Drilling Tools International Corporation Reports 2026 Third Quarter Results

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“We are pleased with our third quarter performance. As we anticipated, the second half improvement is underway, with Revenue up 7% and Adjusted EBITDA up 14% sequentially, and Adjusted EBITDA margin expanding to approximately 23%.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“We delivered sequential growth across North America and key Eastern Hemisphere markets, and our results strengthened each month of the quarter. September was our strongest month, with Adjusted EBITDA reaching approximately $4 million for the first time this year, providing a healthy exit rate and strong momentum as we close out 2026.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“In North America, rising U.S. rig counts and a sharp post-breakup rebound in Canada drove higher tool utilization, and commercial terms held firm as customers finalize their 2027 budgets.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“Offshore, demand for our ClearPath technology continues to build in both hemispheres.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“In Europe, significant new ClearPath contract awards, which drove the bulk of our growth investments this year, began contributing full run-rate revenue in September and are supported by long-term rental agreements.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“In the Gulf of America, ClearPath continues to gain traction as operators place a premium on performance in the most technically demanding wells.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“In the Middle East, overall activity was relatively flat as the regional conflict persists, but operators have largely adapted, and we remain encouraged by the region's longer-term outlook.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“This is a transformative step that is expected to take our Eastern Hemisphere business to approximately 40% of pro forma revenue, giving DTI a more balanced and appropriately hedged position across the global drilling market.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“We expect the transaction, if completed, to be accretive to Adjusted EBITDA margin and Adjusted Free Cash Flow per share in the first year following closing before any synergies, with the opportunity to bring our technologies to Saltire's customers representing meaningful upside.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“We continue to expect to fund the cash portion of the transaction through new debt financing together with borrowings under our existing credit facility, and we remain on track to close in the first quarter of 2027, subject to DTI stockholder approval, any required regulatory approvals and other customary closing conditions.”

Wayne Prejean, Chairman of the Board and Chief Executive Officer of Drilling Tools International Corporation

“Upon the completion of the Saltire acquisition, we expect to be a larger, more diversified company, and we look forward to building on that foundation in 2027 and beyond.”