajectory is mixed with stable recent quarterly revenue but guidance reflects expected growth.
“We are reaffirming our full-year guidance ranges, which represent growth at the midpoint compared to our 2025 results.”
“FY 2026 Guidance Revenue $155,000 - $170,000”
“FY 2025 guidance includes contributions from all four recent acquisitions... Revenue $145,000 - $165,000”
In the next 1 to 3 years, DTI's performance will depend on its ability to meet operational targets and external market conditions. Not investment advice.