- Drilling Tools International Corp. (DTI, Financial) reports Q1 2025 revenue of $42.9 million, a 16% year-over-year increase.
- DTI announces a $10 million share repurchase program to enhance shareholder value.
- Adjusted EBITDA for Q1 2025 reaches $10.8 million, an 18% increase from the previous year.
Drilling Tools International Corp. (NASDAQ: DTI) has released its financial results for the first quarter of 2025, reporting strong revenue growth and announcing strategic initiatives to enhance shareholder value. The company's total revenue for Q1 2025 stood at $42.9 million, marking a 16% increase compared to the same period last year and a 7.6% gain from the previous quarter. Revenue from Tool Rental services was $34.5 million, while Product Sales contributed $8.3 million.
Despite posting a net loss of $1.7 million for the quarter, DTI's Adjusted EBITDA showed an 18% year-over-year improvement, reaching $10.8 million. This performance highlights the company's resilience amid escalating market uncertainties.
The board of DTI has authorized a $10 million share repurchase program, reflecting confidence in the company’s long-term strategy and financial health. This initiative aims to enhance shareholder value by optimizing the capital structure and providing flexibility to manage the equity base efficiently.
Looking ahead, DTI has updated its guidance for 2025, projecting revenue between $145 million and $165 million, with Adjusted EBITDA anticipated to range from $32 million to $42 million. The company's Adjusted Free Cash Flow is expected to be between $14 million and $19 million.
To address potential market disruptions from factors such as tariffs, recession fears, and OPEC+ production increases, DTI has implemented a cost-cutting program targeting $6 million in savings for 2025. The company leverages its robust US manufacturing base and diverse supply chain to mitigate risks associated with tariff hikes.
