Drilling Tools International Corp (NAS:DTI)

Q2 2026 Drilling Tools International Corp Earnings Call Transcript

Aug 7, 2026 / 02:00 PM GMT

Release Date Price: $2.28 (-2.98%)

Transcript 10-Q8-K

Key Points

Positve

Drilling Tools International Corp (DTI) generated strong adjusted free cash flow of $4.1 million in Q2 2026, a notable step up from both the first quarter of 2026 and the second quarter a year ago.
The company is seeing early signs of recovery in the U.S., with the rig count adding more than 20 rigs in June and nearly 19 rigs in July, indicating improved utilization and commercial terms for the second half of 2026.
Drilling Tools International Corp (DTI) is gaining market share and winning new business on stronger commercial terms, with pricing pressure stabilizing after several quarters of compression.
The ClearPath stabilizer technology is gaining real traction in offshore markets, with new awards expected to drive a material step up in European contribution in the second half of the year.
The company reaffirmed its 2026 guidance ranges, implying a stronger second half with substantial free cash flow generation, supported by activity increases in major operating areas and rising international utilization.
Following the HHEP distribution, approximately 90% of Drilling Tools International Corp (DTI)'s shares are now held in the public float, positioning the company as a fully independent public entity with significantly improving trade liquidity.

Negative

Global rig count declined nearly 4% sequentially and remains down year-over-year, with considerable disruption in the Middle East where the rig count fell almost 7% in the quarter.
The company reported a net loss attributable to stockholders of approximately $1.8 million, or a loss of $0.05 per share, for the second quarter of 2026.
Tool rental revenue declined year-over-year due to softer North American land activity, a lengthy spring breakup in Canada, and continued pricing pressure in certain areas of the rental business.
The ongoing regional conflict in the Middle East created operational disruption with intermittent starts and stops and rig moves, tempering what would otherwise have been a stronger contribution from the region.
Net debt increased modestly during the second quarter, primarily reflecting the Norway investment, and elevated CapEx plans may bring full-year adjusted free cash flow toward the lower end of the guidance range.
The recovery from the Canadian breakup has been flatter than anticipated, with July activations at 193 rigs signaling that softness has only largely abated, not fully recovered.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

DTI.OQ - Drilling Tools International Corp
Q2 2026 Drilling Tools International Corp Earnings Call
Aug 07, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Greetings. Welcome to Drilling Tools International Second Quarter 2026 Earnings Conference Call.

At this time, all participants are in a listen-only mode.

A brief question-and-answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press *0 on your telephone keypad.

Please note this conference is being recorded.

I will now turn the conference over to Ken Denard, Investor Relations. Please proceed.

Thank you.

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Unidentified_2 [2]
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