Overview

• Drilling Tools Q3 2025 revenue beats analyst expectations, reaching $38.8 mln

• Company maintains full-year 2025 outlook despite market challenges

Outlook

• Company maintains full-year 2025 revenue outlook of $145 mln to $165 mln

• Drilling Tools expects 2025 adjusted EBITDA between $32 mln and $42 mln

• Company anticipates fourth-quarter seasonality to affect activity levels and pricing

Result Drivers

• PRICING STRATEGY - Strategic pricing adjustments helped offset pricing pressure and stimulated higher activity levels

• GEOGRAPHIC EXPANSION - Eastern Hemisphere segment grew revenue by 41%, contributing 15% of total revenue

• FINANCIAL DISCIPLINE - Debt reduction and share buybacks improved financial position

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for Drilling Tools International Corp is $3.78, about 45.2% above its November 5 closing price of $2.07

• The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 35 three months ago

Press Release: ID:nPn210hgla

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)